Ripple has become a popular topic lately, as it became cryptocurrency #2 for a short time last week. While it was trading at $0.20 just last year, it is now worth more than $0.71 per coin and continues to rise. It's important to note that Ripple is the company and XRP is the coin, but most people just call it Ripple.
Ripple (XRP) is different from many other popular cryptocurrencies because it was created by a private, non-profit company. This company wanted to enable a frictionless way to send money around the world, and it is Coin Ripple as it does. This company is also the largest holder of Ripple today.
The problem is, Ripple used to not be the easiest cryptocurrency to buy (but that has changed). It used to require some extra steps compared to investing in Litecoin or Ethereum. But let's break it down and show you what to do.
Note: In 2020, the SEC filed charges against Ripple and two founders related to XRP. Make sure you do your due diligence before investing, as the token is de-listed on many exchanges. In fact, Coinbase is suspending trading of XRP as of January 19, 2021.
What Is Ripple?
Ripple was originally (and still is) a payment processing platform that enables global transactions with its coin XRP. The global payment network was founded in 2012 and has continued to grow as companies have adopted it and currency speculators have shown interest in Ripple.
Ripple uses a blockchain ledger similar to Bitcoin and other cryptocurrencies, but also has some technical differences that claim to make transactions easier and, more importantly, faster to process while remaining secure.
How Ripple Is Different
Ripple differs from its main competitors Bitcoin and Litecoin in that it was created by a private, non-profit company. When it was created, 100 billion XRP was put on the market, with 20 billion held by the developers and the rest given to Ripple Labs. Ripple Labs has since deposited 55 billion XRP into an escrow account to ensure stability for users in the market.
It is important to note that Ripple has been referred to as a "bitcoin killer" since at least 2014, but only recently has it gained real traction and momentum among cryptocurrency enthusiasts.
Ripple has recently had explosive price increases similar to other currencies, but is still very "cheap" price-wise.
How to invest in Ripple
First, note that Ripple is under SEC investigation and many exchanges have de-listed the token. These directions are outdated.
As mentioned earlier, Ripple is not "easy" to invest in. It used to require several steps - from investing in a basecoin to transferring your account to investing in Ripple (since it is an altcoin).
If all that sounds foreign, read this guide on how to invest in cryptocurrency.
Having said that, here are the steps you need to take to invest in XRP:
Create A Coinbase account.
The first thing you need to do is create a Coinbase account. Remember, you can get a $10 bonus when you deposit $100!
Coinbase is a very popular choice as some of the most popular currencies are easily available for purchase in their app or website.
One of them is XRP (Ripple) - which you can easily buy in the app along with Bitcoin and others. You can also easily deposit and withdraw US dollars.
- Once you have your Bitcoin in your Coinbase account, you can buy XRP.
- Simply click on Ripple (XRP) in your Coinbase account and place a trade.
- Once you place your trade, it will show up in your Coinbase account.
- Once you have everything in your Coinbase account, you can easily track and trace your cryptocurrency.
As with any currency, there is a lot of risk involved when you consider investing in Ripple. However, given the low price, there is a possibility of a high return with a low barrier to entry.
If you don't like the idea of a digital wallet and/or all these steps, there are no ETFs tracking Ripple yet. However, GBTC is an ETF that tracks Bitcoin, and you can invest in both GBTC and Ripple directly on eToro.
You never know, Ripple could go as high as Bitcoin today, and you could thank yourself in several years.