How to Buy Ripple; Ripple, which is also known as XRP, is one of the promising cryptocurrencies that earned a massive reputation in recent years. This is why we wanted to share a guide on Ripple, including Ripple Labs, the creator of Ripple, cryptocurrency itself, and methods you can prefer to buy Ripple online.
Quick Overview on How to Buy Ripple
All you need to do is follow these steps to buy Ripple, i.e., XRP;
- Get a Ripple Wallet (such as Edge, Ledger Nano S)
- Get a Ripple Address
- Create an Account on Coinmama
- Buy Ripple with Your Credit Card
Ripple has its own security, which means that you need to buy at least 20 XRP for your new Ripple wallet. This is applied to prevent fake account creations. It is not possible to access your Ripple wallet without depositing at least this many ripples in it.
So how to buy Ripple? Below, you can find a detailed overview of what we are going to handle in this guide, and in which order we are going to handle them. You can click on them to jump that section too.
What Is Ripple?
The traditional banking system has outdated systems that carry out money transactions between institutions in a very slow manner. On the other hand, the main goal of Ripple is to be the internet of value. This means that it has a series of protocols to make sure that money is moved around the world just like the information moves on the internet.
In this respect, the RTXP (Ripple Transaction Protocol) supports two different cryptocurrencies, one of them is XRP and the other one is IOU. IUO, in other words, I Owe You, is a cryptocurrency that represents debt, and it is a tradable item between institutions. The biggest advantage of IOU is it can represent any kind of asset but not only currencies.
On the other hand, XRP is designed to be used between financial institutions. This way, it can be converted to funds and quickly transferred between institutions.
On average, you only need 4 seconds to transfer Ripple through the Ripple network, which is known as RippleNet. The network is capable of processing up to 1500 TX every second.
Today banks such as UBS, NBAD, Union Credit, Westpac, Yes Bank, Axis Bank, and Santader already started to benefit from the Ripple platform. You can find more banks by visiting this link.
This allows these banks to save $3.76 for each transaction carried out through Ripple protocols. This is a huge saving opportunity when the annual transaction volumes of the banks are considered.
Ripple managed to be one of the most promising Fintech organizations with its innovative platform. Their success is proven when Forbes included Ripple in their Fintech 50 list.
Ripple can be invested directly by large-scale investors. However, investors such as you and us as well as speculators are limited to invest in Ripple’s official cryptocurrency, RXP.
In 2017, Ripple enjoyed an amazing increase in price by going from $0.01 to $0.3. Two major events that made this possible are speculative interest and bank adoption.
Ripple’s main goal is to be one of the stable currencies in the world, which will be a more stable option when compared to other cryptocurrencies. Thus, more banks can adopt it without fearing high volatility. For now, many banks hesitate to adopt their systems due to the high volatility nature of cryptocurrencies.
However, XRP is pretty sure that they are going to achieve this in the long run, and this is why they keep the majority of XRP on the market. Thus, you can bet on their cryptocurrency that will also allow you to bet on Ripple company.
Although XRP seems to have amazing advantages compared to other cryptocurrencies, some people claim that is it just a platform that enables global transactions.
It will be worth noting that Ripple was launched to assist individuals in making global transactions such as remittance payments in a quick and cheap manner. Once the platform started to focus on banks and their transactions, it lost a great portion of its fans.
The vast majority of these fans shifted their focus to Stellar, which is a Ripple fork created by Jeb McCaleb. In case you like the platform but do not like the strategies of the company, you can consider investing in Stellar.
In 2020, SEC filed an action against former Ripple CEO Christian Larsen, current Ripple SEO Bradley Garlinghouse, and Ripple’s parent company Ripple INC. The topic of the action was raiding more than $1.3 billion by selling XRP in unregistered securities and offering them to traders all around the world.
This led to a significant drop in the price of XRP and some of the reputable exchange platforms stopped all their trading services for Ripple.
How to Buy Ripple in 3 Easy Steps?
How to Get a Ripple Wallet?
Just like in all cryptocurrencies, the first thing you need to do is getting a Ripple wallet before you buy any XRP. You can choose between software wallets or hardware wallets depending on your preference.
