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How to Buy, Sell & Trade XRP in 2020

In this guide we list the best platforms to buy Ripple, how to make your purchase step-by-step and how to sell your Ripple.
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Author: John Ladeluca
Last Updated: 08 July 2020
Ripple’s Top Execs Write Open Letter to The US Congress
Ripple’s Top Execs Write Open Letter to The US Congress

Ripple and its XRP token is the third-largest cryptocurrency in terms of market capitalization. The underlying technology itself was created to help financial institutions transfer funds on a cross-border basis, subsequently removing the need to use the slow, expensive, and cumbersome SWIFT network. However, much in the same way as you can with other cryptocurrencies such as Bitcoin and Ethereum, anyone can buy Ripple and hold XRP as an investment.

If you are looking to buy XRP for the first time, we would suggest reading through our guide on How to Buy Ripple. Within it, we’ll cover everything you need to know – such as what Ripple actually is, where you can buy it, what fees you need to consider, how to store your XRP safely, and more.

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      What is XRP?

      Ripple seeks to substitute the traditional borderless payments, which are often slow to arrive along with high failure rates as well as expensive transactions. Since Ripple was created in 2012, Ripple Labs has partnered with plenty of big names who are either using its network or are currently exploring it. This includes Santander, MoneyGram, Westpac, American Express, along with many others.

      XRP had a huge bull run at the end of 2017. The cryptocurrency increased its value from $0.24 to $3.34 in a little over one month, which is more than a 1,300 percent growth. The good Ripple news was followed by a big hype from news outlets – even from mainstream media – at the time. Despite 2018’s bear market, there’s still hype around XRP as Ripple Labs have made numerous important partnerships throughout the year. And we expect more good Ripple news to come in the future.

      Some crypto enthusiasts consider Ripple as one of the best cryptocurrency to buy in 2019. During the four years from XRP’s birth, the coin has become widely accepted on crypto exchanges and brokers. Now, the question stands: where to buy Ripple? To determine that, you’ll have to test plenty of services to be able to choose the best one.

      Trying different services where you can buy XRP can be both time-consuming and tiring. That’s why we decided to test and analyze numerous services, and selected you the best Ripple exchange. But there’s even more to that. We want to spare your time so much, that we added a step-by-step guide at each service we listed. So, after reading this part, you’ll not only know where to buy Ripple, but you’ll also learn how. We’ve also included images for each step to ensure the best experience for you.

      Now, let’s dive in and see which XRP exchange is the best (along with 3 other top picks) and how to use it to buy Ripple. But just before that, it is crucial to understand what the difference is between buying and trading the coin. So, we’ll start with explaining this, then show you the best services to purchase XRP as well as our step-by-step guide for each.

      What are the Pros and Cons of Buying XRP?

      The Pros

      • Third largest cryptocurrency in terms of market capitalization
      • Transfer time of just a few seconds (Bitcoin takes 10 minutes)
      • Up to 1,500 transactions per second (Bitcoin is just 7)
      • The technology is already being used by 200+ financial institutions
      • A transaction fee of just 0.00001 XRP
      • Has the potential to revolutionize the multi-trillion-dollar inter-bank payments space

      The Cons

      • Not decentralized in the same way as Bitcoin
      • Minimum wallet balance of 20 XRP to store your coins

      Where can I Buy Ripple Online?

      In order to buy Ripple for the very first time, you will need to use a third-party exchange or broker. The good news is that there are now heaps of platforms that allow you to do this with ease. On the other hand, not all platforms are going to be suitable for your individual needs, so it’s best that you read through the following factors on how to choose an exchange.

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      7 Things to Consider When Buying XRP:

      1. Depositing Funds

      First and foremost, you need to assess what payment methods the exchange in question supports. For example, are you looking to buy Ripple with a traditional debit or credit card, or are you looking to use your bank account to deposit funds?

      Alternatively, you might already be in possession of another cryptocurrency such as Bitcoin or Ethereum (Find out how to buy Ethereum here). If so, then you might be best off using a crypto-to-crypto exchange, and simply trade your cryptocurrency for Ripple.

