How To Buy XRP

How to buy XRP - a complete guide

Learn how to buy Ripple (XRP) with a Debit / Credit Card. Quick and easy. Lowest fees. Follow our step-by-step instructions and get started in 5 minutes.

how to buy XRP

XRP is a cryptocurrency created and released in June 2012. The XRP cryptocurrency aims to complement traditional payment systems by transferring transactions between the controlled financial institutions to a more open-source infrastructure.

XRP introduced a new way of running the blockchain, which is why many XRP followers think that it could be a better fit for the big regulated entities that must comply with the laws on transactions.

If you want to know more about what XRP is and why it was created, continue to chapter two in this article. The next chapter will cover all the basics of XRP and answer most of the common key questions that you might have about the currency.

Buy XRP in 4 steps

This chapter will help you get started with cryptocurrency by covering how to buy XRP in 4 steps. Once you complete all four steps, you will have learned how to buy XRP and other cryptocurrencies easy, instant, and secure using our most highly rated XRP exchange on KrispCrypto. Follow our step-by-step instructions below and buy XRP (XRP) now!

1. Decide where to buy XRP

The first step is to decide where to buy your XRP. We recommend that you open an account on Binance. Follow this link, enter your information, and click on “Start Trading“! →

There are also several other cryptocurrency exchanges to choose from. Many will charge a percentage of the purchase price, often referred to as a fee. We suggest that you do your due diligence to find the right one for you. Some of the best XRP exchanges include:

  • Etoro: The best crypto exchange on the market. Etoro offers both a secure, easy to use interface, 24/7 trading and some of the lowest fees on the market. It also only takes 3 minutes to get started! (Read our full Etoro review.)
  • Coinbase: This is a popular choice for bitcoin, in part because you can quickly link your bank account. Coinbase also offers access to other cryptos such as Ethereum, Litecoin and Bitcoin Cash. On each transaction, Coinbase charges a spread of about 0.5%, plus a fee. The fee is the higher of a variable percentage based on region and payment type. (Want to know more? Read our Coinbase review.)
  • Binance: One of the world’s biggest crypto exchanges by volume for all cryptocurrencies, Binance charges a 0.1% fee for all crypto trades, plus a fee on withdrawals. (Read our Binance review.)
best bitcoin exchange

2. Where to store your XRP

Generally, you can store XRP in two types of digital wallets, a hot wallet or a cold wallet. Hot wallets usually offer faster transactions, while cold wallets often include extra security measures to help you keep your XRP wallet safe with the downside of longer transaction times.

Hot wallet

With hot wallets, your XRP are stored at a cryptocurrency exchange or a hot wallet provider. You can then easily access your XRP through an app or computer on the internet. Most crypto exchanges offer a free XRP hot wallet where your XRP purchases are automatically stored. Many prefer to hold their XRP using a third-party hot wallet provider, also typically free to use.

Why would you decide to pick a wallet from a provider other than a crypto exchange? Although many consider blockchain technology behind bitcoin more secure than traditional electronic money transfers, XRP hot wallets are an attractive target for hackers. It is not unusual for even big crypto exchanges to suffer from security breaches, and the recent $600 million stolen from the Poly Network proves that point.

Here are a few hot wallet providers that we recommend:

  • Coinbase: One of the most popular cryptocurrency exchanges offers a free online hot wallet and guarantees losses due to security breaches or hacks, employee theft, or fraudulent transfers.
  • Binance: Binance is one of the best XRM wallets that allows you to create a wallet and offers a platform for trading more than 150 cryptocurrencies. It also provides an API that supports integration with other trading applications.
  • Kraken: Kraken is one of the best ripple wallets that offers financial stability by maintaining full reserves and high legal compliance standards.

Although some hot wallet providers offer coverage for large-scale hack attacks, that insurance may not cover one-off cases of unapproved access to your account.

Cold wallet

A cold wallet is a small, encrypted device that allows you to store and carry your XRP, similar to a USB stick. Cold wallets can cost as much as $100 and are viewed as way more secure than your ordinary hot wallet.

Cold wallet providers include:

  • Trezor: Offers small, key-size cold wallets ranging from around $80 to $170.
  • Ledger Nano: Designed like a thumb drive, Ledger Nano has cold wallets ranging from about $60 to $120.

When creating accounts for your digital wallets and cryptocurrency exchange, use a strong password and always activate two-factor authentication.

cold wallet vs hot wallet

3. Make your first XRP purchase

After connecting your new XRP wallet to the XRP exchange you have decided to use, the last step is the easiest, determining how much XRP you want to buy. You can then click on the “Buy/Sell” button, search for Ripple and click on “Buy XRP”. You’ll then be able to enter the amount of XRP you want to buy or the amount of fiat you want to spend.

Make sure you take a minute to review the full details of your transaction before clicking “Buy XRP”

Buying your first XRP

4. Manage your new XRP investment

If you like the thought of day trading, one alternative is to buy XRP and then sell it if and when its value increases. Keep in mind that day trading requires a lot of experience, capital and does come with the added risk of losing your investment. If you see a future for XRP as a digital currency, perhaps your investment plan is to buy and hold for the long haul.

manage your XRP

What Is XRP?

When people hear the word Ripple, it is common for many to confuse it with the cryptocurrency XRP. But, note that Ripple’s business, ecosystem and technology are not the same as XRP, however, Ripple does use the XRP coin for some applications within its ecosystem.

What is Ripple trying to solve? The rate at which technology has advanced has also improved the speed and ease our information can reach across the globe. Despite these advancements, the methods we use to move money has remained stagnant.

Cryptocurrency technology has provided us with new ways by which we can transfer money, but, cryptocurrency still lacks a strong level of compatibility with the traditional money systems. By using blockchain technology, Ripple intends to help strengthen and smoothen the process of money transfers.

