Ripple, also referred to officially as XRP, is one of the leading coins in the crypto market space. It has established itself in the market and is one of the preferred investment sites for people around the world looking to funnel money into the cryptocurrency sector.
In this article, we’re going to be delving into the background of this currency and the circumstances behind its creation, followed by the many ways it can be purchased online.
Briefly about what you will learn in this guide:
- Obtain a ripple wallet (e.x. Edge), get an account, and follow the steps to secure it from attacks (confirm the email address, verify the identity).
- Get your first ever XRP address to receive funds
- Find a suitable and recommended cryptocurrency exchange platform to buy XRP and transfer it to your wallet address (e.x. Coinmama)
- Buy XRP on your preferred exchange platform and send it on your newly acquired XRP wallet address.
With the Ripple wallet, it’s important to note that one needs to make an initial deposit of 20 XRP. This measure has been induced to prevent the rise of fake accounts. After your initial transaction, you would not be able to recoup this initial deposit.
How to Buy Ripple in 3 Simple Steps
Step 1 – Get a Ripple (XRP) wallet
If you’re looking to make a purchase of this currency, the very first thing that you’re going to need is to obtain a wallet that can store XRP. Like with most digital currencies, you have the option of acquiring a digital wallet or a hardware one.
Digital wallets are housed online and are therefore perceived to be less secure. They are generally used for storing smaller amounts of currency.
Meanwhile, hardware wallets are physical devices that you would need to plug into your computer, and they are generally viewed as the safest storage option when it comes to cryptocurrencies.
Here are a few options for wallets:
Edge is a wallet for the iOS, Android platform that can store many digital currencies, including Ripple.
2) The Ledger Nano X:
This is a hardware wallet that allows for the storage of many digital currencies, one of which is Ripple. It is also capable of being linked to your mobile through Bluetooth.
3) The TREZOR Model T
This is another hardware wallet that has the capacity to store XRP along with hundreds of other digital currencies. It comes with a touchscreen, and is not suitable for the mobile platform.
Having acquired your Ripple wallet, you would then need to generate the ‘XRP address’. This is a vital piece of code, usually consisting of around 30 characters.
When it comes to purchasing XRP, there is a wide range of avenues to approach. You can buy Ripple with fiat currency – which refers to the US Dollar, Euro and other national currencies – or trade Bitcoin for Ripple or any other digital currency for Ripple through a trading exchange. Another option is also investing in Ripple through a trading fund.
Buying Ripple with a Credit Card/Debit Card
Coinmama is a leading crypto brokerage firm where you can purchase Ripple with a debit card, or through any conventional financial means. The company had been set up back in 2013, and is currently one of the leading firms in the space.
CEX.io is a leading crypto exchange that also enables customers to purchase Ripple through their credit cards or through wire transfer. It is based in London, having been first established in 2013.
Bitstamp is another exchange in this category, and possibly one of the oldest brands in the market in this regard. It enables customers to make deposits through wire transfer, a credit card, or through SEPA as well.
Binance is one of the most widely recognised trading firms in the business today. It allows the purchase of only a few select digital currencies through credit card and conventional financial streams, and Ripple is one among them.
One vital factor to note is that although credit card based transactions are easier and more efficient, they also have a higher fee attached to them.
Coinbase is one of the biggest names in the crypto exchange market. However, even though they enable the purchase of the XRP currency, they do not support credit card based transactions. With this platform, you can only use debit cards or wire transfers to facilitate your purchase.
Buying Ripple with Bitcoin
Among leading crypto experts, the mainstream position on the cheapest and most efficient way of purchasing Ripple, is through a trade – Buying Bitcoin and then trading it for Ripple is the least expensive way of acquiring Ripple.
To facilitate such a trade, you would need to purchase Bitcoin and trade it for XRP on the Binance exchange. There are other leading trading platforms you could utilise for this transaction, such as Kraken and Bitstamp. However, their verification process bogs the entire experience down and makes it harder for customers.
Invest in Ripple through a trading fund
For this alternative, there are platforms such as eToro that allow customers to make investments in the XRP currency. However, you would not have access to your Ripple currency, and you would also be restricted from selling coins from eToro anywhere else too. The only feature that the platform endows on its customers, is the ability to trade Ripple for fiat currency. So to sum it up, this option would only be of value to those that want to invest in the currency as a means of market speculation, but not to actually possess the currency and use it.
Acquiring and using the XRP address
With different wallets, there are different unique channels for receiving the XRP address. However, one thing that is quite uniform is that the code is a series of numbers and letters, and it usually always begins with the letter ‘r’.
The address could be compared to a bank account number, only applied to a crypto related environment. Once you receive the code, copy and paste it onto the trading platform and you would then be able to link the platform to your XRP wallet.
Step 3 – Withdraw your XRP to your wallet
Having made the purchase and obtained XRP, it is always preferable not to leave your digital currency in the exchange where you had made the transaction. The reason for this is that if you leave them with the exchange, you aren’t in control of the private keys required for the coins and thus, by the terms of the exchange, they don’t belong to you. Regardless of which medium you had used to acquire your XRP, be sure to make a withdrawal of the amount and to store it in your own Ripple wallet. Once this is complete, you’ve carried through the entire process and are now in control of the XRP that you’ve purchased.
What is Ripple?
Given that the international banking system today utilises slow and sometimes outdated machinery for money transfer, Ripple aims to provide an alternative, efficient platform for financial dealings between major institutions
XRP is a digital currency that major financial companies transfer their funds into, before making much faster and more efficient transactions across the world. Due to the robust speed and performance capabilities of the Ripple network, a transaction made through the XRP currency takes just about four seconds. The network as a whole can sustain nearly fifteen hundred such transactions every second, making it one of the most efficient and secure medium of transaction in the global corporate space.
There are currently a few major banks that have officially incorporated the Ripple platform into their process. This includes Axis Bank, Union Credit, Westpac, Yes Bank and UBS to name just a few.
Ripple states that financial organisations can save close to four US dollars a day in payment facilities by using their network. Given the sheer volume and scale of transactions that major firms process on a daily basis, this could help them cut back millions of dollars in unnecessary expenditure as a result.
Ripple has also made it into the Forbes list of leading Fintech companies.
Although Ripple has indeed brought great value to the financial space, others propose that its benefits are restricted to the wealthy corporate sphere. The initial iteration of Ripple had once allowed normal customers to involve themselves in the transfer network, but the corporation has since shifted its operations to cater exclusively to financial institutions.
Conclusion – Ripple as an investment destination
- It is quite likely that Ripple will continue to garner support from the larger banking community, given that they provide a high-speed payment machine that beats all conventional mediums and also reduces costs for the players involved.
- In the digital currency market scene, Ripple has established itself as one of the leading coins, second to Bitcoin itself, and has consistently weathered downturns and financial storms to stay ahead of its competitors.
- So while it seems as though the days ahead look bright for both the Ripple corporation and XRP, it is always prudent not to rush into investment as the market conditions have appeared quite uncertain over the past few years.
- The prime rule to remember, when it comes to investment in the crypto space, is that with a wider scope for profits, there is an equally high potential for loss.