Ripple Guide

What Is Ripple & How To Buy It?

XRP is a token that represents the transfer of value over the Ripple Network. Ripple is both a currency and a platform. The platform is an open-source protocol that enables quick and low-cost transactions. Interestingly, XRP is Ripple platform’s own currency, but it also allows anyone to use its platform for developing their own currency using RippleNet.

How does it work?

XRP has been developed to be a mediator for other fiat and cryptocurrency exchanges. Interestingly, Ripple has built a bigger reputation for its digital payment protocol than for its cryptocurrency. It runs on a peer-to-peer and open-source decentralized platform. This platform enables easy transfer of currencies in any form including Bitcoin, Litecoin, USD, or any other fiat or cryptocurrency.

You should know the following points about Ripple and XRP:

•       Ripple’s primary process is a payment remittance system and settlement asset exchange with similarity to SWIFT.
•       The transactions use less energy compared to Bitcoin. Transactions are low-cost and take seconds to complete.
•       Ripple doesn’t use blockchain mining like other cryptocurrencies. It makes use of a consensus mechanism that involves many servers for confirming transactions.

Ripple is quite different to other cryptocurrencies. You can use the platform for exchanging USD to EURO, USD to Bitcoin, and between other fiat and cryptocurrencies. Every transaction involves the disappearance of $0.00001 from the platform. This amount disappears forever and cannot be recovered. This is part of its design to prevent spam attacks.

Pros and Cons

The unique features of the XRP provide it many advantages over other alternatives. Explore the Pros and Cons of this cryptocurrency and platform:

Pros:

Some of the points that are in favor of XRP are as follows:

•       Transform International Banking: Ripple uses a unique blockchain technology along with payment protocols that make international transactions instant, traceable, and secure. It is expected to revolutionize international banking as well.
•       Affordable: XRP is currently trading at a much more affordable price compared to other cryptocurrencies. If you find the prices of Bitcoin and other cryptocurrencies to be intimidating, this is an excellent alternative to invest in.
•       Widespread Implementation: More than 100 financial institutions have taken the decision to test Ripple’s system and implement it.

Cons:

The main cons of XRP are as follows:

•       No More Mining: Unlike most other cryptocurrencies, XRP has already been pre-mined. This means that there is no room for mining new coins. So a significant percentage of XRP is owned by the developers. Thus, it is not a decentralized cryptocurrency.
•       Strong Competition: SWIFT is a widely adopted payment network and provides strong competition to Ripple. Ripple will have to convince the banking sector about the greater speed and safety of its system.

How to Invest in XRP?

As already mentioned, XRP is currently an affordable cryptocurrency to invest in. 

Buying on an exchange is the simplest way to invest in XRP. Due to its low price, it is best to buy it and forget about it for a long time before the prices rise high. You should keep in mind that Ripple can be purchased only with another cryptocurrency and you will need a digital wallet to buy it.

European investors ready to take the leap into Ripple and get their hands on XRP tokens can register for free today at Virtuse Exchange. 

Invest in Companies with XRP

With Ripple,  XRP, you can also  invest in startups or companies. You should identify crypto startups that are expected to become big in the future.