How To Buy XRP (Ripple) (2024)

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XRP is the native token for Ripple, a payments network that is designed to serve the financial services industry. It’s a relatively popular crypto—and it consistently lists among the top 10 cryptocurrencies by market capitalization.

Since December 2020, Ripple has been defending its XRP token against the U.S. Securities and Exchange Commission (SEC), which has claimed that the token constitutes an unregistered security. In July 2023, however, a federal judge found that although XRP’s initial coin offering may have violated federal securities laws, simply trading the token on exchanges and via algorithms did not.

Designed to make payment transactions faster and cheaper, Ripple’s platform—with the help of its XRP token—settles payments at a fraction of the cost of traditional methods. In this way, XRP is one of the more ambitious cryptocurrencies aimed at revolutionizing global payment systems and the digital economy.

While Bitcoin transactions can take minutes or more than an hour, the advantage of XRP is that its transactions are confirmed every three to five seconds.

For those of you who are new to XRP, don’t let the interchangeability of references to Ripple and XRP confuse you. Ripple is the company behind XRP, and it has undergone several rebranding efforts over the past few years—initially launched under the name OpenCoin in 2012, it changed to Ripple Labs in 2013 before settling on Ripple in late 2015.

XRP in the Digital Economy

Ripple claims its payments network will usher in a “new global finance era.” Its products are used for payments and asset exchanges, similar to SWIFT, which provides financial transactions between banks worldwide.

In short, it’s a platform and a cryptocurrency that could help financial institutions provide a better payment experience. And you’ve probably heard of a few of its customers, which include Bank of America, American Express and Santander, to name a few.

Where Can I Buy XRP?

You can buy XRP with fiat currency on a number of different crypto exchanges. Here are a few exchanges where you can exchange U.S. dollars for XRP:

Bitstamp
Coinbase
Kraken

Note the terminology of “trading pairs,” such as Bitcoin (BTC) to Tether (USDT). In the case of BTC/USDT, bitcoins can be converted into Tether, a stablecoin whose value is pegged to the U.S. dollar.

If you’re looking to buy and trade XRP with Tether, here are a few exchanges that pair USDT with XRP:

Binance
KuCoin

How to Buy XRP

1. Choose a Crypto Exchange

Every crypto platform has its own way of doing things. You’ll want to check the type of currency that you’ll need to use to purchase XRP.

Like many things in life, there are some caveats, especially if you’re purchasing XRP with another crypto. A general rule of thumb is it’s easier to purchase a crypto with a fiat currency like the U.S. dollar compared with other cryptocurrencies.

But if you decide to buy XRP with another crypto, you’ll have to create a crypto wallet that supports XRP and then use the currency on the exchange uses that pairs with XRP to buy the crypto.

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2. Buy XRP

Before making your purchase, research which trading platform suits you best based on security and ease of use. So do your research before opening an account. Once your account is funded, you’re ready to start buying XRP.

Within your chosen exchange, find the XRP currency and enter the amount you’d like to invest.

3. Store Your XRP

Once you buy your XRP, you’ll need a safe place to store it.

An interesting caveat is that dedicated XRP wallets require you to hold at least 10 XRP to activate your wallet on the XRP Ledger. Think of it as a bank account’s minimum balance requirement.

Each account must set aside this minimum amount. You can recover this amount by deleting your account.

XRP can be stored in a number of different ways:

Hardware Wallets. These are a common digital asset storage method, where hardware devices store the private keys to the owners’ assets and allow you to interact with the wallet without exposing your data. These devices can connect to your PC, phone or tablet to transact with XRP. Ledger is one hardware wallet that supports XRP.
Paper Wallets. This method is known to be clunky and vulnerable to phishing scams. For paper wallets, you use a private key to send funds. With this method, you simply print your private keys and recovery passphrases on a piece of paper and store it for safekeeping.
Software Wallets. Desktop wallets, considered “hot” wallets, are programs downloaded to store your crypto asset. There are also mobile wallets that interface with managing crypto assets. Just know that this method is often criticized for safety concerns since most of these wallets operate over the internet. One mobile wallet that supports XRP is Trust Wallet.
Crypto Exchanges. Many exchanges that trade XRP will let you store your crypto. These crypto exchanges include Coinsmart, Crypto.com and Binance, to name a few.

