Ripple (XRP)

Discover the basics of Ripple and find links to beginner-friendly guides that show you the best way to invest in it.
Updated: Sep 28, 2022

About Ripple

What is Ripple?

Ripple is a cryptocurrency that’s used to transfer money around the world. It’s owned by Ripple Labs, an online payment system that allows people to send money instantly and at very low rates. The XRP coin is an intermediary that allows easy switching between currencies.

Ripple uses the XRP coin as a liquidity source and bridge currency to enable simple and instant global transactions. Ripple sells its global payment mechanism to financial institutions and banks, making the service almost free for individual users.

How does XRP work?

XRP uses a blockchain, a form of digital ledger, to make, track, and store transactions. It is similar to the way Bitcoin works, but rather than requiring complex computer software to verify new transactions, it submits them for review to a group of trusted users. Once approved by 80% of this group, the transactions are confirmed.

There are significant advantages to using this technology for cross-border payments compared to traditional wire transfers. It takes seconds, rather than the days it can take a bank to complete a wire transfer, the cost is minimal, and there are no limits to who can make a transfer and when.

How is the Ripple network secured?

The Ripple network uses the Ripple Protocol Consensus Algorithm (RPCA) to make things tick. There is some debate as to whether RippleNet is centralised or decentralised, because the founding team holds and controls the majority of XRP in circulation.

Some cryptocurrency commentators feel this makes them a central governing authority, which goes against what cryptocurrencies are supposed to stand for. Others feel this gives RippleNet more stability.

What is Ripple used for?

Ripple offers a faster and cheaper way to send money around the world. Its platform allows for the transfer of money, including fiat currencies like GBP, USD, or EUR and cryptocurrencies like Bitcoin.

Its cryptocurrency, XRP, is used as a bridge currency, which means financial institutions do not need to hold multiple currencies. Instead, they can transfer a currency into XRP, send XRP to wherever it needs to go, and then exchange it into the destination currency.

Why does XRP have value?

XRP’s value comes from two sources; its crucial role in international money transfers and the coins’ scarcity.

XRP is a deflationary cryptocurrency, which means that the amount of coins in circulation is constantly falling. 100 billion XRP were minted when the project was launched and no more will be created. Instead, a small amount of coins are destroyed as part of every transaction.

This means that one day all XRP will be destroyed, although it is estimated that at the current rate of destruction, it would take at least 70,000 years.

Who created Ripple?

The main two figures in XRP’s development are Chris Larsen and Jed McCaleb. They co-founded Ripple – originally known as OpenCoin – and came up with the idea of using cryptocurrency to facilitate money transfers.

Larsen remains part of the Ripple project and has been caught up in a Securities and Exchange Commission (SEC) investigation into the company. McCaleb, meanwhile, is long gone, having moved on to form a new payments provider, Stellar, in 2013.

Where can I buy XRP?

You can buy Ripple on a crypto exchange. An exchange is a marketplace that allows you to sign up, deposit your money, and buy some crypto, just as you would with a stock platform.

Most cryptocurrency brokers allow you to keep the coins you buy in your account. However, you may want to sign up for a dedicated crypto wallet for some extra security.

You can deposit money into a broker or exchange account by bank transfer or card payment. However, your options may be more limited if you prefer to use a different payment method, like PayPal. Use these guides to discover how to buy Ripple with different payment methods.

Are there any other ways to invest in Ripple?

The simplest way to invest in Ripple is to buy it outright. However, another option is to simply open a crypto account. Crypto accounts are like regular bank accounts and allow you to store a variety of currencies, send and receive payments, earn interest on savings, and spend freely with a credit card.

Generally, you can invest in crypto through a crypto ETF or a crypto fund. These financial instruments expose you to a group of leading cryptocurrencies more suited to high net worth individuals.

More about XRP

What is the XRP price today?

The XRP price is currently $0.4271 as of September 2022. The price of Ripple is down 53% since the start of 2022. You can use the live Ripple chart to track the XRP/USD price in real-time above or compare the Ripple value today to its past performance using the Ripple price history tab at the top of this page.

What is the price prediction for XRP?

The average Ripple price prediction values the coin at $1 by the end of 2025. Things like the economic climate, establishment support and acceptance, and the crypto market as a whole can all impact the price.

It’s best to take predictions with a grain of salt but you can use expert estimates to help you understand the weight of opinion about a coin.

What is the total supply of XRP?

The circulating supply is 49,000,000,000 XRP, out of a total maximum supply of 100,000,000,000 XRP.

Are there any Ripple alternatives?

There are a few Ripple alternatives and other cryptocurrencies have attempted to imitate it. Ripple is one of the most popular cryptos, but others offer something different. Below is a selection of Ripple alternatives.

  • Stellar (XLM). Stellar is a platform for moving money worldwide.
  • Nano (NANO). Nano is an economically friendly way to move money.

More crypto guides


What is the difference between Ripple and XRP?

Ripple is a company that operates a peer-to-peer payment platform called RippleNet, which uses XRP as its in-house payment token. XRP is the platform’s ‘bridge’ cryptocurrency that allows two currencies to be exchanged; the name of the company’s token is not Ripple as some believe.

Why was a lawsuit filed against Ripple?

The United States Securities and Exchange Commission filed a lawsuit against Ripple Labs in 2020. The SEC claim XRP is a security (an asset sold for profit). The lawsuit is ongoing and many experts believe its outcome could determine how crypto businesses operate in the future and regulations could be impacted.

Recent XRP price analysis >

Ripple price triangle pattern points to an XRP breakout
March 15, 2022
Here’s why Ripple (XRP) is approaching $1
February 8, 2022
Ripple, Dogecoin, Litecoin price forecast for February 2022
February 7, 2022
XRP price movement: at a $15 billion valuation, is XRP a worthwhile purchase?
January 26, 2022

Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Charlie Hancox
Financial Writer
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player, and as a budding film director, has… read more.