      Cash

      • You can use a Bitcoin ATM
      • Use transactions P2P
      • Doesn’t need KYC
      • Harder to be used
      • Easier to be Scammed

      Credit/Debit Card

      • Quickest method
      • Best method for beginners
      • Most platforms accept it
      • High charging fees
      • Centralised and not anonymous

      PayPal

      • Allows Chargebacks
      • One of the biggest e-wallet providers
      • Safe and Secure
      • High exchange rates
      • Centralised and can identify their users

      Gift Card

      • You can gift it to anyone
      • Anonymous
      • Easier to find in a physical shop
      • Can be claimed by anyone
      • High ‘claiming’ fees

      2. KYC

      If you do intend on using an everyday payment method such as a debit/credit card or bank account, then you will need to make some considerations regarding KYC (know your customer). This requires your chosen exchange to verify your personal identity – as per anti-money laundering laws.

      The KYC process typically requires you to upload a copy of your government-issued ID (such as a passport or driver’s license) and a proof of address (such as a bank statement or utility bill).

      3. Buying Ripple vs Trading CFDs

      You will also need to decide whether you want to own Ripple and store it yourself, or instead, invest via a CFD (contract for difference). If you go with the former, then you will own Ripple in its truest form, meaning that you will be responsible for storing it in a private wallet.

      Moreover, you will also be able to send your Ripple coins to another person as and when you see fit. Alternatively, you might want to consider investing in Ripple via a CFD. Although you won’t be able to withdraw your coins out of the broker, you will be able to speculate on the price of XRP without needing to worry about storage.

      Buying XRP

      • You own the Ripple, you have the right to move it, sell it, and transfer it as you wish.
      • Traditionally associated with longer-term (Multiple months to years)
      • Assets can be used just as fiat currencies are; for purchases, or for payments
      • Somewhat safer than trading directly using margin or with borrowed funds

      Trading Ripple (XRP) CFDs

      • XRP trades use contracts for difference (CFDs)
      • You don’t actually own Ripple, you own a representation of Ripple which is in the form of a contract
      • Traditionally associated with shorter-term positions or ideologies about Ripple because using margin accrues fees very quickly
      • Higher risk is implied because you’re buying contracts on margin (Borrowed money from the broker)

      4. Do You Need a Wallet?

      If you do want to buy XRP and own it 100% outright, then you will need to make some considerations regarding storage. A lot of third-party exchanges allow you to store your coins in the platform’s online wallet, which is arguably the easiest way of doing it.

      However, if the exchange was to get hacked, then you stand the chance of having your XRP stolen. As such, if you’re looking to store your XRP coins in a private wallet, make sure that the exchange allows you to transfer your Ripple out once the purchase has been made.

      5. Compare Fees

      Fees are one of the most important factors that you need to look out for when buying Ripple at a third-party exchange. Depending on how you intend on paying for your XRP coins, you might get charged on a number of fronts. Firstly, if you’re looking to use a debit/credit card or bank transfer, then you’ll likely need to pay a deposit fee.

      You will then need to pay a trading fee, which is usually charged as a percentage of the total amount that you buy. Finally, you might need to pay a fee to withdraw your XRP coins out of the exchange, although this shouldn’t be more than the standard 0.00001 XRP transaction fee.

      6. Regulation and Security

      There is no denying that the cryptocurrency exchange industry has suffered from multiple hacks in recent years. In some cases, previous hacks have resulted in users having their cryptocurrencies stolen, with the exchange platform subsequently going out of business without covering the loss. As such, you should stick with exchanges that have robust security measures in place to keep your funds safe.

      This should include 2FA (two-factor authentication) at a minimum. Although regulation is still in its infancy in the exchange space, you should try to stick with platforms that are licensed by a stringent regulatory body. If regulation is your main priority, then you might need to use a CFD broker.

