Ripple was released in 2012 as a subsequent iteration of Ripplepay. It is a real-time gross settlement system. What does it mean? A common ledger is controlled and managed by a network of independently validating servers. Those services keep on comparing and contrasting transactions. The closest competitors of this cryptocurrency are Bitcoin and Ethereum. Unlike famous Bitcoin, this service does not depend on the energy and computing intensive proof-of-work.
A public database shared by the market participants is at the heart of Ripple platform. The main goal is to provide integrity. No matter whether you are a bank or separate person, you may possess the validating services associated with the work of Ripple system.
There is a difference between Ripple and XRP, its native currency. Each XRP unit is a coin. The Ripple protocol activates almost instant, direct movement of funds between 2 parties. It is possible to exchange any type of currency. The platform does everything possible to overcome fees and reduce the waiting time compared to the traditional banking.
Ripple and Its Competitors
Ripple cryptocurrency mentions that banks can save something like $3.76 per each operation thanks to its network. Unlike other popular cryptocurrencies, this one works directly with banks. The mission is to create networks to benefit finance organizations. However, some individuals find the system useful as well.
At the same time, playing with Ripple might be rather risky. The open nature of the system refers to the vulnerability of noes to the possible threats. Users risk staying without access to their accounts one day. Of course, the risk is minimized, but it still exists.
A few more words about Ripple’s advantages. An average transaction requires something between 2-3 seconds while Bitcoin transactions take about fifty minutes to process.
One more thing to mention in favor of Ripple is that Ethereum and similar cryptocurrencies are fully decentralized. They are backed by millions of international miners. It means that no one has real control over those platforms. Credible financial institutions, as well as Ripple Labs, control the processes associated with Ripple and XRP. There is no need for its servers to carry out proof-of-work calculations like Bitcoin or Ethereum.
Ripple coin price is falling right now, but it does not mean it will not recover and go up again. It is not recommended to buy Ripple now – it is better to try later. Ripple XRP price is hovering above $0.80 in February 2018. The total market capitalization dropped down less than $30billion. The highest level ever achieved was $148.5billion, with the worth about $3.84.
Ways to Purchase Ripple (XRP)
How to buy ripple? Once you decide to try, that is the most obvious question to come to your mind. Because the native platform of this cryptocurrency is not that simply accessible to potential investors, anyone can purchase Ripple and wait. The currency continues to grow, so each person still has a chance to succeed. It keeps on growing as the merchants and banks constantly adopt the platform. Newbies who have never dealt with any of the cryptocurrency should know the principles of purchasing the coins as well as where to buy Ripple. It is possible to invest either in Ripple itself or its related currency called XRP.
There are three steps to consider when investing in Ripple:
- Receiving its wallet
- Deciding on the Ripple exchange
- Withdrawing Ripple to wallet
A user may come up with a hardware or software wallet. In the first case, you will deal with the physical object to keep the currency. It can be something like a USB drive. In the second case, you will benefit from the digital means to save the cryptocurrency of this type. With the help of Software Wallets, one can save XRP public/private keys on a desktop, mobile device, or web resource.
Finding Ripple Exchange
Now, it is time to find a Ripple exchange to trade it. A person can pick between various exchanges depending on the Ripple stock price.
- Trading fund: Do you wish to make a speculative investment in the given cryptocurrency, this option is right for you. It makes it possible to purchase and sell Ripple for fiat currency. However, it prevents from sending coins to others.
- Purchase Ripple with Fiat Currency (USD, Euro, etc.) Those who prefer to buy things with cash, do the next: register the personal information and verify the bank data. Then, wire transfer money to the personal exchange account. That is here you can buy XRP with the help of credit/debit card. Be ready to face additional fees and longer wait times.
To begin with, try such exchanges as cex.io, Coinmama, and BitPanda. It is up to you to decide on the best exchange to buy Ripple.
Just follow the Ripple market cap, prices, and other latest news to decide whether to invest in it or not. Market capitalization analysis is another thing that could help you make the final decision.