This article was originally posted on The Bitcoin News – a trusted site covering numerous topics related to Bitcoin since 2012.
The Ripple network is an open-source payment protocol used by
the banking and financial sector. XRP is the token of the Ripple network.
Ripple aims to solve the challenges of trading in fiat currencies, particularly
those less frequently used.
As an example, if a financial institution wants to trade
Mexican pesos for Vietnamese dong, then they’d usually use a major currency
like the US dollar as an intermediary for the transfer. This leads to high
costs and longer transaction times. Ripple believes that by using the Ripple
network and XRP as the intermediary currency, the financial sector can make
However, many cryptocurrency users buy Ripple as a
speculative investment. Although decentralization advocates often criticize the
centralized nature of the project, Ripple has a large and enthusiastic
community that believes the company can solve the challenges facing the
The XRP token price has mostly followed the major market
trends of recent years. It reached its all-time high of $3.40 in early January
of 2018, around the same time that Bitcoin peaked. For most of 2019, XRP has
traded around the $0.25-0.45 range.
At this point in the evolution of cryptocurrency, it’s very
easy to buy XRP. How to do it depends on your circumstances and preferences.
Buy Ripple From
Exchanges are the gateway for many cryptocurrency users and
there are many to choose from. Not all exchanges are open to users in all
countries, so you may need to try a few options before you find one that’s
right for you.
Another consideration when choosing an exchange is security.
Exchange hacks are a frequent occurrence, and even big exchanges have been
shown to be vulnerable. A report by crypto intelligence firm CipherTracereported that over $4 billion had
been stolen from crypto users in the first half of 2019 alone. Although not all
of these thefts were hacks, the number is significant and demonstrates the
If you want to buy Ripple from an exchange, thenCoinbase is generally a safe bet. It’s very easy to use for
newcomers, and you can buy XRP tokens by making a deposit with your credit card
or via bank transfer. Coinbase is fully insured, meaning that even if the
exchange gets hacked, your funds are covered.
Using a Custodian
Using a custodian service means that you’re using a provider
who safeguards your cryptocurrency on your behalf. Many cryptocurrency users
choose to use a wallet, either an online (hot) storage service or an offline
(cold) storage service. However, if you choose to use a wallet, then you need
to make sure you can keep your private keys safe.
While this may seem like a trivial matter, there are plenty
of horror stories from the crypto-sphere where users have accidentally lost
their private keys — and their cryptocurrency — forever. For example, one
British IT workeraccidentally threw away a hard drive containing his
private keys, losing him access to 7,500 BTC he had mined in the early days of
Bitcoin. Even at 2019 trading lows of ~$3500, those coins would be worth well
over $26 million. Ouch.
Using a custodial service avoids all this worry, so if you
decide to take this route, thenSkrill is a solid choice. The
UK-based online payment company is a competitor to PayPal, although it’s now
expanded its service range beyond pure fiat payments.
Skrill opened its cryptocurrency service in 2018, aiming to
make it easier for its users to access digital currencies. You just need to
open an account, and from there, you can buy Ripple, or eight other coins using
a credit card or bank transfer.
You can fund your Skrill account with a range of different
currencies, and unlike a cryptocurrency exchange, it has other fiat payment
services integrated too. The company has been in operation since 2001, so it
has nearly two decades of experience in the money business, and has accruedmillions of users in that time.
Using a Broker
A final option for purchasing XRP is to buy through a broker.
Also known as an over-the-counter (OTC) trade, brokerages operate as part of a
network of dealers. Brokerage networks have access to a range of traders
willing to buy or sell. This works particularly well for larger orders, as an
exchange may not be able to find a counterparty willing to match a big trade.
Another feature of a broker is that, unless they also offer
custody services, you’ll have to use your own wallet. This means keeping your
private keys safe.
CEX.io is an example of a broker
service. Like Skrill’s custodial service, it’s a great option for beginners as
you can simply place your order, and the platform will freeze the price for
you. However, the trade-off is that the fees can be rather high, and that the
price CEX calculates for cryptocurrencies is usually a bit higher than the
actual market price.
The volatility of the cryptocurrency markets means that anyone investing always has to accept a certain degree of risk. However, users can offset some of this risk by choosing the most secure options for their crypto holdings.
Post source: Top 3 Easiest Ways to Buy Ripple (XRP)