This article will walk you through the basics of these purchasing options and give you an overview of what to look out for before making your purchase.
What is Ripple?
Ripple is a payment network that uses blockchain technology and allows users to transfer any form of currency (fiat, digital, or cryptocurrencies) instantly, peer-to-peer. The Ripple network is decentralized and has been operating since 2012.
The concept was created by Ryan Fugger in 2004 and released as open-source software in 2012. The cryptocurrency associated with Ripple is known as XRP. At present, there are 39 billion XRP in circulation. Ripple’s value has increased over 150% since early 2017, and it’s recently been valued at over $3 per token, which translates into a market cap exceeding $100 million.
While transactions take only 4 seconds to process, major credit card companies still have yet to adopt the platform. This creates an opportunity for anyone looking for a place to put their money while waiting for more traditional currencies and systems like Bitcoin Cash or Litecoin futures contracts to become available.
Buying bitcoin before it hits exchanges, like Changelly, Circle or Bitstamp would be another option. With low fees and increasingly wider adoption of cryptocurrencies, just imagine how quickly your investment could increase!
How to Buy Ripple?
Ripple is a relatively new cryptocurrency that’s been making waves over its rapid increase in value. Unlike many other cryptocurrencies, Ripple isn’t mined – it was created by a private company called Ripple Labs and then released as an open-source protocol.
You can buy Ripple on several cryptocurrency exchanges, including Poloniex, Bitstamp, and Kraken; however, you can only trade Bitcoin or Ethereum for XRP (Ripple tokens). To do so, first purchase either of these currencies using AUD from your bank account or credit card.
Then, transfer your BTC/ETH from your exchange wallet to one of several exchanges where XRP is available for trading (some accept AUD directly). It’s worth noting that each exchange has its own quirks when it comes to payment methods and limits on buying through credit cards.
For example, some require wire transfers while others don’t allow payments from certain countries. Also, keep in mind that since you’re essentially exchanging BTC or ETH for fiat money, transactions will be subject to standard wire transfer fees, plus any applicable exchange rates on top of that.
So whether you choose to mine, purchase with AUD, or get paid in BTC/ETH directly and convert later at an exchange, there are costs involved.
Is it Risky to Buy?
Unlike most of its competitors, Ripple’s creators didn’t set up their currency as a way to replace national currencies or compete with government-backed monetary systems. Instead, Ripple Labs created it to help solve some of the problems related to moving money around between different countries and currencies.
The founders believe these are issues large financial institutions deal with every day and could be streamlined if they had better tools for doing so. Today, Ripple has grown into one of these big financial companies. It handles millions of transactions every day for companies such as Bank of America, UBS, and Standard Chartered Bank.
And unlike many cryptocurrencies, it actually functions like a real currency. You can use it to purchase goods and services, trade on foreign exchange markets, or even pay your rent.
However, like any new technology, blockchain comes with risks. While XRP has seen a massive uptick in price lately due to recent partnerships and announcements, it remains volatile at present.
Final Verdict
Ripple is a way for people and institutions around the world to send money digitally – faster, more secure, and at a much lower cost. It is based on a network of peer-to-peer servers that communicate with each other using a system called Ripple Transaction Protocol (RTXP) and can settle transactions using a variety of currencies.
Ripple offers an alternative remittance option that would allow individuals to send funds efficiently. The platform also allows traders to bypass currency exchanges by trading different fiat currencies directly through their bank accounts.
Even though XRP doesn’t have any intrinsic value – it’s basically just another means of exchange; Ripple has won plaudits from major financial players as a technology that could have lasting benefits across global payments networks.