With the idea that cryptocurrency can create a millionaire overnight, a lot of investors especially the newbies make little analysis on the digital asset they intend to buy providing it is cheap.

On the ground of speculation, all cryptocurrencies can be invested for the short term, but when we focus on valuation, most of the digital assets in the market are for long term investment, and two of them are XRP and XLM.

As we know, XRP provides a good ground for cheap and instant cross border transactions. Unlike most of the cryptocurrencies that rely on eliminating banks from their operation, XRP makes the financial system its major priority.

The significant price determinant of XRP is its partnerships with banks across the globe. For now, only a few banks are making use of XRP, and a number of them are testing it for future use, and this makes it an investible currency for the future looking at how promising its adoption looks.

In an interview, Brad Garlinghouse, the CEO of Ripple disclosed that many banks would come on board and use xRapid as a liquidity tool. XRP may be a disappointing asset in the short term, but considering how useful it can be, it would be an excellent asset in the future when the adoption rate moves to a different level.

Just like XRP, the stellar lumens has a lot of interesting projects in the pipeline that can send it to the moon. Stellar also focuses on banks, people and digital assets but unlike XRP, it prioritizes the unbanked.

In one of their rankings, Weiss Ratings ranked XLM among the top five cryptocurrencies for long term investment. Stellar lumens has a powerful technological model and interesting blockchain available for upgrade. Its scalability and transaction speed is one of the best in the cryptocurrency world.

For now, the benefits of these features may not reflect in its price, but in the future, more institutions are expected to take advantage of this to drive the price to the moon. The stellar blockchain remains one of the best networks which has caught the attention of IBM to host its token (Verde) on it.

The blockchain has also been said to be a perfect fit for smart contract integration. Aside these, the company aims to explore all possibility of taking cross border payment to a different level. As we can see, XLM has a lot of surprises under its sleeves and has a good reward for the long term holders.

The post XRP and XLM: Short-Term or Long-Term Investments? appeared first on ZyCrypto.

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