Ripple’s XRP is has proven to be a very useful cryptocurrency and international payment digital service. This is particularly true for companies that benefit from maintaining liquidity by making quick and secure transactions.
If you are interested in holding XRP, it is sold on several exchanges.
If all you need are directions on how to buy XRP, then scroll to the bottom of the page for exchanges and apps that you can use to buy XRP, along with some straightforward instructions.
But if you are not sure yet, or want to know more about Ripple, then be sure to read this whole article.
- Ripple, referred to as XRP in the market listings, is a cryptocurrency and an application platform to move money quickly.
- The company and network are often referred to as Ripple, and XRP is the name of the cryptocurrency.
- The Ripple platform allows fast and cheap digital transactions and works as a payment remittance for fiat currencies.
- XRP can be bought on multiple exchanges. This includes, but is not limited to GateHub, Kraken, and Coincheck
Often times, Ripple is a stronger performing cryptocurrency on the market. At the time of this article, it appears in third place on CoinmarketCap, however, it is always under Bitcoin and Ethereum.
There is a good reason for Ripple’s strong performance, as it is a very useful cryptocurrency. That is because Ripple’s value is not backed by its power as currency, the way that Bitcoin is designed. However, despite the design of Bitcoin, more people hold Bitcoin then use it for everyday transactions.
Instead, XRP is what can be referred to as a utility token because it is a token used for payment remittance.
The Digital Currency
XPR is Ripple’s currency or native token, and it is used as a “bridge currency.” That means that users can use fiat or cryptocurrency to make transfers. Using the digital currency XRP also means that the transaction happens quickly and easily, because of XRP’s scalability.
Here is how it works: using a gateway such as GateHub or others like CADBluzelle, BTCbitstamp, and USDsnapswap, Ripple makes it easy to make currency conversions. For instance, if A wants to send a payment with Bitcoins as B, B does not necessarily have to have Bitcoins. A can send the payment using Canadian dollars, and B can receive bitcoins from the gateway.
Do You Need This Digital Currency?
XRP is both a cryptocurrency and a digital payment network. XRP is the native token that XRP uses on the XRP Ledger. The ledger is open-source, permissionless, and decentralized blockchain technology. With the XRP Ledger, transactions are settled in about 3-5 seconds.
XRP is very useful for global interactions because it is sent directly without a central intermediary. That means it is a convenient instrument to bridge two different currencies quickly and efficiently. Moreover, the ability to settle payments expediently maintains liquidity in projects. This is because money does not get tied up for weeks or months while traditional financial institutions sort out the paperwork.
Basically, it is a Western Union for the digital age. Ripple was designed primarily as a cryptocurrency to broker transactions. It was co-founded by Chris Larsen and Jed McCaleb in 2012 and has continued to prove its worth.
To move money from A to B, Ripple uses a medium referred to as the Ripple Gateway. The gateway is the intermediary that uses encryption and blockchain technology to ensure that there is a secure exchange between the two parties. It is often referred to as “trustless” security, because the technology replaces the need for a trusted third party, like a bank or Western Union.
Ripple can be used by both individual people and businesses to exchange currencies, maintain liquidity, and transfer payments over a secure network.
One way to think of Ripple is that it is a bridge between the traditional financial industry and cutting edge FinTech. Traditional banks can take several weeks for transactions to be settled. Moreover, transaction costs can be very high, especially when you are moving large amounts of money.
XRP resolves transactions within about an hour, and for a very small fee. A standard transaction costs about 0.00001 XRP.
What Makes Ripple Unique
Ripple is a digital currency like Bitcoin. But as I have already mentioned, unlike Bitcoin, it was not designed just to be used for payments. Because of this, some crypto users take issue with Ripple because it does not share the same distributed ethos as Bitcoin.
XRP is different because it was primarily designed for digital payment remittance. It is also different because it does not need to be mined as Bitcoin does; instead, XRP is “pre-mined”. Still, both cryptocurrencies use blockchain architecture for fast secure digital exchanges.
But because Ripple is pre-mined, it does not rely on the distributed network in the same way that other cryptocurrencies do.
Instead of relying on blockchain mining, Ripple uses a consensus mechanism, which is similar to the way Ethereum operates. There are several good reasons to use a consensus mechanism over mining. One of the reasons is that consensus mechanisms only require that a group of servers approve or authenticate the transaction, but consensus does not require that each transaction is mined.
Mining v. Pre-Mined
By avoiding mining, Ripple is able to offer much faster digital remittance services than Bitcoin would. JPMorgan has adopted a similar payment remittance system to XRP.
