What is XRP and Whether it’s Worth Buying?

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The very first and most interesting thing about Ripple (XRP) is that it’s both a cryptocurrency and an open-source platform. It’s yet another decentralized protocol that is specially designed to offer cheap yet fast transactions. Based on its current performance, crypto experts suggest that Ripple has the capability to revolutionize the transaction process worldwide.

One of the most important factors that make Ripple unique from most cryptocurrencies and platforms is that it targets the industry providing financial services. XRP is also consistently listed in the top 10 digital currencies according to its market capitalization. This article discusses everything you need to know about Ripple (XRP) that will allow you to understand whether it’s worth buying or not. Also, TU analysts will tell you where to buy XRP if you decide to invest in this cryptocurrency.

What is Ripple?

Ripple, in simple words, is a remittance platform, a real-time gross settlement network, and a currency exchange. It was created by Ripple Labs Inc. back in 2012 with the aim to provide the cheapest and fastest transactions for international funds transfer. Its payment system is no less than a breakthrough in the crypto world that allows you to perform transactions in either XRP or fiat currency. Moreover, it’s considered to be one of the most scalable and fastest decentralized platforms used for sending and receiving payments in the world.

History of Ripple

The first idea to build an online platform free of delays in transaction processing and the negligible fee was by Ryan Fugger way back in 2004. This idea was passed to Jed McCaleb and Chris Larsen, the founders of the OpenCoin platform, which is now known as Ripple Labs Inc. Both the founders developed the Ripple platform and launched it in 2012 in order to make the value transfer as fast and convenient as the information transfer.

In the first two years, Ripple progressed gradually, but 2015 and 2016 were the years of the platform's expansion. In 2017, Ripple came up with a couple of most valuable features, which were payment channels and escrow. It helped the platform a great deal to improve its scalability as well as performance because it helps companies with extremely cheaper and faster cross-border payment experience. In the same year, Ripple also announced that it has partnered up with 10 new banks, including Akbank from Tukey, MUFG from Japan, BBVA from Spain, SEB from Sweden, and Yes and Axis banks from India. After that, more than 100 banks from the United States and Japan, including Standard Chartered, RBC, Bank of America, and UBS, started using Ripple.

Currently, the platform continues to actively develop and add new features, collaborating with dozens of partners from traditional finance.

Blockchain Platform Advantages

Ripple (XRP) was specially designed with the aim to provide users with much cheaper and faster transactions as compared to any other digital currency platform. Moreover, Ripple has managed to make its way to be used by institutions worldwide. One of the best advantages that Ripple XRP offers is that it can be converted to any valuable asset like gold or currency. Moreover, you only need to pay a unified minimal fee in order to exchange your XRPs. Other than that, here are some other benefits of Ripple XRP that it brings to the table.

Fast Settlement

Ripple can easily process and confirm an international transaction within 3.5 seconds that otherwise takes two to three business days if you’re using a traditional payment method. It’s an incredibly fast speed that can change the landscape of international payments worldwide.

Low Transaction Fee

The transaction fee on Ripple is negligible, and per transaction, you only need to pay 0.00001 XRP, which is not more than a fraction of a penny.

Diverse Platform

Over the years, Ripple (XRP) has evolved, and other than processing XRP transactions, it can also process other commodities, cryptocurrencies, and fiat currencies.

Massive Adoption

Ripple (XRP) is also used by many international institutes, especially banks all across the globe. It also makes it different from the rest of the cryptocurrencies because its market adoption is larger than all its competitors.

Breakthrough Payment System

The state-of-the-art payment system of Ripple is known as RippleNet. It’s a vast network of payment providers such as businesses offering financial services and banks. It’s by far the most heavily used decentralized platform that people use to transfer funds beyond the borders.

In order to solve the cross-border payment issue, the ISO (International Standards Organization) issued ISO 20022, and RippleNet is fully coupled with ISO 20022. You can use this platform to send or receive funds using both fiat and cryptocurrencies with minimal transaction cost. The platform charges a small amount of money against each transaction just to prevent potential DDoS attacks.

What is XRP

XRP is a native token of the Ripple network, which is developed and issued by Ripple Labs Inc. It’s primarily used to facilitate the transactions taking place across the Ripple platform using different currencies. It’s one of the products that Ripple Labs offers used on a distributed, permissionless, and open-source XRP ledger. Being a decentralized platform, XRP doesn't need any intermediary entity to complete the transactions.

The max supply of XRP is 100 billion coins, and according to the rules and regulations of the protocol, this number will never be changed. It’s important to note that XRP was created before the inception of Ripple Labs Inc. The creators of XRP only kept 20 percent for themselves and gifted 80 percent of the coins to the Ripple platform. It’s one of the most important reasons why businesses are adopting the Ripple (XRP) payment method.

