Besides Bitcoin Ethereum and USDC, another crypto that has been gaining a considerable amount of momentum as one of the leading cryptocurrencies around is Ripple (XRPP). Here we share with you how you can buy XRP, an overview of Ripple Labs, and the performance of the currency.
Understanding Ripple (XRP)
First off, we need to understand that Ripple is not just a cryptocurrency but a fund transferring system designed to replace the existing slow transfer methods. So, Ripple is a set of protocols that can be adopted by any conventional bank to move crypto-money around the world as quickly as the information travels!
Two types of currencies are supported by the Ripple Transaction Protocol (RTXP); IOUs and XRP. The IOUs (I owe you) are debts that can be traded between various institutions. Remember, an IOU is issued against an asset, currency, etc. On the other hand, XRP is designed essentially for banks and financial institutes. Banks can convert their funds into XRP and transfer them quickly around the globe.
Performance of the Ripple Network
The Ripple network, commonly called the RippleNet takes less than 5 seconds to complete a Ripple transfer regardless of the destination. The network is capable to handle 1500 transactions every second at the fraction of a dollar per transaction. These figures are mindboggling, to say the least!
Due to these astonishing features more and more banks and financial institutions are adopting the RippleNet platform. Major institutes such as Bank of America, SBI Remit, TransferGo, Santander, and many others can be found using RippleNet these days.
One can easily imagine the savings that a bank can make on their transactions annually; RippleNet claims almost 40% savings in cost per transaction multiplied by thousands and millions of transactions per year. We can easily conclude that RippleNet is an exciting and innovative financial platform promising a lot more than meets the eyes in the future!
Buying Ripple
For all cryptocurrencies, the first step is to get a wallet for your purchases. Any currency you buy anywhere needs to be stored in a wallet designed to store your assets securely. Wallets are categorized into cold wallets and hot wallets.
Cold wallets are those that are not connected to any network or internet and store your assets offline. Cold wallets are further divided into soft wallets and Hard wallets.
As evident from the names, a soft wallet is program-based (application or software) whereas hard wallets are physical devices that store data (assets in your case). Each wallet has its purpose and shall be chosen as per your specific needs. For instance, if you are buying small amounts then a cold soft wallet will do, however, for larger amounts, a hard wallet is strongly advised.
Similarly, hot wallets are linked to a network or the internet. They are accessible from anywhere and are best for investors who are constantly moving. Though less secure, hot wallets are preferred by many investors.
Finding a crypto exchange
Due to a pending lawsuit against XRP in the USA, there are very limited exchanges that allow XRP trade at the moment. Coinmama is one place where you can purchase XRP, other popular exchanges are Uphold, CEX.io, Binance, etc. Some exchanges allow direct purchase; buying XRP through US dollar or other major currency. You can also fund your account through a credit card or trade with Bitcoin, Ethereum, Tether, etc.
Once you have funded your account you can simply fill in the amount you wish to invest and press the buy button.
Ripple a good investment or not
Every investment opportunity has its pros and cons. A wise investment is one where the benefits outweigh the disadvantages. So here are some facts that you should pay attention to before you buy.
Firstly, the future of Ripple is yet unclear due to the pending lawsuit by SEC. If and when Ripple is cleared by the courts, Ripple has all the potential to become a world leader in money transfer. Offering a fast, cheap, and dependable platform to every bank on the planet!
As a currency, investing in XRP can bring huge returns as it progresses to become the currency of choice for conversion. As explained earlier, the funds transferred by banks through RippleNet need to be converted into XRP first, hence the demand for XRP will always exist. So, when such time comes, and the bank needs XRP for conversion and transactions, investors will surely see the fruits of their patience.
We believe that if you have some extra bucks or a good portion you can easily dispense, Ripple may prove to be a fruitful investment.
