What You Need to Know Before You Buy Ripple in Australia

What Is Ripple?

Want to buy Ripple in Australia? You probably want to know more about it first.

Ripple is both a platform and also a cryptocurrency, XRP, developed by Ripple Labs. XRP is a token which facilitates the transfer of value across the Ripple Network. As of 2020, XRP is the fourth most valuable cryptocurrency. Although consumers can buy XRP, Ripple Labs created XRP for financial institutions to facilitate fast and frictionless cross-border transfers. 

Ripple is secured by a network of servers with a ledger that guarantees transactions based on consensus. Ripple Labs pre-mined some XRP and it controls the release of new coins. They release more as needed to control the money supply. The current Ripple price in AUD is $0.323 but this fluctuates daily.

What Is RippleNet? 

RippleNet is a platform that facilitates cross-border transactions for a network of institutional payment-providers like banks and money services businesses. The system looks for the shortest and cheapest combination to make transfers happen. It uses its own patented technology, the Ripple Protocol Consensus Algorithm (RPCA), to verify transactions. If every party is in agreement with the rest, the transaction goes through. 

Transactions on Ripple don’t always use XRP. Ripple also supports fiat currencies like dollars, euros, pounds, and yen. You can even add other cryptocurrencies, frequent flyer miles, or gold to your XRP wallet and make exchanges. Ripple is primarily a payment processor and currency exchange, and the XRP currency is necessary but secondary to Ripple’s mission. Because of this, Ripple does not compete with other cryptocurrencies like Bitcoin or Ethereum. Instead, it competes with payment systems like Swift or ACH. 

Buy Ripple in Australia: Use Cases

Currency Exchange: Many currencies have a limited market for conversion, meaning banks use USD as a middleman. Ripple is a much cheaper middleman than USD.

Quick Global Transfers: The average Ripple transaction takes 4 seconds. This is significantly less than Bitcoin or regular banking transfers that take an hour or even a few days.

Payment Ecosystem: Individuals can issue their own currency for fast and cheap transactions. For example, you can create a currency to buy vintage vinyl or action figures between collectors.

Buy Ripple in Australia: Is Ripple a Good Investment?

While there is no such thing as a 100% safe investment, we’ve laid out some pros and cons to help you make a decision. 

Pros

  1. Ripple is an official organization trusted by many banks.
  2. There is no inflation because all the tokens are pre-mined and already exist.
  3. The more banks that use it as their transaction platform, the higher the value of XRP. 

Cons

  1. Ripple is highly centralized since Ripple developers can decide when and how much to release.
  2. It is currently a monopoly as Ripple Labs owns 61% of the coins.
  3. It is open-source which means there is a good chance people will try to hack it. 

Buy Ripple in Australia: Where do I Start?

Now that you sort of understand Ripple, you can make an educated decision about your Ripple investment. Banks are still testing XRP, seeing the major advantages it brings, and who knows, maybe once regulations kick in, we might see adoption very fast.

Buy Ripple Today

About Coinstash

Coinstash is a registered digital currency exchange based in Australia. Our customers praise Coinstash as one of the most user-friendly, educational and supportive platforms. Through its live support 7 days a week, Coinstash has accumulated numerous positive reviews from its customers. Coinstash is also one of the only digital currency trading platforms that has participated in Australian government Austrade’s landing pad program.

Note nothing in this article should constitute general or specific financial advice. Coinstash does not take into account your circumstances when publishing articles. Any content on Coinstash.com.au or related domains are informational only.