What is Ripple? and XRP?
XRP is a cryptocurrency, a digital asset, and a native token of the Ripple blockchain network. A private enterprise software company known as Ripple Labs created Ripple Protocol. It’s an open-source protocol and a Payment Solution Suit for cryptocurrency exchanges and financial organizations like banks. Primarily, Ripple’s XRP enhances global financial transfers including exchanges into multiple continents and currencies. XRP is the only cryptocurrency that instantly offers easy, quick, and affordable cross-border transactions. But how does XRP do that?
How does XRP Work?
Although we use Ripple and XRP interchangeably, each means different things. While XRP is a digital asset operating on a decentralized and open-source blockchain, XRP ledger (XRPL), Ripple is a technology company. From herein, we will talk about XRP cryptocurrency.
XRP Ledger supports the transfer of XRP through distributed ledger technology that represents another cryptocurrency or fiat money. It’s an open-source system; any institution can use it in its financial system without prior approval from Ripple Labs.
Many independent participants from the global ‘XRP community’ maintain the XRPL. These independent validators have to agree with the transactions to operate the ledger. This agreement is known as Consensus. It serves as the final and irreversible settlement for XRP.
XRP has a pre-mined supply. XRP has a maximum supply of 100 billion pre-mined tokens. Like most cryptocurrencies, XRP does not need mining. Ripple, the parent company controls the first 80 billion XRP token. The core team and Ripple co-founders controlled the remaining 20 billion XRP. Ripple is releasing 80 billion XRP monthly at a 1 billion per month rate. As of January 2024, it is going to take another 36 months for Ripple to release the total 100 billion XRP tokens.
How to Invest in XRP in 2024 Step-by-Step
The primary idea of XRP was to use it as an intermediary in financial transactions. However, its availability on most major crypto exchanges has made it a popular choice among beginner and professional crypto investors. If you want to invest in XRP, simply follow the steps below:
- Decide if you want to buy XRP
- Find a place to buy XRP
- Create and verify the account with the Centralized or Decentralized crypto platform
- Deposit fiat money into the account to buy XRP.
- Place an order to buy XRP
- Now, store your XRP in a digital wallet, either a hardware or a software wallet.
Where to buy XRP?
Let’s explore the 5 best places to buy XRP in 2024. We have compiled the shortest list of the best crypto platforms to buy XRP. Here we go:
- Binance: Best crypto platform to invest XRP and other Altcoins
Overview: Binance is one of the largest cryptocurrency exchanges with support for 350+ crypto. It’s one of the best cryptocurrency exchanges to invest in XRP with a user-friendly dashboard, secure transactions, and support for hot wallet.
Pros:
- More daily withdrawal limit
- Global availability
- Low trading fees
- Multiple trading pairs
Cons:
- It is centralized
- Occasionally slow customer support
- Bitstamp: Best for Professional XRP investor
Overview: Bitstamp is the best XRP investment platform with cold storage. This cryptocurrency is a must-have for investors with long-term investments with 100% uptime, security, and support for 75+ cryptocurrencies.
Pros:
- Low trading fees
- Supports multiple fiat currencies
Cons:
- Deposit and withdrawal fees
- OKX: Best for Margin Trading
Overview: OKX is a beginner-friendly cryptocurrency exchange for XRP investors. It’s the best choice for investing in XRP with features like easy account creation, simple payment option, easy-to-use interface, faster transaction, and more
Pros:
- 650+ trading pairs
- Supports 350+ cryptocurrencies
- Easy to navigate
Cons:
- Not available in all countries
- No option for fiat withdrawal
- Nexo: Best for Earning Rewards and Interest
Overview: With a simplistic design and a mobile app, Nexo is a first choice for XRP investors. It supports 60+ cryptocurrencies and offers rewards of 0.5% on every transaction.
Pros:
- Offers interest in crypto and fiat savings
- Nexo Debit Card to easily access and spend
- Top security infrastructure
Cons:
- No anonymous option
- Margin calls
- KuCoin: Best XRP and Altcoin Exchange
Overview: KuCoin has a large number of users. It ultimately makes KuCoin a strong choice to invest in XRP. You can earn money by storing and buying crypto, NFT, and other tokens.
Pros:
- No deposit fees
- 700+ Altcoins
- Anonymous trading
- 20+ million investors
Cons:
- Low trading volume
- Not available in the USA
- Delay and lag for high-traffic
How to Store XRP?
After successfully buying, it is time to secure the XRP investment. You have to understand cryptocurrency security and select a wallet to store XRP.
A wallet is a digital space to store, send, and receive XRP and other crypto. It comes with a private key, and a digital signature, to prove your ownership and allow transactions. You must never share the private key with anyone. Your private key in the wrong hands can wipe out all your XRP investments.
There are many digital wallets available with varied security and ease of use. Some of the crypto wallet types are listed below:
- Hardware Wallets: Hardware wallets are physical devices that can store of private key of XRP investment in an offline environment. They offer the highest form of security since they do not remain connected to the internet. They are ideal for large-scale XRP investment.
5 best examples of hardware wallets for XRP:
- Ledger Nano X: Best Hardware Wallet to Store Large amounts of XRP
- Trezor Model T: For large Scale Investors with Better Security
- SecuX: Highly Secure Hardware XRP Wallet Bimetric Recognition
- SafePal S1: KYC-Free Decentralized XRP Wallet
- CoolWallet: Credit Card-Sized Hardware Wallet for XRP
- Software Wallets: From the name, we can guess they are software and we have to download and install it on a desktop or mobile. They are also called Hot Wallets because they remain connected to the internet. They are more convenient to access and trade but have a higher risk of being compromised due to internet connectivity.
4 Best examples of software wallets for XRP:
- Guarda Wallet: Best for Security
- Exodus Wallet: Best for Beginners
- TrustWallet: Best for Mobile
- Coinbase Wallet: Best for Low Costs
- Exchange Wallets: These are the in-built digital wallets provided by most of the cryptocurrency exchange. It is convenient but very risky to hold your XRP investment with a third party. You could potentially lose all your XRP assets if the crypto exchange platform is hacked or shut down.
Future of XRP
XRP is a digital currency. Its value comes from processing speed, security, and appeal to institutions. XRP is the middle ground between traditional and decentralized finance. It can disrupt international payment, banking, and financial systems. It has the potential to replace the current network and replace it with better, faster, and cheaper transactions.
XRP went through through a major legal phase involving the U.S. Securities and Exchange Commission (SEC) and the regulatory crypto environment. Despite the SEC lawsuit against Ripple Labs, they expanded their global reach. Now that the charges are dropped, XRP is expected to fight back its dominance over the crypto market.
