But XRP critics have argued Ripple’s control of nearly half the total maximum supply of XRP makes it more centralized than other leading cryptos. In 2012, the XRPL founders gifted 80 billion XRP to Ripple, and Ripple locked 55 billion XRP in escrow. Ripple’s co-founders and other company insiders received the other 20 billion tokens. The company then began releasing up to 1 billion of its XRP tokens from escrow per month — over the next 55 months — into circulation based on XRPL mechanics. Staff writer Mark Hooson has been a journalist within the personal finance, consumer affairs and fraud sectors for more than 10 years.

In the traditional sense of staking, XRP staking is not possible, where users lock up their tokens to validate transactions and earn rewards. XRP is not a Proof-of-Stake (PoS) cryptocurrency and uses a consensus mechanism called the XRPL Consensus Protocol (or Federated Consensus), which does not recognize staking. Each sub-network trusts a specific set of nodes known as the Unique Node List (UNL), which consists of a limited number of servers owned and operated by diverse financial institutions, including banks. You can buy XRP on several exchanges, such as Bitstamp, Kraken, Huobi Global, and Coinbase.

The ledger and its cryptocurrency, XRP, are primarily intended to function as a form of settlement for cross-border finance, but XRP is also a widely recognized and traded cryptocurrency. Designed to make payment transactions faster and cheaper, Ripple’s platform—with the help of its XRP token—settles payments at a fraction of the cost of traditional methods. In this way, XRP is one of the more ambitious cryptocurrencies aimed at revolutionizing global payment systems and the digital economy. Often called “hot” wallets, these offer convenience and ease of use for daily transactions, though they may not provide the same level of security as hardware wallets. Ultimately, the best wallet for you will depend on your specific needs, including the balance you wish to maintain between security and convenience.

If you’re ready to get started, read on for step-by-step instructions and a list of platforms you can use to buy Ripple in the US. Ripple’s court victory in 2023 has been a bullish catalyst for XRP. But Ian Weisberger, co-CEO of CoinRoutes, said XRP investors are not fully out of the woods just yet and should expect more volatility ahead.

1. It is easy to purchase a variety of cryptocurrencies, making it a top choice among all investors.
2. If you have a high conviction for XRP, let’s explore how you can purchase the token.
3. Ripple stands out in the crypto world as a project that operates in both the traditional financial system and the new blockchain technology paradigm.
4. XRP is also supported on noncustodial software wallets such as GateHub, Xumm and Trust Wallet, as well as noncustodial hardware wallets such as Ledger, Keystone and Trezor.
5. XRP’s large market capitalization makes it widely accessible across many exchanges.

NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific 5 steps to calculate units of production depreciation investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. You can use XRP to exchange between fiat currencies rather than directly exchange currencies through a traditional financial institution.

For example, if you wanted to swap $100 USDC for XRP, you would search for the XRP/USDC pool on Uniswap. After locating the pool, confirm the amount you would like to swap and execute the trade. Easily migrate your funds from an exchange to your hardware wallet through Ledger Live or one of our third party wallet. XRP is one of the only cryptocurrencies determined not to be a security in the United States and with a foundation of regulatory clarity in several other countries. Users can search for crypto ATMs that support XRP and other cryptocurrencies on websites that aggregate ATM locations worldwide, such as ATMlocator, Coin ATM Radar, CoinATMs, and CoinMap.

It’s always a good idea to take a diversified approach to investing to reduce risks. Consider bitcoin and ethereum as alternative cryptocurrency investments, given their relative lack of legal and regulatory risk and long-term outperformance compared to XRP. A decentralized crypto exchange allows users to make direct transactions through blockchain technology to complete trades without needing a centralized intermediary. Yes, it’s legal to buy XRP in Australia, however, the Moneysmart website reminds investors that cryptocurrencies are risky. It’s also essential to be aware of the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC). The SEC alleges that Ripple conducted an unregistered securities offering through the sale of XRP, which Ripple denies.

Holder of XRP

Transaction fees may apply, and your payment method may affect the amount you’ll pay. Once you have decided to buy XRP, you must find a cryptocurrency exchange or investing app that supports XRP trading. Exchanges are online platforms where users trade cryptocurrencies, and XRP is supported on a large number of markets and exchanges.

Choose a Crypto Exchange

XRP can be purchased on crypto exchanges by using fiat currencies. Once approved by the exchange, you’ll be able to start buying XRP. And the company’s particular legal issues add another set of factors for potential investors to consider.

Blueprint does not include all companies, products or offers that may be available to you within the market. Ripple has worked with over 100 companies to improve its payment processes, listing big name clients like American Express and Santander. Last week, three major Japanese credit cards agreed to try out Ripple in an announcement that sent markets skyrocketing. The price has surged from $0.26 per token on December 2, 2017, to a high of $2.47 on January 2, a near tenfold increase in value over the space of a month. Its high valuation places it among the most valuable tokens in the world, but it still pales in comparison to Bitcoin’s $231 billion market cap. Hardware wallets are often recommended for XRP because of their enhanced security features.

Pros and cons of buying XRP

Platforms also differ in how you can add cash to your account, but some common methods are Automated Clear House, or ACH, transactions from banks, wire transfers and debit cards. According to Ripple’s website, the XRP ledger routinely handles upwards of 1,500 transactions per second (tps). Comparatively, larger and more popular cryptocurrencies like Bitcoin (7 tps) or Ethereum (30 tps) are much slower. While other legal issues remain for Ripple and XRP, that ruling led several popular crypto platforms to resume listings of the embattled cryptocurrency.

Store Your XRP

Ripple (XRP) is one of the leading cryptocurrencies with a strong value proposition and market capitalization. Aiming to facilitate the institutional adoption of cryptocurrency, Ripple is tackling a critical problem head-on. Traditional institution transactions, especially international ones, are slow, costly and inefficient. Ripple seeks to become the trusted third party allowing entities, regardless of size and spatial location, to transact swiftly and securely.

Finder.com compares a wide range of products, providers and services but we don’t provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Many centralized exchanges allow the U.S. dollar or other fiat currencies for payment. Fiat currencies are government-supported currencies that are not backed by physical assets. Nvidia (NVDA), for example, is a manufacturer of graphics processing units that cryptocurrency miners use.

A broker may not give you a choice about where your XRP is stored, but while an exchange may provide an integrated crypto wallet, you’re free to store it in wallets elsewhere—whether ‘hot’ or ‘cold’. It’s important to note that cryptocurrencies are subject to volatile price swings and are not for everyone. Australian consumer groups, including CHOICE, warn against scams and huge losses within the investment industry and are advocating for greater consumer protection. Both types of exchanges provide unique advantages and disadvantages; however, beginners are recommended to start on CEXs because of their simplicity and usability.

Software wallets, also known as hot wallets, are accessible through the internet and offer convenience for regular transactions. However, due to their online nature, they are generally considered less secure than hardware wallets. Hardware wallets, or cold wallets, store your private keys offline, providing a higher level of security by safeguarding your assets from online hacking attempts. Most exchanges let you add funds to your account from your credit or debit card, bank account, crypto wallet or other payment service.