Ripple is the third largest cryptocurrency after Bitcoin and Ethereum. Abbreviated as “XRP”, it’s a major Altcoin founded back in the year 2012. It’s to note here the word “Ripple” also refers to the advanced “open-payment network system” within which XRP is transferred. The Ripple currency is especially developed to facilitate near instant & direct money transfer in between two parties.
The goal of XRP is to assure instant, secured financial transactions globally- and that too at a fraction of cost and at faster rate than traditional process of cross-border money transfer. You can exchange XRP with any sort of currency, like Ripple to US Dollars and also including gold, fiat currency and also airline miles. No wonder, banks and payment providers globally are increasingly adopting the Ripple cryptocurrency
Ripple works with its payment network system which is officially called “RTXP”. The process of transfer with XRP is called “issuance”. Let’s discuss the situation with an example. Say, a banks wishes to transfer gold to some other institution. Now, the bank will add the asset to Ripple network & then transfer it to the receiving party. No transaction fee will be involved in the whole process. Just a small sum of Ripple currency will be used in the transaction. But the XRP used here won’t go to pay the traders- instead all the coins will be irrevocably destroyed.
Trading & storage of Ripple
To trade Ripple cryptocurrency, you would first need to buy them. You have to buy them from some trusted cryptocurrency exchange. According to experts, the safer way is to purchase Bitcoin with USD first with fiat currency from an exchange. Then, you can trade the Bitcoins for Ripple cryptocurrency.
It’s to note here you must be very careful about choosing a crypto exchange. Go for a reputed name always. Most importantly, make sure the exchange is extremely particular about security. If the exchange does not ask for ID proof, don’t hesitate to look for another option.
Otherwise, you can buy BTC from some local P2P exchange. But remember, the local options don’t always ask for ID proof and hence you can’t be sure about their security measures.
You can always store your XRP in your exchange. But, please don’t store there more than you are looking to trade sometime soon. The safest place to store your Ripple is some credible third party wallet. You should also consider cold storage options and hardware wallet facilities for maximum security.