What is Ripple and how to buy it? Simple and useful guide.
Ripple is a great network of settlement that allows transferring almost any currency around the world within a few seconds. Ripple platform showed that SWIFT and Western Union transfers are very old and not as effective anymore. Right now, the platform’s goal is to work with banks, offering them more effective and smart way of sending payments in real time all over the world.
For example, if a customer wants to transfer money from Japan to Nicaragua, it seems like there are not many methods that will help to deliver the money. Usually, an individual or a bank trade JPY to USD and then USD to NIO, however, the fee will be double as long as money will be converted two times.
Every single step of such operation adds more fee and this is why sending money abroad becomes too expensive and inconvenient. If you use Ripple platform, then you can trade JPY to XRP where XRP is Ripple’s currency. This method is much cheaper and effective. The receiver will have to set Ripple wallet and then trade XRP into NIO. Briefly, XRP is like a carriage that exchanges any currency into a needed currency through the platform.
A lot of banks all over the world did not want to use Ripple as one of the money transfer methods. However, it is clear that transferring money in real time from one point to another is a very convenient and necessary option. Ripple platform is a great perspective for banks all over the planet. If a bank accepts Ripple, it will overcome its competitors and increase profit. The platform focuses on such term as Internet of Value which means that money should move as quickly as information. If customers start using Ripple platform, they will avoid waiting and will be impressed with a super quick and reliable money transfer method.
Why is Ripple profitable for banks?
Although a lot of banks did not accept the platform, some banks took participation in using the platform. Santander, Axis Bank, Yes Bank, Westpac, Union Credit, NBAD, and UBS banks already support the method of transferring money all over the world instantly. If a bank uses Ripple, it can save $3,76 per one transaction. As long as every single bank makes millions of payments every single year, this method is without a doubt very cost-effective. So, the main goal of any bank which is to earn as much money as possible with be reached.
Ripple platform is inexpensive and helps banks and businesses to save money and provide customers a much better service which impresses with fast-speed. Ripple is an irreplacing method of transferring money around the globe in the future. This option will definitely be admitted as long as its speed will equal the speed of information on the Internet.
At the moment, the platform is lead by Brad Garlinghouse. The platform is based in San Francisco and creates branches all over the world. The team constantly improves the protocol and connects with banks. The platform hires top talented and educated people who can make money transfers easy and effective. At the moment, Ripple platform is called one of the most exciting Fintech organizations with their innovative financial platform, as Forbes even includes Ripple in their Fintech 50.
How to invest in Ripple platform?
Basically, big investors can invest in the platform directly, however, a big part of other investors and speculators are limited in investing in XRP. This currency’s value increased at the beginning of this year. The initial value was $0,01 and now it is $0,30 for a coin. Such big increase is based on bank adoption and speculative interest. At the moment, Ripple platform takes the third place after Bitcoin that stands stable on the first position and Ethereum of the second position.
XRP allows doing financial transactions from any currency into another currency with just a small fee. XRP can also be called reserve currency on Ripple platform that allows users to trade any currency choosing XRP and send it all over the world. Individual, who receive XRP can exchange it into any needed currency.
Every time when any currency is cold in XRP, the liquidity grows as well as the value of XRP because of a big demand. The platform tries to make XRP a global reserve currency even though experts still do not see it. However, transferring XRP is a really simple and cost-effective method of sending money. Maybe one day it will not be necessary to transfer any currency at all but use XRP only. If people all over the world will turn the currency into XRP, its price will increase very quickly.
The main goal of the platform is to make XRP a stable currency that does not differ in value. Therefore, banks will start using it without having doubts that this currency is volatile. As we have already mentioned above, a lot of banks do not want to use the currency, as long as XRP can suddenly change its value. To help banks and payment providers, the platform established a partner relationship with BitGo in order to mediate the risks. So, it seems like soon banks will accept Ripple.
A long-term appreciation of XRP value is just a game strategy for the platform.It means when people bet on XRP they bet on Ripple. The platform also offers consulting services to financial institutions and has no problem securing funding when necessary. So, it looks like Ripple platform will be around for a long time.
How many Ripple coins exist?
Rom total 100 billion Ripple tokens, the platform holds 21 billion. So, the company holds the majority of coins. To ensure investors, the platform has licked up 55 billion XRP coins with 55 smart contracts. Every contract that holds 1 billion coins, expires monthly throughout the course of 54 months.
At the moment, Ripple spent around 300 million coins in a month for the last 18 month to cover expenses. This operational transparency must give skeptical investors the reason to believe that the platform is long-term and does not win when selling off holdings.
Benefits of using Ripple coins
There is a list of advantages when using Ripple platform. XRP has some unique benefits that other currencies cannot provide. First of all, Ripple platform cooperates with banks. While anyone opposed to the banking cartel monopoly does not want to contribute in Ripple, there is no doubt that the platform is focused on smart business decisions by making ties with corporations that control global finance.
Investors, who want to get profit from Ripple, are dedicated to the global network of settlement and probably will be the witness of constant value increase in a long term. Briefly saying, buying XRP and forgetting about it will lead to 10 or even 100 times increase in a long term.
Ripple transactions get confirmed very quickly just within a few seconds. Customers can use Ripple for buying items every single day if the platform is supported by sellers and buyers. Ripple platform is also scalable because it works on more than 1,000 payments every single second. The statistic proves that the platform holds up to 50,000 transactions per second which is equal to VISA method.
