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Is Raiden Network a Good Investment?

raiden network logo with coins
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The Raiden Network is Ethereum’s solution to its scaling problem. It is similar to Bitcoin’s Lightning Network, allowing users to initiate fast and low-cost transactions. It works with any ERC20 token.

While built on the Ethereum blockchain, Raiden differs from Ethereum as it does not require global consensus to transfer tokens between participants. Instead, it powers token transfers using hash-locks and digital signatures.

Benefits of using the Raiden network

Several benefits come with using the Raiden network. Some of them include;

• Low transaction costs: transaction costs on the Raiden network are pretty low compared to the Ethereum blockchain. Users can cheaply transfer small quantities of ERC20-based tokens over the network. Payments can be divided into smaller portions over a period for the same fee. • Instantaneous transfers: users can send, receive, and confirm transfers instantaneously on the Raiden network. Transfers are as fast as sending text messages. • Increased privacy: Users also benefit from better privacy when sending coins over the Raiden network than over the Ethereum blockchain.

The Raiden Network Token (RDN)

The Raiden Network Token (RDN) is the native currency of the Raiden network. Its main use case is to pay for services within the Raiden network. The token can be used for micropayments and API access.

RDN tokens have a max supply of 100,000,000. According to Coinmarketcap, they currently have a circulating supply of 66,793,931. Compared to other cryptocurrencies, RDN coins have had a steady price increase over the years, ever since they first appeared. The digital coins were first tradable on 7th Nov 2017.

RDN coins are currently trading at $0.06658, with a live market cap of $4,448,620. They are ranked 973rd largest cryptocurrencies in the world.

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Raiden Network Token (RDN) price predictions

Several crypto prediction platforms, including WalletInvestor and Digitalcoinprice predict RDN coins will experience a few bull runs in the future, but it won't be enough to see them trade above $1. The digital coins will still be trading under $1 by 2024.

While they may not be a quick money maker, many investors agree RDN coins are good for long-term investment. At their price, RDN coins also offer a good entry point into the crypto market for many beginner crypto investors.

Where to buy RDN coins

RDN coins are listed in several crypto exchanges, including, CoinDCX, Bancor Network, and Tokenomy. Unlike other cryptocurrencies, RDN coins cannot be purchased directly with fiat money. The crypto coins can only be bought with other crypto coins.

You’ll first have to buy a cryptocurrency like Bitcoin or ETH from a fiat-to-crypto exchange, then go to any exchange that lists RDN coins and use your crypto to buy the coins.

Where to store RDN coins

As ERC20 tokens, RDN coins can be stored in any ERC20 compatible wallet, including MetaMask and MyEtherwallet. The tokens can also be stored in hardware wallets that support Ethereum blockchain like Trezor and Ledger.

Bottom line

Is Raiden Network a good investment? The network has several benefits that make it better than the Ethereum blockchain. Its native token, while not as expensive as other cryptocurrencies, stands out with its use cases in the network. Many investors also see the crypto coin as good for long-term investment.

However, as is the case with any kind of investment, research is vital to ensure you make the right investment decision. Note that this is not financial advice but the opinion of the author.

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Author: Jay Jackson

Author: Jay Jackson

Jay Jackson is a crypto trader, researcher and freelance writer. He works closely with people and businesses in the crypto sphere, writing blog posts, guides, press releases, reviews and ebooks.

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