How to Buy Ripple Cryptocurrency
What Is Ripple Cryptocurrency?
The Ripple exchange market was created by Ripple Labs in 2012.
Since its inception as an online remittance network, it has become popular with the support of cryptocurrencies and other commodities such as mobile minutes.
In 2020, the corporation suffered heavy criticism because of two of its executives selling XRP tokens within the exchange market.
These executives were sued by the US Securities and Exchange Commission (SEC), and since this, the corporation has ensured they have been held under official regulation protocols.
Outside of the lawsuits against these two individuals, the Ripple exchange market has had good reception.
In 2014, it was included in the 50 Smartest Companies in the MIT Technology Review.
It has become popular, and its associated cryptocurrency XRP is one of the major coins purchased.
The XRP coin, which consumers can invest in and use as a cryptocurrency, was created with efficiency in mind.
It uses less energy to transact than the popular crypto coin bitcoin, meaning that users can get hold of XRP much quicker at a fraction of the price.
Furthermore, instead of using the blockchain mining method of bitcoin, XRP is created through a consensus mechanism that is run alongside Ripple’s network.
This means that XRP is created through the consensus of bank-owned and registered servers.
This has allowed traditional financial corporations to use XRP as a bridge between the world of currency and cryptocurrency.
Users have found this to be an advantage due to its security. It remains one of the most investable cryptocurrencies.
This article will discuss why you should be interested in Ripple’s XRP and why you may want to consider buying some.
In addition to this, how you can invest, buy and use XRP in a world where cryptocurrencies are becoming ever more popular will be outlined.
Why Buy Ripple XRP?
As discussed above, XRP proves to be a strong alternative to bitcoin that acts as an alternative to currency altogether.
Some consumers may find an advantage in this if their nationalized currency is not translating into profit
However, others have found bitcoin to be quite a challenging investment due to its fluctuations in price.
The value of one bitcoin is over $47,000 at the time of the writing of this article. Its value will likely have changed by the end of this sentence.
This is problematic as you may likely change any investments in bitcoin, and they may not always go in the direction you desire.
Why Is Ripple’s XRP a Good Alternative?
The value of one XRP is considerably lower than the price of bitcoin.
At the time of writing, the price is approximately $1.17 for one coin, and its fluctuation margins are much closer to that of bitcoin.
Such a low price allows consumers and investors to put more money towards XRP without worrying about a large financial loss.
One can potentially buy 100 XRP coins without spending a lot of money.
This is beneficial as people can trade with XRP with more ease than that of bitcoin. Furthermore, its price range mirrors that of the US dollar; therefore, it is easier to keep on top of its value for now.
The consensus mechanism is the reason for these prices. The volume of XRP coins in circulation is approximately 46,513,604,835, meaning there is a great deal of trade being done with this cryptocurrency.
There are many speculations surrounding all the cryptocurrencies; however, most of the experts believe that XRP will grow in popularity.
With its growth and increased usage, its value will inevitably increase. Compared to other cryptocurrencies, the increase in its value will most likely be relatively low.
Yet, there are many to be bought because of the consensus mechanism and the amount of XRP coins in circulation.
Its highest ever value stands at $3.84, and it is the sixth most popular cryptocurrency available. There is also a cap at 100bn XRP coins.
Ultimately, as more coins are bought and circulated, there will be less available.
With less available, this will increase the value of the ones in circulation as fewer can be bought.
At this moment, investors are buying mass amounts of the XRP coin as there are plenty still available; however, expect this to change in the next five years.
Some analysts are predicting that the XRP coin can increase to over $10 in value. These are quite high estimations; however, it is not without reason.
The cryptocurrency Atheios (ATH) has shown a considerable increase over a concise time frame. Some projections state that XRP could mirror this.
It is best to be realistic about XRP and its projections, however. It will increase in price but do not buy vast amounts. These changes will occur in the future. Keeping this in mind should determine your investment policies.
XRP proves to be a great coin for steady entrepreneurs.
Another point to keep in mind is that the XRP coin was created in 2012. In under ten years, almost half of them have already been put into circulation. Expect them to be bought.
With XRP being a cheaper coin than some of its counterparts, it is more accessible to more people.
Further, the transaction process of XRP is faster, meaning you can get hold of the coin quicker.
Because it is not mined, investors can quickly make the most of its stock.
There are no long waiting times that you usually associate with bitcoin. XRP transactions usually take a few seconds rather than hours.
This is a considerable advantage for day traders and swing traders who invest in cryptocurrency.
For them, time management is essential, and so XRP is more suitable for their trading strategies.
Due to the recent lawsuits, Ripple has faced, the XRP cryptocurrency has come under question regarding its legitimacy.
As explained above, it remains one of the most popular cryptocurrency investments on the market, and it is ranked sixth out of all the cryptocurrencies.
Furthermore, many people do not consider the XRP a true cryptocurrency because it is not entirely decentralized like bitcoin.
