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What is Ripple? Beginner’s guide to XRP

Shubham Davey 0
Reading Time: 7 minutes

Curiosity of knowing about Ripple brought you here. It will be answered herewith, just keep reading on…

Cryptocurrency is getting all the limelight. But there’s a reason for it, the cryptocurrency today has eradicated a hell lot of problems of the centralized financial systems. Problems like time consumptions for an international transaction to happen. This is probably the biggest problem that the cryptocurrencies have got rid of. The days when one had to wait for days together to receive money across borders are far gone now. With cryptocurrencies, we can now send and receive payments at lightning fast speed. In a day max.

In this post, you will be seeing everything you need to know about Ripple(XRP) so stay tuned.

What is Ripple? How is it different from the rest?

Launched in 2012, XRP is different since its inception. XRP has a maximum 100 billion tokens of its currency, out of which 61 billion tokens are with the company itself. So, only 39 percent of the XRP coins are available for the market to use, transact and exchange.

Benefits of using Ripple

Ripple is the fastest growing cryptocurrency among all. Even Bitcoin lost the race against XRP. The stats are extremely impressive. XRP takes just 4 seconds to complete a transaction, Ethereum takes around 2 minutes & bitcoin takes over an hour. Ripple’s ecosystem can handle 50,000 transactions per second, that’s huge, right? Visa’s ecosystem known to serve over but not less than 60,000 transactions a second. So technically, XRP system is as powerful as Visa’s ecosystem. This tells me that XRP is reliable.

Catch in Ripple’s network

Bitcoin is public, decentralized and permission list based. Whereas XRP is private, centralized and permission-based and because of this the network has been in a lot of controversies since its inception. Bitcoin and the blockchain technology are for decentralizing purpose only, what Ripple did is the exact opposite but that was for a reason.

XRP did this in order to make its cryptocurrency secured in terms of governance. Furthermore, the government does not have any rights or access to any of the records (a typical blockchain feature) that is, there is no middlemen involved in this. Moreover, it’s not possible to share anything from the network other than IDs.

The founders had made the platform almost free. As part security, the platform charges a very small amount of fee. This is only to keep the platform spam free. The fee that is taken is destroyed and is not taken by the platform. This helps the platform to maintain the scarcity of the currency also, the demand for the currency prevails. Needless to mention that the fee is charged in XRP.

Payment types in RippleNet

#1 xCurrent: Banks use this technology to process global payments for their customers, this makes Ripple important for banks and the global cryptocurrency market. In this feature, two banks use a correspondent bank to route their payments. The ILP ledger coordinates funds movement between institutions/banks involved.

#2 xRapid: xRapid is for payment providers who want to minimize liquidity costs and improve the user experience. xRapid uses XRP, to offer on-demand liquidity. Plus point of using this feature is that it lowers the costs while enabling the real-time payments. With the help, xRapid, banks and payment providers get highly efficient, reliable and scalable liquidity to enable cross-border payments.

#3 Via: A standard interface for corporates, banks and payment providers who are in a need to send payments through various networks. The user can make use of xVia’s API with no other software required to be dependent on. The API enables users to send payments across the globe with rich information including invoices.

Why should you go for XRP?

  • So far, there are 30 million ledgers in this network that are attended and closed. Hence XRP is stable enough to make this happen further.
  • The system is capable enough to produce a throughput of 50,000 transactions per second. This speed is beyond imagination. This is why banks and many other financial organizations are dependent on RippleNet.
  • Ripple is preferred as a settlement asset due to its technical superiority and scalability.

Where can you buy Ripple(XRP) cryptocurrency?

There are many exchanges where you can buy Ripple(XRP). Only the best are listed here, you can rely on it.

  • Changelly: One of the best exchanges that supports almost all cryptocurrencies as exchange and buy/sell. I personally love the user-friendly functioning of the website. It is secure and fast.
  • Binance:  Binance is trusted by many for trading almost cryptocurrencies. It has over 5 million users hence it is very much reliable for your purchases. The website is a little confusing but you will get used to it as you get along.
  • Gate.io: Gate.io is another emerging exchange that is performing really good in terms of exchange rates. The website is super user-friendly and direct. You just signup and get started with your trading.

#Pro tip: Best way to buy Ripple(XRP) is to exchange it for Bitcoin. The return is very huge, which in turn exchanged in paper currency is even more huge. So there huge profit for you.

Once you are done with buying it, its time to store them safely.

XRP Wallets: Best wallets for Ripple(XRP) cryptocurrency

Considering the cyber attacks, you must be concerned about the cryptocurrencies you’ve bought. There are a handful number of best wallet for Ripple. Unlike Bitcoin, Ripple wallets are not free. It requires you to own at least 20 XRP to register the wallet address. So if you buy 1000 XRP, you will have 980 in the wallet as 20 XRP will be consumed for registering the wallet. Furthermore, this is a one time expense. This is the reason you should maintain only one Ripple wallet.

Here’s the list of the same:

  •  Ledger Nano S: Ledger is the most reliable and preferable hardware wallet to store any cryptocurrency. Its ease of use and reliability has made the wallet so famous. It supports almost all trending cryptocurrencies(more adding soon) out of Ripple is one. Make sure you order this wallet from its official website as there are many unreliable fake remakes of this wallet.
  • Gate.io: Not a hardware wallet, but a reliable all-rounder crypto service. It not only serves as an exchange but also a safe wallet. You can deposit the XRP in your Gate.io account and either trade XRP for better profits, or just let it rest there. It’s safe there. You can also install their app to send and receive payments. The is available both for iOS and Android users.
  • Binance: Binance started in 2017, grew rapidly. It opening its gate for more and more cryptocurrencies one by one. It would be wise to keep the cryptocurrencies in motion, from one exchange to another. As the exchanges can shut down anytime. This might end up with losing your coins, forever.The best part of using Binance is that you can claim Flat 50% off on the trading fee, when you exchange BTC, ETH or XRP. Once done, you can transfer these coins to Ledger Nano S, to keep it 100% safe.

Conclusion

XRP has seen a dramatic growth, in terms of user experience and increase in its market value. Hence, it is worth investing in XRP though the model is not completely in line with blockchain.

Also, it is just 5 years old so it is too early to judge its future. Five years is too short to show the progress that Ripple has shown. From getting into cryptocurrency market to being the backbone to many financial bodies for faster payments.

Over to you. Which feature of XRP do you like the most? Which feature you think should be there in Ripple(XRP). Let me know in the comment section below.

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