Cryptocurrencies are hot stuff right now, despite their high volatility. Most people are familiar with the likes of bitcoin, but Ripple (XRP) is more of an unknown quantity. In this article, we are going to give you an overview of Ripple and explain how you can buy or trade it.
Ripple is a different animal to bitcoin. If you’re looking to trade with Bitcoin or Ripple, you can read this Inside Bitcoins Immediate Edge review. As well as being a cryptocurrency, it is also a payment platform. In addition, it doesn’t have a blockchain. Instead, it uses the Ripple protocol consensus algorithm, which means all transactions have to be verified by every node before they can go ahead. This makes it very exciting for investors and is part of the reason why demand for Ripple has increased in recent times. It is currently trading at $0.359, with a market cap of $14.66 billion. Like bitcoin, Ripple has suffered a sharp price correction in the last 12 months, but there are signs it will recover.
The origins of Ripple
Ripple was created by Jed McCaleb, the founder of Mt. Gox (before it was hacked). In one of the latest rounds of funding, Ripple Labs received $55 million from investors, including Standard Chartered, Seagate Technology, and Santander InnoVentures. That’s how much trust investors have in the future of Ripple.
The Ripple platform
The Ripple trading platform allows unconnected people to send and receive money across the globe. You can use any currency to make a payment, and the minimum value of a transaction is only $0.00001. You do have to pay a fee to use the Ripple platform, however. The platform is perfect for low-value currency transactions; it’s also very fast – much faster than traditional banking systems.
How to buy Ripple
If you want to buy Ripple in the UK, US, or anywhere else for that matter, you’ll need to create an account on a cryptocurrency exchange. Not all exchanges offer Ripple, but most of the main ones do. Check whether the exchange you want to use lets you change USD (or another cryptocurrency) into XRP. Options worth considering include Binance, Coinbase, and Kraken. Bittrex is another exchange where you can trade XRP (check out this comparison of Binance versus Binance on Total Crypto). It is worth pointing out that XRP/USD exchange rates are not great, so if you have another cryptocurrency, use that to buy XRP.
You will also need a cryptocurrency wallet to store your virtual money. Check that the virtual wallet you have supports Ripple – again, not all do.
How to invest in Ripple
You can trade XRP via forex trading platforms. Look for a broker that supports cryptocurrencies. Not all of them do. You can trade crypto pairs or speculate on the future price of XRP via CFD trading. With leverage, it is possible to make significant sums of money in CFD trading, but the earning potential is not without a degree of risk.
Right now, big banks are interested in Ripple, but they haven’t quite embraced it whole-heartedly. Still, it is likely that Ripple will continue to make ripples in the global currency markets. For this reason, it is worth adding XRP to your investment portfolio.