XPR is one of the ten most popular and biggest cryptocurrencies on the market these days. Most people call it Ripple, which is the name of the company that XPR is run by. Since the launch of XPR in 2012, the cryptocurrency has increased its capitalization by 1,500 times.
In January of 2022, the market capitalization of XPR was already around $35.5 billion. Such an upward trend increases the coin’s price. A few years ago, XPR was trading at $0.20, but at the beginning of 2022, you can buy it for around $0.75 per coin. What is XPR, how does it work, and how to buy it – read below.
What Are XRP, Ripple, and RippleNet?
Ripple was created by Jed McCaleb and Chris Larsen. The idea was to launch a platform similar to SWIFT and provide different types of transactions on a peer-to-peer basis. Today it is a payment network that works with financial institutions worldwide.
XRP is the currency for all the transactions on Ripple. All the payments and exchanges within the platform would have to be proceeded using XRP. A hundred billion coins were created at the start, but only 48% of them are currently circulating. To ensure user confidentiality and build trust, Ripple put around 55 billion XRP in escrow accounts.
The payment network for the transactions is called RippleNet. It is a group of limited bank owned-servers (nods). They provide borderless and fast transactions. That is the biggest difference between Ripple and its traditional competitors because it remains decentralized and fast at the same time.
How Does XRP Work?
XRP is based on an open-source ledger that guarantees the validity of all the transactions. The trading platform is based on consensus mechanisms but in some sense different from other cryptocurrencies. Validation of all XRP transactions is conducted by using a poll. This process is regulated by Ripple protocol (RPCA). Such type of consensus mechanism enables high transaction speed. As a rule, the time you need for a transaction to proceed is around 3-5 seconds. Anyone can join managing transactions within a peer-to-peer network.
More than 300 hundred financial companies adopted using XRP as one of the payment methods. Despite it being originally intended for financial institutions and different payment platforms, people can also invest in XRP and trade it.
How to Purchase XRP?
To buy the coins, you will need to have a crypto wallet on the platform that allows trading the coin. Be careful, as not every trading platform offer this option. Creating an account requires a few simple steps:
#1. Sign up
Go to the platform of your choice and click the “Sign Up” button. Provide your email and come up with a strong password.
#2. Verify the account
Once you have an account, verification is also needed before you start trading. You have to fill out a form and provide your real name with ID, phone number, country of residence, number of existing wallets (if applicable), or number of the bank account.
#3. Make a deposit
After a successful verification, you will get a personal crypto wallet. Go to your wallet and click on the “Deposit” button. If you do not have cryptocurrency, go to the “Cash” option and select the fiat you need. The following steps are selecting the payment method and entering credit card info.
#4. Buy XRP
If your bank verified the transaction, and the money reached your wallet, you can buy XRP. Open the order page and fill out the form. The platform will make an offer, then you click the “Accept” button. Within a few seconds, you will become an owner of XRP.
Please note that trading platforms usually do not allow buying XRP directly with cash. If so, buy another cryptocurrency first (BTC, ETH) and then exchange it. A Bitcoin to Ripple exchange can be conducted at almost any online platform.
Best Ripple Wallets
Storing XRP is possible using software, hardware and paper wallets. Most beginner crypto enthusiasts prefer to use the first option. The list of the best Ripple software wallets:
- Trust Wallet
- Abra Wallet
All those wallets have their pros and cons regarding the convenience of using or transactional fees. Do not hesitate to examine them more closely before making a final decision. For example, Trust Wallet is completely transparent and safe. Abra Wallet does not have access to the user’s funds. Exodus has the most convenient interface and offers multi-cryptocurrency choices.
To Put It All Together
Investing in Ripple (XRP) has a certain degree of risk. But any kind of investment is risky and could be both frustrating and fortunate. But considering the low price, high capitalization, long history, and popularity of XRP among traders, such investment is worth pondering over. Gained trust from banks and other financial institutions also is a big plus for Ripple. It is already an important player in global financial markets, which can become even more powerful in 2022. You can go to https://godex.io/ to invest in XRP with over 300 other coins.