How To Buy Ripple On Coinbase? Step-by-Step Guide
To buy XRP on Coinbase, follow these simple steps:
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Log in to your Coinbase account
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Navigate to the Buy option.
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On the Buy screen, choose the cryptocurrency you wish to acquire.
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Input the amount you want to purchase, either in your local currency or in the crypto asset.
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Choose your preferred payment method.
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Click on Preview Buy to review the transaction (you can use the back arrow if you need to make any adjustments).
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If everything looks good, select Buy Now to finalize your purchase.
Coinbase has resumed trading of XRP, the digital asset native to the Ripple protocol, following a favorable U.S. court ruling that determined XRP is not a security when traded on secondary exchanges. This relisting marks a significant turnaround as Coinbase, along with other major exchanges like Kraken, had previously delisted XRP due to regulatory concerns raised by the SEC's lawsuit against Ripple Labs.
This guide covers how to buy XRP on Coinbase after its relisting and other key aspects around it.
How to buy XRP (Ripple) on Coinbase?
Follow these steps to buy XRP on Coinbase:
Purchasing XRP (Ripple) on Coinbase is a straightforward process. Follow the steps below to complete your transaction:
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Sign in to Сoinbase
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Start by logging in to your Coinbase account using your credentials.
Sign in to Сoinbase
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Select "Buy / Sell"
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Once logged in, locate the "Buy / Sell" button, which is usually displayed at the top of your dashboard. Click on it to initiate your purchase.
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Choose XRP (Ripple)
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In the "Buy" tab, you will see a list of available assets. Scroll through and select XRP (Ripple) from the list as the asset you'd like to purchase.
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Enter the amount
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Enter the amount of XRP you want to purchase. You can choose to enter this amount in XRP or in your local currency (like USD or EUR). Coinbase will calculate the equivalent amount for you.
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Set up a recurring purchase (optional)
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If you’d like to automate your XRP purchases, select the "One-time order" dropdown, and choose "Recurring buy." Then, select how frequently you’d like the purchase to repeat (daily, weekly, monthly, etc.).
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Select your payment method
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Choose your preferred payment method. Coinbase allows you to pay with a bank account, debit card, or any linked payment option you’ve set up in your account.
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Preview your buy
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Before completing the purchase, click on "Preview Buy" to review the transaction details, such as the amount of XRP you’re buying and the associated fees. If you need to make changes, click the back arrow.
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Complete the purchase
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Once you’ve confirmed that everything looks correct, click "Buy Now" to finalize your XRP purchase.
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When will Coinbase resume XRP trading?
As of the latest update, Coinbase has resumed trading XRP for certain users. They restarted XRP trading specifically for residents in New York as a result of a favorable development in the Ripple-SEC lawsuit. This resumption marks a significant shift and is likely a response to the legal progress and the court rulings that have been somewhat favorable to Ripple, though broader regulatory questions remain.
If you're seeing XRP listed on Coinbase, it aligns with these updates. The trading status can vary, and announcements about such changes might not always be immediately evident in all regions or to all users, depending on local regulations and the platform's strategic decisions.
What is Ripple?
Ripple is a digital payment protocol that supports a real-time gross settlement system, currency exchange, and remittance network. Established in 2012 by Ripple Labs, it aims to facilitate instant and cost-effective international financial transactions. Unlike many cryptocurrencies, Ripple operates on a semi-centralized consensus mechanism, which involves a select group of trusted validators rather than a fully decentralized blockchain model used by Bitcoin.
Ripple's native cryptocurrency, XRP, was pre-mined with a total supply of 100 billion tokens, all of which were created at the network's inception. As of 2024, XRP is actively traded and used for liquidity in cross-border transactions. XRP stands out by offering swift transaction processing times and lower costs compared to traditional banking systems and even other cryptocurrencies like Bitcoin.
One of Ripple's distinct features is its partnerships with major financial institutions globally, which allows for the seamless exchange of various currencies within its network, leveraging XRP as a bridge currency. However, it has faced scrutiny and legal challenges, particularly from the U.S. Securities and Exchange Commission (SEC), regarding the classification of XRP as a security.
