Better Cryptocurrency to Invest $10,000 In Right Now: Bitcoin or XRP (Ripple)?

Temperatures have cooled somewhat in the "crypto summer" we've been experiencing. However, don't bet on a full-blown change of seasons. There could still be plenty of room for the top cryptocurrencies to run.

Bitcoin (CRYPTO: BTC) and XRP (CRYPTO: XRP) (Ripple) stand out as two of the hottest digital assets. Which is the better cryptocurrency to invest $10,000 in right now? Here's how Bitcoin and XRP stack up against each other.

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The case for Bitcoin

Bitcoin is the granddaddy of all cryptocurrencies. It's also the most widely used digital coin in the world. Those facts alone could make Bitcoin more attractive to many investors.

Over the last 12 months, Bitcoin's price has more than doubled. The anticipation of crypto-friendly policies in the second Trump administration provided a significant catalyst. In recent weeks, though, concerns about the impact of Trump's tariffs have caused Bitcoin to retreat from its highs.

Previous Bitcoin pullbacks have presented excellent buying opportunities. Will this one be another? There's a good case to be made that the answer is a resounding "yes."

President Trump appointed venture capitalist David Sacks as a "crypto czar." Among Sacks' priorities is to look into the potential for creating a U.S. Bitcoin reserve. Although no decision has been made, Bitcoin's price would almost certainly take off should such a digital asset stockpile be authorized.

The U.S. government isn't the only one to watch for investors considering Bitcoin, though. Central banks and sovereign funds across the world are expanding their cryptocurrency reserves. Unsurprisingly, Bitcoin is their top digital asset to own.

The creation of Bitcoin exchange-traded funds (ETFs) in early 2024 triggered a round of buying. With additional ETFs that hold Bitcoin recently launching and more on the way, this digital coin could soon become an even hotter commodity.

The case for XRP

While Bitcoin was initially developed to be sort of a "digital gold," XRP's purpose from its inception in 2012 was to support payments. And it was designed to be much faster than Bitcoin, taking only three to five seconds to settle compared to up to 500 seconds for Bitcoin.

Because XRP can be sent from one party to another without a central intermediary, it's ideally suited to cross-border payments. The digital token's low cost (only $0.0002 per transaction) and scalability add to its appeal.

XRP has ranked among the best-performing cryptocurrencies on the market over the last 12 months. Its price has skyrocketed by more than 350%. This gain includes a steep sell-off in recent weeks as investors became jittery about the future in large part because of the Trump administration's tariffs.

However, a rebound could be in store for XRP. Perhaps the most likely catalyst is the potential approval of spot ETFs that own the cryptocurrency. The chances that the U.S. Securities and Exchange Commission (SEC) give a thumbs-up to XRP ETFs appear to be pretty good.

Speaking of the SEC, another catalyst involving the federal agency could be on the way as well. The SEC filed a lawsuit against Ripple, the developer of the XRP ledger, alleging that the company sells XRP as an unregistered security. This litigation, though, began during the Biden administration. It's possible that the Trump administration could push to resolve the issues in a way that favors Ripple. If so, it would likely cause XRP's price to again soar.

Better cryptocurrency to invest $10,000 in

So which of these cryptocurrencies is the better pick to invest $10,000 in right now? I think the answer depends on the level of risk you're willing to take.

If you're less aggressive, Bitcoin is the easy choice. While the digital coin has been volatile in the past, its declines haven't been nearly as large as XRP's. The fact that multiple ETFs already hold Bitcoin and that governments are stockpiling it add to its luster.

On the other hand, more aggressive investors could find XRP more attractive. It probably has greater upside potential over the next year or two, especially if the spot ETFs focused on XRP are approved and/or the SEC lawsuit goes away.

Keep in mind, though, that the prices of both Bitcoin and XRP depend entirely on what the market thinks they're worth. Crypto winters have occurred in the past and could happen again in the future.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy.