The crypto market is going through a major sell-off, and most of the top coins have experienced steep losses. XRP (XRP 1.76%), which had been one of the best performers earlier in 2025, is now down 37% over the last three months, as of Dec. 16.
Despite the recent decline, XRP has still been a winner for early investors. To see why patience is crucial when investing in cryptocurrency, let's look at how much a $1,000 investment in XRP from five years ago would've grown to today.
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XRP has been a long-term winner -- but there's a catch
XRP's price has increased by 228% over the last five years. If you'd invested $1,000 in it five years ago, you'd now have $3,282. The S&P 500 index has grown by 83%, meaning it would've turned $1,000 into $1,831.
However, it's worth noting that all of XRP's gains came after the 2024 presidential election. Until that point, you would've actually lost $130 of your $1,000 investment.
The election of President Donald Trump drove significant growth for XRP, as investors expected a more crypto-friendly regulatory environment. That was particularly important for XRP, as its issuer, Ripple, was involved in a lawsuit with the Securities and Exchange Commission (SEC) at the time.
CRYPTO: XRP
Key Data Points
You would've needed to invest early in XRP and, just as importantly, hold onto it for years while it lagged the stock market. And after it finally took off, you would've needed to decide whether to sell to ensure you made a profit.
The volatility of cryptocurrencies and their uncertain futures makes investing in them more complicated than investing in stocks. There's nothing wrong with putting some money into crypto. As XRP demonstrates, you can make a sizable return this way. But it's best to keep the bulk of your portfolio in safer assets, such as stocks and bonds.
