What is Ripple?
Ripple is a cryptocurrency with the ticker XRP and a digital payment network. Founded and released by
RippleLabs in
2012, it serves as a real-time gross settlement system (RTGS) and remittance network. The purpose of Ripple
is to
enable almost instant financial transactions which are recorded by a distributed ledger called blockchain.
Ripple is
one of the more centralised digital currencies, with RippleLabs controlling supply of XRP and many network
nodes.
How to buy Ripple?
You can buy Ripple on marketplaces. Before you are able to buy XRP, however, you are required to open an
account and
verify your identity with a marketplace. You may also need to setup a Ripple wallet to store your XRP in
case the
chosen marketplace does not offer one natively on their platform. The account creation, identity
verification and
payment processes can take from few minutes to several weeks.
Where to buy Ripple?
There are different kinds of cryptocurrency marketplaces to buy XRP.
Exchanges resemble traditional stock exchanges (e.g. NYSE, NASDAQ). On cryptocurrency
exchanges, you
can buy XRP from
other traders - and without any personal contact with one another. Exchanges thereby are responsible for the
matchmaking, i.e. to determine the price of XRP and to find one or several sellers for your order.
Cryptocurrency
exchanges are oftentimes tailored towards the needs of professional trader. Hence, they offer advanced
trading
features which can be hard-to-use and confusing for beginners.
Brokers, by contrast, sell XRP out of their own asset stock. This means that when you buy
Ripple
from a broker, there
is no transaction with other traders, but the broker service. Cryptocurrency brokers often charge a higher
fee than
cryptocurrency exchanges, whilst offing a better user experience and more payment methods than
cryptocurrency
exchanges in return.
Lastly, peer-to-peer (P2P) directories are platforms where you can buy XRP directly from
other
traders. However, it
is more risky to buy Ripple on a P2P directory due to the lack of a third party.
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What to consider when buying Ripple
After learning more about cryptocurrency marketplaces, you might be wondering: “What’s the best marketplace
for me?”
Well, you’ve come to the right place: Cryptoradar lists popular places to buy Ripple globally. Simply use
our
filters to find a marketplace that meets your requirements.
Verification: Before you can buy Ripple, most marketplaces require you to verify your
verification
(e.g. by uploading
a copy of your passport) and proof your permanent residence (e.g. by uploading a recent utility bill). This
process
can take anywhere from few minutes to several weeks.
Wallet Service: A Ripple wallet is a piece of software where you can store your XRP. We
recommend
newbies to choose a
marketplace that provides a built-in wallet service. However, note that a wallet that you are managing
yourself is
usually a safer option, but its usage requires some learning. Find more information about different types of
wallets
here.
Prices & Fees: The price of XRP is determined by supply and demand. Prices are determined by
cryptocurrency exchanges
based on the number of people willing to sell and buy XRP. Broker services align their prices on the current
prices
of major exchanges, but usually charge a markup and fees for their services. In addition to trading fees,
there may
be fees to deposit and withdraw XRP.
Payment method: Before you can buy XRP you need to deposit money at a marketplace. Most
exchanges
only offer wire
transfer, while broker services often offer a larger number of more convenient payment methods such as
credit cards
or Skrill for an additional payment fee.
Security: When investing into cryptocurrencies, security plays a major. Cryptoradar helps
you filter
marketplaces for
security features such as two-factor authentication (2FA) or cold storage. We also advise you not to store
significant amounts of fiat or cryptocurrencies on marketplaces as they may be subject to cyber attacks.
When to buy Ripple?
Is now a good time to buy Ripple? We don’t know. However, if you are looking at a specific price at which you
would
like to buy Ripple, we can help you to not miss a favourable opportunity: Sign up for a Cryptoradar account and set
up a price alert to get notified when XRP trades below or above your target price.