- XRP (Ripple) was founded in 2012, only three years after the launch of Bitcoin.
- XRP has unique applications within the fintech industry. It facilitates cross-border banking transactions with high liquidity.
- Over 100 financial institutions have joined the Ripple network, proving XRP’s utility across traditional and crypto markets.
- Although one of the top cryptocurrencies by market cap, finding and buying XRP can be a very difficult and costly endeavour. Caleb & Brown has simplified the process by buying and trading XRP down to 4 easy steps.
What is XRP (Ripple)?
When it comes to cross-border transactions, it’s not uncommon for money to get lost along the way. Third parties, such as banks, often administer a fee to facilitate a transaction. This fee, along with constantly changing exchange rates, cuts into the margins of the transacting parties.
What if there was an easier way that didn’t take days, but seconds? A way for parties to transact directly, avoiding the hefty fees often charged by financial institutions. That’s where XRP comes in.
XRP was founded in 2012 as a way 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. Banks in various countries have also adopted XRP for routine hawala transfers.
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.
At the time of this publication, XRP is within the top 10 largest cryptocurrencies with a market cap of over $35 billion.
Recommended Reading: Blockchain Fundamentals: A Social Perspective
* For US residents, we recommend reading our article on How to Buy XRP in the USA for country-specific information.
What XRP Brings to the Table
There are some key features that distinguish XRP as an asset. These include:
Low Transactions Fees: Using XRP for cross-border transactions eliminates the need for a third-party intermediary (such as a bank). Transactors in different countries can complete a trade while avoiding currency conversion fees often charged by banks. If using traditional methods, these fees can reach as high as US$50 in some cases.
Fast Transaction Times: Cross-border transactions are often subject to a stricter review process than transactions made within a country’s borders. Financial institutions often will delay a transaction until this process is completed. The Ripple network can facilitate highly liquid transactions without the need for an institutional go-between, making it a much faster option to send money between countries.
Partnerships With Leading Banks: Over 100 financial institutions have joined the Ripple network, showing that it could replace the outdated cross-border payment model currently in use. These include: Santander, AMEX, AirWallex, PNC, and Mitsubishi UFJ.
Staying Power: XRP has been in existence for 10 years, only 3 years shy of Bitcoin’s introduction to the public. While other altcoins have come and gone during these early days of crypto, XRP seems to have a considerable Lindy Effect, creating a staying power through every bear market it survives. Although past performance is in no way an indicator of future results, XRP’s ability to endure market swings is a feature that suggests it isn’t going away anytime soon.
Ultimately, it’s up to the individual investor to determine if XRP is the right investment for them.
How to Buy XRP in 4 Easy Steps
The easiest way to buy XRP is through a brokerage, like Caleb & Brown.
With 24/7 access to your personal broker,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. Here’s how you can buy XRP in 4 easy steps.
1. Open an Account
Register as a client for free in just 5 minutes. You can register as an individual, trust, self-managed super fund, self-directed IRA or 401(k).**
2. Verify Your Account
Verify your account by submitting the required Know Your Customer (KYC) documentation. This usually includes a photo ID, proof of address, and other documentation depending on the type of entity you register as. For more information, see our Onboarding Your Account FAQs.**
3. Deposit Cash or Crypto
Once your account is verified, deposit your funds into the account provided by Caleb & Brown. A test transaction will be done first and if successful, you can then transfer the entire amount.
4. Buy XRP
Once the funds hit your account, you’re ready to place an order. Simply send your order form via email to your personal broker. Your broker will execute your trade as requested, avoiding slippage where possible. Additionally, all Caleb & Brown clients have 24/7 access to their brokers, on-call to answer any crypto questions you may have.
Alternative Ways to Buy XRP
You can also buy XRP through a centralised exchange (CEX) or a decentralised exchange (DEX). Each option brings with it a unique set of hurdles to jump through.
As the SEC vs. Ripple lawsuit proceeds, some CEX’s have halted XRP trading until a decision is reached. It can be difficult to find an exchange listing XRP, and you may waste time searching for one. You’ll also have to decide if you want to buy using crypto or fiat currency. If using fiat currency there will often be additional KYC steps and fees applied to have your fiat converted to crypto. Check with the exchange you are using before proceeding.
Alternatively, if you find a DEX that lists XRP, it’s not as simple as pressing “buy”. You’ll need to find an XRP trading pair; an asset that can be freely traded for XRP. If you don’t have one of these assets, you’ll need to swap your fiat or crypto for a coin that readily pairs with XRP. Keep in mind that you will be charged a transaction fee for each swap you complete.
Lastly, when using DEXs keep in mind that they come with their own set of risks. DEXs offer no custodial services, are prone to hacking, and are generally less secure than CEX’s and brokerages.
How Much XRP Should I Buy?
How much XRP you buy depends largely on your investment goals. Investors also weigh a variety of factors before choosing a project to invest in. Ultimately, it’s up to you to determine how much you decide to invest, and what strategies you use to invest in crypto. Doing your own independent research will go a long way in helping you create and set investment goals.
How is XRP Different From Bitcoin?
The key differences between XRP and Bitcoin lie mainly in their consensus and circulation mechanisms. Bitcoin uses a Proof of Work (PoS) model to validate transactions, whereas XRP uses a consensus protocol across participating nodes to validate transactions through a vote.
Additionally, Bitcoins are released into the network through mining. XRP was pre-mined at launch. A smart contract—not miner activity—controls the release of any future tokens on the network.
Where is the Safest Place to Buy XRP?
With digital asset scams on the rise, now is more important than ever to engage services that prioritise user security above all else. If you’re looking for a secure, custodial service to safeguard your assets, look no further than Caleb & Brown. We have a battle-tested security infrastructure, through the leading asset security platform Fireblocks.
Invest in XRP with Caleb & Brown
Investing in crypto doesn't have to be complicated.
Caleb & Brown is the world's leading cryptocurrency brokerage for those looking to invest in XRP or other digital assets.
Our personalised broker service makes crypto investing simple. A dedicated member of our broker team is always on hand to guide you along the way, giving you the confidence you need to navigate the world of crypto. Not to mention key features such as:
- No joining or signup costs
- Industry-leading storage solutions
- 24/7 customer support
If you are ready to take the next step and invest in XRP, contact your crypto broker today.
Not yet a client? Sign up for your free consultation.
Recommended reading: How to Buy XRP in the USA
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.