“MoolahNinjas main goal is to help our readers improve their financial lives. We partner with other companies that share that same vision. Some of these links in this post may be from our partners. This is how we make money.”
Ripple, better known as XRP, is one of the 4 most popular cryptocurrencies in the world today. But, what exactly is it and what puts it at such high demand? Why should you learn how to buy Ripple today?
Here is a quick overview of how to purchase some Ripple:
Sign up for and set up an online wallet
Decide on a trading platform you’d like to use to purchase the Ripple from.
Select the price you’re willing to pay for the Ripple based on the current market rate
Wait for the transaction to be accepted by a seller
Done, you now own some Ripple!
In this article, we’ll go into detail and walk you through every step so that you’ll be able to buy Ripple on your own.
What is Ripple? What is XRP?
Ripple is a company based out of San Francisco that focuses on cross-border payment systems. The main goal for Ripple is to make global transactions more efficient by building a network with financial institutions around the world.
Therefore, instead of waiting 3-5 days for a traditional wire transfer to be sent through, Ripple can eliminate the wait time to only a few minutes or even a few seconds.
And so, XRP, Ripple’s cryptocurrency, was born. Launched in 2012, XRP acts as a bridge between 2 fiat currencies being transferred for cross border payments.
Here is a table that provides you with a general overview and the features of Ripple:
|Date Established||January 2012|
|Total Supply||100 billion XRP|
|Consensus Algorithm||Proof of Correctness (PoC)|
|Transaction Time||4 seconds|
|Target Market||Financial institutions|
Walkthrough of How to Buy Ripple
Unlike the race to make money with Bitcoin, Ripple is still working its way to being more widely available on the market.
The general procedure remains the same for buying Ripple though: create a wallet and then register for a cryptocurrency exchange that supports Ripple.
Here are the details:
Decide on where to store your Ripple and set up a wallet
Here are some wallet options that work well for Ripple:
GateHub and CoinPayments are multi-cryptocurrency wallets, while Exarpy solely stores Ripple.
After setting up your online wallet you can move your coins to an offline software wallet or a hardware wallet for safe keeping. If you are going to be learning how to buy Ripple as an investment, purchasing or downloading a non-internet based wallet is highly recommended. Most major offline and hardware wallets support Ripple.
Across the board, the hardware wallet Ledger Nano S is the most recommended option. Not only is it a completely offline wallet guaranteed to keep your Ripple coins safe, but it also has additional security options.
Find a trading platform to buy your Ripple from
Unlike other popular cryptocurrencies, Ripple cannot be mined. So, the second step for anyone learning how to buy Ripple is to register for an exchange.
Ripple is widely available on several international trading platforms, such as:
However, if you live in a country that has a preferred trading platform, it may be better to use this medium as this would be more compatible to your home currency and bank accounts.
Most trading platforms will let you register for free but until you can verify your identity, you won’t be able to buy and sell cryptocurrencies of any sort. This is so they can authenticate that users are in fact human and not bots. It also is a measure taken to prevent the creation of fake accounts.
When you are only just figuring out how to buy Ripple and a trading platform isn’t asking for additional ID verification, this may be a warning sign of its lack of legitimacy.
When you register, trading platforms will ask for some basic info like name, email, etc. To verify your identity you’ll be asked to provide an ID and some will also ask for a recent photo with the name of the exchange and maybe the date written on a piece of paper next to you.
Once you provide this and your account is verified, you can buy and sell Ripple.
Depending on the trading platform, it may be possible to buy Ripple (XRP) with a fiat currency. When doing this as a chosen method of buying Ripple you can attach a credit or debit card, bank account or maybe even a PayPal account. From there you can buy Ripple from the marketplace.
You can usually also trade other cryptocurrencies for Ripple, such as Bitcoin and Ethereum.
When learning how to buy Ripple on the marketplace here are a few tips:
Look at the current market value
Most trading platforms will provide a market overview of each cryptocurrency. Look up Ripple and you can find a minute-by-minute price chart of what Ripple is being bought and sold at.
Consider the transaction costs
All trading platforms will charge a transaction cost. Most of the time the charge will be made in cryptocurrency. The one caveat with this is that you’ll need to know what that exchange really costs.
If, for example, the transaction cost is BTC 0.06112367 this might look like a very feasible charge where you can make some cash back through what seems to be a “low fee”. But that fiat currency market value is really worth USD 432.04 as of August 2018!
Specify the maximum price you’re willing to pay, or the range you’re willing to pay
You can choose to do 2 things when bidding to buy or sell:
Store your currency
Once you have figured out how to buy Ripple and have finished making your purchase, move your cryptocurrency into a wallet. If you only have an online wallet to start with then look at downloading or purchasing an offline or hardware wallet so you can keep your Ripple safe.
Ensure that you keep your Ripple safe
Cryptocurrency is one of the most fun methods to create income we discuss on MoolahNinjas and something we highly recommend.
However, one of the biggest issues we want to emphasize for anyone learning how to buy Ripple or any of the cryptocurrencies you can buy is how to keep them safe.
While many companies around the world work hard to keep their trading platforms and wallets secure, there are a few things you can do in addition
Regularly change your password
Make sure to change your password regularly. This way you can ensure that your account can stay safe from a login perspective. It’s recommended to do this once every month.
Only access your wallet and trading platform in privacy
While this may sound paranoid, this is really just another security measure you can take so that prying eyes aren’t peeking over your shoulder. By only making transactions at home, you can minimize the risk of others seeing your cryptocurrency investment portfolio, passwords and more.
Use all available security measures
If your wallet and trading platform offer 2-factor authentication, go for it. This way if someone else tries to gain access to your account, you would have to approve or deny the login from your mobile or another computer.
Yes, this is an additional step when you want to login to your accounts and can be a bit of a hassle but it’s a safety measure definitely worth taking.
Invest in an offline or hardware wallet
The biggest priority when you’ve bought some Ripple is to move your cryptocurrency offline. It’s 100% worth making a small investment for software or hardware so you can move or backup your data and it won’t get lost, hacked or stolen online.
Online wallets of course work hard to maintain their security but if you can give yourself more peace of mind regarding your cryptocurrency by taking this additional step then it’s a worthwhile investment.
Also note that most offline and hardware wallets provide a recovery option so in case something serious happens to your computer or your hardware wallet, you can go through the recovery option to regain access to your cryptocurrency.
A Practical Example of Why Ripple is Amazing and How to Use It
Let’s say I need to pay a company $900 for sending apples from Poland in bulk. I could send my USD payment via Ripple’s XRP to the company in Poland, who can then convert XRP back to Polish Zolty in a few seconds. The transaction fee would be 0.0007 XRP (as of July 2018), which costs almost nothing in USD.
If I were to choose to wire the amount through a company like Western Union, it would take my payment anywhere between 3-5 days to complete and cost approximately $76 for the same amount in wire transfer. The wire transfer fee is 250,000x larger, and the entire process takes countless times longer!
Final Thoughts on XRP
XRP works to revolutionize and optimize a need in today’s society. While Ripple is not valued as highly on the market as other cryptocurrencies like Bitcoin, Ethereum and Litecoin, it has investors and businesses around the world excited by simplifying the process of international trading.
If you are looking at rounding out your cryptocurrency portfolio and are wondering if learning how to buy Ripple is worth the investment, it definitely is! Its potential to rock the international exchange market is very exciting for many so if you can invest in Ripple now, do it!