Where (and How) to Buy XRP in 2022
With crypto scams running rampant over social media, a healthy dose of skepticism is necessary to make the right investments. The key is knowing where (and how) to buy the right token. Ripple’s XRP has seen its ups and downs in 2022, leaving investors wondering whether they should invest in Ripple in 2022 or not. Read on to find out what Ripple and XRP are, what makes XRP a worthwhile investment, and where to buy XRP.
What is Ripple and what is XRP?
Ripple is the company that created the XRP token and is essentially a payment and currency exchange platform. It uses blockchain technology to execute efficient, reliable, and safe payments at a rate that beats pre-existing cross-border payment infrastructure by a country mile. XRP tokens rely on Ripple’s blockchain to execute transactions. XRP was created to take on SWIFT, a global leader in international transactions relied upon by businesses and banks all across the globe. While SWIFT pioneered cross-border transactions with its then-groundbreaking financial infrastructure, its glaring inefficiencies have made rivals such as Ripple a far more efficient choice. While SWIFT takes days to conduct transactions, Ripple offers immediate transactions with substantially lower fees, leaving Bitcoin’s transaction costs in the dust. Currently, the company’s offices operate in 15 financial hubs worldwide and provide its services in 50 different countries.
Ripple’s XRP could one day replace SWIFT’s payment infrastructure altogether.
XRP – the pros and cons
Ripple is an immensely promising company with great investment potential. However, Ripple’s rise has come with some noteworthy setbacks. Ripple’s key selling points:
- Rapid settlements. Transactions can be verified and executed in a matter of seconds, while traditional banks relying on wire transfers can take days, while Bitcoin transaction verifications can take hours.
- Negligible fees. Each transaction costs 0.00001 XRP, which is a fraction of a penny.
- Broad exchange network. From global fiat currencies to crypto tokens; Ripple’s XRP is designed to plug into existing financial infrastructure.
- Trusted by giants. Bank of America, Santander, HSBC’s subsidiary SABB and several other conglomerates put their faith in Ripple’s services.
- Beef with the SEC. In December 2020, Ripple executives were slapped with an SEC lawsuit which caused XRP’s value to plummet. However, as speculation grows that the lawsuit will pan out in XRP’s favor, the price has rocketed, rising recently while top cryptos have fallen.
- Centralization. One of the main purposes of cryptocurrencies was to promote decentralization and reduce the authority of banks and financial institutions. Unlike Bitcoin or Ethereum, Ripple does not operate as a fully decentralized financial platform.
- SWIFT’s Go. SWIFT has released a rival service, which enables customers to execute cross-border transactions in seconds. However, Go fails to rival XRP’s super cheap transaction costs.
Ripple’s XRP vs Bitcoin
While Ripple has certainly been giving SWIFT a run for its money, does it rival crypto market leader Bitcoin as an investment? Ripple’s XRP’s function is that of a currency exchange and payment facilitation system designed to be integrated with banks and businesses whereas Bitcoin is a digital currency intended to act as a form of payment for services and goods. Comparing Ripple to Bitcoin is like comparing apples to oranges. That’s why it’s important to recognise that Ripple provides a payment and exchange system, while Bitcoin intends to operate like a currency. The value in comparing the two is recognising how good each one is at performing its intended function to help you hedge your bets.
Transaction validation method:
Ripple uses a consensus mechanism that is extremely rapid but not fully decentralized while Bitcoin miners verify transactions regularly and add them to Bitcoin blockchain – this is fully decentralized, but takes time and involves comparatively high fees.
Ripple takes 4-5 seconds per transaction while Bitcoin takes an average of 10 minutes per transaction.
Cost of transaction
Ripple has a set cost of 0.00001 XRP/ transaction while Bitcoin has variable transaction costs that are substantially higher than XRP’s (necessary to pay miners).
Ripple takes up minimal energy while Bitcoin uses high amounts of computing power and electricity needed to sustain the mining process.
Degree of decentralization
XRP is decentralized but tied to Ripple, which is a private company while Bitcoin is completely decentralized. Fundamentally, Ripple’s XRP and Bitcoin have very different offerings that are likely to serve different markets. Bitcoin’s leading crypto market capitalization is indisputable, as well as the fact that it has gained the most investor attention in the space.
However, for those who wish to diversify their portfolios, XRP shines as a promising option. According to CoinMarketCap, XRP currently ranks seventh with respect to market capitalization and its system has been implemented by several large banks.
Should I buy XRP?
In spite of its setbacks, Ripple has gained an immense amount of recognition and has been embraced by several banks and conglomerates across the globe. It certainly isn’t a short-term fad like some of Bitcoin’s memecoin competitors have been found to be, and its value is predicted to rise in 2022.
Where to buy XRP
Xcoins is a fully regulated and licensed platform that can let you purchase XRP without any security concerns. We enable you to gain access to XRP tokens instantly and have a 24/7 support team to guide you through the process.
How to buy XRP at Xcoins
- You can register with xcoins.com and verify your identity in order to start purchasing XRP.
- Once approved, simply click on the drop-down menu and choose XRP.
- Add the amount you would like to purchase and proceed with your preferred payment method.
- Enter your Ripple wallet address and click on ‘Complete Payment’, after which you will shortly receive your tokens.
Frequently Asked Questions (FAQs)
Buy XRP with Xcoins by following the steps mentioned in this article.
XRP is Ripple’s token. Ripple is a company that provides a payment and currency exchange. XRP uses the Ripple blockchain to execute efficient, reliable and safe payments at a rate that beats pre-existing cross-border payment infrastructure.
Many crypto investors believe XRP is a strong contender to diversify their portfolio. This is largely because of its worldwide presence, impressive user base and data that suggest its value will rise.
As always, this article does not constitute financial advice and you should be sure to do your own research and consult a professional financial advisor before making any investment decision. To stay up to date on all things crypto, like Xcoins on Facebook, and follow us on Twitter, Instagram, and LinkedIn.