How To Buy Ripple’s XRP Coin And Safely Store Cryptocurrency Tokens
Ripple is one of the most popular altcoins, or alternative coins, that investors have tended to flock to in the past few years. There are several reasons for this massive spike in interest. Although Ripple itself was founded way back in 2012, the XRP token has just recently begun to climb the ranks in major exchanges. Part of the reason for this increase to overall hype surrounding the token is likely the success of XRP’s parent company and creator, Ripple.
Ripple is a cryptocurrency company that provides banking solutions. Having already partnered with several major banks globally and even won a partnership with Apple, Ripple has established itself as a fearsome competitor in the centralized banking realm. While for some this creates an intense ideological issue because of the decentralized philosophy behind the original cryptocurrencies, for others it represents a way that the blockchain tech can become mainstream enough to truly begin to influence the world around it.
In any case, many new investors want to get involved in one of the most talked-about altcoins on the market, but simply do not know how. This guide will introduce potential investors to the ways and places that allow XRP to be effectively bought and sold.
What Is Ripple?
Ripple is the technology company behind XRP. They initially created the coin as a token to fund their startup project, then allowing the coin to become a mainstream means of both funding and trade. The founders of the company Ripple, as well as the people currently in charge, both have a fair share of Ripple for themselves, although very little of their holdings are sold to the general public.
The company produces banking technology which allows banks to use the blockchain in order to conduct faster and more efficient global transactions across borders. It is being researched and even eventually implemented by several major global banks. But perhaps the most interesting aspect of the Ripple success is their ability to interact with larger tech companies not currently at the forefront of the financial business. A rumored partnership with both Apple and possibly Amazon means that the company has some marketable appeal to the technology manufacturing sector.
The XRP coin is Ripple’s attempt to make an efficient and cost-effective crypto token. Though the company is much more renowned for the payment protocol it markets to banks than the Ripple token (XRP), there is still a significant amount of interest in the token itself. Much of this interest likely comes from the erroneous idea that the token is in some way “stock” in the company, and that the success of Ripple will have a positive correlation with the price of XRP.
This is not necessarily the case. In fact, a current class-action lawsuit in the State of California alleges that Ripple defrauded investors in XRP by leading them to falsely believe that they were buying security in the company, and were therefore entitled to profits relative to the success of the business. Whether the lawsuit will rule in favor of Ripple or the plaintiffs is still up for debate, but the core argument remains the same: the success of Ripple does not guarantee the success of the coin.
XRP Price Trends
Much like many altcoins, this past month has been rough on Ripple and XRP. The coin crashed in price from 59 cents earlier this month to less than 45 cents. Though minor recoveries have happened, the price has yet to recover to its recent high.
It is worth noting that Ripple had a massive price spike earlier this year when rumors surfaced that the token might be listed on popular cryptocurrency exchange Coinbase. For a brief period, the coin was actually valued at over USD $3.00. Eventually, however, the rumors were dispelled and the price has been on the relative downturn ever sense.
Some argue that Ripple will increase in price, especially after the company confirms certain rumors regarding global partnerships and the use of XRP. If this is the case, now would be the perfect time for investors to jump in, and buy the dip.
Where To Purchase Ripple
For some buyers in select countries, buying Ripple on their exchange of choice should be just as easy as buying Bitcoin. Upload funds to the account via “deposit,” purchase some XRP, and it’s over with! Unfortunately for some countries (the USA included), however, the smaller exchanges which allow for XRP to be sold do not allow American cards or banks to easily deposit on their server—or at all!
To get around this, American investors can take a shortcut to purchase the XRP they so desperately want. Using this method will allow investors to avoid a high amount of nasty transaction fees while still reaping the benefits of purchasing the coin while it is on the down-low of its overall price history.
Buying Ripple Using Multiple Exchanges
The easiest way to purchase Ripple without having to use a foreign bank account is simply to use a traditional exchange (such as Coinbase). Simply go to the site, deposit funds using the normal bank account, and then buy either Ethereum or Bitcoin, in the amount you want to spend on Ripple.
In most cases, the preferable main coin to use is Ethereum. Because of the volatility and popularity of Bitcoin, exchange sites typically charge significantly more in terms of both exchange and withdrawal fees for Bitcoin than for Ethereum.
Once the coins are purchased, one simply needs to send them to the wallet associated with an account on a site that allows for the sale of Ripple for the coin which the user already has (either Ether of Bitcoin.)
From there, it is relatively simple to trade those coins for Ripple. When it comes time to withdrawal, citizens of the United States simply need to reverse the process, converting their XRP to Bitcoin or Ether, and then sending those coins to Coinbase before cashing out.
The exchange that the Ripple is purchased on does not matter, but first-timers might enjoy the easy interface employed by Binance, which offers hundreds of respectable altcoins for purchase.