Ripple is a popular (yet controversial) cryptocurrency that allows banks to quickly transfer funds on a cross-border basis at a very low cost. Ripple and XRP make crypto news headlines often and not always for the most positive of reasons.
But what are Ripple and XRP, and why do they stir such high emotions in the crypto space? Follow our in-depth guide to find out.
What is Ripple (XRP)?
Ripple is a popular crypto specifically designed to shift transactions away from financial institutions and towards an open infrastructure. The goal of this is to significantly cut costs of transactions. The XRP blockchain only allows select users to validate transactions known as Unique Node List.
Ripple is a for-profit company, leading crypto enthusiasts to question its decentralization goals. XRP is the token developed by Ripple, which they claim is “faster, less costly and more scalable” than any other cryptocurrency.
A Short History of Ripple
Ripple Labs, which is the company behind the XRP token, began its life in 2004 with RipplePay, a decentralized monetary system developed by Ryan Fugger that aimed to empower individuals to create and work with their own money. Fugger sold the platform to Jed McCaleb and Chris Larsen in 2012, who had themselves developed a similar idea independently.
RipplePay changed its name to OpenCoin and began developing the Ripple protocol (RTXP), as well as the Ripple payment and exchange network. OpenCoin changed back to Ripple in 2013 and then to Ripple Labs, while the token became XRP.
In 2020, Ripple was hit with a lawsuit by the Securities and Exchange Commission (SEC). The commission accused Ripple founders Brad Garlinghouse and Chris Larsen of selling unregistered securities in a series of accusations that have been labeled by one commentator as “the most fraud-like non-fraud filing I think I’ve seen.” As a result of the filing, many popular exchanges no longer carry XRP.
The following year, attorney John Deaton filed his own class action lawsuit against the SEC, claiming that the actions taken had led to XRP’s drop in value. By August 2022, over 70,000 XRP holders had signed on to join the case.
How Does Ripple Work?
The XRP token is the method by which Ripple prefers payments to be carried on its RippleNet system, although this is not a prerequisite. Payments between two entities on RippleNet who both accept XRP will have their transfer converted into XRP at the start of the transfer and re-converted to the chosen currency at the other end.
XRP has long targeted big banks with this technology, stating that it could save them millions in costs per year, and it is the potential for huge adoption by these big banks. However, it must be noted that the adoption of RippleNet does not ensure the adoption of the XRP token itself.
How to Buy XRP
Buying XRP is not as easy today as it once was. Due to the SEC’s ruling that XRP is a security, many of the top crypto exchanges no longer support the cryptocurrency. However, you will be able to buy, sell, and trade XRP on BitForex. To do this, follow these simple steps.
- Open a BitForex account. You will need your email address or phone number to register as a new user.
- Verify your account. BitForex will send a verification code to your email or via SMS. Enter the code to access the site.
- Deposit funds. Click on “Go Deposit” and deposit money into your BitForex account. If you are new to crypto, you will need to use a credit or debit card for this.
- Buy XRP. Click on the link to “Buy Crypto” in the upper left corner of the site. Select XRP, enter the amount of XRP you want to purchase and click “Continue.”
- Secure your XRP. Once you have your XRP, you will need to keep it secure via a crypto wallet.
Best XRP Wallets
Don’t leave your XRP in the exchange wallet. Crypto wallets help keep all your crypto secure from malware and possible cyber attacks. Hot wallets are online sites or apps, perfect for those seeking convenience. Or, for added security, there are cold wallets, which are physical devices that are only connected to the internet when you are using it. Another aspect to factor in here is cost. Cold wallets can be expensive, with some costing hundreds of dollars, whereas hot wallets are generally free to use.
How to Mine XRP
Many cryptocurrencies, such as Bitcoin and Ethereum, can be mined for profit. Unfortunately, XRP cannot be mined. This is because XRP is not decentralized like other cryptocurrencies and is completely run by the Ripple organization. A good alternative to mining comes in crypto faucets. These faucets reward users with various crypto, including XRP, for completing simple tasks like completing surveys, solving puzzles, and playing games.
BTC vs. XRP
|As of 08/2022||Bitcoin (BTC)||XRP|
|Price||≈ $21,200 USD||≈ $0.34 USD|
|Market Cap||$459,213,771,997 USD||$16,837,829,388|
|Total Supply||₿21,000,000||100,000,000,000 XRP|
|Algorithm||(PoW) Proof of Work||– –|
|Max Block Size||1 MB||No blocks, just ledger|
|Block Time||10 minutes||– –|
|Block Reward||6.25 BTC||– –|
Is XRP a Good Investment?
Crypto markets are notoriously volatile, so it is important to understand that there is an element of risk with any investment. The highest price XRP has so far reached was $3.55 back in 2017. This pales in comparison to the value of other cryptocurrencies.
But when you are thinking about the value of XRP, it is important to remember that its intended purpose is not to compete with other cryptos like BTC. Instead, XRP was specifically created to serve as a tool for settling cross-border transactions at lower prices and faster speeds than fiat currency.
XRP Price Predictions
Remember, when investing in crypto, it is important to look at current trends and long-term forecasts. With the current value of XRP being so low, many analysts believe the only way for it to go is up, but not by much. By the end of 2022, the average prediction for XRP’s value is around $0.40. Most appear to think the token can break the $5 USD threshold within ten years, but very few think it will hit $10.
What is XRP?
XRP is the cryptocurrency from private company Ripple. It was designed specifically to be utilized as a tool for settling cross-border transactions at lower prices and faster speeds than fiat currency.
Where can I buy Ripple?
Due to recent SEC regulations, XRP is no long offered at many of the top crypto exchanges, like Coinbase. However, you can still buy, sell, and trade XRP on crypto exchanges.
Why are XRP prices so low?
Many cryptocurrencies took a huge hit in 2022, losing a combined total of over $2 trillion. Crypto markets are highly volatile, but many analysts believe that the markets have hit their bottom and are predicting steady rises in value over the next 10 years.