What is Ripple?
Another one of the big cryptocurrency players, Ripple again has all the traits of a digital currency, but there is more to it. As a currency, it is a decentralised peer-to-peer payment system that we have become accustomed to through things like Bitcoin as it also runs on this distributed ledger or blockchain function.
Ripple is also mined much like Bitcoin, and it is also finite with about 100 billion Ripples expected to be the total that can exist. Half of those are expected to be released with the parent company holding the other half.
However, Ripple is also trying to do more, and be more, than a simple digital currency, it is trying to be a universal payment system that smoothly enables secure, instant, and practically free global transactions across any form of currency - be it fiat or digital.
What this essentially means is that the regulations and walls that are put up by banking institutions are being brought down by Ripple through their distributed ledger. Aspects such as transfer fees, exchange rate fees, and processing delays are all removed with the use of Ripple, and because Ripple has the ability to operate through different currency sphere, it has a global appeal and application.
The goal of Ripple has been to aid the movement of money, rather than restrict it as has been the case with the banking institution. It is looking to build on this decentralised network of currency that is being built by pioneers such as Bitcoin.
A good analogy is to picture Ripple like the internet, and what the internet did for information. News and such was distributed by newspapers and media houses and thus dictated to people by charging them, delaying the release of stories, and adjusting the stories to suit. However, when the internet came about, information and news flowed freely with multiple sources making it available as it happens.
Banks wanting in
It is the same idea with Ripple, the currency hopes to take the control of other people’s money out of the hands of the banks and put it back in the people’s hands. By making it nearly free to transfer money, and enabling transfers to happen instantly across the globe, the appeal of Ripple is huge, and it is even starting to entice forward thinking banks.
Banks such as Unicredit, UBS and Santander have all used Ripple already as a payment network for their settlement infrastructure technology. The distributed ledger has a huge draw to banks, but the ones used by Bitcoin and other digital currencies are not quite suited, however, on Ripple, they make sense because of the reasons that make it attractive to users.
What Makes Ripple Stand out among other Crypto Currencies?
Ripple’s key difference and importance in an advancing world of digital currencies is that it is fast and free, two very key words when it comes to anything with money. There are a multitude of coins out there all based on this similar distributed ledger system on blockchains, and all purporting to do something a little different as an improvement on Bitcoin, but not all are successful.
Ranking in the market cap table
Looking at Ripple, it is always hovering in the top three of the market cap of all cryptocurrencies, and this is a good indicator of a successful commodity. Another good thing to note on Ripple is that it’s price is really low, sitting at about 16 cents at the time of print, but with a market cap at over $6 billion, the currency is booming as there are masses of trades being made with it.
Again, this is what Ripple was designed for, and thus it shows that it is working for its purpose. Coins that are functioning well and taking their share of the market cap are always the ones to first look at when investing. Another thing to look out for with Ripple is its future functionality.
Future for Ripple
If you are thinking about buying and trading a digital currency, it makes so much sense to work with one that is free to transfer and instant. Trading with something as smooth operating as Ripple makes for simple and sharp trades, thus Ripple has a big advantage over its other digital neighbours.
More than that, however, because Ripple is finite, its price will increase as the asset faces deflation, thus, in terms of investing in it as a holding asset, there is huge room to grow. And, the more that Ripple is adopted, especially by institutes it is trying to overthrow - banks - the more its true worth will be seen.
How to Buy Ripple Online at CoinBase.com
Despite being in the top three cryptocurrencies in the market share(along side Bitcoin and Ethereum), Ripple is not available on all of the major exchanges. For instance, Coinbase does not sell Ripple directly to its users, rather focusing on just Bitcoin, Litecoin and Ethereum.
This means there is an extra step involved, but it is still not too difficult. Buying ripple essentially involves buying the cryptocurrency with another one, a more widely known on in Bitcoin. From there you will make an exchange, much like a foreign currency exchange.
Create a Wallet
You will also need to create a Ripple wallet, which is an account for you to send and store your Ripple once they have been bought with Bitcoin.
There are various wallets you can choose from, all from different providers. Which one to choose, is the next question. For reviews of wallets and the different types you can own, try bestbitcoinexchange.io.
A Ripple address is made of letters and numbers, and starts with the letter “r”. An example address would be: rf1BiGYXwwQoi8Z2ueFYTEXSwuJYfV2Jpn.
Steps to Buy Ripple
- In order to get Ripple, you will have to first get Bitcoin, and the easiest way to do this is still through Coinbase. Visit Coinbase and set up an account with the basic information, such as name, last name, email and password.
- Once you are set up on Coinbase, you can begin to add payment methods. This is the beauty of places like Coinbase, it is as simple a linking your bank account, making a direct deposit into your new Coinbase wallet, and getting on with buying your Bitcoin.
- Click on add a payment method and select the most appropriate one - in this instance a bank account. Because of the banking laws, there will be a period of verification as Coinbase confirms your account, it could take some time because of the upswing in popularity of Bitcoin and their exchanges.
