XRP vs XLM: How To Decide Which Crypto To Invest In

Digital currencies have been steadily increasing in popularity since Bitcoin emerged as an alternative payment system. With it, the crypto trading era has come, and investors are constantly on the lookout for more profitable investment options. So, take a moment to get to know more about two of the leading digital currency contenders — XRP and XLM

While Jed McCaleb co-founded both of these currencies, they vary significantly regarding their respective use cases, market dominance, and inherent risks and rewards. This article provides a comprehensive overview comparing these two assets so investors can make informed decisions based on their needs.

We strongly advise you to conduct your own financial analysis before making any financial decisions based on the article’s information. For expert guidance, please consider seeking out a qualified financial advisor.

What is XRP?

Ripple (XRP) is a revolutionary network that enables nearly instantaneous international payments. With XRP blockchain, transfer times hover between 3-5 seconds, and transaction fees remain low compared to other digital assets like Bitcoin or Ethereum. 

The robust technology behind the blockchain allows for distributed open-source internet protocol and consensus ledger to ensure secure transactions — offering users an efficient way to send money abroad without the hassle associated with traditional methods.

In 2012, Chris Larsen and Jed McCaleb co-founded Ripple with the mission to revolutionise global money transfers with blockchain technology. Through their ‘xRapid’ protocol, big financial institutions can access a cost-effective bridge for quick international payments.

What is XLM?

Stellar (XLM) is a revolutionary platform that bridges the gap between banks, payment systems, and people. Co-founded by Jed McCaleb (co-founder of Ripple & founder of Mt. Gox) in 2014 with former lawyer Joyce Kim, XLM is an affordable way to transfer money internationally — offering fast transaction speeds at low costs due to its decentralized blockchain architecture, which also allows for developing dApps on its network system.

Common Ground For XRP and XLM

XRP and Stellar are two highly efficient digital assets with several compelling characteristics. With each coin having an average transaction time of 3 to 5 seconds — quicker than other methods such as SWIFT transfers — they also come with comparatively low fees compared to their competitors. Jed McCaleb co-founded both currencies, which can be utilised to facilitate near-instant cross-border payments.


Investors exploring the world of cryptocurrency have much to consider. XRP and XLM offer good use cases, with market capitalisation being an advantage for XRP in terms of bank partnerships and outlook. However, XLM has its strengths — a great team and impressive potential included.

As the XRP lawsuit by SEC case reaches its final resolution, the XRP might be a successful investment or a volatile one depending on the outcomes of the XRP vs SEC dispute. Still, prospective investors should also weigh the risks involved with investing in XRP, such as potential market volatility and regulatory challenges.

Regulations and market uncertainty are factors to consider before investing in this cryptocurrency; however, the potential reward is highly attractive for those willing to gamble with what may soon become one of the most prominent players in global finance.

Selecting The Right One for You

Deciding on the best cryptocurrency for your portfolio requires careful consideration of both Ripple and Stellar.

Though they have various common features, their strengths set them apart: Ripple is known for its strong team of developers and its robust platform, while Stellar boasts greater decentralisation. Ultimately, it’s up to your individual needs and preferences to decide which suits you better.

Ripple Labs has been embroiled in an XRP SEC lawsuit since December 2020, which accuses it and its two executives — Brad Garlinghouse and Chris Larsen — of illegally selling 1.3 billion dollars worth of unregistered securities. The legal proceedings are ongoing as both sides strive for a resolution.

Final Takeaways

XRP and XLM offer innovative payment solutions to the next generation of financial institutions. With lightning-fast transaction speeds and minimal fees, these two digital currencies are positioning themselves for market success. 

While XRP focuses on scalability with a large existing user base, Stellar Lumens intends to provide banking services to those without access to regular banking services. By bridging this gap in global finance through blockchain technology, both platforms show tremendous potential for widespread adoption across various industries.

Investors face a challenge when deciding which cryptocurrency to invest in; carefully considering the potential risks and rewards is essential. All cryptocurrencies have advantages and disadvantages, so investors should carefully evaluate what fulfils their specific financial objectives while considering corresponding risk tolerance levels.

Christopher Stern

Christopher Stern is a Washington-based reporter. Chris spent many years covering tech policy as a business reporter for renowned publications. He has extensive experience covering Congress, the Federal Communications Commission, and the Federal Trade Commissions. He is a graduate of Middlebury College. Email:[email protected]

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