If you are thinking about how to buy XRP in the US, you might not be the only one. XRP is among the top cryptocurrencies by market capitalization. It is a better way to transfer money between countries. Most people who buy XRP do it because of the ease of transactions. While conventional transactions can take up to a few days to complete, XRP transactions take seconds. For those who don’t know about Ripple and XRP, let’s do some explaining.
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What is Ripple?
Ripple is the company that developed the XRP cryptocurrency. It operates a global currency exchange network and payment settlement system. Ripple’s initial objective was to create a better payment settlement system than SWIFT without drawbacks. Ripple was primarily designed for financial institutions to serve as a settlement layer. Like SWIFT, it serves as an agent between two parties (usually financial institutions) to verify that transactions successfully went through. Ripple supports several FIAT currencies and cryptocurrencies. Ripple also has a cryptocurrency called XRP.
What is XRP?
XRP is a cryptocurrency created by Ripple. The company developed the XRP ledger for people transferring XRP coins. You can buy XRP as an investment to sell later or to exchange it for other cryptos.
One of the reasons XRP transactions are so fast is that it operates differently than other cryptos. Most cryptos rely on open ledgers maintained by a distributed network of computers for transaction verification. The distributed network improves security but introduces significant transaction delays. People want alternatives because of the delays. Therefore, you’ll find many people looking for where to buy XRP.
XRP runs a more centralized network using a consensus protocol. The grid uses unique node lists that people can use to verify their transactions. The validators update their ledgers with the newest transactions every three to five seconds. If there is a discrepancy, the validators pause to figure out why there is a mismatch.
Can you Mine XRP?
Anybody who knows about crypto has also heard about mining. It is the distributed verification of transactions for blockchain-based currencies like Bitcoin. Mining enables people to transfer cryptocurrency. It is also the mechanism that introduces more cryptocurrency into the system. The new crypto is usually the reward for people using their computing power to verify transactions.
In contrast, XRP already has 100 billion units that get periodically released. Therefore you could say that the coins are ‘pre-mined.’
How do you buy XRP?
The question of how to buy XRP in USA could be challenging unless you know how to look. Large exchanges are not offering it in the US because of an ongoing case that Ripple has with the SEC. However, you can get it from alternative sources.
For instance, you could use a decentralized exchange such as Pancake Swap to buy XRP coins using other cryptocurrencies.
Other international exchanges still allow you to buy XRP. For instance, Kraken allows advanced traders to buy XRP coins.
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Benefits of XRP
The following are the benefits of XRP compared to other cryptocurrencies.
· Quick transactions: When you buy XRP, the transaction takes seconds to complete. It usually takes between 4 and 5 seconds.
· Much lower fees: One thing that puts people off with other cryptos is the transaction cost. The cost of one ripple transaction is 0.00001 XRP. That’s less than one hundredth of a penny.
· Versatile exchange network: You are not limited to XRP in the ripple network. You can also transfer other cryptocurrencies and fiat currencies.
· Many financial institutions use XRP: Ripple has partnered with many banks to facilitate their transactions. Ripple’s big partners include Bank of America, Santander, American Express, and TransferGo. Ripple has more than 300 partners in the financial industry.
· Price is at an excellent point for speculative purchase: Quite a few people wonder, “where can I buy XRP?” These people realize that the current price of XRP provides a good entry point for speculative buyers. Once XRP comes back on the market, the price will likely increase substantially.
Disadvantages of XRP
· Centralized: People wondering how to buy Ripple could get disappointed when they realize it is not decentralized like other cryptos. Ripple maintains a default list of validators, going against the conventions of traditional cryptocurrencies.
· Pre-mined XRP supply: Though most of the XRP supply is in escrow, people fear that the company could release many coins that can diminish the crypto’s value.
· Legal challenges: The SEC is suing Ripple because it says XRP is a security, not crypto. These legal challenges have affected the value of the crypto and cast uncertainty over its future.
· High Volatility: XRP also suffers from the unpredictable nature of most cryptocurrencies. You cannot foresee significant changes in the price of cryptocurrency. Therefore, your investment could lose substantial value without warning. Most experts recommend that you don’t have more than 5% of your investment portfolio on cryptocurrencies.
How can you pay for XRP?
You can also use cryptocurrency to buy XRP. If you have other cryptocurrencies in your account, you can exchange them for XRP. However, some exchanges do not allow you to trade some cryptocurrencies for others.
Uses of XRP
XRP is a digital currency that you can use for transactions. You can also buy it as an investment. Aside from providing XRP coins, the Ripple network enables you to buy one fiat currency for another. For instance, you could buy XRP with US dollars and use the coins to buy Euros.
Where to Store XRP
Like other cryptocurrencies, you need a high level of security when storing your XRP coins. Security experts advise most people to get self-custody wallets if they want to keep their crypto for a long time. These wallets enable you to avoid losing cryptocurrency due to public exchange hacks.
A self-custody wallet uses private keys that allow only you to access your digital assets. Your private key has a corresponding public key marking a digital location you can use to send or receive cryptocurrency. Some popular self-custody wallets are MetaMask and Exodus.