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Author: Admin | 2025-04-27
When the cryptocurrency sector starts to drop, it's often a challenge to hold on to your investments. Still, if you can summon the courage to make a timely purchase of a quality asset like XRP (CRYPTO: XRP) or Bitcoin (CRYPTO: BTC), the upside can be quite substantial, especially when you commit to not selling anything for a handful of years afterward.But in practical terms, when a big dip rolls around, it can be tough to decide where you'll get the best bang for your buck, especially considering that the cryptocurrency sector's volatility often makes investors question whether certain assets will ever be able to bounce back at all. Let's analyze which of these two coins is the better bet in the event that prices fall significantly in the near term.Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »The factors causing a dip matter hereWe live in interesting times. That means it isn't possible to offer a blanket generalization here. In short, the particular factors causing the dip matter significantly to the question of which to buy, so let's run through a couple of scenarios.The most likely scenario is that the prices of these coins will eventually drop as a result of an inscrutable combination of market and economic factors, ever-shifting investor sentiment, and other fundamentally short-term headwinds that don't detract from the core investment thesis for either coin. These kinds of dips happen all the time, and they can be as deep as 20% or more in some cases. To be clear, these are the kinds of dips that you generally want to be buying. They represent a bargain relative to the prior price level, assuming you're willing to retain your tokens long enough for the market to correct its mistake, which could take a while.In the context of these humdrum dips, it won't be that frightening to buy something. Hopefully, you'll appreciate that the level of uncertainty surrounding either Bitcoin or XRP stems from their short-term price action, rather than from issues that might be serious or existential. In the grand scheme of things, it's a bit safer to buy Bitcoin than XRP in this scenario. Its halving cycle means that the odds are in your favor for the price correcting upwards eventually, due to supply becoming more constrained.Still, assuming there is no specific set of long-term headwinds causing the dip, XRP is probably the better option to capture more upside, as its value-generation flywheel operates regardless of its price. For reference, in that flywheel, banks and other financial institutions buy the coin to transact with each other. They can avoid paying expensive international money transfer fees and currency exchange fees, while also closing their transactions much faster than with traditional methods. XRP gets a small fee when those businesses transact, which it can then invest into network upgrades or onboarding more users.Now, let's examine a scarier scenario, in which major disruptive
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