- Once verification is complete, you will be able to fund your exchange account with USD and from there you can make your first purchase of Bitcoin. At first, there will be little other verification needed, but as you get more vested and involved, spending and buying more, Coinbase will need more and more verification, asking you to verify your Identity and proof of residence.
- Next, go to Changelly, a cryptocurrency exchange, and set up an account. Once there you will have the opportunity to change your Bitcoin into Ripple.
- Exchange your BTC for XRP (Ripple). Choose BTC for what YOU HAVE. Choose XRP for what YOU GET. Enter the amount of BTC that you bought on Coinbase that you want to exchange for XRP. The application will automatically calculate your exchange rate and fee. Select Next.
- Enter your Ripple address. Be sure to check with your Ripple wallet provider to see if you need to provide a destination tag. Select Next.
- Confirm your details. Select Confirm and Make Payment.
- In Coinbase, make a payment for the amount of BTC you entered in Step 6 to the address provided. In this case, you would send 0.01 BTC to 1LXPCjgxwNEzynjWM8jEju3yo7GosKGVa3.
How to Buy Ripple with Credit Card
Because you cannot, in a straightforward manner, buy Ripple with fiat currency in the same way that you would buy Bitcoin, it is very hard to buy Ripple directly with a credit card. It is really only safe to buy Ripple with something like Bitcoin, thus if you are wanting to use a credit card to eventually end up with Ripple, it will take buying Bitcoin first with your credit card.
It is quite simple to buy Bitcoin with a credit card through Coinbase, and from there, the steps to get Ripple are the same as above.
Buying Bitcoin on Coinbase is simple, but a little restrictive. There is only a smaller amount that can be bought, and there is also a charge for each transaction made on the card.
How to Buy Ripple with Paypal
PayPal once embraced digital currencies and made it possible to buy things like Bitcoin through its payment platform, but recently it has withdrawn somewhat and only offers users of cryptocurrency the option of depositing money from the sale of Bitcoin into their PayPal accounts. This is again done through Coinbase, and because of that, only works with Bitcoin, Ethereum and Litecoin.
To use PayPal with Ripple, there is not much opportunity, but it once again has to be linked back to Bitcoin and only be used when depositing money. A Ripple holder could sell their Ripple for Bitcoin, send it to Coinbase, and then withdraw that money into PayPal for fiat currency such as Dollars.
How to Trade Ripple
Because Ripple is one of the easiest digital currencies to make transactions with, due to its speed and low fees, it is also a very popular trading currency. It has a low value currently, but it also has a value that is always fluctuating and mostly growing.
You can either decide to trade this directly by owning Ripple or you can choose to trade it as a derivative. Trading it as a derivative means that you do not own the asset, but are trading on the price fluctuations. Products like CFDs give you access to this kind of market.
Trading CFDs requires you to trade on leverage, which is offered with brokerage accounts. To open an account is very simple and a similar process to opening a Coinbase account. The next choice is to decide which broker you intend to use. For a choice of the best brokers on the market at the moment, check out Top10Cryptosites.
A popular trading platform that goes beyond what Coinbase can offer is AVATRADE, and just like setting yourself up with Coinbase, it is just as easy to get started on AVATRADE.
- Firstly, go to the website: www.avatrade.com and sign up by again providing basic personal information. In fact, AVATRADE makes it even easier offering you a choice to sign up with Facebook or even Google+.
- Once you reach the trading platform (below), a list of all the available Cryptocurrencies will come up, running down the left-hand side of the screen. Begin your trading of Bitcoins here by using your available funds to purchase Bitcoin as a start.Once you are into your profile, you will need to fill in further personal information from your date of birth to your preferred choice of trading platform - something we will get to later.
- AVATRADE is more focused on being an efficient tool for actively trading digital currencies, and other assets, so it will ask your level of experience when it comes to trading. This will help you with the level of support you need from the site.
- When it comes to selecting your trading platform, if you are looking to trade Bitcoin, it is best to select Floating Spread Account with MetaTrader 4. This will give you the option to work with Bitcoin, as well as other Cryptocurrencies.
- From here, you can fund your account, and much like with Coinbase, it is about linking a bank account to AVATRADE and making a direct deposit. Once there are funds present, you can buy your Bitcoin and start trading by clicking ‘Web Trading’.
For more information on how to buy Ripple as a CFD, try Coinlists guide to buying Ripple.
Future of Ripple Trading
Ripple’s value and worth will be determined by the adoption of it as a truly decentralised payment system. There are a load of other coins that are also offering this service and potential, but Ripple is the only one that is making it their key focus. This position of free and fast transactions has already started attracting banks and other financial institutions which were already interested in blockchain technology.
If the banking sector can integrate blockchain technology into its running, there is no doubt that their preferred digital currency for this would be Ripple. If this was to happen, then the trading of Ripple will essentially enter the realms of foreign exchange trading, but on a much greater level and value.
Ripple is on the ground floor at the moment of revolutionising the banking sector which is hugely outdated. It is the technology that will hand the power back to the people in handling their own money, and follow the trend of a lot of other sectors, namely the information sector.
Cryptocurrency Guide list
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