What is Ripple (XRP)
Ripple
The current Global Settlement Network is very expensive. If you think of sending some money to a foreign country, you will face numerous hurdles. Additionally, you will incur high fees that associate with every transfer. In order to survive in such a system, you will have to rely on a common currency which is the USD. However, the Ripple aims to replace USD in that cause.
The Ripple is in the news of the geeks for quite some time now. Here’s why!
What is Ripple ?
Before we understand what ripple is, we first need to see the issues in the traditional modes of Global Payment.
According to the Federal Reserve, Institute of International Finance, and World Trade Organization, the costs of infrastructure are $1.6 trillion. Moreover, the process is incredibly slow, with payments taking days to settle.
Difference between Ripple and Bitcoin
You might be considering at this point that if ripple is a Global Settlement Network currency (Electronic Cash Transfer System) then how is it significant over the blockchain?
Yes! There are other Electronic Cash system currencies on the blockchain too, and Bitcoin is also one of them. However, there are two main differences amongst Ripple and Bitcoin. One is of efficiency, and the other is of costs.
Bitcoin is a good cryptocurrency for Electronic Cash Transfers; however it takes a span of hours to complete a single transaction of Bitcoin cash transfer. Also, the Bitcoin’s prices are jaw-droppingly high!
On the other hand, the Ripple is a cheaper alternative that completes a transaction in a matter of seconds. On an average, a single Ripple transaction takes around 4 seconds. So, if you are looking at lightning fast payment transfer protocols, then Ripple might be your thing!
How does it work?
The working of ripple is very simple. This example illustrates why Ripple is a game changer as a payment protocol.
Take this example to understand how ripple works.
Suppose Sam is from Jamaica. She needs to send some money to her friend, Ahmed, in Pakistan. Now, Sam works on the Australian Dollars (AUD), while Ahmed’s currency is Pakistani Rupee (PKR).
Now, if we look into the process of money transfer, we will see that the money will first convert into the USD. Here, USD is the common currency. At this step, we will incur fees. The remaining amount will be sent to Ahmed in his Pakistani bank.
Once more, a conversion will take place. This time USD will be converted into PKR and the system will charge you. This way, a transaction will complete and it will incur both time and high fees.
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Ripple Value
Just like gold and every other currency. There is a limited number of Ripples on the blockchain all the time. Until now, almost 55 billion Ripple coins are placed in escrow. That makes sure that the limited feeling of this cryptocurrency doesn’t cause inflation over the blockchain.
Hence, the Ripple price will stay healthy no matter what happens.
Note:
There is no such thing as Ripple mining. And, without the presence of Ripple mining, the amount of XRP that is on the Blockchain will not deviate.
Hence, the Ripple price will not be as volatile as its brethren cryptos!
What You Need to Buy Ripple?
Before we talk about the ways to buy ripple, we first have to analyze a few things that are very important before you can start investing in this business. We will mention some of such things below:
Well, we all know it folks! Money is the best motivation. And for getting into the Ripple business, you will need some spare bucks on hand. The amount of money is according to the current Ripple price and the amount of the coins you will be buying.
We suggest in investing a moderate amount of cash. This way, you will not take a bigger risk and will not dish out bigger losses.
Ripple wallet
A Ripple wallet will hold your precious Ripple coins for you. Currently, there are many good options for Ripple wallets. However, the official Ripple choice is the “Gatehub”. It is an online service that generates you an address that you could use in the Ripple transactions.
With the Gatehub wallet, you’ll be able to store your Ripple coins, send them to other people or vice versa.
Another good option is a hardware wallet. The hardware ripple wallets are “unhackable” because of their material existence. If you can afford an expensive ripple wallet that is worth the entire price, then Ledger is an interesting hardware that you could rely on!
Ripple Price Charts
The Ripple Price Charts are something you should always be looking at! These charts provide you with the most up to date prices of the cryptocurrency. This way, the ripple price charts allow you to see if your investments are bearing the fruit or not.
One of the most interesting resources for up to date Ripple Price Charts is the Cryptocompare. It is a website that gives the most up to date information about almost every crypto out there! So, make sure you head out to their site to have a glimpse of the most up to date Ripple Price Charts.
How & Where to Buy Ripple?
Now, we come to the point where you have to buy ripple. For those people who are looking forward to having their own ripple currency exchange, here is how it works:
Coming to the point, you can buy Ripple through a number of ways. However, we will give you the most convenient way that allows buying of XRP (XRP is another name for Ripple). That way is:
Exchanging with Ethereum or Bitcoin
The most convenient method for buying the Ripple coins is via exchanging Ethereum or Bitcoin.
We already know much about the “Digital Gold and Silver”, as we have covered much about the two cryptos. So, we will just head out to the ways we can use these currencies for buying Ripple coins.
The method of buying exchanging Bitcoin and Ethereum is as follows:
Create an account on cex.io or Coinbase for buying BTC (Bitcoin) or ETH (Ethereum).
Verify that you are the holder of your account.
Now purchase ETH or BTC through these platforms.
Now, using Binance or Changelly, exchange your BTC or ETH into Ripple.
This method of buying Ripple is very convenient as it is trusted, reliable and easy. Once you go through all of the above steps, your Ethereum or Bitcoin will be exchanged into Ripple.
The working and the buying process for Ripple might seem very basic. However, there are a lot of potential loopholes in this business. Therefore, you might need to consider the following precautions.
Avoid Scams
Scams can be of many kinds. Someone might hack your wallet, the agency you are working with might turn out to be a fraud or someone might steal your hard-earned coins. So, issues can arise on any step while you are working on the blockchain.
Hence, consider a right hand rule, “Better safe than sorry!” You have to work with reliable and trusted partners, and make sure that your security is always upto the par. Also, make sure you implement all possible security measures to protect the coins you keep.
Only by adopting this approach, you will ensure your safety against scams.
No Risk, No Regret Approach
While on the blockchain, many opportunities will come when you will see a superb profit margin upon selling all of your coins. However, unlike selling them all, make sure you spare some coins.
We call this strategy the no risk, no regret approach. Actually, working with this approach leaves no regret if the prices rise and the risk of loss is also low.
So, the next time you see the prices on the rise, make sure you keep a moderate approach.
Make Use of All the Utilities
In order to have the best taste of the market, make sure that you use all the available utilities. Make use of the graphs, calculators, articles, white papers and study as much as you can!
If you study well before investing in the market and utilize all the tools you could get your hands on! Then, you’ll be one of the best crypto traders in the near future. Therefore, make sure you study well before you invest and enter the market.
Overview
The Ripple is making endless Ripples in the Blockchain technology. There are countless great possibilities that the Blockchain could accomplish, and payment protocols like Ripple and Bitcoin signify how interesting this technology could get.
Therefore, go through the above article and get started to the Ripple business right away! With this technology at your disposal, there are chances of high growth and prosperity!
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