Why Was Ripple Created?
Despite enjoying the status of the most popular cryptocurrency, Bitcoin still can’t be used as a payment mode due to the transaction fee and the processing time. This is why Ripple was created to be used for micro-transactions and to solve the major issue of scalability. Ripple has the ability to process hundreds, even thousands, of transactions every minute.
Bitcoins have to be mined requiring electric power and infrastructure. On the other hand, Ripple was instantly mined to create 100 billion XRP tokens. Bitcoin is usually considered to be a competition for financial institutions but Ripple is a cryptocurrency with the aim to work with the banks.
What Problem is Ripple Solving?
Bank transactions, especially the international ones, can be quite expensive and usually take days to process. A bank that’s trying to process transactions quickly can join the Ripple platform for enhanced efficiency. Here’s how it works:
1. You ask your bank to send an international payment
2. Your bank purchases XRP or Ripple and sends it to the other bank.
3. The other bank sells Ripple and deposits the money in recipient’s account.
How to Buy Ripple (XRP)
Step 1 – Choose Your Ripple Exchange
An exchange is basically a marketplace of cryptocurrencies and here you can buy any coin with your fiat money. Some of the most popular and reliable exchanges include Coinbase, Binance, Bittrex, and Kraken. Before choosing an exchange, look at their payment modes, reliability, transaction and withdrawal fee, and reputation.
Step 2 – Choose Your Ripple Wallet
Just like you need to store money in your wallet securely, you need a wallet for your cryptocurrency – however this wallet can be physical as well as digital. To store Ripple, you can choose from a range of wallets to ensure your currency is safe and secure. Remember that your exchange will have a built-in wallet in your account but the website may not be accessible all the time.
• Ledger Nano S – It’s a cold or hardware wallet that can store your cryptocurrencies safe including Bitcoin, Ripple and Ethereum.
• Edge Wallet – If you want a digital mobile wallet, there are fewer options better than Edge. It’s available both on Android and iOS.
• Atomic Wallet – If you are looking for a desktop PC wallet, then Atomic Wallet is one of the best options that’ll give you more control over your currency.
Step 3 – Take Precautionary Measures
It’s a good idea to use a dedicated email ID for registering on a crypto exchange and ensure you are using a strong password. Make sure that you’ve scanned all your computing and mobile devices to find any vulnerabilities or viruses that can compromise your cyber security. When signing up on an exchange, remember to use a strong and unique password and always activate two-factor authentication.
Step 4 – Choose the Payment Method
Once you’ve gone through all the preparation, it’s time buy Ripple. Now, you have to look for the cheapest and the quickest payment option. In fact, it’s better if you take care of this at the time of choosing your crypto exchange. This way you will have more control over how you buy Ripple and other cryptocurrencies.
Step 5 – Make the Purchase and Store Ripple in Your Wallet
Now all you’ve to do is go the market and choose Ripple there. Enter the amount you are looking to buy and the exchange will find the best price in the moment for you. In a few minutes, the currency will be in your account’s wallet. If you’re planning to keep it for a while, it’s secure to transfer it to your own digital or hardware wallet.