What You Can Purchase With XRP

You can use XRP to exchange between fiat currencies rather than directly exchange currencies through a traditional financial institution. This can be a much faster and cheaper approach versus paying the high fees banks and money remittance organizations may charge.

As a seasoned cryptocurrency enthusiast with a deep understanding of blockchain technology and digital assets, I find it imperative to delve into the intricacies of the XRP ecosystem, especially considering its recent legal battles and its role in revolutionizing global payment systems.

First and foremost, it's crucial to acknowledge the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) that commenced in December 2020. The SEC has contended that XRP constitutes an unregistered security, but in a significant turn of events in July 2023, a federal judge ruled that while XRP's initial coin offering may have violated federal securities laws, the mere trading of the token on exchanges and via algorithms does not. This legal development has profound implications for the regulatory status of XRP within the United States.

Now, let's explore the fundamental concepts and features surrounding Ripple and its native token, XRP:

Ripple's Platform and XRP's Role: Ripple serves as a payments network designed to cater to the financial services industry. XRP, its native token, plays a pivotal role in facilitating faster and more cost-effective payment transactions. The platform aims to settle payments at a fraction of the cost compared to traditional methods, positioning itself as an ambitious cryptocurrency with a mission to revolutionize global payment systems and the digital economy.
Transaction Speed and Efficiency: Unlike Bitcoin transactions, which can take minutes or even hours, XRP transactions boast remarkable speed, with confirmations occurring every three to five seconds. This feature positions XRP as a compelling option for those seeking swift and efficient transactions in the world of cryptocurrencies.
Rebranding and Company Evolution: Ripple, as a company, has undergone several rebranding efforts over the years. Initially launched as OpenCoin in 2012, it later became Ripple Labs in 2013 before ultimately settling on the name Ripple in late 2015. This evolution reflects the company's adaptability and commitment to its vision in the dynamic cryptocurrency landscape.
Ripple's Role in the Digital Economy: Ripple envisions ushering in a "new global finance era" through its payments network. Its products are utilized for payments and asset exchanges, similar to SWIFT, a global provider of financial transactions between banks. Noteworthy clients of Ripple include Bank of America, American Express, and Santander, underscoring its relevance in the financial industry.
Where to Buy XRP: For those interested in acquiring XRP, various crypto exchanges facilitate the purchase of XRP with fiat currency. Notable exchanges include Bitstamp, Coinbase, and Kraken. Additionally, trading pairs, such as XRP/USDT, enable the exchange of XRP with other cryptocurrencies, and platforms like Binance and KuCoin support such pairs.
How to Buy XRP: The process of buying XRP involves choosing a crypto exchange, funding the account with the necessary currency, and executing the purchase within the chosen platform. Each exchange may have its nuances, so thorough research on security and ease of use is advised.
Storage of XRP: After acquiring XRP, a secure storage solution is essential. Notably, dedicated XRP wallets may require a minimum balance (e.g., 10 XRP) to activate the wallet on the XRP Ledger. Storage options include hardware wallets (e.g., Ledger), paper wallets, software wallets (e.g., Trust Wallet), and crypto exchanges like Coinsmart and Binance.
Use Cases of XRP: XRP can be utilized to exchange between fiat currencies, offering a faster and more cost-effective alternative to traditional financial institutions. Its ability to facilitate cross-border transactions with lower fees positions it as a valuable asset for individuals and businesses engaged in international commerce.

In conclusion, XRP stands at the forefront of innovation in the cryptocurrency space, addressing key challenges in the financial industry and offering solutions for faster, more efficient, and cost-effective payment transactions.