Ripple is a US-based gross settlement system, payment network and currency exchange, which has been created by Ripple Labs Inc. Ripple’s token is XRP, which is used to move the value through the Ripple network. Although Ripple doesn’t operate on blockchains like Ethereum and Bitcoin, it has its own unique technology to work with, called Ripple Protocol Consensus Algorithm (RPCA). XRP is known to be the third-largest token in the world based on its market capitalization and has a lot to offer, like currency exchange with a low charge, swift global transactions, and an integrated payment network.
What is XRP? How to Buy Ripple (XRP)
XRP is a cryptocurrency, which has been designed mainly for financial institutions so that they can convert their funds and transfer them speedily to other institutions all over the world. As far as the performance of the Ripple network, a.k.a. RippleNet is concerned, an XRP transaction takes about 4 seconds to complete on average and Ripple can process up to 1500 transactions per second. As of now, Ripple is one of the most exhilarating Fintech organizations offering a state-of-the-art financial platform.
When it comes to large-scale investors, they might be able to invest in Ripple directly, but other participants are restricted to investing in XRP only. The key goal is to make XRP a stable currency that won’t stray too far in the value, making things easier for many financial institutions.
3 Steps To Buy Ripple Online?
You want to buy Ripple. With all the different options accessible out there, things are going to be a lot easier than you expected. Let’s have a look at how you can buy Ripple without any difficulty in no time.
Acquire a Ripple (XRP) wallet and address
Before you buy Ripple (XRP), the very first thing you need to do is get a wallet where you would be storing your XRP. There are many different types of wallets including hardware and software wallets. Software wallets are free of charge as compared to expensive hardware wallets. Thus, if you can’t afford to buy a Hardware wallet, you can always go for a software wallet. But the downside that comes with this choice is that software wallet is less secure as compared to hardware wallet since software wallet are always connected to the Internet which increases the chances of hacking. Hardware wallets are considered to be the securest form for keeping cryptocurrencies. Some of the wallets that you can use are:
- Edge – It is a mobile wallet designed for iOS and Android and it can store various cryptocurrencies along with XRP.
- Ledger Nano X – It is a hardware wallet, which allows you to store your XRP securely in addition to many other cryptocurrencies. You can also connect this wallet to your mobile using Bluetooth.
- TREZOR – The TREZOR Model T is a hardware wallet and comes with an in-built touchscreen allowing you to store your XRP and other crypto assets. It is only accessible in the desktop version.
There are many wallets, but one thing you need to remember is that every Ripple wallet needs to have a 20 XRP reserve, to begin with. It is done to safeguard the platform against spam attacks.
Now that you have gotten your Ripple wallet, next you need to create your XRP address for later use. A Ripple or XRP address is a series of 25-35 characters starting with ‘r’ and it is case sensitive.
Look for a right XRP Exchange
Again, just like Ripple wallets, there are many options when it comes to buying Ripple. You can buy it using fiat currency like USD, EUR, etc. or you can use Bitcoins to buy XRP on particular exchanges, or you can go for indirect fund investment in XRP. There are various platforms such as Coinmama, CEX.io, Bitstamp, eToro and more.
Investing in Ripple through eToro will allow you to invest in XRP indirectly. However, you won’t be able to have any real coins that you could transfer out of eToro. The only thing you could do on this platform is to buy and sell XRP using fiat currency.
Buying Ripple with a Credit/Debit Card or Wire transfer
- Coinmama platform will allow you to acquire XRP using your credit/debit card, or bank wire transfer.
- io will let you buy XRP through your credit card or wire transfer. It is a cryptocurrency exchange based in London and has been around since 2013.
- Bitstamp is perhaps one of the oldest exchanges in the world and it supports Ripple (XRP) trading. You can transfer money to Bitstamp using Wire transfer, SEPA, and a credit card.
- Binance is the only cryptocurrency exchange that allows the users to buy certain cryptocurrencies including XRP with a credit card.
Remember that credit card purchases are quick but also more costly.
It supports only debit cards and wire transfers.
Buying Ripple with Bitcoin
It is believed that the most economical way to purchase XRP is to buy Bitcoin and then trading it for XRP. You can exchange XRP for Bitcoin on Binance, Kraken, and Bitstamp. However, their verification process takes more time.
Transferring your XRP to your wallet
It is not recommended to leave your XRP with the exchange as it might get hacked and you would lose all your crypto coins. When you get your coins, transfer them to your Ripple wallet. Once you have confirmed the transfer transaction, you have successfully bought the XRP.
The main purpose behind the development of Ripple has always been to lend its services to the global financial system. However, now that the XRP community is spreading all over the world with renowned incorporations such as Money Gram, American Express, Deloitte, and many more. Nevertheless, it is always wise to do thorough research before you make any important investment decision.
Ripple will perhaps be an enticing prospect for larger banks during the next few years. XRP can offer huge returns on the investment if it keeps making its way to the core of the banking sector. However, things are still uncertain in that department.