To this day, Bitcoin remains the king of cryptocurrencies, especially when it comes to following the price changes and getting media attention. But it is not the only one, and one of the alternative currencies is Ripple, a very different to Bitcoin market player. Today, we are going to talk about how Ripple differs from Bitcoin, why many don’t recognize it as a cryptocurrency, how to buy ripple and whether XRP is a good investment.
To understand why we will need to dive into the basics of Ripple and how it was created. It originated back in 2004 when a young programmer from Canada called Ryan Fugger developed the RipplePay, a decentralized payment platform designed to enable anyone to create their currency and start using it as a means of payment in the platform system.
However, RipplePay wasn’t met with the excitement that he thought it would be, so in 2011 the idea was reconsidered. There were 2 key changes, one to the technology, and one to the team. After seeing the faults of the system, Fugger simply removed the mining component of the technology, which significantly increased its speed. At the same time, Chris Larsen joined RipplePay as an investor, so the team now had more room for improvement and managed to enhance the technology’s functionality.
In 2013 Fugger suddenly left the project and Larsen started thinking about the ways the company could put its product into use, and that’s what he decided. Since Bitcoin and Litecoin were created as an alternative to fiat money and the banking system, why not try to organize an alternative method of payment for the banks themselves. A year later, the same company now called Ripple Labs partnered up with a German bank Fidor, and sometime later Western Union became interested in it too.
Thus, Ripple can’t be referred to as cryptocurrency to its full extent, as it is an entire payment system rather than a separate currency. But the system has its currency known as XRP, and there are around 100 billion in total circulating in the crypto world.
How to buy Ripple UK
➡️ If you don’t own any cryptocurrency yet, there are two ways you can buy XRP:
- A popular way to buy Ripple is with your bank card using a regulated exchange or a crypto exchange. Buying Ripple this way is probably the safest option as regulated exchange operators are licensed and comply with all legal requirements, including those of the UK. In addition, they work with banks directly, so the commission when buying using a card is optimal and transparent.
- However, regulated exchanges often don’t sell XRP directly, which means that you will need to perform a few manipulations before obtaining it. A common one is to first buy Bitcoin and then exchange it for XRP with a different transaction.
- If you decide to buy XRP using an exchange like NAGA, you will first need to go through the process of personality verification as this is the only way to ensure your money is secure and well-protected. The process is very quick and will take only a few hours, but you will then be able to buy or sell any amount of XRP (or any other cryptocurrency) you like.
- An alternative way to buy ripple in the UK is through an unofficial exchange, but this is considered to be a high-risk strategy. Benefits of such could include low or zero commissions, quick process and no verification required, however, be cautious, as those are still an unofficial, unregulated platform. The entire process is based on trust as all you do is send a specified amount to a specified blockchain address, and then wait for the receiving party to send you crypto in return. Please remember that trading both stocks and crypto is itself associated with a certain degree of risk, therefore it is best to make sure that the ways and tools you choose ensure the most safety and protect you from the loss of funds and other negative experiences. The legal regulation of transactions with tokens does not have a uniform approach, and the consequences of such transactions may have different legal assessments in different countries.
How to invest in Ripple
First of all, you need to decide if XRP is a good investment for you. The trend shows that XRP has recently gone up in price, following the interest in other cryptocurrencies like Bitcoin and Ethereum. Due to its low transaction costs and fast transactions, XRP is well suited for paying for goods and services, especially considering that it is now accepted by many banks like Santander, Fidor Bank, and many others.
Here are some of the benefits of investing in Ripple:
- Almost instant transactions
- Extra security, good protection from hacker attack
- It is unlikely to be hit by inflation, as the entire volume of XRP is already in circulation
- You can correct mistakes and cancel wrong transactions
However, it is worth remembering that there also exist some drawbacks:
- Ripple is volatile, just like Bitcoin or almost any cryptocurrency
- The situation with Ripple is unstable in light of the conflict with SEC
- The system is fully controlled by developers, and most of the coins are held by Ripple Labs owners
As such, it is up to you to decide whether investing in Ripple is a good idea, but there are a few benefits. It is no worse than other currencies and it is worth considering diversifying your trader portfolio. Make sure you invest carefully and study your ground beforehand to make informed trading decisions!
Best regards, The NAGA Team