Ripple is a digital payment network based around blockchain technology. The Ripple token is the native currency of the blockchain. Ripple is distinct from mining-based coins like Bitcoin in that it uses a consensus of servers to approve transactions. Ripple is among the among top ten cryptocurrencies by market capitalisation.

A cryptocurrency exchange is a marketplace where buyers and sellers trade cryptocurrencies. Just like regular stock exchanges, a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.

XRP can be bought and sold in one of three ways. You can trade directly with other people, accepting the risk imposed by a lack of a mediating third party. You might visit a broker, which will sell their own XRP to you, for a fixed fee. Finally, you might visit an exchange, via which you’ll be able to trade with others via an intermediary. Exchanges tend to be more feature-rich, and make a better match for experienced traders. To find out more about how to buy Ripple, read our Step-By-Step Guide.

If you’re going to buy Ripple, you will come to recognise these three letters. Ripple's native currency is XRP. It’s helpful to distinguish the currency, XRP, from the blockchain and the organisation that maintains and develops it.

XRP's price is a market price, based on demand and supply. This means that the Ripple price will increase, the more people are willing to buy (or the less people are willing to sell). Ripple is tied closely to prices of the wider market, and specifically that of Bitcoin.

You can invest in Ripple without directly revealing your identity. However, transactions that take place using Ripple are available on the consensus ledger, which means that your activity could be vulnerable to de-anonymisation — a practice whereby a determined person can deduce who you are, how much you’re trading, and with whom.

Currency of any kind can be turned into Ripple, but the smoothness of the transaction will depend on a range of factors. Fundamentally, XRP is designed to act as a bridge between different kinds of currency, including fiat and other crypto. Some exchanges will only accept dollars, which means that you’ll have to trade your currency twice, incurring additional costs along the way. Credit and debit cards can be used, as well as direct bank transfers. The former may be more convenient, but the latter tends to be cheaper and more secure.