How To Buy Ripple: 5 Things To Know
With the ever-increasing value and popularity of cryptocurrency, Ripple (XRP) is one of the most publicized cryptocurrencies that is growing in reputation. Since its initial launch in 2012, Ripple has a current ROI of more than 4,000% and an overall 4th highest market capitalization among all cryptocurrencies. As such, how to buy Ripple and where to buy Ripple are burning questions at the moment.
WHAT EXACTLY IS RIPPLE?
The NASDAQ stock exchange defines Ripple as a “real-time gross settlement system (RTGS), currency exchange, and remittance network.” What this means is that Ripple uses blockchain technology, which is a public ledger network database to ensure its security and validity as a value of exchange – very similar to Bitcoin.
What makes Ripple different, though, is that it is marketed and designed towards servicing the banking and financial industries. It provides a ledger-based technology that facilitates fast and affordable international payments.
HOW TO BUY RIPPLE (XRP) CRYPTOCURRENCY?
Unfortunately, not every cryptocurrency exchange will give you the option to purchase Ripple (XRP), like they do with Bitcoin. However, there are still several exchanges that support the buying and selling of Ripple.
The two main ways to buy Ripple are directly with fiat currency such as Australian dollars, or ‘swapping’ for them with another cryptocurrency, such as Bitcoin. Buying Ripple directly with the Australian Dollar is the most convenient way.
However, good rates may be hard to find when buying Ripple with AUD. Therefore, buying Bitcoin first, and then exchange for Ripple, can be more cost-effective. Here are the 5 important things to know to buy ripple cryptocurrency in Australia.
1. THE RIPPLE WALLET
To store your Ripple, you will need what is called a Ripple wallet. The Ripple wallet allows you to manage how you store and trade cryptocurrency by utilising an unique public and private key. There are two types of wallets designed for cryptocurrency storage – online and offline.
An online cryptocurrency wallet is typically a software application that securely stores your public and private keys for accessing, purchasing, and receiving cryptocurrency across the blockchain.
The Exodus digital wallet is a good example.
An offline cryptocurrency wallet works much the same as the online cryptocurrency wallet except for the fact that your public and private keys are stored on an external storage device that does not need to be connected to the Internet, such as an USB hard-drive wallet or paper wallet.
The Ledger Nano S physical cryptocurrency wallet is a good example.
2. DIFFERENT RIPPLE EXCHANGES
A cryptocurrency exchange operates much like a traditional stock exchange. It is a place where traders and investors can buy and sell cryptocurrencies on the marketplace. You can choose to purchase cryptocurrency directly, with Australian Dollars (AUD) or trade between various cryptocurrency pairs. The latter is similar to trading fiat currency pairs on a foreign currency exchange.
Coinstash is a popular and secure crypto-exchange where you can buy and sell Ripple (XRP) with a click of a button.
3. INVEST IN RIPPLE THROUGH A CRYPTOCURRENCY FUND
A cryptocurrency fund is an novel form of a traditional hedge fund that makes it easier for new crypto-investors to navigate the world of new crypto-assets. A reputable cryptocurrency fund will act your custodian and wealth manager. It will work to buy and trade cryptocurrencies on your behalf.
Both traders and portfolio managers will choose which initial coin offerings (ICOs) to enter, which cryptocurrencies to buy and sell, and they often have complex trading strategies designed to produce profits on your investment. In return, much like a traditional fund manager, they typically take a fixed fee as well as a percentage of the profit in return for their services.
The trading fund PolyChain is one of the most reputable trading funds actively participating in the facilitated trading of crypto assets. Currently, there are over 120 hedge funds actively focusing on Bitcoin, Ripple and other cryptocurrencies.
4. BUY RIPPLE WITH A CREDIT CARD
It is going to be easier to buy Ripple (XRP) with a debit card than with a credit card. Why, might you ask? Simply because credit card issuers don’t like the practice of exchanging credit for cryptocurrency because of it’s price volatility – they consider it to be risky. Even so, if you want to buy Ripple (XRP) using a credit card, you can.
Companies like StromGain will let you buy cryptocurrency with your credit or debit card on their platform.
5. PURCHASE RIPPLE THROUGH A P2P EXCHANGE
The peer-to-peer or P2P exchange is a decentralised exchange that allows traders and investors to trade directly with each other. The blockchain platform powers the exchange. P2P exchanges will enable you to instantly trade cryptocurrency with no middle man needed.
The removal of intermediary exchanges comes with many benefits. Not the least being faster transactions and minimal fees. The P2P exchange gives you a more personalised trading experience. It allows you to actively participate in market price discovery as you deal directly with other individuals.
Platforms like BitValve will allow you to find and exchange Ripple (XRP) with other peers across its network – allowing you to participate more directly within the price discovery of the Ripple (XRP) cryptocurrency.
IS RIPPLE A GOOD ALT-COIN TO INVEST IN?
Ripple exists as a way to better manage payments within its blockchain network. What this means is that Ripple is attempting to help solve the problem of slow and expensive cross-border transactions between banking institutions. It is a technology that is geared towards helping finance and banking institutions. It is much more than just another cryptocurrency.
If you have ever made an international bank transfer, then you know that it takes at least a few business days along with an absurdly expensive transfer fee. This is because the technology used to make these transfers between banking institutions is out of date. Ripple is here to change all that.
Are you still looking for more to read about in the world of cryptocurrency and the exciting technology behind Ripple (XRP)? Then you have found the right place! We hope that you’ll find the rest of our blog just as informative.