Ripple is making waves right now for its enterprising approach to international payments.
Championed by both the individual cryptocurrency advocate and larger corporate bodies, Ripple is occupying a new space in the digital asset market. As Ripple showcases how blockchain technology can improve the current status quo, and large banks back the cryptocurrency, now is the time to buy Ripple coin.
- 1 What is Ripple?
- 2 What is XRP?
- 3 Ripple vs. Bitcoin
- 4 Why should I buy Ripple?
- 5 Where can I buy Ripple online?
- 6 How to buy Ripple online (CFD trading method)
- 7 Other methods to buy XRP
- 8 Buy Ripple Directly through Coinbase
- 9 Buy Ripple online with bank transfer, debit card or credit card
Read on to learn more about how to buy Ripple online and make the most of the current low prices of this lesser known cryptocurrency.
What is Ripple?
You may have already heard of Ripple, but not necessarily understand the technology behind it or why you should buy Ripple online. At its most fundamental level, Ripple is a borderless payment system – known as a real-time gross settlement system (RTGS) ‒ that allows transactions to occur regardless of locations or bank, without incurring transactional fees.
Ripple is open-source, distributed over its own internet protocol known as the Ripple Transaction Protocol (RTXP) or Ripple protocol. Its payment system is based on unique blockchain technology which uses a consensus process for payments, exchanges, and remittance around a shared, public database or ‘ledger.’
The original Ripple Project dates back to 2004 – before the release of Bitcoin – but Ripple was launched in 2012. Occupying an important space since the birth of cryptocurrency, Ripple promises to “connect banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally.”
Ripple set out to be to money what the internet is for information, e.g., to allow free and unfiltered access. For this reason, Ripple doesn’t collect traditional transactional fees in the way that banks or credit companies do, although it does take a very small percentage of XRP (more about this below) from each transaction, which is destroyed subsequently. This system protects against the network being overwhelmed by any one individual.
The crux of the Ripple Network is its decentralised, distributed network which means that XRP can be transferred on a peer-to-peer basis without depending on any intervening company to manage and secure the transactional database. This means that there is no waiting on confirmations and payments can go through much quicker than traditional transactions – particularly international transactions which take a minimum of three days.
One of the most exciting elements of Ripple is that it could be used to exchange more than just money through its’ technology. By creating a secure pathway, anything can be transferred between two locations. It is this singular element that sets Ripple apart from other cryptocurrency and interests many larger corporate bodies.
What is XRP?
The Ripple Network is based on Ripple’s own coin or digital token known as XRP. Ripple and XRP can be used interchangeably, but XRP is the name of the coin created by Ripple. You cannot buy ripple without investing in XRP or vice versa.
Ripple’s XRP, like other forms of cryptocurrency, is a digital form of currency based on mathematical formulae. Its digital nature protects against the possibility of counterfeit coins, and it has a market cap which means that a limited number of units that can ultimately be “mined.” These coins are used then within Ripple’s technology for transactions.
Ripple vs. Bitcoin
In a shrewd move, Ripple has not set itself up as a competitor to Bitcoin (by far the largest and most well-known cryptocurrency) but in fact a tool for those with Bitcoin to use.
The aim of Ripple is to offer a smooth transfer of any type of currency, be it GBP, USD, AUD or even Bitcoins. In 2013, Ripple linked Bitcoin with its own protocols via the Bitcoin Bridge. This linking of the two systems makes it possible for Ripple users to pay in Bitcoin straight from a Ripple account without ever actually needing to hold any of the digital currency as an asset themselves. This is a significant advantage for both Ripple and Bitcoin as it means that any merchant who accepts bitcoins also has the potential to accept any currency in the world without trading or transactions fees and without having to use a central exchange to acquire them.
In addition to giving Bitcoin more ways to connect with users of other forms of currency, Ripple also guarantees quicker and more stable transactions.
Why should I buy Ripple?