Despite these challenges, Ripple has managed to maintain a significant presence in the cryptocurrency market, often ranked among the top ten by market capitalization. Its architecture and operational model make it a favored choice for financial institutions looking to improve the efficiency of international transactions.
Pros and cons of trading XRP
👍 Pros:
•High transaction speed and low fees
XRP transactions are confirmed within seconds, making it one of the fastest cryptocurrencies for transfers.Transaction fees are typically very low, which is beneficial for traders looking to minimize costs.
•Strong institutional partnerships
XRP is associated with Ripple Labs, which has partnerships with various financial institutions aiming to streamline cross-border payments. These partnerships could lead to increased adoption and demand for XRP.
•Liquidity
XRP is among the top cryptocurrencies by market cap, ensuring ample liquidity on most exchanges. High liquidity allows for easier entry and exit positions without significantly affecting the market price.
•Use case in remittances
XRP is designed to facilitate quick and affordable international money transfers, providing a real-world utility.
•Volatility Offers Trading Opportunities:
Significant price movements can present opportunities for profit through trading strategies like swing trading or day trading.
👎 Cons:
•Centralization сoncerns
A large portion of XRP is held by Ripple Labs and its founders, which could influence the market supply and price. Critics argue that the XRP Ledger is less decentralized compared to other cryptocurrencies.
•Market volatility
While volatility can offer opportunities, it also increases the risk of significant losses, especially for inexperienced traders. Rapid price changes can lead to emotional decision-making, which may negatively impact trading outcomes.
•Competition from other cryptocurrencies
Other cryptocurrencies like Stellar Lumens (XLM) also focus on cross-border payments and may compete for market share. New technologies could potentially render XRP's solutions less relevant.
•Limited adoption in certain regions
In some countries, regulatory hurdles may prevent the adoption of XRP for institutional use. Compared to other cryptocurrencies, XRP has fewer options for everyday transactions and purchases.
•Potential for market manipulation:
Large holders can potentially manipulate the market due to the concentration of XRP ownership. Concerns about transparency in how Ripple Labs manages its XRP holdings.
Ideal platform for buying XRP
If you're just starting with buying XRP on Coinbase, here's a less common tip: don't rush into buying XRP right after you add funds to your account. Spend about a week observing the XRP/USD trading behavior on Coinbase Pro. This approach lets you see how prices change and which times seem to offer the best buying opportunities, helping you decide when to make your move.
Also, instead of going for the straightforward market buy, which executes at the current market price, consider placing a limit order. This method allows you to specify the price at which you want to buy XRP, ensuring you only buy if it reaches a price point that suits your budget. Use the price alert feature on Coinbase to keep you updated on significant price movements without needing to watch the market all day. This way, you're informed and ready to buy when the conditions are just right.
Summary
To buy XRP (Ripple) on Coinbase, users need to start by creating and verifying their Coinbase account. After setting up their account, they can deposit funds using a variety of payment methods. Once funded, users can search for XRP on the platform, decide on the amount they want to buy, and complete the purchase. The XRP will be stored in their Coinbase wallet, from where they can manage or transfer it.
FAQs
Is XRP available for purchase on Coinbase?
Yes, XRP is available for purchase on Coinbase. However, availability may vary based on regional regulations, so it’s essential to check if it’s listed in your country.
What payment methods can I use to buy XRP on Coinbase?
You can use several payment methods to buy XRP on Coinbase, including bank transfers, debit cards, and PayPal (in certain regions). The availability of these methods may vary depending on your location.
Are there any fees associated with buying XRP on Coinbase?
Yes, Coinbase charges a transaction fee for buying XRP. The fee structure depends on the payment method used and the transaction amount. It’s advisable to review the fee details on Coinbase before completing your purchase.
Can I transfer my XRP from Coinbase to another wallet?
Yes, you can transfer your XRP from your Coinbase wallet to an external wallet. Coinbase provides an easy-to-use interface for transferring funds, ensuring that your XRP can be securely moved to your preferred storage solution.
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Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).