This is the essential guide about Ripple, the cryptocurrency which is probably the hottest alternative to Bitcoin for now. You’ll find out what ripple is, how to buy ripple cryptocurrency (and where), and what preferences it gives to you.
What Is Ripple?
Let’s start with the beginning and give some basic definitions. Ripple is a payment system with currency exchange function developed by Ripple company (Ripple Labs, Inc.), an American company with headquarters in San Francisco.
The system was launched in 2012. The protocol supports “tokens” that can represent fiduciary (usual) money, cryptocurrency, exchange commodities, or other objects, such as miles of frequent flyers or mobile phone minutes. In a word, a token can represent anything that is countable. At its core, Ripple is based on an open distributed database that uses a negotiation process, which allows performing exchanges in a distributed process. The network is decentralized and can operate without the participation of Ripple Company (no central authorities). As of the end of 2017, Ripple was among the top ten cryptocurrencies in terms of market capitalization, along with Bitcoin, Ethereum and others. The internal cryptocurrency of the Ripple network is referred to as XRP.
Ripple cryptocurrency (XRP) is a digital asset that allows you to make payments to anywhere in the world at breakneck speed. The emission of Ripple is not limited, and it cannot be mined (a great difference from other cryptocurrencies). At the moment, the Ripple technologies are being introduced by banks and financial companies for making interbank payments. The advantages of Ripple cryptocurrency are quick transactions (about 4 seconds), while regular bank transfers take several days; the ability to scale (1500 operations per second are being processed now, but this parameter can easily be increased to the throughput of the Visa payment system – 50,000) and very low fees. The technology is open source, which is published on GitHub and has a lot in common with all known blockchain technology.
So, the main point here is that Ripple is actually a platform, basic technology, while XRP is the cryptocurrency based on this technology. Therefore, since it’s common to use Ripple meaning XRP, we’ll do the same in our guide, so Ripple will often mean XRP. You should bear it in mind.
How to buy Ripple
First of all, if you decided to buy ripple coin, you need to choose a reliable wallet to store it. Without such storage, the accumulation or use of cryptocurrency is impossible, because it does not have a material embodiment. The coins exist only in the open spaces of the Blockchain network as a combination of ones and zeros.
Generally, there are three ways to store your coins:
- hardware wallet
- software wallet
- wallet on the account of the cryptocurrency exchange
The last option is the least reliable. It should be used only if you are going to trade cryptocurrency. Since you need to keep the money, for long-term storage it is still better to use your local software or hardware wallets. The hardware wallets are physical devices. They look like usual USB flash drives and provide the safest way of storing your coins. So, actually, there is a way to hold your ones and zeros in your hand. The only fault of such wallets is their cost which sometimes can be really high. In opposite, the software wallets are free of charge but liable to the lack of security.
When the wallet is installed or plugged in, it’s time to determine where to buy ripple. Well, the easiest way to buy ripple is to purchase it directly using a credit/debit card or bank transfer, but not all exchanges have this capability. Besides, the exchange rates are often not as advantageous as they are desired to be. For example, Indacoin is a popular international exchange which allows you paying for XRP directly from your Visa or Mastercard. Bitstamp is a reliable exchange where you can buy ripple coin with a transfer from your bank account.
Another way to buy ripple cryptocurrency is to choose one of the hundreds of known exchanges trading the cryptocurrencies, buy bitcoins there, and then buy bitcoins to ripple on another exchange. Sounds too complicated, and will take a longer time, but this opens a lot of ways to choose because not so many exchanges sell XRP directly for USD, but most of them sell XRP for bitcoins. So, this usually allows you to make the whole deal cheaper. For instance, if you’re wondering how to buy ripple in USA, you may positively choose Coinbase to buy BTC (in other countries, it might not be working). Buy the way, there you can check how efficient this method is because you’re able to buy ripple with coinbase, too.
It must be said that today you can buy ripple xrp with paypal using Coin Portal (cointal). The limitation is that somebody must be willing to sell XRP on that portal, and sometimes you won’t be able to find the desired amount of coins. But you still can use a hint with buying bitcoin (via Virwox, for example) and selling it for XRP on another exchange as described above.
Now, what’s the best exchange for ripple? It’s hard to answer unambiguously. You should choose up to your own preferences. Here is a short list of the most popular exchanges with proved reputation: in addition to Coinbase and Bitstamp that we’ve already noted, Kraken, Bittrex, Bitfinex, and Binance would be a good choice as well.
Why Buy Ripple?
In a couple of words: to make money. As we already mentioned, XRP cryptocurrency is the third in the TOP-100 in terms of capitalization. Let’s cite some other facts here
In November-December 2017, Ripple reported that American Express and Santander intend to use the Ripple protocol for payments between the United States and Britain, as well as some South Korean and Japanese banks for cross-border payments. The American Banker publication explains this by the fact that “from the banks’ point of view, distributed registries, such as the Ripple system, have several advantages over other cryptocurrencies, such as bitcoin,” including the price and security. In September 2018, the Ripple team announced the integration of RippleNet technology into the National Commercial Bank, located in Saudi Arabia and being one of the largest banks in the Middle East.
BankDhofar, one of the largest banks in Oman, decided to use ripple technology to conduct currency transactions.
These facts are obviously demonstrating that buying ripple can be a good asset in the future and a perspective way to invest available funds. So, if you are planning to buy ripple coin in the nearest future, this might be definitely a good idea.