      7. How Easy is it to Use the Platform?

      If you’re still a beginner in the world of cryptocurrencies, then it’s best that you use an exchange that is suited for newbies.  The platform in question should make it a seamless process to buy and sell Ripple, as well as offer a simple trading interface.

      Storing XRP in a Wallet?

      So now that you have made your very first Ripple purchase, you now need to make some considerations regarding storage. This is no different from storing real-world money, insofar that you want to find the perfect balance between security and accessibility. Whichever option you do go with, you will need to use a Ripple “wallet”.

      Not only do wallets allow you to store your XRP coins, but they also allow you to send and receive funds, too. As wallets come in a range of shapes and sizes, we have listed the main options that you will have at your disposal below.

      1. Web Wallet

      If your main priority is convenience, then you might want to consider storing your XRP coins at the exchange platform that you bought them from. This is known as a ‘web wallet’, as the funds can be accessed via a traditional web browser at the click of a button. While this makes it super-easy to access your funds, web wallets are also the least secure. This is because the platform will have full control over your private keys, meaning that if the exchange was one day hacked, your XRP coins could be stolen.

      2. Mobile Wallet

      Mobile wallets offer a good balance between security and convenience. Regarding the former, you will benefit from a range of security controls, such as a phone screen lock, fingerprint ID, PIN number access, and more.

      Even if you lose your phone, you can still regain access to your XRP coins remotely. In terms of convenience, you can send and receive XRP at the click of a button, as well as use your wallet’s QR code for speedy transfers.

      3. Desktop Wallet

      Desktop wallets are typically more secure than mobile wallets. You will need to download the software to your desktop device, and then install some security safeguards. Notably, this includes 2FA, meaning that access to your wallet requires a unique PIN that is sent to your mobile phone. On the flip side, desktop wallets are not as a convenience when it comes to accessing your wallet, as you’ll need the device with you to send and receive funds.

      4. Hardware Wallet

      Hardware wallets are as secure as it comes in the cryptocurrency space. In a nutshell, your funds will be stored on a physical device that remains offline at all times.

      Even if the device was stolen, the bad actor would not be able to access your funds without being in possession of your PIN or passphrase. Moreover, as the device is not connected to the internet, your XRP coins are protected from the threats of a remote hack.

      CFDs?: Why not consider a CFD purchase instead of going through the hassle of storing XRP yourself? CFDs allow you to speculate on the price of XRP in a low-cost and highly secure environment. In fact, CFD brokers are usually regulated by leading financial bodies like the UK’s FCA – something that is practically non-existent in the cryptocurrency exchange space!

      Can you Spend Ripple in the Real World?

      You can send and receive XRP coins to anyone that is in possession of a Ripple wallet.  However, unlike Bitcoin, the cryptocurrency offers little use cases in the real-world. Don’t forget, the underlying technology is targeted to financial institutions that have a requirement to transfer and settle funds internationally.

      As such, buying Ripple is only worthwhile if you are looking to invest and speculate on the future value of its price. If you do believe that XRP will be worth considerably more in the future, your best bet is to store the funds safely in a private wallet.

      How do I Sell Ripple?

      After your XRP has risen to a level where you are comfortable with the profits, you might then want to sell your coins. In other, less fortunate cases, you may want to sell Ripple to minimize your losses. Anyways, let us show how to sell XRP using one of our top-rated cryptocurrency exchanges, Binance.

      To sell your Ripple on Binance, first, navigate to the homepage of the service. If you haven’t already done so, create a Bitcoin account at the service. For security measures, set up 2FA. The next step is to head to the deposits section of the platform, and select XRP from the list of cryptocurrencies. Use the wallet address shown on the page to send Ripple into your Binance wallets. The transaction shouldn’t take longer than an hour or two. After your XRP has arrived, navigate to the trading page of the exchange. Select from one of the four base currencies (BTC, ETH, BNB, and stablecoins) as well as the relevant XRP trading pair. The next step is to choose the amount of Ripple you want to sell and your preferred order type, then execute the trade.

