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How to buy XRP online
This page walks you through everything you need to know about Ripple. We explore Ripple’s history, the investment prospects of XRP tokens, and we provide a detailed, step-by-step guide explaining how to buy and sell XRP online.
Compare where to buy XRP, and open an account
If you are looking for the best place to buy XRP in the UK or elsewhere, we can help. Simply follow one of the links below to a trusted online broker that supports Ripple to get started. If you need more background information about cryptocurrency first, check out our introductory guide. For more on Ripple and XRP, scroll down this page.
What is Ripple?
Ripple operates a peer-to-peer payment platform called RippleNet that uses XRP as its in-house token. RippleNet enables secure and instant global transactions across any form of currency. Popular amongst businesses and individuals, RippleNet uses the XRP ledger, a form of blockchain. 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.
RippleNet aims to solve the legacy issues of fragmented and slow banking systems. Around 1,500 transactions can be processed per second, which is faster than both Bitcoin and Ethereum, and many feel that Ripple could eventually scale to the same speeds as the Visa payment system.
Ryan Fugger conceived Ripple in 2004, and his goal was to create a system where individuals and communities could create their own money. The platform was known as RipplePay, but in 2012, Fugger handed over control to Chris Larsen and Jed McCaleb who formed a company called OpenCoin. Now based in San Fransisco, Ripple has not been without its share of controversies and is facing a lawsuit.
How does Ripple work?
Ripple uses XRP as a liquidity source and bridge currency to enable simple and instant global transactions. The platform uses a consensus mechanism to validate account balances and transactions similar to Bitcoin mining. However, XRP transactions are much faster at 3 seconds or less. Ripple sells its services to financial institutions and banks, and by making its services almost free for users, it appears well-positioned to rival international money transfer systems like SWIFT.
Bitcoin mining is part of what is called a proof of work (POW) consensus algorithm, whereas Ripple uses the Ripple Protocol Consensus Algorithm (RPCA) to make things tick. There is some debate as to whether RippleNet is centralised, and this is 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.
How to buy Ripple online – step-by-step guide
Step 1. Find an exchange
Cryptocurrency exchanges are effectively online marketplaces for crypto tokens, and almost all of them support Ripple’s XRP token. Aside from the platforms at the top of this page, we have reviewed many of the top cryptocurrency exchanges. Not every exchange supports XRP, though two spring to mind immediately:
- ChangeNOW: Registered in Seychelles, ChangeNOW is a crypto exchange that offers instant trading of nearly 200 crypto coins, including XRP. Find out if ChangeNOW is the platform for you by opening an account today >
- BitMEX: Launched in 2014 by HDR Global Trading and with 540,000 daily users, BitMEX is an established cryptocurrency exchange with a strong interface, and it supports XRP. Opening a BitMEX account >
Step 2. Sign up and fund your account
Once you have chosen an exchange, you will usually need to sign up and pass an identity verification test. You can submit a copy of your photo ID, and this whole process should not take long.
Most exchanges will allow you to fund your account with a fiat currency such as USD, GBP, and EUR, but you can also pay in cryptocurrency. For example, you could purchase some Bitcoin from an exchange like Switchere and transfer them into your account.
Step 3. Purchase
Once your exchange account has been registered and funded, you can exchange the funds in your account for XRP. Simply find the XRP/GBP pair, or if you have Bitcoin in your account, search for the XRP/BTC pair. Then, you can lock in your trade.
Step 4. (Optional) Get a suitable wallet
You should only consider getting an XRP wallet if you plan on holding onto your tokens securely for a long period of time. Otherwise, you can store them in your crypto exchange account without the need for additional transfers.
XRP wallets work like Bitcoin wallets, and you can transfer your XRP into them for added security and peace of mind. Below, you can see two of the best wallets for XRP. One is a hardware wallet that functions similarly to a Bitcoin hardware wallet, and one is an online wallet.
- Ledger Nano S: Founded by the Ledger company in 2014, the Ledger Nano S is a compact USB stick with a tiny LCD screen. It provides high levels of security via offline XRP storage. Many view Ledger as the original hardware wallet. See if Ledger Nano S is the right wallet for you by visiting the Ledger website today >
- Infinito Wallet: Providing a good solution for online XRP storage, Infinito Wallet is a popular crypto wallet that supports over 2,000 coins and tokens and employs over 20 blockchain experts. Get started and create a secure Infinito Wallet >
How to trade XRP (Ripple) – a step-by-step guide
Step 1. Find a broker
If you want to trade effectively, this requires you to open and close positions quickly based on market fluctuations, and crypto brokers allow you to do this. You can also use CFD brokers to gain exposure to the market performance of Ripple without owning the coins outright. Pick a broker from the top of the page to access one of our recommended partners’ services and create an account today.
