Ripple is a platform that uses advanced blockchain technology to connect banks, payment networks, digital asset exchanges, and corporations. Ripple aims to be the ‘Amazon’ of cryptocurrency, with a settlement layer that makes cross-border transactions with its native XRP digital currency, cheaper and faster than traditional wire transfers.
So, how does one invest in XRP, the native digital currency of the Ripple settlement layer? Credit cards or debit cards may not be the cheapest methods but they are one of the most convenient ways to buy XRP, especially for making one-off bulk purchases.
Steps to Buy Ripple with Credit Card
Verify your account by proceeding through a straightforward KYC (Know Your Customer) process
Click ‘Deposit Funds’ and you will be directed to the payments page
Choose the pay with credit card option
Enter the amount of XRP you wish to buy
Other Methods of Buying Ripple with Credit Card
While not all brokers and exchanges offer credit cards as a payment method, many do. It’s a good idea to look for exchanges and brokers in your region that offer this service. Many major international exchanges and brokers offer credit cards as a payment method, as do several cryptocurrency wallet providers where you can buy Ripple’s XRP digital currency. If you can’t find a broker or exchange that offers credit cards to purchase Ripple, you could try to download a leading exchange or wallet app that supports XRP and credit cards for payment.
Advantages and Disadvantages of Buying Ripple with Credit Card
Buying Ripple with Credit Card Fees
When setting out to buy Ripple’s XRP digital currency with a credit card, the first thing you will need to consider is the cost of the transaction.
Credit cards and debit cards are more convenient than other methods, like buying XRP with PayPal or a bank transfer, but they are also more costly.
The fees for buying Ripple (XRP) with a credit card will vary depending on the bank, jurisdiction and exchange or broker you have selected. Typically, exchanges will charge an additional processing fee, normally under 4%, for using a credit card but it is important to verify this before diving in.
Some merchants also charge ‘convenience fees’, for credit card purchases. However, these are usually only charged if credit cards represent a specialty payment channel for a merchant. These are normally a fixed processing fee or 4%, whichever is lower.
There are several other payment methods you could consider if the fees are too much. You can deposit to an exchange or broker via a bank transfer or through payment providers like PayPal, Skrill and Neteller. These all vary in convenience, speed and cost.
Some of the larger exchanges with greater liquidity offer less than a 4% fee for buying Ripple (XRP) with a credit card.
Other fees to look out for include foreign transaction fees and it is important to confirm all credit card charges before proceeding.
Is Buying Ripple with Credit Card the Best Method?
The reality is that there isn’t one best method when it comes to buying Ripple’s XRP digital currency. It really depends on your personal priorities in terms of convenience, speed and cost.
Different payment methods will suit different buyers. For example, some people want to pay the lowest fees possible and are prepared to forgo convenience and speed to achieve this.
Credit cards are better suited to one-off purchases than repeated smaller transactions and are ideal for someone not particularly tech-savvy who simply wants to purchase a coin quickly and easily and with a minimum of fuss.
As a comparison, wire or bank transfers are generally the most affordable payment method, while credit cards are the easiest and fastest.
Payment networks like Paypal, Skrill and Neteller are somewhere in the middle; being cheaper than credit cards and more convenient than bank transfers to trade XRP.
Frequently Asked Questions
Former Yahoo Executive, Brad Garlinghouse and American banker, programmer and entrepreneur, Jed McCaleb.
Currently, global remittance is inefficient, slow, and expensive both for financial institutions and the average person wishing to send a few dollars to family overseas. Ripple has designed XRP to be simply the best digital asset for global payments. It provides both the average person and financial institutions with reliable, instant and lower-cost transactions.
Ripple is the established global network of interconnected banks and exchanges, while XRP is a token used to transfer value across the Network with market-leading speed. Unlike Bitcoin (BTC), XRP is both fast and cheap to send. In fact, XRP boasts speeds faster than most coins on the market, including Bitcoin Cash and Dash.
While it's vital to understand the fees of the broker or exchange where you will be buying your XRP, you will also need to understand the fee structure of your credit card. Issuers generally charge a number of fees, including interest charges, late payment fees, cash advance fees, over-limit fees and more. These fees can really eat into your investment decision, so it's a good idea to calculate them first to avoid being stung.
When you buy XRP on a brokerage platform or through an OTC Desk, you are actually trading CFDs or contracts for difference — a versatile trading instrument that enables low fees, active buying and selling, and flexible margin options. XRP CFDs are a great option for anyone wishing to speculate on the value of a cryptocurrency without having to own and store your XRP in a Ripple wallet, or third party wallet like Trust Wallet.
Yes. Ripple’s XRP is one of the world’s most established cryptocurrencies with a market cap in the top five coins. As such, XRP has great global liquidity and is available on most exchanges and brokerage platforms in countries with a permissive regulatory environment. Fortunately, this is most often the case in 2020.
Yes. It is not difficult to buy XRP with a credit card in Europe, with several leading brokers and exchanges offering credit cards as a payment method. Fortunately, most reputable brokers and exchanges have a support team on hand to help you through it.
It is important to select a recommended broker or exchange that you can trust with the transaction. You will also need to consider your market entry as ‘when’ you buy a cryptocurrency can be as important as ‘what’ you buy. Try to wait for a market dip to buy.
Yes. However, this strategy is high risk and if the market of XRP itself were to take a turn for the worst, you would find yourself saddled with debt and no leverage. We don’t recommend going into debt to buy cryptocurrency as not only is it high risk, you will also need to outperform the interest rate on the money you borrowed.
After a brutal bear market in 2018 and 2019, cryptocurrencies recently entered a bullish market structure on the back of an explosion of interest in ‘DeFi’ or decentralized finance. XRP is up over the past few months and many analysts are predicting a continuation.