It is no secret XRP is one of the hottest names in remittance tech right now. Read on to learn how you can invest.
Attached to Ripple’s speedy peer-to-peer transaction system, XRP is a top-three cryptocurrency with plenty of market traction alongside the original Bitcoin (#1) and Ethereum (#2). While some of the community feel the Ripple-brand’s cryptocurrency isn’t decentralised, there’s no denying the technology and underlying asset are worth a look.
Compare where to buy XRP, and open an account
If you’re ready to invest now and don’t need to find out more about how to purchase Ripple, or how it works. Here is a list of recommended places to buy XRP online instantly.
What is Ripple?
Described as a real-time gross settlement system, currency exchange and remittance network, Ripple is, first and foremost, a peer-to-peer payment system that smoothly enables secure, instant, and practically free global transactions across any form of currency, be it fiat or digital.
Ripple has its own native cryptocurrency, called XRP, which acts as a bridge currency, effectively enabling any two currencies to be exchanged.
How does Ripple work?
Ripple’s USP in the competitive world of digital currencies is that it’s fast and free – two very important qualities when it comes to international currency transacting. On average, the speed of an XRP transaction is a whopping 3 seconds or less.
Ripple was developed to provide a payment settlement asset exchange and remittance system that can compete with established international money transfer systems like SWIFT. It does this by utilising a consensus mechanism that validates account balances and transactions on the system.
The Ripple system is decentralised because the network collectively validates transactions utilising the Ripple Protocol Consensus Algorithm (RPCA). However, some believe it is centralised because the founding team hold and control the majority of XRP in circulation – an unethical standpoint according to crypto enthusiasts.
How to buy Ripple tokens online – step-by-step guide
Step 1. Get a suitable wallet
In the interests of keeping your currency secure, it’s always a good idea to get your coins off the exchange as soon as possible. So it’s wise to ensure you have a wallet ready and waiting before buying Ripple-token XRP. To some extent, your choice of wallet will depend on your preferred platform – desktop, mobile or hardware. Our top XRP wallet picks include:
- Ledger Wallet: Ledger is a hardware wallet, which means you can store your XRP (along with 30 other currencies) offline on a super-secure wireless device.
- Toast Wallet: Toast is a relatively simple XRP specific wallet that’s available for iOS, Android, Windows, Mac and Linux. It boasts an appealingly user-friendly interface and solid security features. The only downside being that you can’t store any other currencies on it.
- Edge Wallet: The successor to trusty crypto wallet Aitbitz, Edge adds improved UI and security to a popular mobile product. Edge, which is available for Android and Apple iOS, keeps things simple and accessible and offers multi-currency compatibility, making it an appealing all-purpose choice.
Step 2. Find a Ripple exchange
Despite being one of the top three cryptocurrencies based on market share (alongside Bitcoin and Ethereum), XRP wasn’t as always as readily available on the major exchanges as you’d expect. That’s changed in the last couple of years, with more and more popular exchanges adding XRP to their roster.
It’s important to do your research and choose a reputable exchange. Here are two of the best exchanges to buy Ripple online:
- Binance: Binance is the world’s biggest crypto exchange. It offers a huge crypto marketplace with competitive fees, the ability to buy coins using fiat currency, and can deposit cryptocurrencies before buying XRP too.
- Coinbase: One of the biggest and best fiat exchanges, Coinbase allows you to buy XRP with GBP, USD, EUR and other fiat currencies using a debit card or wire transfer. You can start by spending as little as £25.
Step 3. Withdraw your Ripple
In the interests of securing your XRP, it’s a good idea to move your currency out of the exchange and into your wallet. To withdraw your XRP to your wallet you need to generate an address then paste it the relevant field in your exchange account.
How to trade XRP (Ripple) – a step-by-step guide
If you’re interested in trading XRP you don’t have to worry about getting a suitable wallet because you’re in constant movement and moving it to a wallet gives you a time-disadvantage. Using CFD brokers, you can make a profit from Ripple without the hassle and security risk of owning its coins.
Step 1. Find a broker
There are plenty of cryptocurrency trading platforms to choose from so first task is to identify the platforms that do and choose one that suits your needs, you can do this using our table at the top of the page. eToro and AvaTrade are two of the most popular cryptocurrency trading platforms.
Step 2. Deposit money
Another advantage of trading Ripple is that you can deposit fiat money (USD, GBP, EUR etc.). This isn’t always an option when buying XRP – some exchanges require you to purchase altcoins using Bitcoin. Just be sure to check that your preferred method is available, for example, many users prefer to buy ripple with PayPal due to its wide availability worldwide. Mostly though, services allow users to buy XRP with bank transfer or debit card.
Step 3. Decide how you’d like to trade
There are two methods to trade cryptocurrencies: CFDs (Contract For Difference), or Spread Betting. Both methods essentially entail speculating on the price movements of your chosen currency. If you aren’t sure which option to go for we recommend researching the differences.
Step 4. Start trading
If you’re a complete novice we recommend starting with a demo account and familiarising yourself with the process and the platform. Cryptocurrency trading is extremely volatile, which means you can make and lose money very quickly. Ripple has typically trended upwards but, as a relatively new and experimental currency, it fluctuates wildly.
As an XRP trader, you’re speculating on the currency’s price movements by taking a short (sell) or long (buy) position. If you think XRP will fall in value you should take a short position, if you think it will rise in value you should take a long position.
- Ripple is an impressive system with seriously fast transaction times
- Ripple is now partnered with over 200 banks
- Ripple stands to save banks a lot of money thanks to minimal transaction costs
- Use isn’t limited to banks – civilian p2p use can bolster XRP performance and potential
- Like most cryptocurrencies Ripple is a volatile short-term investment prospect
- Ripple has secured an impressive number of banking partners but there remains a possibility that it may be usurped as the preferred blockchain partner for banks
- Ripple has long been dogged by a lurking possibility that the SEC (US Securities and Exchange Commission) might choose to regard XRP as a security. Although the FCA (UK’s Financial Conduct Authority) recently listed XRP, Bitcoin and Etherieum as ‘unregulated cryptoassets’ rather than securities, which may bode well