What is Ripple?
In the world of cryptocurrencies, Satoshi Nakamoto’s Bitcoin pioneered a new version of finance built on blockchain technology. However, the mining process to create a new block was tedious, which led to increased electricity costs and slower speed.
All these led to the creation of OpenCoin in 2012, later renamed Ripple Labs, a name prevalent on social media today.
Ripple is a protocol that facilitates cross-border transactions utilizing its native token, XRP. the project focuses on financial services to financial institutions like traditional banks, payment services, massive corporations, and enterprises.
The innovative technology company has envisioned a global network that would allow money to be transferred worldwide as fast and frictionlessly as data is, with the associated costs as low as possible. This is precisely what RippleNet has set off to achieve. The ecosystem utilizes XRP, the native token, and IOUs representing debt, and they can be traded between different institutions.
What makes Ripple unique?
One of the greatest advantages of RippleNet is that it enables the transfer of ownership of any asset. Ranging from everyday currencies to things like gold, crude oil, and even frequent flyer miles.
As for the performance of the Ripple network, aka RippleNet, an XRP transaction takes 4 seconds to settle on average, with the network able to process up to 1500 TPS (transactions per second) and a transaction cost of about 0.0001 XRP for each standard transaction. That’s why multiple financial institutions and payment firms have chosen the RippleNet platform. These include Santander, MoneyMatch, the Bank of America, SBI Remit, TransferGo, and more.
While XRP has some huge advantages over other cryptocurrencies, some would argue that it is a big brother platform for making global transactions. Since the original vision of Ripple was focused on allowing everyday people to make global transactions, like remittance payments, inexpensively and quickly, the pivot towards focusing solely on financial establishments was seen as a turnoff by many.
Additionally, Ripple is a centralized company. Thus, it has built a business infrastructure that’s compliant with government regulations.
Ripple’s XRP Ledger is also a unique blockchain network in the cryptocurrency ecosystem due to its centralized infrastructure and majority-ruled consensus algorithm. Unlike the mining process of proof-of-work or staking on proof-of-stake blockchains, transactions are verified on the XRP blockchain as long as most validators agree it is valid. The XRP blockchain is secured by a small list of hand-picked validators called a Unique Node List.
How to buy XRP
Even though individuals would find it difficult to invest in Ripple, users can easily invest in the ecosystem using its native token, XRP.
There are no worries for those who want to buy crypto but are not sure how, as many CEXs offer options for both beginners and expert traders.
Here’s a guide on navigating CEX like Binance, Bitstamp, Kraken, and MEXC.
Binance is the largest Centralized crypto exchange. Thus it allows you to purchase Ripple (XRP) in multiple ways. Here’s the easiest option.
1. Create a free account on the Binance website or the app. Your Binance account acts as a gateway to buying crypto.
2. Register via the website using your mobile number, choose the “Buy” option and check the options available in your region.
3. Fund your wallet. For better coin compatibility, consider buying a stablecoin like USDT or BUSD first with a credit or Debit card, and then use that coin to buy XRP. If you are a new user, this is the easiest option to purchase XRP. Binance supports both Visa and MasterCard.
If available in your region, consider depositing USD via Swift into your fiat wallet.
4. Buy XRP directly from other users with Binance’s peer-to-peer service, or use the trading feature.
Now that you bought your crypto, you can store it in your crypto wallet or hold it in your Binance account. You can also trade for other crypto or stake it on Binance Earn for passive income. There are multiple options for third-party payment channels. Consider visiting the Binance website and the FAQ section to check which options are available in your region.
BitStamp is another platform to buy XRP easily. It was created in 2011, and it makes trading easy and reliable with round-the-clock support. The platform also offers staking features with bank-grade security and insurance.
1. Sign up for a Bitstamp account.
2. Log into the account and go to Deposit.
3. Choose Bank Transfer in the menu on the left.
4. Select the currency you want to deposit and the balance you would like to credit it to.
5. Click Deposit.
6. BitStamp’s bank details and your personal message number will appear. Make a transfer from your bank and paste/input the personal message number as the transfer reference.
They only accept deposits from bank accounts registered under the same name as your Bitstamp account. If the names do not match exactly, the deposit processing time may be extended, and BitStamp may require you to provide additional information.
You can deposit funds from a checking or joint account if it is held in your name. but they do not accept deposits from third-party accounts, even if you are authorized to use them.
7. Start trading XRP right away.
Kraken is another platform that has established itself in the crypto industry. They offer over 150 different currencies, including XRP. You can also check XRP’s current market price on Kraken’s XRP price page.
1. Download the app from Google Play or the iOS App Store, depending on your device
2. Create your Kraken account.
3. Connect your bank account or credit card. The bank account feature is only available to US residents. While credit card purchases are available in a couple of countries, best to research the list of countries for certainty.
4. Deposit funds and buy the desired amount of XRP tokens.
It’s best to note that Kraken offers a minimum order size of 5 XRP. This means you can start buying XRP for just $10. But you need at least $10 worth of XRP in your wallet to interact.
While you do not need to execute larger orders, Kraken’s advanced price discovery and execution technology help offer some of the best rates of any cryptocurrency exchange, and it’s also possible to utilize Kraken’s dollar-averaging options. Your verification level determines what you can do with your Kraken account.
MEXC operates similarly to Binance. They offer multiple features only a centralized exchange can offer right now. Purchasing XRP on the platform is also straightforward, regardless of the overwhelming options available on the platform.
1. Create a free account on the MEXC website or the app.
2. Register via the website using your mobile number, click the “Buy Crypto.” option, and check the options available in your region.
3. Fund your wallet. One option to consider is buying a stablecoin like USDT and then using that to get XRP on the spot market.
If you are a new user, credit/debit Card purchase is the easiest option to purchase XRP. Fortunately, MEXC supports both Visa and MasterCard.
Another option is the Global Bank Transfer. If available in your region, you can instantly Deposit USD via SWIFT, Wire, PIX, and ACH with no fees and make a spot trade to purchase Ripple (XRP).
Finally, there are Third party payment systems compatible with MEXC. Services like Simplex, Banxa, Mercury,
4. If all fails, you can buy XRP directly from other users with Binance’s peer-to-peer service or use the OTC trading feature.
5. Store or use your XRP on MEXC, or utilize it elsewhere via blockchain transfer. You can also trade for other crypto or stake it on MEXC Earning Products for passive income.
So why, then should you buy Ripple (XRP)?
One is because of its consensus protocol. XRP is both efficient and environmentally friendly. it can process transactions faster, with minimal energy cost, as opposed to Bitcoin, which isn’t as efficient.
Secondly, while Ripple does not adhere to the crypto industry’s general desire for decentralization, Ripple’s centralized status and regulation compliance position them as a ready partner to real-world financial institutes and banks.
It might not be the same as investing in stocks, but if Ripple becomes successful, your returns will be sizable.