Ripple is a relatively new way of monetary transfer that has been dubbed by some in the tech world as “Crypto 2.0”. This is because it builds a more secure layer on top of existing financial systems, including both crypto and fiat (USD, GBP, YEN, etc). Let’s take a look at how it all works, and whether Ripple might be an emerging success story.
But where do you start if you’re interested in investing or buying Ripple? How does Ripple work and what are the advantages of it compared to Bitcoin? Where do you store your XRP and how do you buy them? For many new investors and users of Ripple it all sounds way too tricky to start. Fortunately, that’s not true at all, and you will soon learn that working with Ripple is very easy and very similar to what you are used to.
Who is this guide for?
This guide is aimed at people who want to invest or buy bitcoins, but have no idea where and how they should do that.
In this guide, we discuss everything you need to know to take part in this digital revolution! It’s written with the idea that the reader has never worked with a blockchain before, and therefore aimed at beginners. The manual has been split into several chapters so that experienced blockchain users can also read through it.
Would you prefer a more concise version of this guide so that you can get started asap? Then we have made a step-by-step plan for you in which we have worked out the most efficient way for you to get started. With this step-by-step plan you will have your Bitcoins within just 10 minutes! Simply sign up to our newsletter and receive the pdf guide straight into your inbox.
Why did we make this guide?
Ripple has been around since 2012 and has since made huge leaps in popularity, functionality, and value. More and more people are therefore choosing to transfer part of their income to Ripple and many other coins as the cryptocurrency market grows.
However, there is a lot of confusion around the similarities between Ripple and other Cryptocurrencies in general. Many people have no idea what the network is used for or where to start. Others are confused between the similarities between Ripple and other crypto coins. And some are afraid that investing, buying and working with Ripple requires a huge technical background.
The good news is that many of these concerns and questions are not needed, and have been answered / or misplaced. You’ll soon find that working, paying and receiving money within the Ripple network is not only simple but easier and faster than you think! Once the first step is taken you will soon notice how intuitive the network is and how easy it is to make transactions within the network.
In addition, you will also understand what makes Ripple so popular and you will soon become more familiar with all the ins and outs of this cryptocurrency.
The purpose of this guide is to help you with your first steps! We have created this guide to show you how to make your first purchase of XRP, the currency of Ripple, and help you with the choices you can make on your way. We will also discuss aspects of Ripple such as:
- Ripple wallets, what types are there and how do you choose the best?
- How you can invest in Ripple. Which brokers are reliable?
- How do you ensure that you use your XRP safely?
- What the differences are between Ripple and other coins.
How should you use this guide?
Firstly, we would strongly recommend that you bookmark this page in your browser, that way you can always use this as a reference if you have any questions.
This guide is divided into a number of chapters that each describe an aspect of Ripple. In other words, each chapter is a mini manual in itself!
For this reason you can choose how exactly you go through the Ripple guide. If you are completely new to the world of cryptocurrencies, we strongly advise you to go through the entire manual once.
Do you already have a strong idea of how and what a blockchain is and you are not completely new in this world. Then you can safely jump to the chapter that is most relevant to your question.
Important: If you are looking for the best place to buy Ripple, you can go straight to chapter 3.
What is Ripple?
As the world of cryptocurrency continues to grow, there is a real desire among enthusiasts in the community to weed out the failures and focus on the successes. Everyone in the community wants to be the next Bitcoin or Ethereum, but the truth is that the next “big thing” will probably be nothing like Bitcoin, heck it may not even be a cryptocurrency.
Ripple is an open-source, decentralized exchange, sound familiar? The beauty of XRP is that it enables users to trade practically anything of value with each other, such as Bitcoin, Litecoin, dollars, euros, gold bars, you name it. This is assuming the two users trust each other and agree on the terms of the transaction.
An example of this is if Dave wants to trade 13,000 GBP for Sophie’s 1 BTC, that can be done directly if both users agree and trust each other. But what if Sophie wants euros instead of pounds? Then the Ripple network will search for a euro-trading intermediary, automatically, between Dave and Sophie. Dave’s 13k GBP will then be converted to 14,647 EUR, which is then given to Sophie in exchange for her 1 BTC. This process can include as many intermediaries, exchanges and different currencies as necessary to complete the trade, and it all happens under the hood according to the protocol defined by Ripple.
These trades are recorded on a public ledger, that is shared across the entire network. This is similar to how Bitcoin’s blockchain works, however, while the blockchain in bitcoin takes up to 10 minutes to completely verify a transaction, the Ripple network only takes 2-5 seconds. This short waiting time is achieved through a consensus process and doesn’t rely on miners to verify currency transactions, as is the case with Bitcoin.
While the protocol within Ripple itself is decentralized, it is wholly dependent on entities are known as “gateways”. These gateways act as the entry and exit points for users and their money. Gateways essentially act as an intermediary system between a user’s bank and the Ripple network, similar to how Coinbase is an intermediary for Bitcoin. This is where peer-to-peer trust and anti-money-laundering laws come into play, as Ripple users must provide identity and proof-of-residence documents before getting approved by a gateway. Once that happens, the user can insert funds to the Ripple network and start trading. A gateway will also be necessary again if the user wants to withdraw funds into their bank.
Adoption by the Banking System
While the banking system has been slow to adopt the Ripple protocol, there is no doubt that real-time, fast worldwide payments are the future. Therefore the Ripple platform gives banks a huge advantage both over their competition and makes them more money at the end of the day. Ripple is focused on an “Internet of Value”, meaning that money transfers should move as quickly and fluidly as information does in the technological age. With Ripple, there is no reason to pay a fortune and wait days when transferring money globally, it should be as instant as sending a text message.
A few banks have already embraced the technological prowess of the Ripple platform including, Santander, Axis Bank, Yes Bank, Westpac, Union Credit, NBAD, and many more. According to Ripple Labs, banks can save an average of £2.95 per payment by using their protocol and considering that banks perform thousands or perhaps millions of transactions like this every year, this can represent potentially millions in savings.
Frequently Asked Questions
The main difference between Ripple and Bitcoin is that Ripple is not mined. Upon is release, all Ripple were released. While not all XRP have been released into the market, they are being released slowly by Ripple Labs
Unlike other crypto currencies, you are not anonymous within the Ripple Network, this is to help adoptions within banks and money-laundering laws. The point of ripple is cost-efficiency not anonymity.
Ripple can be bought from an exchange such as Binance. No idea how it works? Then read chapter 3 of our guide about buying and selling Ripple.