What is XRP?
Colloquially, XRP is often used interchangeably with Ripple. The two are actually quite different. XRP is a token. Ripple is the network on which that token lives. Ripple was founded in 2012 as a network to facilitate cross-border banking transactions with high liquidity. Rather than doing a currency conversion before conducting business with a bank in another country, two banks do all transactions in XRP. This saves time and simplifies the process of international transactions.
Over the years, banks in various countries adopted XRP for routine hawala transfers. ****
Recommended Reading: Blockchain Fundamentals: A Social Perspective
At the time of this publication, XRP is within the top 10 largest cryptocurrencies with a market cap $35 billion at the time of publication.
How to Buy XRP in the USA
Although it’s challenging, it’s not impossible to get your hands on some XRP in the USA. We’ll go through some common methods, along with one little-known alternative to buying from an exchange.
Buying Through Centralised Exchanges
If you prefer to trade XRP through a centralised exchange, many of the large exchanges offer a broad set of XRP pairs. However, making out the fees to figure out where is most cost effective to trade isn’t simple.
In choosing where you buy your XRP, you’ll have to determine if you buy with crypto or USD. If using USD there will often be additional KYC steps and fees to have your USD converted to crypto. Check with the exchange you are using before proceeding.
Step 1
- Choose a centralised exchange that supports XRP.
Step 2
- If using US dollars, swap over to a common pair like Tether (USDT) or Bitcoin (BTC) (transaction fee applies). Or, refer to the steps provided by the exchange
Step 3+
- If using crypto, determine if your coins pair with XRP
- If you don’t have the right pairs, continue to swap until you have one of the coins above. (transaction fees apply)
Step 4
- Trade your USDT or Bitcoin for XRP (transaction fee applies)
When that’s all done then congrats, you got your token! But was it worth all the transaction fees to get it?
Buying Through Decentralised Exchanges
Another way to buy XRP is via decentralised exchanges. Although less secure than a centralised exchange or brokerage, decentralised exchanges make up for it with simplified interfaces for trading and no obligation to sign up.
As with a centralised exchange, you’ll need to take a few steps along the way to get to XRP. Although XRP tokens are readily available on these exchanges, you often need a pair to trade into XRP with.
Step 1
- Find a decentralised exchange (DEX) like SimpleSwap or CoinSwitch.*
*When using the above exchanges, keep in mind that they come with their own set of risks. DEXs offer no custodial services, are more prone to hacking, and are generally less secure than centralised exchanges.
Step 2
- If using US Dollars, swap over to a common pair, Tether (USDT) or Bitcoin (BTC) (transaction fee applies)
Step 3+
- If using crypto, determine if your coins pair with USDT or BTC
- If you don’t have the right pairs, continue to swap until you have one of the coins above. (transaction fees apply)
Step 4
- Trade your USDT or Bitcoin for XRP (transaction fee applies)
Outside of basic fees like slippage, these “free to use” services often charge hefty transaction fees. Both centralised and decentralised exchanges also limit the number of pairs you can trade with at a given time.
How to Sell XRP
If you decide you no longer want to hold on to your XRP, you’ll cop another dose of fees just to get rid of it:
Step 1
- Swap your XRP for USDT (transaction fee applies).
Step 2
- Convert your USDT into USD (transaction fee applies).
Step 3
- Withdrawal US Dollars into your nominated bank account.
If you prefer to reinvest, swap your XRP over to Bitcoin to regain access to the wider market.
A Better Alternative
Doesn’t that all sound a bit complex? Is it even worth it just to get your hands on this token? Well, there is an easier way that doesn’t compromise on security: using a cryptocurrency brokerage.
With a brokerage, like Caleb & Brown, you can buy XRP with fiat currency or trade with your current assets with no pair limits. Since brokerages do not need to deal with network latency issues like exchanges, you’ll have access to a pool of interchangeable assets. This not only makes XRP acquisition easier, but it also makes other, difficult to access tokens easier to acquire in the US.
The Only Step
- Email your Caleb & Brown broker;
- Or trade through the Caleb & Brown Portal.
The multi-step, expensive process is narrowed down to one action: emailing your broker. Caleb & Brown offers a personalised 24/7 brokerage service, so you can purchase XRP at a moment's notice. They’ll also make the trade the most optimal time, avoiding slippage and reducing your fuel costs where possible.
Buy XRP the Easy Way
Working with a crypto broker is one of the easiest and secure ways to get your hands on XRP. The team at Caleb & Brown specialise in delivering a personalised experience for each and every investor, ensuring you can make an informed decision on every trade. And with direct access to the market, you’ll never have to worry about having the right pairs in your wallet.
You might also like: How to Buy Theta in The USA the Easy Way
Disclaimer: This assessment does not consider your personal circumstances, and should not be construed as financial, legal or investment advice. These thoughts are ours only and should only be taken as educational by the reader. Under no circumstances do we make recommendation or assurance towards the views expressed in the blog-post. The Company disclaims all duties and liabilities, including liability for negligence, for any loss or damage which is suffered or incurred by any person acting on any information provided.