What is Ripple?
Ripple is all together different than many other cryptocurrency systems. It is actually a Real-Time Gross Settlement system that has been adopted by many banking institutions. Ripple allows transfers of nearly any kind of currencies making it more of a currency exchange.
Now Ripple does have an internal currency called XRP.
So essentially, Ripple is a payment gateway that allows users to transfer any type of currency including Bitcoin and some other cryptocurrencies.
When you review the Ripple charts, you are seeing the valuation of XRP, Ripple’s internal currency.
Who is behind Ripple?
In 2004, Ryan Fugger came up with the original Ripple system called RipplePay. His idea was a decentralized monetary system and would allow anyone to create their own money.
Arthur Britto and David Schwartz took a new lead developing a digital currency system that would not use a mining system like Bitcoin uses but would instead use verification by members of the network in consensus fashion. This was done to cut electricity usage and also make transactions get completed faster.
Meeting together, Fugger, Britto and Schwartz joined forces and Ripple Labs became a reality.
How does Ripple Work?
I somewhat explained how Ripple earlier in this… Again, it is a payment protocol system that will allow individuals, organizations, banks and more to transfer any type of currency, and exchange it into the native currency of the receiver… All in fast time.
Many banks have adopted the Ripple payment protocol system. Ripple was first used in the banking world by Munich’s Fidor Bank and has since partnered with Earthport, a global payment processor.
Ripple was ordered to install anti-money laundering to its network which many thought would slow the system down, but it is still a fast system.
How can I buy Ripple?
You will not actually buy Ripple, but Ripple’s internal coin, XRP. And, it is actually easy to do so.
The key is finding an exchange who sells XRP. Once you do, the easiest way to purchase XRP is by purchasing Ethereum or Bitcoin and trading it for Ripple/XRP.
You simply move the amount you will need to buy the XRP to the broker who sells it. You now just simply exchange the Bitcoin or Ethereum to XRP.
And hopefully, your XRP grows in value and you can sell it back for a profit.
How can I trade Ripple?
Trading Ripple works the same way as buying it. You can trade 1 cryptocurrency for another via exchanges or you can trade peer-to-peer via many marketplaces.
The only difference is, you don’t pay miner fees, but you still pay fees to the private Ripple Network.
How to choose a Ripple Exchange?
Keep abreast of all our reviews here which can help you choose. But there are 3 properties you should consider when choosing a Ripple/XRP exchange:
- Where you are – Regulations on cryptocurrency exchanges are still being developed. But some exchanges will not accept investors from certain areas.
- Payment method and fees – Some exchanges may accept pay systems like Paypal, Neteller and others. And others may only accept credit or debit cards or other cryptocurrencies. Plus, you want to look at fees incurred such as conversion fees. I suggest just using Ether or Bitcoin to purchase XRP.
- The currency you want to purchase – Many exchanges carry Dash but you should check closely and don’t just assume they do.
We show several Exchanges here that buy and sell Ripple.
If you have any questions, feel free to contact us and we can help you proceed. And research Investing Online as your questions may have an answer on our pages.