Bitcoin transactions can take up to 24 hours for a transaction to be mined and confirmed (the average is about 6 hours). Not only does this delay transactions, but it also demands a lot of energy to mine, because there is also a lot of competition to mine Bitcoin. As a consequence, this means that Bitcoin transaction costs are much higher and more unpredictable than Ripple’s are.
Ripple on the other hand uses much less energy and is exchanged much faster than others. Therefore it functions well for very fast -like minutes- and secure international transactions. However, there is the general concern that pre-mined cryptocurrencies are not as secure as mined cryptocurrencies. But, to that end, Bitcoin is one of the only remaining cryptocurrencies that requires the laborious mining procedure it does -hence its value.
A Unique Digital Payment
- “Ripple” is in total a payment remittance service that operates on a decentralized network, which uses its own cryptocurrency, XRP.
- Ripple is a technology mostly known for its digital payment network and protocol. However, it also has its own cryptocurrency
- Ripple’s bread and butter in payment settlements, which is able to do quickly because of its scalability. Transactions are settled almost instantly.
- It is ideal for international transactions. XRP can be converted to most major fiat currency or cryptocurrencies.
- The transactions are settled so quickly. Ripple does not rely on blockchain mining (mining for cryptographic blocks), such as Etherum or Bitcoin. Ripple uses a consensus mechanism that relies on a group of servers to confirm all transactions.
- XRP uses less energy than mined cryptocurrencies; such as Bitcoin because the currency is “pre-mined”. This makes transactions fast, affordable, and energy-efficient.
Is XRP Worth Investing In?
So, is Ripple cryptocurrency worth buying? Ultimately that answer is always up to the investor to decide. But one reason you should consider Ripple is that unlike Bitcoin, it is attached to a service. That means it has a bit more stability and is used by a broader market.
Cryptocurrencies like Bitcoin are very volatile. This is not necessarily a bad thing, however, it does mean that there are fairly dramatic price fluctuations for Bitcoin from month to month and even day over day. One reason is that supply and demand determine the price of Bitcoin. Again, not a bad thing, but there is no other asset or service that backs cryptocurrencies such as Bitcoin.
If you have decided that XRP is worth holding, you may now want to know where and how to buy it!
Ripple is sold on most major cryptocurrency exchanges. Below are just a few exchanges where you can buy it.
What You Will Need
If you are ready to purchase XRP you will need the following:
- A computer or smartphone with access to the internet (obviously).
- To create and verify accounts with your exchange of choice.
- Deposit funds onto the exchange, then wait for them to be accepted. Once they are, you can make a purchase.
Yes, it is all quite straightforward.
Where To Buy It: The Exchanges
Once you have activated an account with Bitstamp and your deposited funds available, you are ready to buy XRP. One nice thing about Bitstamp is that it provides trading pairs for major currencies such as XRP/EUR, XRP/USD, and XRP/BTC trading pairs.
Ripple is also sold on Kraken. The basic procedure is the same, where you must first create an account. Kraken, however, uses a native token XBT. So to make purchases on Kraken you must first buy XBT. the next step is to place the order using an XRP/XBY currency pair.
Once you have organized and confirmed and account you can then deposit funds and purchase
GateHub is and XRP Ledger Gateways, which means that they are businesses that provide a way for money and other forms of value to move in and out of the XRP network.
Gateways can be banks, money service businesses, currency exchanges, or any other financial institution.
One nice thing about GateHub is that you can use many cryptocurrencies to purchase XRP and all major fiat currencies. Depending on the services you want to use, be sure to understand how they manage transaction fees. All of that detailed information can be found here.
Bitso is anther way to purchase XRP and has a very user-friendly app to do so. You can fund your account with cash at any OXXO in the country, and you can also add funds straight from your banking app through an SPEI transfer.
Following the same basic procedures, you XRP can also purchase it using the following exchange services:
Exchange v. Exchange
What is the difference from one exchange to the next? The basic role of an exchange is to enable purchases of cryptocurrencies and to offer useful and important analytics.
So the decision you make about which exchange you are going to use is a completely personal one. There will are limitations based on regions, as well as on what kind of fiat currencies are accepted. Then there are differences in fee structures from each exchange.
That is why this list is here. It is a place for you to start your search. Take a look at each app, and decide which one fits your needs. This might also have a lot do with user-friendliness, or if you use a smartphone or a computer to make your purchases.
Start with this list, then decide which one suits your needs best.
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