Step 2. Deposit money
With crypto brokers, you can deposit fiat money or a cryptocurrency like Bitcoin to make your trades with. In addition, many platforms support PayPal as a payment method, or you can just stick with a bank transfer or debit card. Simply verify your account and load funds from your desired source.
Step 3. Decide how you’d like to trade
Before you trade, familiarise yourself with the basics of technical trading. These basics will be key if you want to succeed. A great technical trading strategy is diligent and logical.
Two trading methods of note are CFDs or spread betting, and both methods allow you to speculate on short-term market movement. For more details on this, check out our lesson on how to trade cryptocurrency.
Step 4. Start trading
For complete novices, a demo account is advisable because it allows you to learn the ropes before risking your own money. This is especially relevant for a new and innovative cryptocurrency like XRP because increased volatility is likely.
As an XRP trader, use technical indicators to make predictions. Just like a stock, if you believe Ripple will fall in value, take a short position. If you think it will rise in value, go long. Make sure you take your time before you settle on a specific strategy.
Another option when trading with XRP is using leverage. This means gaining greater exposure to the price of XRP than the XRP you have purchased outright. Whilst this means you can achieve greater returns than would have been possible without leverage, there are potential drawbacks. If the markets move against you, your losses will increase proportionally to the amount of leverage you used, so exercise caution.
Still undecided?
Pros
- Ripple is an impressive system with very fast transaction times
- Ripple is now partnered with over 200 banks
- Ripple’s minimal transaction costs should save banks a lot of money
- The use of Ripple isn’t just limited to banks; regular people can use it too, driving its adoption
Cons
If you still aren’t sure, here are three more things to consider before you decide to invest in Ripple.
1. Is now a good time to buy XRP?
This depends on your own investment thesis: do you want to hold onto XRP for the long term or trade it in the short term? Long-term investing in Ripple could be profitable if RippleNet can continue to be successful and mitigate the potential impacts of lawsuits. As more banks become partnered with Ripple and more regular users get involved, the price of XRP is likely to increase.
As far as short-term trading XRP, the future success of Ripple and RippleNet is not massively important. You need to pay close attention to technical indicators and price charts to spot patterns in XRP that could inform profitable decisions. As the market fluctuates, an opportunity could arise for you to make a profit.
Invezz covers all the latest cryptocurrency news, and we also analyse the performance of XRP and how this relates to you. Check out our most recent analyses of Ripple and XRP in the articles below:
Ripple, Bitcoin Cash, Stellar price analysis roundup
Should I still buy Ripple (XRP) after a 100% move higher?
Ripple (XRP) price prediction for April
2. What problem does Ripple solve, and what are its investment prospects?
Ripple allows users to transfer currencies and cryptocurrencies almost instantly and with extremely low fees. It aims to solve the legacy issues associated with banking systems by creating a cleaner, better-organised interface that is more secure and able to process transactions faster than other blockchains.
Looking towards the future, Ripple could cement its position as the leading blockchain partner for banks, and this would likely increase Ripple’s and XRP’s adoption amongst the general public. However, the management team needs to successfully mitigate the impacts of the lawsuits it is facing and emerge from the other side undamaged.
Check out the most recent news about Ripple and XRP to stay in the loop:
Mike Novogratz hints that XRP can’t break due to its strong community
eToro: XRP and ADA were the most adopted cryptocurrencies in the UK in Q3
Ripple joins hands with Nelnet to launch a $44M clean energy fund
3. Do you want to hold XRP for the long term?
There are different pros and cons for both short-term investment and long-term in investment in XRP, and they are outlined below.
Considerations for a long term investment strategy
If you believe Ripple’s business has inherent value and you anticipate future growth, you should consider signing up to a reputable crypto exchange, and you can also open a wallet to store your XRP securely for the long term.
Considerations for a short term trading strategy
If trading XRP for accelerated profits is your preferred strategy, focus on familiarising yourself with technical analysis and indicators. When you’re ready to trade Ripple, sign up to a broker with a good reputation and low trading fees. This allows you to execute your trades quickly and better react to market fluctuations.
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
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