A reserve currency is a currency that is widely accepted for global transactions and used as a store of value, especially in international transactions. The US dollar (USD) is the most common example of a reserve currency because it is stable, reliable, and easy to exchange between countries and businesses.

XRP, on the other hand, is a cryptocurrency created by Ripple Labs, but unlike currencies like Bitcoin or Ethereum, it was not designed to be used directly by people for everyday purchases. Its main purpose is to facilitate fast and inexpensive money transfers between financial institutions, such as banks, in international transactions.

Why isn't XRP a common currency for everyday use?

1. It functions as liquidity for banks: XRP is primarily used to ensure that money can be transferred from one bank to another quickly and cheaply.

2. Volatility: Although it is less volatile than other cryptos, XRP still experiences price fluctuations, which makes it difficult to use as a currency for everyday purchases. This is because instead of accumulating, traders tend to buy and sell repeatedly.

3. Store of value: Banks and companies use it more as a financial protection tool, helping in the exchange of values without needing to convert to other currencies like the dollar or euro. This means you can also use it for your capital.

XRP is not a traditional exchange currency. It was created to help banks make financial transactions more efficient, not to be used as money by consumers in their daily lives.

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Even if XRP falls, is it time for you to exit or accumulate more?