How To Invest In Ripple: Why Should You?
The cryptocurrency industry has been gaining investors for the past decades. It has introduced innovations in the technology that lead to transactions that was never thought of before. Digital money has allowed decentralized, peer-to-peer, global capital transfers possible. With its booming field, people are continuously on the lookout to invest and grow their money here.
One of the cryptocurrencies that hits the headline for the past year is Ripple XRP. Ripple cryptocurrency, the third largest cryptocurrency by market cap, is also a digital payment protocol at the same time. If you are among those who is curious about growing money here, read this article to know how to invest in ripple.
Ripple prides itself from having both cryptocurrency and digital payment protocol characteristics at the same time. San Francisco-based tech company Ripple Labs, founded in 2012, developed the Ripple payment protocol. Under the protocol are Ripple Consensus Ledger (RCL) and RippleNet. RCL’s native digital money is Ripple XRP. RippleNet caters to banks, non-financial institutions and digital currency exchange. Know more information about these and why Ripple has been gaining attention.
Ripple, RCL, and Ripple XRP
Although sometimes confused, we will again emphasize that Ripple and Ripple XRP are different entities but are related. Ripple, the company, created RCL which uses XRP as a digital money used to facilitate the network’s facilities in the whole of Ripple Ecosystem. It is essentially the middleman among exchanges that can be utilized to transfer and convert flat money and other cryptocurrencies.
For example, a US bank would like to send 10 million USD to another entity housed in Europe. Under standard circumstances, this would be a tedious and costly process. A third-party verification method must be employees to ensure the presence of funding and the security of the transaction. Additionally, each bank may have an additional loss due to the conversion.
Using RCL in the Ripple ecosystem, the bank can simply utilize the purpose of XRP. The US bank will just have to convert its flat assets to XRP and sent it to the receiving institution. The transaction fee will be much cheaper, and the transaction time will be as swiftly as possible. To put things in perspective, the standard process will cost thousands of dollars while utilizing Ripple will only cost them cents.
Ripple and RippleNet
How does Ripple maintain the security in facilitating communication between banks? This is where RippleNet comes into play. Ripple has established a network of banks, professionals, and other financial institutions that is highly secured using an advanced blockchain system. This is how members are ensured of a frictionless as they transact globally in just a matter of seconds.
You will be impressed of how wide the current RippleNet network is. Its members include the world’s best reputable institutions including Bank of America, SBI Holdings, Santander, American Express, Royal Bank of Canada and Moneygram. They are continuously widening their network further and even developing the functionality of the network further. The broadness of the links will really make you ask yourself: how do I invest in ripple?
As a payment protocol, it allows transfer transactions in USD, Yen, Litecoin and Bitcoin.
Now we go to the cream of the discussion. There are two main ways how to invest in Ripple. Take a look at each below.
Investing in Ripple XRP
One option on how to invest in Ripple is through buying its cryptocurrency - Ripple XRP. Currently, it has established its presence in a number of exchange platforms including Coinbase, Kucoin, Binance, Poloniex, and Bittrex. Here are the two simple steps on how to invest in Ripple XRP via Coinbase exchange.
- Set-up an account in Coinbase. A verification procedure will also be employed to help secure your identity and future assets. Pro tip: there is a 10 USD bonus if you deposit 200 US for first-time users.
- Buy Ripple XRP. Browse through the app and click on Ripple XRP. Choose and place your trade. You can use flat money via your credit/debit card. Once successful, the transaction will show-up in your account.
Using Coinbase is an easy breezy procedure to start your Ripple investment. It will also allow tracking and follow-ups easy for you as a trader.
Investing in Ripple Stocks
How do I invest in Ripple aside from buying XRP? Well, you can buy a piece of Ripple’s stocks. Stockholders can participate in Ripple’s growing ecosystem.
Purchasing Ripple stock will require you to abide by the standards of the United States’ current security laws. This can be a little more tedious for those who are newbies in the stock market.
Furthermore, for Ripple stocks are not listed under public trade. This will require all investor to qualify as a “sophisticated investor” before being eligible. The minimum requirements for qualification are that you must possess at least 1 million USD in liquid assets, or that you have earned a minimum of 200,000 USD per annum consecutively for the last 3 years.
Once approved, the procedure becomes simple and easy. Once your account has been approved and posted, the investment process will just require you to browse to the Ripple Inc. company on these platforms and choose how many shares would you be willing to purchase. Learn more about Ripple cryptocurrency here!
Ripple is an innovative company that has just started building its ecosystem. Its vision is very clear, it will continue to thrive and expand its offering to the public. There is no wonder if it becomes an empire in the years to come.
If you find this company impressive and promising, there are two main ways on how to invest in Ripple. Choose between buying and trading its XRP cryptocurrency, or invest in their stocks and be an official partner as they continue expanding. Explore the two options above and decide how you want to grow your money with them. Who knows, after a couple of years, this could be the best decision that you have ever made.
UPDATED April 3, 2021
By: Lance Richards
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UPDATED March 3, 2021
By: Lance Richards
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