Ripple is a very popular cryptocurrency with a strong following behind it, with people from all over the world seeing the benefits and realistic application sense. It was originally brought about in 2012 as a reiteration of something called Ripplepay, which is a service that allows for payments to be sent between friends and businesses. Ripple is a lot like ripplepay but with a few improvements such as the implementation of blockchain technology and operates as a peer-to-peer decentralized platform, that processes the transfer of money in any form.
Ripple is unlike any other cryptocurrency and to give an example of how it works, let us say for instance that you had $1000 that you needed to send to a friend who lives in a different country, and because it is a large sum of money you are using the services of a middleman to ensure the security of the transaction and make it goes as planned. You send the $1000 to your agent along with a password that your friend is required to input correctly in order to receive the money. Your friend’s agent will inform him of the transaction and if your friend gives his agent the correct password, the funds will be given to your friend without a hitch.
However, Ripple’s network is slightly more complex than the example above, but it does show in simple terms how Ripple works. The scenario which is outlined above demonstrates a need of complete trust between everyone involved in the transaction, Ripple on the other hand steps in and uses something called a “gateway” that is used as method of producing absolute trust between two parties that want to initiate a transaction. Unlike Bitcoin, Ripple doesn’t rely on a “proof-of-work” system or “proof-of-stake” for that matter, but rather transactions are based on a consensus protocol that is used to validate accounts and various transactions on the system.
Whilst all cryptocurrencies are a bit different from each another, Ripple is exceptional in that it is backed by financial institutions and major banks. This has helped boost Ripple and made it the third largest cryptocurrency according to market share by early 2018.
Choose Your Ripple Wallet
First of all, you will need to choose a storage option. There are three main wallet types that are available for Ripple. Hardware, software and browser wallets are available and as always, a hardware wallet like TREZOR is recommended for safety reasons.
Recommended Ripple Wallets
There are many digital wallets to choose from. We recommend the following wallets when discussing how to buy Ripple:
For further information and more in-depth digital wallet reviews, please visit our Crypto Wallets page.
Choose a Ripple Exchange
Exchanges represent the easiest and most automated method of buying and selling Ripple. All the exchanges operate with slight differences, but most involve several common important steps and several common factors to consider.
- Ensure that the exchange allows customers from your country.
- Check which payment methods are available. Payment methods such as credit cards or PayPal have higher fees because there is a risk that the seller can cancel the transaction after the coins have been sold.
- Check the three fee types -deposit, transaction and withdrawal
- Check and compare the exchange rates as fees are often ‘hidden’ in the exchange rates
- Complete the Know Your Customer (KYC) process. ID and proof of address is normally all that is required, but some exchanges require proof of income.
Recommended Ripple Crypto Exchanges
Always check out the exchange’s online reputation. For full in-depth reviews, check out our best crypto exchanges.
Make a Ripple Trade
Once you have purchased Ripple, unless you plan to sell your Ripple quickly we would recommend transferring your Ripple to a more secure wallet just in case the exchange goes down, DDOS attack or becomes hard to use due to heavy traffic.