The Complete Guide to Ripple: What it is, How it Works and How to Buy & Store XRP Tokens
While we all are aware of the fact that Bitcoin is still the top cryptocurrency used in the market, there are many newer digital currencies which either try to take over Bitcoin or provide a nice change to the most popular cryptocurrency. One such cryptocurrency is Ripple which is a centralized digital currency in a decentralized ecosystem.
Although Ripple is a cryptocurrency, it operates quite differently than other cryptocurrencies which is why it has become a popular cryptocurrency to invest in. However, if you are planning to invest in this latest cryptocurrency then it is better to research more about it before you take any steps.
In this article, we will discuss in detail about Ripple and how it can be beneficial to the cryptocurrency users.
- What is Ripple
- Team Behind Ripple
- What are XRP Tokens
- How to Buy XRP Tokens
- How to Set up Ripple Wallet
- How to Store Ripple
What is Ripple?
Ripple is a transaction network and a transaction protocol which powers it and was first released in 2012 by Ripple organization. This network allows users transactions that are secure and lightning fast and is built on the same technology as of Bitcoin which is why it is often mistaken as a cryptocurrency.
However, Ripple is a privately owned technology so no outsider is allowed to verify the transactions performed on it. In fact, Ripple is used by many banks around the world in their infrastructure settlement. It is a default cryptocurrency used in banks and global money transfers and is quite famous as the most scalable digital asset in the market right now.
Although, Ripple was not created to act as an online payment method and was actually introduced to compete with systems like SWIFT.
The Ripple protocol is not actually controlled by any central authority and is more of a decentralized network where you can initiate irreversible payments in just a few seconds. Ripple network connects the banks, corporates, and several digital assets and payment providers to transfer money globally in an instance and at a low operational cost.
Team Behind Ripple
Ripple team consists of some talented and skilled engineers and advisors who have a great knowledge of the blockchain technology and cryptocurrency growth. Brad Garlinghouse is the CEO of Ripple who previously worked at Yahoo! and AOL. He has handled quite a few other communication and financial organizations and has great knowledge of this industry.
Asheesh Birla is the VP or Ripple product and previously created a content management company which he sold to Thomson-Reuters. Patrick Griffin is the SVP of the company who has previous experience in business development and sales strategy.
David Schwarts is the Chief Cryptographer at Ripple and is one of the original architects of Ripple network. There are several other known team members of Ripple which are great at the work they do and are trying to improve and make this network the best in the world.
What are Ripple (XRP) tokens?
Ripple (XRP) tokens were introduced to be used on the Ripple network and can be used both by banks and payment providers for completing the transactions. It is one of the quickest and most scalable digital assets which allows users to track real-time payments all over the world.
XRP tokens can be employed by the payment providers to lower the foreign exchange costs and to supply quicker payment settlements to the users whereas banks can use this token to get liquidity without having to pay any pre-fund account. XRP tokens take barely 4 seconds to complete the transaction and can manage around 1500 transactions every second.
How to Buy Ripple XRP Tokens
Purchasing Ethereum and exchanging it for Ripple
Now, you need to buy ETH coins so that you can exchange them for Ripple coins. You can follow the below steps to do that:
- Navigate to the Coinbase.com homepage. As an alternative, even CoinMama is a good option but for the guide, we’ll stick to Coinbase.
- Click on ‘Sign Up’ button to create a new account and enter your personal details like Name, Email address, Locations, and Password.
- For verifying your account, you need to update your phone number, Photo Id, and Payment details.
- Once you have successfully verified your payment details, you need to navigate to the ‘Buy/Sell’ page and select Ethereum.
- Now, enter the number of ETH coins that you want to purchase or the amount of local currency that you want to spend. Once you are done, click on ‘Buy’ button to proceed.
- You will need to press ‘Confirm Buy’ button to confirm your purchase.
- Once this is done, you need to go to an exchange where you can exchange your ETH coins for XRP coins like Binance.
- Register an account in Binance and enter a strong password to keep it safe.
- You will then need to confirm your email id by clicking the link in the Binance email.
