Ripple XRP boasts as one of the largest currencies in the world in terms of market value, at $18.47 billion in market cap, ranking 6th. One unit of XRP is very cheap, which may be due to the high number of coins in circulation, with about 50.95 billion XRP coins and a maximum supply of 100 billion XRP coins.
Interested in buying XRP but not sure how to go about it? Do not worry. This guide is designed to teach you everything there is to know about the project and how to buy it.
What is Ripple XRP?
Ripple operates as an open-source-based network, focusing on digital payment and currency exchange networks to process financial transactions. As a digital payment platform, Ripple uses blockchain technology and a native cryptocurrency to enable faster and cheaper global transactions.
XRP is a cryptocurrency developed, issued, and partially managed by US-based company Ripple Labs. XRP is one of the products that the company aims to improve cross-border payments efficiency, particularly in the banking sector. It is the native token of the Ripple XRP ledger. The ledger acts as a decentralized exchange, enabling XRP to trade directly with peers.
One can send XRP directly without an intermediary, making bringing two currencies quickly and efficiently convenient. The main purpose of XRP is to act as a mediator for currency exchange.
How Does XRP Work?
The XRP ledger utilizes ledger technology to support the transfer of tokens representing fiat currency, cryptocurrency, or any other unit of value. Since the protocol is completely open, its access is open to everyone without the need for the approval of Ripple labs. As such, bank and non-bank actors can easily incorporate the Ripple protocol into their systems.
The XRP consensus algorithm relies on trusted sub-networks- networks that belong to a larger validator node spread across geographies to reach a consensus on transactions. Every node in a Ripple network trusts selected nodes that comprise its Unique Node List (UNL). As such, the design produces a consensus mechanism whose operation can be carried out by bank-owned servers to confirm XRP transactions.
How to Invest in Ripple XRP
The design of XRP originally was either to be a security, derivative, or currency. As such, one can use it as an investment because its trading happens on several exchanges. XRP is seen as a project with long-term potential. Hence, many investors use buying and holding as long-term investments.
One can also use it as a short-term investment or for day trading, where you buy and sell stocks quickly to take advantage of small price changes during the day. One advantage of trading is that you can do it any time, as crypto exchanges are open 24 hours a day and seven days a week.
You can find it on various exchanges if you are interested in buying or trading XRP.
How to Buy Ripple XRP
As a crypto user, you cannot mine XRP like Bitcoin is mined. However, you can stake XRP and receive transaction fees, receive it as payment services, or purchase it from an exchange.
Most exchanges that list XRP do not operate in the United States. This is because of the Securities and Exchange Commission (SEC) investigation.
Some of the exchanges that allow XRP to be brought or traded include:
- Binance
- Bitfinex
- Bitget
- Bithumb
- Houbi
- Kraken
- KuCoin
- OKX
- Pancakeswap
- Poloniex
For this guide, we will use Binance.
Step 1: Create an Account on Binance Website or the App
Having a Binance account is a gateway to buying crypto. However, before you can buy XRP, you must open an account and verify your identification. On Binance’s app or website, click ‘register’ and correctly fill in your personal information.
You can either register using your email address or your number.
Step 2: Choose How you want to Buy the Ripple XRP Asset
On the dashboard, after registering your details, click the ‘Buy Crypto’ link on the top left of the Binance website navigation, showing the available options in your country. However, buying a stablecoin first, like BUSD or USDT, may be optimal for better coin compatibility.
As a new user, using a credit or debit card may be the easiest option to purchase XRP. Binance supports both Visa and Mastercard.
You can also use banks to transfer fiat currency from the bank to Binance and use the amount to buy XRP.
You can also choose the P2P trading option, where you buy XRP from other users with Binance’s peer-to-peer service.
Step 3: Store or use Your Ripple XRP
Having completed the buying process and having it, you can store it in your crypto wallet or hold it in your Binance account. There is also the option of trading for other crypto or stake or on Binance earned for passive income.
Is Ripple XRP a Good Cryptocurrency?
The ongoing legal battle between the SEC and Ripple Labs serves as a main determinant of how XRP will be. Investors are often hesitant in such cases.
However, XRP satisfies the standards of the International Organization for Standardization (ISO) standards 2022. It is a viable alternative to many banks’ current international payment system. As such, they will be integrated into the new financial system, which may cause XRP to soar in price once the standard is implemented.
With all matters in place, XRP could be a massive project in the future, making it an ideal buy.