Differences between XRP and Bitcoin
Bitcoin is a great network without doubts, however, it is not the fastest method of exchanging value. Currently, Ripple is the quickest method of exchanging value. Also, the fee when sending bitcoins has increased as long as more transactions happen in a block chain. To send XRP costs much less. Ripple platform doesn’t get bogged down by transactions like Bitcoin.
The initial goal of Ripple network was to develop a platform that would not consume a lot of electricity like Bitcoin. To avoid mining, all 100 billion of XRP coins were implanted. However, they have cons for those who appreciate mining.
A lot of o experts say that Ripple is centralized, however, the company puts as many efforts as possible to change it. Ripple platform becomes more decentralized through validator node diversity on the Ripple Consensus Ledger (RCL). Ripple claims that right now the company is more decentralized than Bitcoin network.
One of the biggest benefits from the investors’ point of view is the fact that Ripple tries to make the connection with various banks all over the world, while a lot of them see Bitcoin and other cryptocurrencies as competition to the established financial order. Therefore, banks will likely use Ripple in the nearest future rather than support bitcoins.
Disadvantages of Ripple platform
Although Ripple platform has quite a long list of benefits compared with other cryptocurrencies, some people can say that this platform is like a big brother for making global payments. At first, the Ripple platform was created to help people to make easy transactions every single day all over the planet, however, a lot of people noticed that the platform focuses on banks.
XRP coins were created before Ripple company owned a majority of them. However, those coins are locked in a smart contract and the possibility of sell off is low, still, there are a lot of things to review and consider. We can assume that Ripple in like the bank for XRP coins.
Researchers from Purdue University defined that Ripple platform is more likely to be damaged. Because it is open its nodes can be attacked which will not allow users to have an access to their funds. Therefore, a lot of people may decide that investing in XRP is not smart especially if they are invested in cryptocurrency because they see cryptocurrency as an exit from the banking cartel and government control. From the other side, investors who search for income and do not spot anything negative about the platform will start purchasing XRP.
Now you know about Ripple platform and currency, its benefits and shortcomings. Finally, we have come to the methods of buying the coins. Here we are going to discover 3 useful ways to purchase Ripple.
1. Set up Ripple wallet
The most important are t set up an online wallet for storing your XRP coins. When you download the wallet, it is necessary to write down the secret key and keep it in a safe place. Also, you can write it down and keep it in a few secure place in case you lose one. This secret password will give you an access to your wallet. XRP wallets are same as Bitcoin wallets, so if you already know about
Bitcoin wallets, it will not be difficult for you to set XRP wallet for yourself. The best way to keep XRP is on hardware wallet because in this case, it provides maximum security. It is also necessary to mention that every Ripple wallet has to be funded with 20 XRP coins reserve to protect it against a lot level of spam attacks.
One of the best and safest wallets for storing XRP coins is Ledger Nano S. You can find a review about this very wallet and find out about its pros. Ripple offers wallet for Mac, Windows, and Linux with full functionality. Please, find out how to set up a wallet on your device and store coins.
There are no highly rated mobile wallets for storing XRP coins, therefore, we would like to recommend only Ledger Nano S.
2. Find a Ripple exchange
Nowadays, you will find a few options where to buy Ripple coins. You can buy it with fiat currency which is USD or EUR or you can trade bitcoins for Ripple on certain exchanges. It is best to but Ripple if you do not own Bitcoin. You can buy it via a bank transfer or credit card.
Also, you can buy XRP coins with the help of a wire transfer via Bitstamp. You will have to register and follow the procedure that is called Know Your Customer (KYC), you will be able to send EUR through SEPA transfer or USD via a bank transfer. When the transfer clears, the fiat currency can be sold for XRP on their exchange.
Bitstamp also allows people to move funds on the platform with the credit card payment or trading Bitcoin directly for XRP. You can find more detailed information about using Bitstams when purchasing XRP.
GateHub is another change that supports XRP. First, you will need to sign up and also pass the KYC procedure. This exchange accepts SEPA transfers and bank transfers but there is a commission that is $15. When you receive USD or EUR it can be sold for XRP on a GateHub trading platform. Check out how you can buy XRP on this very platform.
You also can use Bitcoin for XRP. It is possible to purchase XRP by buying bitcoins from Coinbase or another provider. After that bitcoins can be sent to exchanges and can be traded for XRP. The easiest way to trade Bitcoin for XRP is to exchange it on Changelly or Shapeshift. Kraken is another popular exchange service that allows users to trade bitcoins for XRP. You also can purchase XRP with the help of bitcoins selling it on Poloniex and Bittrex services. For Japanese customers, it is best to use Coincheck or Bitbank, South Koreans can use Coinone or Korebit and Mexicans Bitso.
3. Withdraw your XRP coins
It is recommended to withdraw your XRP coins on the exchange because you cannot manage a locked key for your coins, therefore, they are not actually yours. It does not matter where you have coins, remember to withdraw them into your Ripple wallet where you keep your private keys. Once you confirm payment, you will successfully complete the process of purchasing XRP coins.
Whether you should invest in Ripple or not depends on your requirements and expectations. Ripple will likely start cooperating with large banks in the nearest future as long as they provide a global network of settlement which allows making payments in real time all over the world decreasing fees for transactions at the same time.
Everyone who buys the innate digital asset XRP has the potential to receive very big income from investments if Ripple continues to move throughout the banking sector. However, the concept of XRP is becoming a set global reserve, this is the best case scenario for investors.
XRP value increased in 2017, however, it is only a start. There is always a big risk and a big reward.