How to Buy Ripple (XRP) – A Beginner’s Guide
XRP, commonly referred to as Ripple, has been gaining momentum as one of the leading cryptocurrencies around. In this guide I’m going to give you an overview of Ripple Labs, the company behind Ripple, the cryptocurrency XRP, and list the different ways it can be bought online.
How to Buy Ripple Summary XRP, Ripple’s cryptocurrency, can be bought in the following way:
- Get a Ripple Wallet (e.g. Ledger Nano S, Edge)
- Get your XRP address
- Sign up to CEX.io
- Buy XRP using your credit card
Keep in mind that every Ripple wallet requires an initial 20 XRP deposit to prevent the creation of fake accounts. You won’t be able to access this deposit after your initial purchase. For a thorough explanation of Ripple, XRP and additional buying options keep on reading. Here’s what I’ll cover:
- What is Ripple?
- Buying Ripple in 3 Steps
1. What is Ripple?
Ripple is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. It was first released in 2012 and was co-founded by Chris Larsen and Jed McCaleb. Ripple’s main process is a payment settlement asset exchange and remittance system that is similar to the SWIFT system for international money and security transfers that is used by banks and financial middlemen dealing across currencies.
The token used for the cryptocurrency is premined and utilizes the ticker symbol XRP. Technically, Ripple is the name of the company and network, and XRP is the cryptocurrency token. The purpose of XRP is to serve as an intermediate mechanism of exchange between two currencies or networks, as a sort of temporary settlement layer denomination.
2. How to Buy Ripple in 3 Simple Steps
Step 1 – Get a Ripple (XRP) wallet
The first thing you’ll need to do before purchasing XRP is to get a wallet that will be able to store XRP. As with most cryptocurrencies, you have the option of choosing a software wallet or a hardware wallet.
A hardware wallet is a specially designed device to lock away access to your cryptocurrency. The device is extra secure because it is disconnected from the Internet and other computers and is virtually virus-proof. A cryptocurency wallet is software that interacts with the network of recordings (blockchain) and lets users receive, store, and send their digital money.
The Ledger Nano X is a premium hardware cryptocurrency wallet built to keep your digital wealth as secure as possible. Unlike hot wallets, which are connected to the internet and therefore vulnerable to attack, the Nano X stores your private keys offline, on the device itself.
The Trezor from SatoshiLabs is one of the oldest cryptocurrency hardware wallets on the market. First released in 2014, the Trezor Model T is the company’s premium offering, designed to suit both HODLers and active traders alike.
The Trezor Model T offers all the features that come with the Trezor One, along with support for newer cryptocurrencies and exchanges such as XRP, Cardano, Monero and more.
Everything about the Trezor Model T, from its hardware specifications to the software that powers it, is released under an open source license, which is a definite plus.
A software wallet is a computer program designed device to secure your cryptocurrency while allowing only you to access it. A wallet is software that interacts with the network of recordings (blockchain) and lets users receive, store, and send their digital money.
The Edge Wallet is an intriguing cryptocurrency software wallet. Available only for mobile devices, the Edge Wallet offers easy set-up, a simple to use interface, and a host of extra features which we will delve into momentarily.
The Exodus wallet is a relatively new software wallet. It was created by JP Richardson and Daniel Castagnoli. Richardson has written the code for many cryptocurrency products previously, and Castagnoli has worked as a designer for huge companies like Apple, BMW, and Nike.
Exodus has been designed to be a user-friendly, multi-cryptocurrency wallet. You can use many different crypto assets with it.
It should be noted that every Ripple wallet must initially be funded with a 20 XRP reserve in order to protect against low-level spam attacks. Once you have your Ripple wallet it’s time to create your XRP address which you will need later on. An XRP address is a string of 25-35 characters that starts with an r and is case sensitive.
Step 2 – Find an XRP Exchange
There are several options for buying Ripple today. You can either buy XRP with fiat currency (i.e. USD, EUR, etc.) or trade Bitcoins for XRP on specific exchanges.
How to Buy Ripple with a Credit Card
Binance is one of the largest and most well-known cryptocurrency exchanges in the world. The benefits of purchasing Ripple (XRP) here is that you benefit from the lower exchange fees than competing exchanges, and the increased liquidity enables you to buy and sell quickly to take advantage of market moving news
This exchange is best for Australia, Canada, Singapore, UK & international users. USA residents are prohibited
CEX.io start the d business in 2013 as a provider of cloud mining services. However, the company has gradually evolved over the years into a multi-functional cryptocurrency exchange. In addition to its cryptocurrency exchange business, CEX.io also provides trading of cryptocurrencies on its web trading portal, via mobile apps and also using API applications.
Coinbase is a US-based cryptocurrency broker/exchange in which users can buy and sell cryptocurrencies. The exchanges headquarters are located in San Francisco and is known as the largest cryptocurrency exchange in the world. This is largely due to the brokers easy to use and convenient interface. The exchange is perfect for beginner investors looking to get into trading or acquiring cryptocurrencies.
Paybis is an online multi-cryptocurrency exchange supporting the buying and selling of cryptocurrencies. Additionally, Paybis provides liquidity services for fintech businesses. Currently, the Paybis platform supports 10 cryptocurrencies that include Binance Coin (“BNB”), Bitcoin (“BTC”), Bitcoin Cash (“BCH”), Ethereum (“ETH”), Litecoin (“LTC”), NEO (“NEO”), Ripple’s XRP (“XRP”), Stellar (“XLM”), Tron (“TRX”), and USD Tether (“USDT”). Paybis users can purchase supported cryptos with one of 47 major fiat currencies.
Step 3 – Withdraw your XRP to your wallet
No matter where you got the coins from, remember to withdraw them into your own non-custodial Ripple wallet (i.e. you have access to the private key). Once the transaction is confirmed you’ve successfully finished the process of buying Ripple.
Ripple will probably appeal to larger banks throughout the next couple of years, as they offer a fast scalable global payment network while reducing transaction fees. XRP has the potential to earn huge returns on their investment IF Ripple keeps making headway throughout the banking sector.
Aside from XRP banks can also choose to opt-in to RippleNet but use IOUs instead of XRP (more on IOUs in the video at the beginning of this post). So while Ripple’s future currently looks bright, XRP’s future is still unclear. Remember that where there is great reward there is also great risk involved.
Please make sure to invest responsibly!