Ripple is one of the biggest names in blockchain, cryptocurrency and payments. Learn more about Ripple, how to buy XRP and where to store your XRP tokens.
Ripple is a company that utilises blockchain technology to enable fast and affordable cross-border transactions. To improve on the speed and costs associated with traditional payments, Ripple created the XRP Ledger, a public blockchain used by companies and financial institutions to send money overseas.
XRP, Ripple’s native cryptocurrency, is used as a bridge currency for facilitating international payments. Unlike other blockchain networks, such as Bitcoin and Ethereum, Ripple does not rely on a Proof of Work (PoW) or Proof of Stake (PoS) consensus mechanism to validate transactions and create more XRP tokens. Instead, the XRPL uses the unique Ripple Protocol Consensus Algorithm (RPCA), relying on a network of trusted validators to process transactions.
The XRP Ledger does not require mining and the consensus process does not require multiple confirmations for immutability, which makes the XRP Ledger faster and more efficient at processing transactions than Bitcoin and other top cryptocurrencies.
XRPL.org
What is the difference between XRP and Ripple?
XRP is a digital asset created for payments, Ripple as a company exists independently of the XRP digital asset. XRP is the native cryptocurrency asset of XRP Ledger (XRPL), Ripple funded the development of the open-source XRPL.
What is XRPL?
XRPL or XRP Ledger is an open-source distributed ledger that is generated by Ripple. The native cryptocurrency for XRPL is XRP.
XRP transactions are processed by a network of trusted validators on the XRP Ledger, gaining consensus via the Ripple Consensus Protocol Algorithm (RCPA)
To learn more about Ripple (XRP), visit our “What is Ripple (XRP)?” page.
Where to buy Ripple
There are many options for buying XRP, depending on the region you live in. If you are interested in purchasing XRP or investing in Ripple, you will need to use a cryptocurrency exchange or trading platform such as eToro. Here, investors are able to buy a range of cryptoassets, including XRP.
There are two main types of cryptocurrency exchange: centralised exchanges (CEXs) and decentralised exchanges (DEXs).
A centralised exchange is arguably the safer option of the two. With a CEX, investors purchase XRP directly from the exchange itself. This purchase is usually made with fiat currencies but can sometimes also be made by trading one cryptocurrency for another.
On the other hand, decentralised exchanges are peer-to-peer marketplaces for buying, selling or trading XRP with other investors. DEXs are less likely to require traders to verify their identity, but will rarely allow you to buy XRP with fiat currency.
How to keep and store Ripple
Storing your XRP tokens securely after buying them is one of the most important aspects of the whole process. It is sometimes possible to store Ripple (XRP) on the exchange or platform that you bought it from. If the exchange is licensed and has implemented the correct security measures, this could be a good option, especially for beginner investors.
Alternatively, most XRP investors prefer to store their XRP tokens in a cryptocurrency wallet. There are a range of crypto wallets to choose from, such as hot wallets and cold wallets. Hot wallets can be used to store XRP and other cryptocurrencies online, whereas cold wallets function in a similar manner to an external hard drive. Some of the most popular XRP wallets include:
- eToro Money: An easy-to-use, secure method of storing cryptocurrencies such as XRP. The eToro Money app can be used on both iOS and Android devices and is integrated seamlessly with the eToro trading platform.
- Exodus: A multi-currency wallet for storing XRP and other cryptoassets. Exodus allows users to buy and sell XRP, as well as store it. It can be accessed via a desktop or browser extension.
- Ledger: An offline, cold wallet for storing XRP and a range of other cryptocurrencies. Private keys are not connected to the Internet and transactions are verified with a physical PIN.
Tip: Regardless of how you decide to store your XRP, you can always move it using your wallet’s unique address.
Learn more about Ripple
Ripple was founded by David Schwartz, Jed McCaleb and Arthur Britto in 2011, with the XRP Ledger eventually being launched in 2012. It was created as a more efficient, scalable and sustainable alternative to Bitcoin.