Bridging different currencies is one of the most significant functions of XRP. The primary aim of the Ripple (XRP) developer team is to eventually replace USD as the international currency.

XRP Profile
Ticket XRP

Max supply

100,000,000,000

Total supply

99,990,358,414

1-year price low

$0.21019

1-year price high

$1.75781

Current Price

$0.99

Market cap

$47 588 132 371

Markets

Binance, Huobi Global, KuCoin

Uses for Ripple (XRP)

Since its inception, the Ripple network has been adopted by more than 300 renowned banks across six continents and 40 countries. It also means that there is still plenty of room for other institutions and countries to adopt this cross-border payment platform.

Ripple allows individuals and banks to exchange assets internationally, which is done by the Swift system. It allows the institutions, especially banks, to open separate accounts in different countries where they want to operate. It’s important to note that there are still many currencies that individuals and banks can’t directly convert to another. So, users first need to change such currencies to USD and then to the desired currency, which means double transaction. However, because of extremely low transaction costs and fast speed, even the commission on a double transaction is negligible.

Xcurrent: A Ripple Project

Xcurrent is an excellent platform by Ripple, which is specifically designed for financial institutes and banks. It offers a more efficient and convenient solution for these institutions to perform cross-border payments.

Xrapid: A Ripple Project

Another great platform that Ripple offers is Xrapid that also caused a surge in XRP price back in 2018. It allows banks and other financial institutes to connect multiple types of currencies globally, where XRP works as a bridge. So, it took the speed of international transactions taking place on the Ripple network to the next level.

Should I Buy Ripple (XRP)?

XRP Performance

As mentioned earlier, XRP and Ripple are two different entities where Ripple works as a payment network and XRP as a digital asset. So, you must be working on how the progress of one entity affects the other one. The simple answer is that both platforms share a certain degree of interdependence. In other words, the market price of the XRP coin is intrinsically tied to the Ripple network.

In order to show an act of good faith, in 2017, Ripple placed 55 billion XRP coins in the escrow account. The Ripple team did it just to assure its users and partners that the platform isn’t going to dump its XRP tokens to drive the price down. Moreover, Ripple also announced that it’s planning to sell all the XRP tokens placed in escrow to new users. It helped Ripple greatly to increase its community, and the price of XRP increased dramatically, and within a month, the price of XRP jumped from 0.005 to 0.1 US dollars.

XRP price on 24th February

XRP Price

XRP Price

XRP price on 24th March

XRP Price

XRP Price

However, the biggest jump in the entire history of XRP took place in 2018 when the price of a single XRP token reached 3.30 US dollars. At that time, the market capitalization of XRP was about 118 billion US dollars.

XRP Price

XRP Price

But the cryptocurrency also declined dramatically, and within a few months, it barely managed to sustain the market capitalization of 19 billion US dollars, where the price of one XRP token was 0.54 US dollars.

XRP Price

XRP Price

In recent months, the XRP has again performed exceptionally well and reached a market capitalization of 72 billion US dollars. The value of one XRP also reached 1.62 US dollars. But it again dropped, and currently (29th January 2023), its market capitalization is around 33 Billion US dollars, where one XRP stands at 0.72 US dollars.

XRP Price

XRP Price

Over time, one thing that remained constant about XRP is high volatility. It has performed very well in different durations but still remains highly volatile. The following chart shows the performance of XRP since its creation, where you can see the big jumps making it a volatile asset.

XRP Price

XRP Price

XRP

1m return

-9.14%

1y return

47.32%

How to Mine XRP?

Unlike most of the cryptocurrencies out there, XRP can’t be mined. Moreover, there is about 60 percent of XRP coins available in Ripple escrow that people can buy or earn. According to the rules and regulations, Ripple management can’t release more than one billion XRP tokens within a month. It’s important to note that the expected release rate is even lower.

Another important factor about the Ripple network is that it also doesn’t have a PoS (Proof of Stake) algorithm. So, if you're wondering how to get XRP, then the easiest way to buy them. Other than that, you can also earn them, but for that, you first need to own XRP coins. Consider reading the “how to buy XRP” section given below because you’ll need that if you want to earn more XRP tokens without spending money.

XRP Criticism

Over the years, along with its amazing performance and constant progress, XRP has faced a lot of criticism as well. One of the biggest concerns that most crypt experts and critics show regarding XRP is its centralization.

Centralization

Platform founders control near 60% of coins, leading to accusations of high centralization. Because of the default list of validators of XRP, many people used to consider it centralized. Moreover, the community of XRP showed the same concern on multiple platforms back in 2017. So, the platform increased the number of its validator nodes to 55. Later, Ripple further increased the number, and now there are 150 validator nodes in total that the platform has. Moreover, Ripple also used to own more than 50 percent of the total supply of XRP tokens which are now reduced to only six percent.

