A Complete Guide to XRP

Could cryptocurrency be the next big thing? Can cryptocurrency become the mode of exchange for all online and offline transactions? We have all been wondering about this new digital innovation. If believers of cryptocurrency are to be trusted, it is expected to soon put an end to paper money and a national and international currency.

Cryptocurrency is designed as a digital asset that can be used as a medium of exchange. Cryptocurrency uses a decentralised approach, unlike the centralised digital currency or centralised banking system followed throughout the world. Individual information about cryptocurrency, like ownership of the coin, digital transfer details, or exchange details, is stored in a digital ledger database using strong cryptography to secure the records. It typically works through a distributed ledger technology called a blockchain used as a public financial transaction database.

Bitcoin was the first decentralised cryptocurrency. Many other types of cryptocurrencies are slowly being introduced. One such cryptocurrency was launched by a company called Ripple. It is the third-largest cryptocurrency in the world by market capitalisation.

What is Ripple?

Ripple Labs Inc. released the real-time gross settlement system, remittance network, and currency exchange in 2012. Here, anyone can make payments to each other with cryptographically signed transaction denominations in local currency or the network’s internal currency XRP. Fiat can be defined as any country’s government-issued currency. It is a legal tender backed by the government that we use in our day-to-day transactions, like the rupee issued by the Reserve Bank of India or dollars issued by the treasury department of the United States of America.

Ripple’s Value in the Blockchain

XRP by Ripple is known as the most scalable and fastest digital asset used in the payments world. The XRP is built on an advanced type of blockchain technology called the Ripple blockchain. This new technology allows for scalability and complete security while interoperating in various networks.

Market Capitalization of Ripple

The current market capitalisation of XRP stands at about USD 140 billion. Market capitalisation traded in means the amount of cryptocurrency multiplied by the rate at which it is exchanged, i.e., XRP traded in the open markets online right now.

Why Were Ripple and XRP created?

The Ripple network and XRP were created after studying the demand for having liquidity in cross–border payments. Banks can also use XRP to have liquidity in real-time on-demand across the world. Those who want to make payments can also use XRP to have an option other than that of the traditional markets by taking advantage of payment settlement speed and low or nil price of foreign exchange. XRP is already traded on multiple crypto trading platforms, which you can buy sell XRP on these platforms. In the Indian Rupee term, the exchange rate of XRP to INR is around 108. 249.

How Is XRP Better than Other Cryptocurrencies?

XRP has one of the fastest settlement times; that is, you can settle your online transaction of XRP in 4 seconds flat when we compare this to Bitcoin (BTC), which is slowest at an hour. Ethereum takes about two minutes. The prevalent systems take about three to five days of the settlement period.

The high scalability of XRP makes this possible because the Ripple network can handle 1500 transactions every second. Bitcoin can handle six transactions per second, and Ether can do 15.

Other Benefits

The XRP is traded across the globe due to its open-source technology. Since its launch, XRP has tallied every single ledger with no glitch or problem.

How to buy XRP?

Step 1

Get an XRP wallet – You will have to open a digital wallet on one of the crypto exchange websites.

Step 2

Open an account with an Exchange – You must then open an account on a crypto exchange that supports Ripple (XRP). There are a few crypto exchanges in India that you can check.

Step 3

Verify your account – The exchange will require new users to verify your account details before you can start trading.

Step 4

Buy XRP with Fiat currency – Once your account is active, you can buy XRP with any Fiat money like the Indian Rupee or USD.

You may also contact a cryptocurrency broker for the same. These brokers usually provide a contract for difference (CFD).

XRP Exchanges

Ripple only sells XRP to banks and institutions that use the SWIFT system – The Society for Worldwide Interbank Financial Telecommunications for transferring money from one corner of the globe to the other. Ripple intends to fasten and ease this international transfer process, which banks and financial institutions are still using to conduct high-value transactions.

Along with these financial instructions, individual investors can also buy, sell or trade-in XRP through a cryptocurrency exchange in India or abroad. You can purchase XRP with other cryptocurrencies or regular currency. It will be good to study all the different cost structures and pricing policies before trading in them.

A thorough study of cryptocurrencies, the movement of XRP to INR and XRP v/s other currencies physically and crypto will help you understand the trading and market for XRP and Ripple. Coin Switch India has many articles to help you know these new kids on the block and learn how to trade and exchange them. Expand your knowledge base and trading horizon with Coin Switch.