Ripple is one of the most successful cryptocurrencies ever. The developers follow a different approach than the competitors such as Bitcoin or Ethereum. Is it worth it anyway – or for that very reason – to invest?
What is ripple?
Ripple – also called XRP – is the third largest cryptocurrency in the world by market capitalization. It is quite different from other cryptocurrencies like Bitcoin and Ethereum . While they mainly want to create a completely new money system free from state control, the ripple founders, for example, work together with banks. These should use Ripple as a payment network. The project was launched by Ripple Labs. Behind it are various investment funds.
What is the role of XRP in the ripple network?
The network basically supports any currency: euros, dollars, even bitcoin. You still need XRP for every transaction. A small amount of XRP is consumed on each transfer.
At the start of 2012, the founders created 100 billion XRP, of which 75 billion will go to users in the long term. Ripple Labs wants to keep the rest to earn the currency’s appreciation. This is the only source of revenue for the company. Unlike other cryptocurrencies, you cannot “mine” new currency units, that is, create them.
How can you buy ripple?
Ripple, like most other cryptocurrencies, can be bought on trading platforms like Coinbase or Kraken. There the user logs in and can buy XRP by credit card or bank transfer. These will then remain on the platform until either they are resold or transferred to a wallet, a purse for cryptocurrencies. Dealers use to charge between two and five percent for the purchase. Many of the trading platforms are now registered with the financial regulators of their home countries. It is advisable to pay attention to distinguish serious from dubious providers.
What is a wallet?
A wallet – English for wallet – is a kind of checking account, in which one can deposit his XRP. There are basically two types: online wallets and desktop wallets. For the former, the wallets are on a kind of server, while the desktop wallet stores them offline. An online wallet can be found, for example, at Gatehub, desktop wallet provider is Rippex.
Which bearing type is recommended?
That depends on what you want to use the XRP for. If you want to earn price increases especially at short notice, you can also leave the currency directly on the platform. If you want to keep the XRP longer term or even use it in the ripple network for transactions, you should get a wallet.
The desktop wallet tends to be the safest storage option, as it is significantly better protected against potential hacker attacks than online wallets or trading platforms.