Opacity

Ripple (XRP) has also been accused many times that it's not a real blockchain. One of the reasons is its centralized behavior. But it's also said that the network is not as transparent as it should be. Neither does it allow people to mind XRP token, nor can they stake it. Moreover, XRP is also controlled by the company. However, the officials from Ripple say that the platform is completely decentralized. That's because if Ripple disappears today from the crypto world, then the XRP token won’t stop working.

SEC Proceedings

One of the biggest problems that XRP is facing is a complaint by the SEC (Securities and Exchange Commission). The complaint states that the co-founder of Ripple Christian Larsen and the current CEO Bradley Garlinghouse raised funds through unregistered securities by selling XRP back in 2013 in the United States as well as other countries. Moreover, the complaint also says that the Ripple platform has also exchanged market-making and labor services by distributing XRP tokens in billions. Moreover, both the officials have also undergone unregistered personal sales (along with selling XRP to support the company) of XRP tokens that are worth about 600 million us dollars.

Should You Buy XRP?

Because of the innovative platforms and massive adoption of Ripple, XRP can have a very bright future. Many critics suggest that the cryptocurrency is going in the right direction, and investing in XRP can be very lucrative. But at the same time, it's critical to keep in mind that it's a highly volatile asset which also means that buying XRP can be risky. Moreover, Ripple still holds XRP in a massive quantity. Therefore, it totally depends upon your unique investment needs and goals. The potential, as well as risk factors, are in front of you, and before investing in this cryptocurrency, you need to make sure that you understand them properly.

Best Exchange to Buy XRP in 2024

If you want to buy XRP, then the first and most important step is to find the right platform. Currently, according to the performance and daily trade volume, there is no better option than Binance. It's the biggest, intuitive, fast, and user-friendly crypto exchange that supports more than 150 different types of cryptocurrencies.

One of the best things about this platform is its flat transaction fee which is only 0.1 to 0.2 percent depending upon your current physical location. Although the platform is available in more than 180 countries worldwide, we recommend you look for support for your country before buying anything.

How to Buy XRP: 3 Steps Algorithm

Whether you’re interested in buying XRP or any other cryptocurrency, it’s important to make sure that you follow the right buying algorithm. Not only will it help you to avoid all the unwanted situations, but it’ll also allow you to understand whether XRP is worth buying or not.

Step One: Perform Thorough Market Analysis

Just like any other asset, you first need to perform your due diligence. A great start is to look for the current market performance of the cryptocurrency you’re interested in (in this case which is XRP). In order to study XRP comprehensively, it’s advisable to go to a reputable and reliable crypto price tracking online platform such as CoinMarketCap. On these platforms, you can understand everything such as current progress, historical data, future price prediction, and more regarding cryptocurrencies, including XRP.

Step Two: Create and Fund Your Account

As mentioned above, Binance is the best online crypt exchange that you can use to buy XRP. The first step to use Binance is to open your free trading account. You can achieve it within a matter of minutes because you only need to open the official Binance website and click on the big yellow button with the “Register Now” label.

Binance Exchange

Binance Exchange

The system will ask you to enter your email address or phone number along with a strong password to complete your registration process.

Funding Account

Once you have successfully completed the registration process, you’ll need to add funds to your Binance account. The platform allows you to use both Fiat and cryptocurrency for that.

First, you'll need to hover your mouse cursor over the "wallet" option, as shown below.

Binance account funding

Binance account funding

The system then will provide you with a dropdown list, and from there, you'll need to click on the second option with the “Fiat and Spot” name.

Now, you'll be redirected to another page, where you'll need to simply click on the "Deposit" button, as shown below. Keep in mind; you won't need to change anything else from this page.

Binance account funding

Binance account funding

From the next page, you'll need to choose between fiat or cryptocurrency. As shown below, if you click on the "Continue" button after choosing your currency and bank, you'll only need to enter your bank account details and the amount you want to add to your account.

On the other hand, if you click on the "Deposit Crypto" option, then you'll be redirected to another page where you'll need to attach your crypto wallet to fund your account with cryptocurrency.

Binance account funding

Binance account funding

Step Three: Buying XRP

In order to use the Binance platform on your smartphone, you can download the app, which is available for both iOS and Android. The following buying procedure is to buy XRP funds from the Binance app.

After opening your account on the Binance app, you'll need to click on the yellow button from the bottom bar with double arrows, as shown in the image below.

Binance account funding

Binance account funding

The system will open a small menu with multiple options, and you'll need to tap on the “Buy” option.