When making international payments, XRP is used as a liquidity intermediary. All participants on the XRP Ledger need a small amount of XRP, which can be sent directly from one XRPL address to another. When exchanging one currency for another, the XRPL will automatically use XRP to bridge the tokens or currencies.
For example, if Person A was based in the US and Person B was based in the UK, the XRP Ledger would convert USD to XRP and then XRP to GBP, assuming that it was more cost-effective than converting directly from USD to GBP.
There are a range of resources available for those interested in learning more about Ripple (XRP):
| eToro Academy | Online | An extensive resource for both new and experienced traders or investors. The eToro Academy contains information about Ripple, XRP and blockchain technology in general. |
| @xrpledgerfoundation1145 | YouTube | The official XRP Ledger Foundation YouTube channel contains videos about the Ripple blockchain and payments system, as well as updates about the network in general. |
| xrpl.org | Online | The XRPL website, which details exactly how each element of the Ripple network functions. This resource is better suited for more experienced cryptocurrency traders. |
How to buy Ripple (XRP) on eToro
eToro is one of the most popular platforms for buying Ripple (XRP) and other cryptocurrencies. eToro is a multi-asset broker, meaning that it supports cryptocurrency, stock, commodity and forex trading. The eToro platform does not charge hidden fees and provides a straightforward, cost-effective solution for investing in Ripple.
For those interested in buying XRP on eToro, follow these steps:
- Create an account
Before you can buy XRP, you will need to register for an eToro account using your personal details. Follow the necessary Know Your Customer (KYC) checks to verify your identity.
- Deposit funds
To purchase XRP, you will need to add funds to your account. To do so, click the “Deposit Funds” button on the left-hand side of the page. Here, decide how much of your chosen fiat currency you want to deposit.
- Buy XRP
Visit the Ripple (XRP) page and click “Invest.” Decide how many XRP tokens you want to purchase, either by opening a trade at the current XRP price or by selecting “Order” to buy at a certain price in the future.
- Download the eToro Money wallet
If you want to move your XRP outside of the eToro platform, consider downloading the eToro Money app. It is possible to quickly and easily send your XRP tokens to the eToro Money crypto wallet for safekeeping.
Final thoughts on investing in Ripple
Ripple is one of the world’s most talked-about blockchain networks. It has the potential to revolutionise the international payments market using XRP and the XRP Ledger, so it is understandable that some investors are interested in purchasing Ripple’s native cryptocurrency.
Remember, cryptocurrencies can be incredibly volatile, so even if you believe in the potential for future price appreciation, do not invest more than you can afford to lose, and consider diversifying your portfolio to lower your risk.
Learn more about XRP and other cryptocurrencies on the eToro Academy.
FAQ
- Should you buy Ripple (XRP)?
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The decision about whether or not to buy a particular cryptocurrency is very much a personal one. Ripple has ambitious plans to disrupt the traditional remittance industry, and if it works, there is potential that XRP’s price will increase as a result. However, there is no guarantee that this will happen, and there are other companies and cryptocurrencies trying to do a similar thing, including Stellar. Remember to conduct thorough research before buying XRP.
- How many Ripple (XRP) tokens are there?
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There is a maximum supply of 100 billion XRP tokens, all of which are already in existence. The XRPL founders gifted 80 billion XRP to Ripple when the Ledger was created, although 55 billion tokens were locked into a series of escrows, to be released at particular points in the coming years.
- Is XRP only for banks and financial institutions?
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XRP was designed to allow banks to transfer money across borders. As a result, some people have criticised Ripple for focusing on large financial corporations, which goes against the very nature of decentralisation. However, individual consumers are also able to use the XRPL to make international payments and move currencies around the world.
This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.
This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Not all of the financial instruments and services referred to are offered by eToro and any references to past performance of a financial instrument, index, or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.
eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this guide. Make sure you understand the risks involved in trading before committing any capital. Never risk more than you are prepared to lose.