Forbes has named Ripple in the Fintech 50. Banks around the world are adopting the Ripple platform, too, And you, as an everyday consumer, have the opportunity to invest in Ripple, whether that’s a small amount or a larger cryptocurrency investment.
As such, you can invest in a platform that could change the way financial institutions do business forever. Learn how to buy Ripple to diversify your investments with our step-by-step guide!
Table of Contents
What is Ripple?
Ripple is a transaction protocol that supports currencies in the form of IOUs or a cryptocurrency called XRP. An IOU with Ripple can be used for any type of asset. When you hear of Ripple adoption, it is primarily referring to the cryptocurrency XRP.
The goal of XRP cryptocurrency is to become a stable global currency for financial institutions around the world to transfer funds without concerns pertaining to market fluctuations. The speed of the Ripple network makes this a realistic possibility, thanks to the way an XRP transaction takes an average of four seconds.
Banks have already adopted the Ripple platform as a possible means to move money around the world as quickly as information moves on the internet. Some of these banks include Westpac in Australia and New Zealand, Santander in Spain, Axis Bank in India, UBS in Switzerland, NBAD, American Express, and others.
Ripple is being noticed by leading financial minds and Fintech leaders alike. They are starting to regard Ripple as a potential financial game-changer, but how does Ripple work? Let’s find out!
How does Ripple work?
Ripple is a blockchain-based transaction protocol that also has its own cryptocurrency, XRP. Ripple confirms transactions through a consensus mechanism rather than via a blockchain mining system like the one used by Bitcoin, so you won’t be mining XRP.
Ripple relies on a group of bank-owned servers to confirm all transactions. Ripple’s transaction protocol is designed to enhance the speed and efficiency of large transactions, making it popular among banks and financial institutions.
What is the difference between Ripple and XRP?
While Ripple is a transaction protocol or network, XRP is a cryptocurrency or alternative global currency. So, Ripple is the network and XRP is the crypto.
Pros of Ripple
Ripple is viewed as an industry leader in the crypto space because of the widespread adoption of Ripple by many banks and financial institutions. Here are the major benefits of Ripple, both as a digital payment network and as a form of XRP cryptocurrency.
Ripple network benefits
- Speed of transaction. On average, transactions take about four seconds. This is a significant increase in speed, especially compared to traditional bank transactions that often take days to complete, or even Bitcoin transactions, which can take several minutes.
- Low Cost. The transfer fees associated with Ripple transactions are significantly lower than fees charged by banks and financial institutions, leading to potential cost savings.
- Acceptance. As with any cryptocurrency, gaining widespread acceptance is a universal obstacle, but Ripple has already achieved this feat as a result of how many financial institutions adopted Ripple as their preferred transaction platform.
- Affordability. At the time of writing, the XRP cryptocurrency has hit a high of just over $3 per XRP, making it an affordable investment even on a small scale.
- High market cap. As the fifth largest cryptocurrency on a global scale, the large market cap is a good indicator of investors’ confidence in Ripple and its perceived long-term stability.
Cons of Ripple
Even with everything that is in favor of Ripple, there are some major issues that Ripple still faces. Here are some of the cons of Ripple, both for the Ripple network and the XRP cryptocurrency.
Ripple network cons
- Competition. As Ripple aims to compete with SWIFT, which is the largest transaction banking system in the world, Ripple needs to prove to the banking world that its systems are better, safer, and faster than those of SWIFT.
- Centralization. Since Ripple was designed with the intention of solving issues that are currently present in the banking industry, the platform is not a decentralized cryptocurrency. For blockchain enthusiasts, many feel that it does not support economic autonomy the way crypto like Bitcoin does.
- Overvalued. Since the chairman, CEO, and senior board members combined own a significant percentage of XRP available worldwide, there is concern that its value is overinflated.
- Lack of new currency. Unlike Bitcoin and Ethereum, which rely on mining and limiting the total available currency, all XRP coins have already been mined and are in circulation. In other words, more XRP coins cannot be made, which could lead to a potential loss of value among investors in the future.
- Loss of trust. Since XRP has been marketed specifically to banks and financial institutions, the crypto has lost some favor amongst blockchain enthusiasts who prefer blockchain and view it as the most popular cryptocurrency technology.
5 steps for buying Ripple
If you want to invest in Ripple or purchase the cryptocurrency XRP, you will want to research platforms and purchase from a trusted site. Since there are limited options when it comes to buying XRP in the U.S. right now, here is what you should do.
1. Educate yourself
Start by learning about the current market value and market trends of XRP. Similar to putting your money into a safe, a physical cryptocurrency wallet allows you to safely store your XRP.
Research cryptocurrency wallets so that as soon as you purchase your XRP, you can store the coins securely. Finally, read more about XRP and how it compares to other cryptocurrency technologies or trading platforms.
Coins like XRP can be traded on platforms other than Ripple, but for those looking to trade coins like Bitcoin and Ethereum, consider getting on the MoneyLion Crypto waitlist instead!
2. Research platform safety measures
Not all trading platforms are secure. You could risk losing your XRP coins or compromise your identity, credit card information, and bank details if you aren’t careful. In order to protect yourself, learn more about the top crypto platforms being recommended by leading financial institutions or other trusted financial sources.
3. Decide how much to invest
This is the fun part! You’ll get to come up with a game plan and figure out how much you can allocate towards investing. The financial advice surrounding cryptocurrency these days is to never invest more than you can afford to lose. Choose how much you can feasibly invest in XRP and how much you will put into other investments, like a MoneyLion investment account.
4. Buy Ripple
Depending on your chosen platform, you may be able to purchase Ripple via bank transfers, credit cards, debit cards, Bitcoin, or Ethereum. It usually only takes a few minutes to purchase Ripple XRP. Keep in mind that if you choose to purchase XRP with a credit card, you may be charged cash advance fees. Bank transfers might also come with additional fees as well.
So, what is the easiest way to buy Ripple? Purchasing XRP crypto via bank transfers is the easiest way to buy XRP crypto, no matter which trading platform you’re buying it from.
5. Store Ripple
As soon as you have purchased your XRP investment, you should transfer it to your pre-selected secure wallet. This can be a software wallet like Edge and Exodus, or a physical wallet like Ledger and Trezor. Once your XRP is securely stored, you can hold it as an investment or trade it on exchanges in favor of other cryptocurrencies.
Ripple could change the financial world
If you are excited about the prospects of cryptocurrencies changing the financial world as we know it, keep an eye on Ripple. It is positioning itself as a platform that will secure widespread acceptance in the banking industry.
You can choose to diversify your investments and add Ripple currency to your pool of investments, whether you have a lot of money to invest or only a few dollars to spare every month. You can even choose to trade Ethereum or Bitcoin in exchange for XRP currency. Along with a MoneyLion investment account, you can start steadily building wealth for your future!
Reserve your spot with MoneyLion Crypto today!
Can you still buy XRP on Coinbase?
How do I buy XRP right now?
You can buy XRP on a few different cryptocurrency exchanges. You can also purchase XRP with fiat currency or by trading Bitcoins on certain exchanges.
Does Ripple have a blockchain?
Ripple is a blockchain-based option, but uses a common ledger, known as a network of validating servers and XRP crypto tokens for verification.