In summary, hardware wallets are physical devices that allow you to keep your private key and assets away from the internet and you access them by connecting them to your computers. In general, hardware wallets are considered to be the safest method to keep your cryptocurrencies.
On the other hand, software wallets are less secure options that are free programs available on the internet and different exchange platforms. In general, they are the best options for storing low amounts of investment.
Best Ripple Wallets to Get
Exodus is great and popular software wallet designed to keep more than 100 different cryptocurrencies including Ripple. It also supports an exchange platform, which allows its users to exchange cryptocurrencies with other cryptocurrencies.
Edge is a mobile wallet that can run on iOS and Android devices. It was known as Airbitz in the past and you can store different cryptocurrencies including Ripple.
TREZOR Model T
TREZOR Model T is a hardware wallet that can store more than 1000 different cryptocurrencies including Ripple. The biggest advantage of this wallet is it has a built-in touchscreen. It will be worth noting that it is only compatible with computers for now.
Ledger Nano X
Ledger Nano X is another hardware wallet that can help you to store different cryptocurrencies including Ripple. The best part of this hardware wallet is you can connect it to your smartphone over Bluetooth.
Regardless of which wallet you are going to prefer, you need to comply with Ripple’s security measures. This means that you need to deposit at least 20 XRP for your wallet. This measure is applied to protect the platform against spam attacks by preventing fake account creation.
If you picked any of the above-mentioned wallets, then it is time to get your Ripple Address. Ripple or XRP Address is a string of numbers and letters between 25 and 35 characters. An example of to XRP address is rPspuKT5rCw5EkRSD9vGL816A15DwtQa3L.
Best XRP Exchange Platforms
The lawsuit against Ripple INC is still ongoing and this is why you have limited options to buy Ripple especially in the United States. As you can buy Ripple with fiat currencies such as Dollars and Euros, you can also buy Ripples with different cryptocurrencies such as Bitcoins. This mainly depends on where you live or trade.
How to Buy Ripple with a Credit Card?
For Users Residing Outside of the United States
CEX.io is a great exchange platform that allows you to buy XRP with a wire transfer or credit card. This London-based company is offering its services since 2013 and allows cryptocurrency exchanges.
Binance is one of the most popular exchange platforms in the world that allows you to buy cryptocurrencies with a credit card. Ripple is also supported in this platform.
For Users Residing in the United States
Coinmama is one of the reputable services that serve in the United States and allows you to buy Ripple with wire transfers, credit cards, or debit cards. It is a brokerage service and offering its services since 2013.
It will be worth noting that buying cryptocurrencies with credit cards is generally considered to be the most expensive but fastest method. This is why and if you are not in hurry, you may want to prefer wire transfers to cut your costs.
Withdrawing Your Funds to Your Ripple Wallet
It is never a good idea to keep your cryptocurrencies on the exchange platforms you are going to buy them, including Ripple. If you do so, you give full control of your crypto assets to that platform. Due to this fact, you will not be the true owner of them. If the platform will be hacked or declare bankruptcy, you have the chance to lose all of your investment in less than a minute.
Regardless of where you are going to buy your coins, you need to withdraw your funds to your own non-custodial Ripple wallets. Non-custodial wallets allow you to access the private keys. You should never think that the process is successfully completed unless you receive your Ripples in your wallets.
Final Words – Is Ripple Worth Investing?
XRP is one of the most promising cryptocurrencies in the world. However, the lawsuit filed by the SEC is disturbing its popularity and makes its future unclear. If Ripple can overcome this challenge in the court, it is going to be preferred by more banks in the following years. This is why its price will enjoy a dramatic boost. Keep in mind that the Ripple network offers a fast and secure global payment system by cutting the transaction fees greatly.
If Ripple will be successful to dominate the banking industry in the following years, its cryptocurrency XRP will also enjoy the same potential. This is why it can be considered as a great investment asset with big risks but big rewards.
However, banks may prefer to use RippleNet but not XRP. Instead, they can prefer to use IOUs, which we have briefly mentioned at the beginning of this guide. In this scenario, XRP’s price may still increase but not that much.
Keep in mind that Ripple is a cryptocurrency and just like all financial assets, it includes high risks as well as high rewards. Therefore, you should always be careful while investing and should not invest in all your wealth. You can also refer to this link to learn more about possible risks in investing in cryptocurrencies.