XRP vs XLM: Selecting the Right Solution for Investment

close up shot of silver and gold round coins

Digital currencies have surged in popularity with the emergence of Bitcoin as an alternative payment system. This has led to the rise of crypto trading and investors constantly seeking profitable investment options. 

This article explores two leading digital currencies – XRP and XLM. While Jed McCaleb co-founded both, their use cases, market dominance, and associated risks and rewards differ. 

This comprehensive overview aims to help investors make informed decisions based on their needs. However, conducting your financial analysis is important and consider consulting a qualified financial advisor for expert guidance.

XRP: Definition & Overview

Founded in 2012 by Chris Larsen and Jed McCaleb, Ripple aims to transform global money transfers through their ‘xRapid’ protocol, which offers big financial institutions a cost-effective solution for quick international payments.

Ripple (XRP) is a ground-breaking platform that facilitates fast international payments. Using the XRP blockchain, transfers can be completed in 3-5 seconds, and transaction fees are significantly lower than Bitcoin or Ethereum. 

The robust blockchain technology ensures secure transactions through a distributed open-source internet protocol and consensus ledger, providing users with an efficient way to send money abroad without the usual hassles of traditional methods. 

XLM: Definition & Overview

Stellar (XLM) is an innovative platform designed to connect banks, payment systems, and individuals. It was established in 2014 by Jed McCaleb, a co-founder of Ripple and founder of Mt. Gox. 

The platform offers a cost-effective solution for international money transfers, as it utilises a decentralised blockchain architecture. This allows for quick transaction speeds and low fees. Additionally, Stellar’s network system enables the development of decentralised applications (dApps).


XRP and Stellar are two highly efficient digital assets with several appealing qualities. These coins boast an average transaction time of 3 to 5 seconds, faster than other methods like SWIFT transfers. Additionally, they offer lower fees compared to their competitors. Notably, both currencies were co-founded by Jed McCaleb and can be used for quick cross-border payments.

The Key Differences

Investors in the world of cryptocurrency have a lot to think about. XRP and XLM have strong use cases, but XRP has an advantage with its market capitalisation and bank partnerships. On the other hand, XLM has a great team and lots of potential. 

The outcome of the XRP lawsuit by the SEC will determine if it’s a successful or risky investment. Potential investors should also consider the risks involved with XRP, like market volatility and regulatory challenges.

Before investing in this cryptocurrency, it’s important to consider regulations and market uncertainty. However, the potential rewards are very attractive for those willing to take a chance on what could become a major player in global finance.

Selecting The Right One for Investment

When choosing the best cryptocurrency for your portfolio, it’s important to carefully consider Ripple and Stellar. While they share some common features, they have distinct strengths that set them apart. 

Ripple is known for its strong team of developers and robust platform, while Stellar is highly regarded for its greater decentralisation. Ultimately, the choice between the two depends on your individual needs and preferences.

However, it’s important to note that Ripple Labs is currently facing a lawsuit filed by the SEC in December 2020. The lawsuit alleges that Ripple and its executives Brad Garlinghouse and Chris Larsen illegally sold 1.3 billion dollars worth of unregistered securities. The legal proceedings are ongoing, with both sides working towards a resolution.

Final Takeaways

XRP and XLM are revolutionising payments in the financial industry. These digital currencies offer lightning-fast transactions and low fees, making them poised for success in the market. 

XRP focuses on scalability, boasting a large user base, while Stellar Lumens aims to provide banking services to the unbanked. Both platforms have the potential for global adoption in various industries by utilising blockchain technology.

Choosing the right cryptocurrency to invest in presents a challenge for investors. It’s crucial to carefully weigh the potential risks and rewards. Each cryptocurrency has advantages and disadvantages, so investors should assess which aligns with their financial objectives and consider their risk tolerance level.