A 3-Step Guide To Investing In Ripple
Whenever anything regarding crypto is mentioned, the first currency that comes to mind is Bitcoin. It’s regarded as one of the best digital currencies, given its potential growth, and that theory has been backed by the occurrences of the past few years. In recent times, the value of Bitcoin has grown by a massive margin, but that’s not the only cryptocurrency that continues to attract investors.
Ripple is another crypto subject that’s become quite popular lately, especially after becoming among the top cryptocurrencies this year. Unlike most of its counterparts, Ripple was created by a for-profit company. So, what’s its origin and how can you invest in it? Read on to learn more!
What Is Ripple?
As earlier mentioned, Ripple was created by a private company. The main objective of this project was to use this currency as an enabler of a seamless way of sending money across the world. This global payment commenced in 2012. Although most traders refer to the crypto as Ripple, the coin used in such transactions is called XRP.
Given Ripple’s recent rapid growth, it’s been dubbed a ‘Bitcoin-killer.’ Inasmuch as there has been an explosive price increase, this crypto still remains one of the cheapest in the market. As such, it continues to attract many investors, both seasoned and beginners.
How Does Ripple Work?
As you’ll notice, there are a lot of things that distinguish Ripple from other cryptocurrencies. For one, it doesn’t necessarily use the blockchain mode of transaction used by Bitcoin and other famous cryptos. Instead, it employs the Ripple Protocol consensus algorithm. So, how does it work?
Well, as the name suggests, this method primarily depends on the consensus of every party involved. In other words, everyone on the network must consent to every transaction before it goes ahead. This ensures that every transaction completed is the correct one and is done in a transparent manner.
But, how does it enhance global money transfer? Normally, you’ll be forced to pay exorbitant fees to send money from one country to another. However, with Ripple, all you need to do is convert your cash to XRP coins and move them through the platform to a user from a different country. The recipient will receive a notification within seconds, making it one of the quickest ways of sending money beyond continental borders.
Are you planning to invest your money in this lucrative venture? Here’s where to buy Ripple and how to go about it:
- Create A Digital Wallet
The first step for anyone looking to invest in Ripple is to set up a cryptocurrency wallet to store their XRP coins. So, where and how should one start the process? Well, there are many online platforms where you can open your account and start trading.
Of course, all these exchanges—famously known as brokers—have their pros and cons. Therefore, it’s upon you to research on this information before choosing a broker to enhance your investment. So, what are some of the factors to consider when selecting a platform to open your digital wallet and trade?
- Ensure that it’s regulated
The most important factor that you must check before making your final decision is whether the broker is regulated. Inasmuch as the market is filled with many options when it comes to crypto platforms, the chances of signing up to a scam broker are at an all-time high. Therefore, it’s imperative that you choose an XRP broker with clean regulatory record. In fact, to be sure, you can ask for the necessary documents from the company before anything else.
- Consider data security
As mentioned, XRP uses the Ripple Protocol consensus algorithm, which is considered one of the most secure and transparent modes of transaction. However, that’s not to say that your coins are automatically safe with any broker. As such, it’s recommended that you find a platform with a good track record when it comes to data security and transparency. Remember, your coins aren’t the only things at risk in case of a data breach. During the signup phase, you’re always asked to submit copies of your utility bills, personal data, and/or bank information.
- Trading costs
Like any other crypto trading, the overall expenses matter when you want to invest in Ripple. The higher the trading costs, the less profits you’re likely to make. Therefore, you’ll need to find a broker whose expenses are affordable to you. But, that’s not to say that you should compromise on quality for the cost factor. You can always find a broker that offers great services at a reasonable price. All you have to do is research well.
- Available features
Finally, you ought to keep in mind that your Ripple trading experience will highly depend on the features available on the selected platform. The best brokers give you a demo account, through which you’ll learn all available features and rate the user experience. It’s, therefore, imperative that you consider this phase before making your final decision to avoid unnecessary regrets in the future.
So, what’s next after finding the right crypto wallet for your Ripple coins?
- Deposit Funds
The next step is to deposit funds to your account. Every platform has a specific mode of payment through which you’ll pay for the coins or receive the profits to your bank. The most popular methods include e-wallet, credit or debit card, and direct bank transfer. Therefore, while choosing a broker, it’s very important that you check all the available modes of payment.
- Buy Ripple
With the money deposited into your digital wallet, it’s now time to commence your investment. Basically, what you’ll be doing is buying XRP coins or, rather, exchanging your money from the normal currency to Ripple cryptocurrency.
Once you’ve bought these coins, all you have to do is wait for the market to swing in your favor. Based on the currency trend, the cost of XRP per coin is likely to rise by a significant margin. Of course, not everyone is ready to wait for five years. But, given the possible profits, this is a risk worth taking.
Investing in Ripple can be quite intimidating, especially for those who are new in the world of crypto trading. But, this process doesn’t have to be difficult even for a beginner. All you need is find a good crypto wallet, deposit funds, and start investing.
Despite several challenges faced by Ripple over the years, the XRP cryptocurrency still has a lot of potential. Its low price point makes it a perfect option for most beginners. There’s a huge possibility of gaining high returns in five years or so if you invest a few dollars starting today.