If you follow cryptocurrency news, you’ve undoubtedly heard about Ripple. They have been generating a lot of talk in recent months, not all of it good. On the bad side, Ripple Labs (the company that develops the Ripple payment protocol) and two of its top execs were sued by the US Securities and Exchange Commission in December 2020 for selling XRP tokens, which resulted in many exchanges delisting XRP. On the good side, interest in XRP seems to keep growing despite the lawsuit, and XRP prices have generally been going up.
XRP is currently the world’s #4 ranked cryptocurrency in terms of market capitalization and even briefly stood in second place just last month. If you’re interested but don’t know how to get your hands on some tokens, you’ve come to the right place. Read on for a step-by-step guide on how to buy XRP.
Where to Buy XRP Ripple – Top 5 Exchanges
|Binance||Rating: 5 |
|Kraken||Rating: 5 |
|Bithumb||Rating: 5 |
|VCC Exchange||Rating: 5 |
|BtcTurk Pro||Rating: 5 |
Step-by-Step Guide to Buying XRP
Okay. Now that you know the “where,” it’s time to find out how to buy XRP. Since most of you will be buying with crypto tokens you already own (and stored in your personal wallets as you always should), that’s the step-by-step guide we’ll show you. If you’re using fiat currency, don’t worry. The steps are very similar, and this guide should work for you as well. In this example, we’ll suppose you want to buy 0.1 ETH worth of XRP. Let’s get started.
Step 1: Create an Account on Binance
Feel free to skip this step if you already have a Binance account.
Those of you who don’t have a Binance account should now head over to www.binance.com and click on the yellow “Register” button in the top banner.
Fill in your e-mail address, create a secure password (remember that “0000”, “1234” or “password” are not secure!), then click on “Create account” and follow all the steps to verify and activate your account. You should also set up Two-factor authentication (2FA) for some extra security. There’s also an option for creating your account with your mobile number instead of your email.
Step 2: Deposit Your Funds
After creating and securing your Binance account, the next step is depositing the Ether you’re going to use for purchasing XRP. This means transferring ETH from your personal wallet address to your Binance ETH wallet. So you’ll need to find that address.
First, log in to your Binance account and, from the top ribbon, click on “Wallet” then on “Fiat and Spot.”
This page shows you your general balance. In other words, the combined value of the tokens in all your wallets. Click on the “Deposit” button along the top.
Since we’re depositing crypto tokens, click on the “Crypto” tab.
On this page, select the token you want to deposit from the drop-down menu. In this case, we’ll be depositing Ether. Your Binance ETH wallet address will appear on the right. Here you can copy the address to the clipboard or scan the QR code.
Now go to your Ether's personal wallet and transfer the desired amount to the wallet address you got above. In a few minutes, after all the network confirmations have been completed, your ETH will be in Binance, ready for you to buy your XRP.
Step 3: Buying XRP
With your Ether now in Binance, it’s time to buy your XRP. For that, you'll need to head over to Binance’s cryptocurrency market. Click on “Markets” in the top ribbon.
Since we are buying with ETH, click on the “ALTS Markets” tab and then type XRP in the search box on the right. Now click on the XRP/ETH trading pair. A pop-up will appear, offering you the choice between the advanced or classic trading interfaces. Classic will be perfectly okay for you right now.
What you see now is the market page for the XRP/ETH trading pair. I know these pages can seem overwhelming if it’s the first time you’re seeing them, but don’t worry. The upper part will show some pricing information and the price chart. The part you need to make the purchase is at the bottom. That’s where the action happens, so scroll down.
The right-hand column is for selling XRP for ETH, so we need to look at the left-hand column. In the “Total” box, fill in how much ETH you want to spend.
In this example, we’re buying 0.1 ETH worth of XRP. After typing 0.5 in the “Total” box, we can see here that we'll get 381 XRP. After everything is filled in, click on the green “Buy XRP” button to complete the process. In a few minutes, your XRP tokens will be in your Binance wallet.
As you can see, it’s not too hard. After following those simple steps, you are now the owner of 381 XRP tokens.
Best Wallets to Hold XRP Ripple
Now that you know how to buy XRP and own your first 381 tokens, the question is where to store them. Always remember that it isn't a good idea to leave your tokens in exchange wallets for too long. Personal wallets are much safer for long-term storage.
Hare are some of the top XRP wallets out there:
|TREZOR One||Rating: 5 |
|Ledger Nano X||Rating: 5 |
|Atomic Wallet||Rating: 4 |
All of these wallets are fine options for storing XRP, even though many users report that Gatehub can be very buggy. Both Edge and Atomic wallets have both good security and functionality and are great if you’re starting in crypto. However, if you’re considering investing heavily in cryptocurrencies or planning on long-term holding, nothing beats a hardware wallet.
What is XRP?
In 2012, US-based company Ripple Labs created the RippleNet service. RippleNet's purpose is to be a global, decentralized payment platform. In other words, a fast, secure way of sending payments all over the world at a lower cost than on existing platforms.
Payments on RippleNet are made using the XRP token and registered on a blockchain called the XRP ledger. So, strictly speaking, Ripple is the name of the company and the payment platform, the blockchain is called XRP Ledger ant the cryptocurrency is simply XRP. However, many users just use the name “Ripple” for any one of them.
What Are the Main Differences Between XRP and Other Cryptocurrencies Like Bitcoin?
Maybe the biggest difference between XRP and the other major cryptocurrencies is that XRP was created by a for-profit company that manages and sells the tokens.
Unlike Bitcoin, XRP tokens can’t be mined. At the moment it launched, all 100 billion XRP were owned by Ripple Labs, who then sells some tokens from time to time. At the time of writing, about 45% of all XRP tokens are in circulation.
Also, bitcoin and most other cryptocurrencies like Ether are trying to decentralize the economy, taking control away from governments and banks and turning it over to users. Ripple wants to be used mainly for transactions between banks.
Is XRP a Good Investment?
Currently, SWIFT is the main platform for global payments. But SWIFT has been around for almost 50 years, and it's showing its age, no longer being as efficient as it once was. Some experts say that Ripple could eventually become the next SWIFT. It won't happen quickly but, if it does, XRP could become very valuable in the long term.
In the short and midterms, the value of XRP as an investment is going to heavily depend on how much interest XRP can generate among users in a world where XRP could be seen as representing centralization and regulation and other cryptos as representing freedom and decentralization (kind of like Team Iron Man and Team Captain America in Civil War).
If we consider the recent behavior of prices for cryptocurrencies in general and XRP in particular, it seems the interest is there, and XRP could also be a good short-term investment.
We hope this article has given you a better picture of what XRP is and how it's different from other cryptocurrencies. It's true that there has been controversy around Ripple because of the SEC lawsuit and being delisted from a lot of important exchanges. But the interest is still there, judging by the way XRP prices have been trending upwards.
Now that you know how to buy XRP, if you like it as an investment option, you can hop over to Binance or some other exchange and get your hands on some tokens. But what do you think? Are you Team Steve or Team Tony regarding decentralization in finance? Let us know in the comments.