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Ripple is a payment platform that uses blockchain and cryptocurrency to make many financial transactions more efficient. For example, people trying to convert currencies or make international money transfers can complete these transactions in a very short time using Ripple and its native token, XRP.
However, Ripple has come under intense scrutiny in the US, which can make buying XRP a little more difficult than other cryptocurrencies. Read more below to find out how to buy XRP and why it can be risky to do so.
How to buy Ripple (XRP)
Here are some general guidelines to use when invest in XRPincluding which crypto exchanges you can use, how to pay for it, and how to store your XRP tokens.
Comparison of crypto exchanges
A crypto exchange allows you to buy, sell, and trade cryptocurrency using your crypto assets, as well as fiat currency like US dollars and other government-issued currencies. Crypto exchanges are safer than other shopping methods, but each platform will have its own rules, procedures, services, and other features.
Exchanges usually only offer a selection of cryptocurrencies – you can’t buy every crypto on every exchange – so make sure the crypto exchange you choose supports your choice of cryptocurrency. The following exchanges support XRP in the United States:
What to consider
Consider the following factors when choosing a crypto exchange:
- Security: The safest crypto exchanges have two-factor authentication, biometric logins, ID requirements, and a program that allows ethical hackers to be rewarded for finding vulnerabilities.
- Costs: Aim for an exchange that charges around 0.2% or less of your total trading volume for the past 30 days.
- Awards: Look for crypto exchanges that incentivize users to earn more crypto, such as coin staking, cashback programs, or cryptocurrency loans.
- Support: Choose an exchange with good customer support. If you are transacting in fiat currency, make sure the exchange offers fiat support.
- Liquidity: Make sure you can quickly liquidate your fiat currency assets without losing too much value.
- Compliance: Choose a crypto exchange that is licensed and operates legally in your location.
Pay for XRP
If you want to buy XRP, you will need to choose a payment method.
Paying for cryptocurrency is similar to buying other commodities or investments. You can buy coins with fiat currency or trade another cryptocurrency. For example, you can choose to pay for your XRP in US dollars, or you can trade another cryptocurrency that you already own.
Keep in mind that you will need to choose an exchange that supports your preferred payment method, as well as the cryptocurrency you wish to purchase. Some exchanges allow traditional payment methods such as bank transfers and debit or credit cards.
Storage of XRP
After buying XRP, you will need to store your coins in a cryptocurrency wallet. Choose a crypto wallet is similar to choosing a crypto exchange, and many exchanges allow you to store your cryptocurrencies as well. You should consider factors such as:
- How do you plan to use your cryptocurrency
- Security functions
- Availability of services, such as exchange, sale or purchase
- How many cryptocurrencies you can hold
Some popular XRP wallets include Ledger Nano, Trezor, and Edge.
Types of wallets
There are a few types of crypto wallets to consider. A cold wallet, or hardware wallet, is a physical device that you can disconnect from the internet to keep it safe. Cold wallets are the safest but also the most expensive option.
Hot wallets, or software wallets, are cheaper, but they remain connected to the internet, so they are easier to hack.
You can also opt for a wallet provided by the exchange, but these usually leave your crypto in the custody of the exchange and, although usually free, are the least secure option and not recommended for anyone who does not trade frequently. or don’t stake his crypto.
In 2020, the Securities and Exchange Commission filed a lawsuit against Ripple for allegedly selling $1.3 billion in unregistered securities, namely XRP. Although Ripple never received a notice asking them to stop selling XRP, some major cryptocurrency exchanges have removed the coins from their exchange and wallet services.
The courts are still working to determine the objectives of the SEC and how these will determine regulatory requirements for cryptocurrency in the future. However, the damage to Ripple’s reputation may have already been done.
Should you buy Ripple (XRP)?
As with any investment, you will need to do extensive research to understand if XRP fits into your strategy. XRP is an affordable cryptocurrency that has a relatively high market capitalization, which may indicate investor confidence. It is one of the best-known alternative coins, and it has a track record of success despite its recent issues with the SEC. However, if the SEC’s decision turns out badly for Ripple, it could end up being worth very little.
Ultimately, the decision whether or not to buy XRP is one you should make based on your investment strategies, financial situation, and personal preferences.
Here are the answers to some common questions about buying XRP.
- What is the best way to buy XRP?
- The best way to buy XRP is through a secure exchange that supports it, like Kraken or eToro.
- How to buy XRP in the United States?
- Exchanges that support XRP in the US are somewhat limited, due to the pending SEC ruling, but you can buy XRP through Bitfinex, Bitstamp, eToro, Huobi, and Kraken.
- Why can’t I buy XRP?
- If you are unable to buy XRP, you may be looking for it through an exchange that does not support it. Binance, for example, does not support XRP through its US version, Binance.US.
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