As stated before, it is important to note that the company Ripple and the XRP Ledger and XRP coin are independent of each other, according to previous statements and material published by the company since its creation.

The history of XRP

In 2004, a money transfer platform was launched named RipplePay by the software developer Ryan Fugger. Today, Ripple and the way that it operates is the result of a long journey of development. Many people have played prominent roles on that long journey, some of which include David Schwartz, Arthur Britto and Jed McCaleb. These guys decided to look outside of Bitcoin (BTC) to build their own solution/version following the launch of Bitcoin in 2009. The result of this was the XRP Ledger, going live in 2012.

McCaleb, which also was the founder of the now-bankrupt Mt. Gox exchange, decided to leave Ripple in 2014 to co-found the cryptocurrency Stellar (XML). The previous Ripple CEO, Chris Larsen, is now the executive chairman of Ripple’s board of directors, while Brad Garlinghouse stepped in as CEO in 2017 after Larsen’s departure.

The XRP coin has fluctuated a lot over the years, just as most of the cryptocurrencies. XRP reached its all-time high at around $3.84 per coin in 2018. Furthermore, Ripple completed its Series C funding, which resulted in a total of $200 million invested in 2019.

By the end of 2020, there was a detailed leak regarding the regulatory uncertainties of Ripple according to a complaint made by the SEC, stating that Ripple had sold XRP to investors as part of an unregistered securities sale that collected over $1.3 billion.

Ripple has argued that the SEC’s action came too long after the creation of XRP and that other U.S. government agencies have given XRP a classification other than that of security.

How does XRP work?

The XRP Ledger does not use a proof-of-stake or proof-of-work algorithm, used on the Bitcoin and Ethereum Blockchain. Instead, the XRP Ledger runs on a setup called the XRP Ledger Consensus Protocol to authenticate transactions and account balances. The XRP Ledger is generally more a lot more efficient in comparison to most other types of blockchain technologies.

The XRP Ledger is run and maintained by independent participants. Each transaction made on the network has to have an agreement for it to go through successfully. The independent participants are operating as validators of these agreements, and while PoW blockchains produce blocks, the XRP Ledger produces what is called “Ledgers”.

All ledgers hold information such as data about the ledger, account totals and more. Network and transaction changes have to complete the agreement from a certain number of validators before it is confirmed. It takes between three to five seconds for the XRP Ledger to complete each ledger, while Bitcoin blocks take 10 minutes to complete.

Advantages of Ripple

Ripple strives to solve problems and create opportunities. Normally, people have to wait for days until cross-border payments are cleared, depending on the payment type and involved regions.

Ripple’s solutions are trying to help decrease costs, as well as increase speed and efficiency. RippleNet also has multiple companies from the traditional sector involved and interested in Ripples solutions, and the more companies interested, the greater the impact Ripple can have.

Disadvantages of Ripple

Ripple is in crowded financial technology space and is aspiring to establish itself as an alternative to SWIFT, the leader of the market. Breaking the status quo in the established system can also be challenging, time-consuming and will eventually require transitions and related education.

Aside from SWIFT, Ripple has competitors within the crypto space, like Stellar (XML). Even though Ripple has the first-mover benefit, it needs to stay ahead with its products and network growth.

Since the crypto sector is a new industry compared to the traditional finance world, regulation has remained unclear. Should the crypto space solely fall under existing traditional laws and guidelines, or should governing officials craft different laws that better fit this new wave of innovation? The SEC’s action against Ripple is one example of such a regulatory issue. For Ripple to supersede legacy systems using XRP in any capacity would likely first need a clearer decision from regulatory authorities on what type of asset group XRP falls under.

advantages and disadvantages of ripple

How does RippleNet work?

Speed is crucial in the world today, especially when it comes to financial transactions. In the traditional world of institutional money transfers, banks and other institutions must communicate and solve system compatibilities. However, with RippleNet, institutions can use a global network that broadly follows a given group of parameters and framework, making it more straightforward for institutions to interact in an easier, faster and more transparent while decreasing overall costs.

Furthermore, traditional centralized institutions take days to complete transactions on the networks, as multiple systems are involved during the process. This can make the landscape slow, costly, error-prone and also negatively impact the efficiency of business transactions.

RippleNet has a feature known as On-Demand Liquidity or ODL, it eliminates the need for pre-funding when it comes to international transactions. The ODL works by enabling entities to transfer money across country lines and even with different currencies. For example, a company based in Sweden may not want to receive US dollars from the transaction made with a US-based company. Using XRP as a go-to between two different fiat types, RippleNet’s ODL can expedite transactions with each side sending and receiving their native currency.

The current traditional world of money transfers is unreliable, slow, inefficient and costly. It often requires centralized financial institutions to perform multiple redundant procedures. The transaction times and fees can also vary, but it is not uncommon to see expansive and long transaction times, with the sender bearing the cost of the transfer. Ripples solution and goal is to bring the world of global money transfers up to speed with the rest of humanities technological advancements.

Things to consider before investing in XRP

Most investments come down to the risk vs reward factor. In other words, do the potential rewards exceed the possible consequences?

Ripple has some risk factors. The founders currently hold a large number of XRP coins, it’s still in the early stages and a long way from challenging its main market rival, and it’s not the most popular technology for blockchain purists.

On the other, Ripple has grown to become more mainstream and has the support of some big financial institutions.

In conclusion, we would say that Ripple could be a low-risk investment with lots of potential rewards. However, we do strongly suggest that you do your research before considering any investments.

About the author

Gustav Eriksson

Gustav Eriksson

Gustav Eriksson is a cryptocurrency investor and founder of KrispCrypto. He has been a cryptocurrency investor for over ten years and loves personal finance.

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