Binance account funding

Binance account funding

Then you’ll be redirected to another page where you’ll need to choose XRP from the available list and enter the amount that you want to buy. Then the system will ask you to choose your payment method, and you'll need to tap on the "Binance Cash" option. After processing, the system will add XRP tokens against your entered amount.

Direct Method to Buy XRP

Binance also allows you to buy XRP tokens directly without first needing to fund your account. For that, you’ll need to open the Binance platform in your browser and hover the cursor of your mouse over the “Buy Crypto” option located right next to the Binance icon. Then you'll see a small dropdown menu, and from there, you'll need to choose the first option with the “Credit/Debit Card” label.

How to Buy XRP

How to Buy XRP

On the next page, you'll need to enter the amount in Fiat currency and choose XRP from the list of available cryptocurrencies. Now, you'll need to click on the "Continue" button, and the system will then ask you to enter your bank account details. After that, you’ll only need to click on the “Continue” button to complete the process.

How to Buy XRP

How to Buy XRP

Top 10 Best Cryptocurrencies to Invest In

Choosing the right asset to buy can be a very daunting task, and cryptocurrency is no exception. For your convenience, we have done all the heavy lifting to provide you with the top 10 cryptocurrencies to invest in. Our experts have chosen these options after performing comprehensive market research and technical analysis where the most important considerations were popularity, technology, current as well as historical performance, and future indications.

Cryptocurrency Industry Current price 1y return 1m Return Total score

Binance Coin (BNB)

Cryptocurrency exchange

228.50$

-24.87%

0.26%

9.5

Invest

Cardano (ADA)

Blockchain platform

0.38$

18.56%

22.36%

9.2

Invest

Ripple (XRP)

Payments

0.61$

42.91%

0.66%

9

Invest

Dogecoin (Doge)

Payments

0.08$

-19.63%

19.52%

8

Invest

Polkadot (DOT)

Blockchain platform

5.47$

-2.69%

14.59%

8

Invest

LItecoin (LTC)

Payments

71.57$

-8.52%

2.26%

7.6

Invest

Stellar (XLM)

Payments

0.00$

NaN%

NaN%

7.5

Invest

Uniswap (UNI)

Decentralized exchange

0.00$

NaN%

NaN%

7.4

Invest

Tron (TRX)

Blockchain platform/Media

0.00$

NaN%

NaN%

7

Invest

IOTA (MIOTA)

Internet of Things

0.00$

NaN%

NaN%

6.9

Invest

Summary

Many people list Ripple and XRP under the very same crypto roof as other popular cryptocurrencies. But the fact of the matter is that Ripple, along with XRP, is on a very different and unique mission. It aims to offer an international payment system that's purely community-oriented and can be used by everyone. We hope this guide will make it easy for you to make the most informed decisions about investing in XRP. Moreover, we recommend you first buy a few coins in order to analyze how the whole system works before investing your real money.

FAQs

Is XRP purely centralized?

No, XRP is not purely centralized by its true nature. The only reason why many people consider it a centralized system is because Ripple approves all the validators. It undoubtedly decreased the level of decentralization, but it certainly doesn’t make it purely centralized.

Is XRP based on a blockchain?

The one-word and simple answer to this question are no. XRP isn’t based on a blockchain. It’s a distributed, permissionless, and open-source ledger.

Will I own Ripple as well if I buy XRP?

No, both XRP and Ripple are different entities, and buying XRP doesn't mean that you own Ripple. Moreover, you can't buy shares of Ripple because it's not a publicly-traded company.

Why is Ripple so famous?

Ripple is famous because it can process and confirm international transactions in a record time. Moreover, it also charges a very small transaction fee which is only 0.00001 XRP per transaction.

Team that worked on the article

Chinmay Soni
Contributor

Chinmay is a certified Investment Analyst and Portfolio Manager by the National Stock Exchange (NSE) Academy. He is currently associated with a $75 million VC fund and assists them in identifying and researching investable sectors and start-ups. He has completed his Bachelors of Business Administration from the Institute of Management, Nirma University and is currently pursuing MBA majoring in Finance from the same. He has 4 years of hands-on investment experience in a variety of asset classes and his professional qualifications include being a CFA Level 2 candidate and NSE Certified Market Professional Level 2.

He finds writing as a way to express his thoughts and share his knowledge with people eager to learn. He himself happens to be an avid reader of personal finance books and on top of his recommendation list are the international bestsellers ‘The Psychology of Money’ and ‘Think and Grow Rich’

He has this one strong belief as his motto: Life is what you make of it.

Dr. BJ Johnson
Dr. BJ Johnson
Developmental English Editor

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.

Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.

Mirjan Hipolito
Cryptocurrency and stock expert

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). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.