2017 has been an enormous year for cryptocurrencies, and you could easily be left wondering what is the best digital asset to invest in or whether you should buy Ripple. With Bitcoin up over 900%, Ethereum up 3321% and Litecoin up nearly 1600%, why should you buy Ripple online?
While the early investors in the aforementioned currencies did make huge gains and will likely continue to generate profits, they have already received mainstream backing. This means that it is unlikely that the average investor will be able to buy them at low prices ever again. For good return on investment on Ripple XRP – and the cryptocurrency market in general – it is, of course, better to buy Ripple coin before it has fully entered the mainstream and expect to hold on to it for a few years.
While there is no predicting the evolution of XRP, we can look at the trajectory of other popular altcoins such as Ethereum. Early adopters who had patience and nerve have seen an incredible ROI in the last two years.
The other main reason to consider Ripple is its backing by many major banking systems. While many interested in cryptocurrency wish to revolutionise the current financial system, it is hard to deny the power that the big banks currently hold. As banks start to incorporate digital currency into their own systems, many are turning to Ripple. Now over 100 institutions use Ripple cross-border payment technology.
The interest of the banks has been seen as a signal in the market that Ripple is a relatively safe investment as banks are unlikely to adopt and invest in a technology they will be forced to abandon anytime soon. As more financial services look at ways to enter the digital asset market, they will always value stability over volatility. Those betting that the financial institutions will incorporate digital currency instead of being overturned by it should feel safe choosing to buy Ripple.
Just this week, banking giants American Express and Santander have partnered with Ripple, using the technology to route transfers from their business customers through RippleNet. Another investor worth mentioning is the tech giant Google. Google hasn’t involved itself in digital currency generally but Google Ventures was one of Ripple’s early backers.
Finally, it is important to mention the scalability of Ripple. Ripple is far more scalable than many of the other digital currencies on the market.
Where can I buy Ripple online?
There are two main paths if you want to know how to buy Ripple coin online, either directly or indirectly. If you chose to buy XRP directly means that you will have actual ownership of the coin however, particularly in the case of XRP, there are several stages you must go through as you cannot simply buy XRP without first owning another dominant cryptocurrency. The other potential avenue is to buy Ripple online as a CFD through a regulated broker.
Often considered the easiest and most protected way to invest in cryptocurrency; CFDs, or contracts for difference allow the buyer to take advantage of this volatility and price fluctuations through a regulated system. Working within a controlled system should enforce accountability for your brokers to assure that they have plenty of safeguard measures in place to protect your money – although, of course, all types of trading is speculative and no one method can be considered truly safe or ‘bulletproof’. CFDs also mean that you do not need to engage in the technology needed to own a cryptocurrency wallet, nor own a digital wallet yourself.
For more information, check out our guides below on how to buy Ripple online but make sure to always do plenty of research before committing to either method.
How to buy Ripple online (CFD trading method)
If you are new to cryptocurrency, the easiest method to buy Ripple coin could be through CFD trading as Ripple does not sell XRP directly to consumers. It can be quite difficult for the average user on the internet to buy Ripple. Our preferred method is through eToro.
- Get Account
Your first step to buy Ripple through CFD trading is to get an eToro account. Go first to etoro.com and click ‘Join Now.’
Next, enter your details including your first name, last name, username, email, password and phone number. Read the ‘Terms & Conditions’ thoroughly before confirming your consent and clicking ‘Create Account.’ You can also sign in with your Facebook account or Google account. Once your account has been created, you are taken through to the trading platform. The eToro trading platform lists some of the most popular markets and details of their percentage change.
- Deposit Funds
Your next step is to deposit funds into your account. On the bottom left-hand corner of the screen, you will find the ‘Deposit Funds’ button. Once selected, you will encounter a pop-up (see below) which will ask you to enter how much you intend to deposit and your payment method of choice. Your options include credit/debit card, PayPal, Wire Transfer, UnionPay, Sofortuberweisung, Skrill, Neteller and more. Please note that if you want to deposit over €2000, for security reasons you must verify your identity. This can be done by clicking the ‘Complete Profile’ and following the steps required. You will be asked to verify your identity using a passport or other accepted ID and also to verify your address by sending in a copy of a utility bill or bank statement. Once verified, you can deposit over €2000.
