How to buy XRP (Ripple)? An easy guide for newcomers

XRP is the native token of Ripple, a payments network designed specifically for the financial services sector. It ranks among the top 10 cryptocurrencies by market capitalization, making it quite popular.

Since December 2020, Ripple has been involved in a legal battle with the U.S. Securities and Exchange Commission (SEC), which argues that XRP should be classified as an unregistered security. However, in July 2023, a federal judge ruled that while XRP's initial coin offering may have violated federal securities laws, trading the token on exchanges and through algorithms did not.

Ripple's platform aims to make payment transactions faster and more cost-effective, with the XRP token facilitating settlements at a fraction of traditional transaction costs. Unlike Bitcoin, which can take several minutes to over an hour for transactions to be confirmed, XRP transactions are confirmed within three to five seconds.

For newcomers to XRP, it’s important to note that Ripple and XRP are often used interchangeably, but they refer to different entities. Ripple is the company behind the token, which has undergone several rebranding changes since its inception as OpenCoin in 2012, transitioning to Ripple Labs in 2013 and finally to Ripple in late 2015.

Where to buy XRP

If you're looking to purchase XRP with fiat currency, several cryptocurrency exchanges offer this option. Here are a few popular exchanges where you can convert U.S. dollars into XRP:

• Bitstamp
• Coinbase
• Kraken

When navigating these exchanges, you'll encounter terms like “trading pairs.” For example, in the BTC/USDT pair, Bitcoin (BTC) can be exchanged for Tether (USDT), a stablecoin that maintains a value pegged to the U.S. dollar.

If you prefer to trade XRP using Tether, several exchanges facilitate this trading pair. Here are some notable platforms where you can buy and trade XRP with USDT:

• Binance
• KuCoin

These exchanges provide a user-friendly interface for both beginners and experienced traders, allowing you to easily manage your XRP transactions. Always ensure that the exchange you choose meets your trading needs and complies with local regulations before making any purchases.

How to purchase XRP

Select a cryptocurrency exchange

Each crypto platform has its own processes, so it's important to check which currency you'll need to use to buy XRP. Generally, purchasing cryptocurrencies with fiat currency, like the U.S. dollar, is simpler than using another crypto. If you choose to buy XRP with a different cryptocurrency, you'll need to create a wallet that supports XRP and use the appropriate trading pair on the exchange to complete your purchase.

Make your purchase 

Before you buy XRP, research which trading platform is best for you based on factors like security and user-friendliness. Once you've chosen an exchange and funded your account, you can begin purchasing XRP. Locate the XRP listing on the exchange and specify the amount you want to invest.

Secure your XRP

After buying XRP, it's essential to store it safely. Notably, dedicated XRP wallets require a minimum balance of 10 XRP to activate your wallet on the XRP Ledger, similar to a minimum balance requirement in a bank account. This amount can be recovered if you decide to delete your account.

There are several methods for storing XRP:

• Hardware wallets: These devices securely store the private keys to your assets, allowing you to interact with your wallet without exposing sensitive data. A popular example is the Ledger wallet.
• Paper wallets: This method involves printing your private keys and recovery phrases on paper for safekeeping. However, it's prone to phishing scams and is generally considered less secure.
• Software wallets: These "hot" wallets can be desktop or mobile applications that store your crypto assets. While convenient, they are often criticized for security risks, as they are connected to the internet. Trust Wallet is an example of a mobile wallet that supports XRP.
• Crypto exchanges: Many exchanges where you can trade XRP also offer storage options. Platforms like Coinsmart, Crypto.com, and Binance allow you to keep your XRP within their systems, though it's usually safer to store it in a dedicated wallet.