      XRP vs. Bitcoin – What’s the Difference?

      Although XRP carries a lot of similarities with Bitcoin, it also differs in a number of ways.

      1. Transaction Times: Bitcoin takes 10 minutes to confirm a transaction, while XRP takes a few seconds

      2. Transactions/Second: Bitcoin is still limited to just 7 transactions per second. XRP can handle up to 1,500.

      3. Fees: The Bitcoin network automatically calculates fees based on demand. Ripple is fixed at 0.00001 XRP.

      4. Centralization: Bitcoin is a decentralized network, meaning that no single person or authority controls the network. On the contrary, Ripple is centralized in all-but name.

      5. Supply: Bitcoin releases new coins into the network every 10 minutes, and this will be capped at 21 million in the year 2140. Ripple has pre-mined 100 billion XRP. 40 billion is currently in circulation, with the remaining 60 billion controlled and held by the team at Ripple.

      6. Use Case: While Bitcoin was created for everyday users like you and me, Ripple is targetted to financial institutions.

      7. Minimum Balance: Bitcoin wallets do not require users to hold a minimum balance. Ripple requires users to hold a minimum balance of 20 XRP, which cannot be withdrawn.

      8. Market Cap: Bitcoin is significantly more popular than XRP – especially in terms of market cap. While Bitcoin currently has a total market cap of $134 billion, XRP is just below $10 billion.

      9. Price: There is also a huge disparity in price. Bitcoin is currently worth just over $7,500, while a single XRP coin costs just $0.22.

      10. Miners: Bitcoin allows anyone with the required hardware to help confirm transactions on the network. Known as ‘mining’, this offers the chance to earn Bitcoin. Ripple and XRP does not facilitate mining, as transactions are validated by those using the technology (i.e. financial institutions).

      Conclusion

      In summary, Ripple is one of the most popular cryptocurrencies out there and can be traded on all the best trading platforms. Not only does the underlying technology perform significantly faster and more efficiently than Bitcoin, but transaction fees are cheaper, too. Moreover, the technology is now being used or trialed by more than 200 financial institutions. These are heavyweight banks such as UBS, Santander, and Westpac, subsequently giving the cryptocurrency real-world legitimacy.

      With that being said, although the technology itself is used by financial institutions, you can still buy and invest in XRP as an everyday consumer. By using a third-party cryptocurrency exchange that supports fiat currency, you can buy XRP with a debit/credit card or bank account. In some cases, you can even Buy Bitcoin with PayPal. As such, buying Ripple is a seamless process that should take you no more than 10 minutes!

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      FAQs

      What payment methods can I use to buy Ripple?

      The specific payment methods available will depend on your chosen exchange. Nevertheless, this can include debit/credit cards, e-wallets like PayPal, or a bank transfer.

      Should I store my XRP coins online?

      By storing your XRP coins at your chosen exchange, you can conveniently send and receive funds with ease. However, this is also the least secure way of storing your XRP. Essentially, if the exchange was hacked, you could have your coins stolen.

      Can I buy XRP anonymously?

      The days of being able to buy cryptocurrencies anonymously are slowly but surely coming to an end - especially if using everyday payment methods like a debit or credit card. However, if you're able to trade an alternative cryptocurrency for XRP, you should be able to do this anonymously as you are not using fiat currency.

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      John Iadeluca is the founder of the Wall Street hedge fund Banz Capital. He's a blockchain developer, quant, and consultant that specializes in the digital asset sector. He is an authority on blockchain and has written for a number of publications including Forbes.com.

      5 thoughts on “How to Buy, Sell & Trade XRP in 2020

      1. When Ripple has changed its concept of Blocks for Ledgers, I started researching what is the real difference between it and a Bitcoin block. Still haven’t found an answer. Does anyone know?

        1. Hello Alex39, each crypto exchange takes a small portion of the transaction as its service charges. However, eToro, one of the most popular platforms in the industry, does not charge any deposit or trading fees other than spreads. The withdrawal fees on eToro is $25.

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