Next, you will need to enter your billing details, again including your name, address and phone number. Once complete, click ‘Submit’. Congratulations – you now have a funded eToro account! You will receive an email to confirm this which will show your equity at the bottom.
- Buy Ripple
To buy Ripple, Click ‘Trade Markets’ on the sidebar. Then at the top of the page you will find the different markets you can buy within eToro. Click the ‘Crypto’ section. You will then see all the cryptocurrencies you can buy. Select Ripple (XRP) and click under the ‘Buy’ section.
Enter how much XRP you want to buy and click ‘Open Trade.’
Other methods to buy XRP
Currently you cannot buy Ripple directly using fiat currency. The process is similar to that of other altcoins, you must purchase bitcoin or ethereum before exchanging it for Ripple. This is likely to be the most popular however Coinbase have released the fact that they intend to offer Ripple on their platform. This means that for the first time you will be able to buy ripple directly with various payment methods, including paypal (US only), credit card and bank transfer.
Buy Ripple online with Bitcoin
If you are looking at alternatives methods to buy Ripple, the next way would be to buy Ripple online with bitcoin.
For this method, you must either have existing Bitcoin or purchase your Bitcoin before then exchanging it for XRP. One of the easiest ways of obtaining Bitcoin is on Coinbase, a provider of Bitcoin consumer wallets. Coinbase allows for instant purchases of bitcoin with either a credit card, debit card or bank account from certain countries.
Your next steps will be as follows:
- Create a Ripple account
Firstly, you will need to create a Ripple account with one of its listed wallet providers. We recommend using one mentioned on the Ripple website (please see below). Once this is completed, you will receive your Ripple address from the wallet provider. A Ripple address is made up of a seemingly random selection of letters and numbers and always starts with the letter “r.”
- Purchase bitcoin
You can read more on our guide here for further information here. Coinbase is usually considered the simplest platform to purchase Bitcoin, and it offers you the possibility of having a cryptocurrency wallet with them.
First you will need to sign up for an account and verify yourself with a mobile phone number as Coinbase works on 2 factor authentications. Once you are in, you will see a page which will show you how to buy Bitcoin.
- Choose the Cryptocurrency exchange platform
Once this is done, choose a cryptocurrency exchange to swap your bitcoin for Ripple XRP such as Poloniex, Kraken, Changelly, or an aggregator such as Coinswitch
- Buy Ripple
Once you have managed to transfer your Bitcoins into your chosen platform, you are ready to buy Ripple! One of the downsides of Coinbase (or any direct purchasing methods) is that it is likely you will need to wait for a between three to five days for the purchased Bitcoins to reach your account.
Buy Ripple Coin with a bank transfer, debit or credit card
Buy Ripple online with bank transfer, debit card or credit card
While the above methods listed are the easiest ways to buy Ripple online, it is possible to purchase with a bank transfer, debit card or credit card but this must be done through a cryptocurrency exchange platform. The most popular for this is Changelly which allow users to buy Ripple XRP coin – or many other types of digital currency – simply by paying through Credit or Debit card. This option is only available in USD currently, but UK-based company Cryptomate does offer transfers in GBP and allow bank transfers as well however it is not as established as Changelly.
- Get Ripple Wallet
To buy with through the Changelly website you will still need to own a Ripple wallet (see instructions above).
- Register with Changelly
Your first step is to register with Changelly, which is free of charge, and then select the currency you wish to exchange in.
- Pay for XRP
Once you have selected your exchange, you will be directed to the payment page where you can select “Pay With Visa/Master Card” and enter card details. Do note that Changelly will charge a fee for transactions however. Once this is done, you will then need to enter your phone number for confirmation to verify the transaction with a 4 digit code. To process a transaction usually takes between 5 and 30 minutes.