- Now, log in to your Binance account with your email id and password.
- Set up Two-Factor Authentication to keep your Binance account safe. You can use the Authy app on your mobile phone or web browser for the same.
- Once it is done, go to ‘FUNDS’ menu and choose ‘Deposits/Withdrawals’ from the menu options.
- Search for Ethereum wallet and then press Deposit. Note down the Ethereum wallet address and keep it safe.
- Return to Coinbase and go to Accounts page.
- Find your Ethereum wallet and press ‘Send’. Now, enter the wallet address copied from Binance in the ‘Recipient’ box and enter the amount of Ethereum that you wish to transfer.
- Click on ‘Continue’ and then confirm your transaction through password or phone.
You will now have some ETH coins in your Binance account that can be used for exchange. Check under the ‘Available Balance’ section for ETH coins, once you have them you are all ready to trade.
- Go to the ‘Exchange’ page and choose the XRP/ETH crypto pair for trading.
- You will see a big ‘Buy XRP’ box, choose the Market tab in this box.
- Enter the number of XRP coins that you wish to purchase of the percentage of your purchasing ETH available in your account. Once you are good with the amount, press ‘Buy’ button.
- Your order will be fulfilled and you can see your XRP coins on your ‘Deposits/Withdrawals’ page under your XRP wallet.
How to Set up a Ripple Wallet
Before you can purchase Ripple (XRP) coins for yourself, you need to first set up a Ripple wallet in order to store your XRP coins in a safe and secure place. Storing your cryptocurrency on exchanges is not advisable as exchanges are easy to hack so always make sure you have a personal wallet ready to store your digital currencies in one place.
To set up a Ripple wallet, we recommend using the Ripplex wallet. You will first need to install this wallet on your computer in order to store the Ripple coins.
Here is a quick guide for downloading the wallet and initializing it:
- Go to the rippex.net website and then scroll down to the ‘Here’s How to Start’ Section.
- Click on ‘Download the Wallet and create a ripple account’ option.
- You will be taken to the download page where you can choose the appropriate download option depending on your desktop system.
- Once your Rippex wallet download is complete, install it on your desktop and then open it.
- You will be displayed with the Open Account page where you will need to click on ‘Create New account’ to proceed.
- On the ‘Create New Account’ page, you need to click ‘Create an empty account’.
- You will be prompted to save your new wallet file. Make sure you save it in a safe and secure location.
- Once you have backed up your file, you need to encrypt your wallet file by inputting a hard password. Don’t forget this password else you will end up losing your coins.
- Click ‘Encrypt Account’ to complete the process.
- You will be displayed with your Ripple wallet address. Save it carefully and don’t share this information with anyone. Then click ‘Yes, I saved my secret key’ to continue.
- If you see the following message ‘You have to be online to see this screen.’ , then click on the gear icon found in the top right corner and choose settings.
- Click on ‘Network’ and enable the ‘online mode’.
- You will see another message saying ‘Your Ripple Account is not active’. You will need to transfer 20 XRP to your wallet in order to activate it.
This 20 XRP fee is to ensure that people don’t open up unnecessarily wallets and these 20 coins cannot be withdrawn from your wallet.
Hit a roadblock? Here’s our video guide
How to Store Ripple
Once you have a few XRP coins in your exchange wallet, it is important that you immediately move it to your personal wallet in order to keep it protected from frauds and hackers.
- You can withdraw your coins from your Binance account by clicking the ‘Withdraw’ button next to your XRP wallet.
- Then, enter your transaction label, amount, and address.
- In the amount section, you need to enter the number of XRP coins that you wish to transfer. In the address section, you need to enter the wallet address of your Ripple wallet. Also, make sure that the ‘XRP Withdrawals Tag’ checkbox is checked as ‘No Tag’.
- Once you are sure that everything is correctly filled, just click on Submit button. If you have 2FA enabled then you would also need to confirm via the authentication code and email link.
Once all this is done, go back to your wallet and click on ‘Overview’. You will see your available XRP coins under the balance sections where they will stay safe and protected.