This may seem like a disadvantage compared to other crypto coins; however, it is exactly the opposite.
Because it is generated from bank-owned and registered servers, it is heavily monitored. What this means is that it is less likely to be tampered with from illegitimate sources.
The fluctuations of price and the loss of bitcoin to decentralized servers crashing or disappearing will not occur with XRP.
How to Buy Ripple XRP
Buying XRP is as simple as buying bitcoin, and there are various ways in which investors can get hold of it.
With all methods, ensure that you calculate how much you can spend and how much you are willing to invest.
The volume you invest will determine the exchange rate you will receive as it is calculated via a percentage.
Further, stick to legitimate trading sources that are easy to follow and have verification procedures.
Trading outside of a legitimate source may mean losing your money and your personal details if you submit them.
What Are the Three Most Common Ways of Buying XRP?
1. Online Broker Services
If you are uncomfortable with setting up a separate wallet, then using an online broker service may be the best way to buy XRP.
Moreover, you may have a good spread and portfolio with an online broker that you do not want to step away from.
In this case, there are some excellent markets to prioritize. The online broker eToro stands out as one of the most versatile markets.
With zero commission fees, the options to buy either fractional investments or bulk investments, and its accessibility with cryptocurrency, it is undoubtedly a good choice.
XRP is one of the many cryptocurrencies you can trade with on eToro, and they optimize accessibility to most of the coins available.
To purchase XRP, you can buy and then trade these coins on a cryptocurrency platform. This can be done on eToro.
The platform NAGA is an excellent service as it has zero commissions and an integrated cryptocurrency wallet.
This allows investors to keep a close eye on what cryptocurrency they have bought, the fluctuations in their value, and the opportunity to trade them quickly.
Further, the mobile app allows users to get access to cryptocurrency and other stocks quickly. There is a choice of nine individual coins, XRP being one of these.
2. Setting up an XRP Wallet and Buying Directly
Suppose you are only interested in XRP and no other cryptocurrencies. In that case, spending time setting up an XRP wallet is arguably the best option.
There is a long list of crypto wallets that all have different advantages. One of the more popular wallets for Ripple’s XRP is the Coinomi Wallet
This wallet can be downloaded onto your smart device, and you can trade with ease.
You will be provided with a set of security steps once you download the app from the Appstore. Ensure that you also set a strong and personalized password.
Once you have done it, you are free to buy XRP separately. With the XRP you buy, you will receive an address, a long code of numbers and letters, which will hold your XRP on.
Using a debit or credit card will allow you to buy XRP. You can also you PayPal to buy the coin.
From here, you can choose to deposit, invest, and send the XRP you have bought via the address you have been provided.
3. Exchanging on Existing Wallets and From Other Cryptocurrencies
Setting up another wallet may be an extra hassle, particularly if you already have a wallet set up.
Moreover, the XRP coin may be an addition to the portfolios you with other cryptocurrencies.
Many cryptocurrency users have wallets on platforms like Coinbase, where they invest in multiple crypto coins.
You might already have heavy investments in coins like ethereum and bitcoin, and spending more money on new currencies may be the last thing on your mind.
You can use these cryptocurrencies and exchange them for XRP coins. If you are interested in doing so, then ensure you keep exchanges to a minimum.
The more exchanges that occur, the less you will receive as the value of your cryptocurrency addresses decreases as they put through several exchanges.
You can check the price of exchange through platforms such as Binance. Furthermore, if you are new to any wallet or cryptocurrency platform, you will have to go through the verification process.
You will need to fill in all the personal details, have an active phone number and email address, and a valid form of identification.
Once you have uploaded these, you will be free to access the cryptocurrency portfolio, where you can buy a range of coins using debit or credit card or PayPal payments.
Coinbase is a great platform because of its legitimacy. Be aware of platforms that mirror legitimate sites.
If you are unsure of a platform’s legitimacy, conduct some research beforehand to check.
Forums and chatlogs are great ways to check a site’s legitimacy, as those dedicated to cryptocurrency will highlight what is worth investing in and what is to be avoided.
Ripple’s XRP has come under scrutiny over the last five years.
However, the lawsuit has enabled the corporation to show its working methods and how it is generated as a cryptocurrency.
Since then, the coin has grown in usage, and there remains much to be invested in. It is expected that these will go quickly over the next decade.
Buying the XRP coin is a great way to start your journey into using cryptocurrency.
It is an excellent alternative to the blockchain derivatives like Bitcoin, and it is cheap to get hold of.
Further, it uses less energy to generate and less time to obtain.
There have been risks associated with owning this coin as it is not considered an alternative to the standardized practices of banking.
These risks are where the rewards lie, however. Investing in a coin like XRP may help you build a strong portfolio and give you better leverage in your future trades.
Follow the steps carefully and start considering the XRP coin as a viable alternative.
WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.