Everything you need to know about Ripple

A complete guide to everything you need to know about Ripple. Here, we explore the history of Ripple, top wallets, how to buy and sell XRP, and much more. Ripple was mainly launched in an attempt to substitute the SWIFT based transfer system, with a decentralized, blockchain based, global system for monetary transfers.

What is Ripple?


Ripple (XRP) is a digital currency and open payment network. The Ripple payment system aims to provide global transactions that are faster, safer and cheaper. Much like Bitcoin, Ripple’s digital currency can be bought and sold on cryptocurrency exchanges around the world. Known as XRP, the entire 100 billion units were created upon its inception. Transactions made via the Ripple network don’t have to be in XRP. They can be in any form of currency, from dollars to bitcoins.

There is a great deal of controversy around XRP in the cryptocurrency community. One of the main arguments against Ripple is that it’s not decentralized. In response, Ripple has recently unveiled a plan to become more decentralized than Bitcoin. This is a currency that is 100% premined with 60% in the possession of Ripple. For these reasons, some people have stated the belief that Ripple is not a cryptocurrency

Company and Founders History


The very origin of Ripple actually goes back to before Bitcoin was born. In 2004, web developer, Ryan Fugger, came up with the idea of Ripplepay. Introduced in 2005, it was essentially a decentralized monetary system which allowed people to create their own currency. This concept was further developed in 2011 by Jed McCaleb, an American programmer.

Jed McCaleb proposed a new digital currency system that would be seen by members of the network in order to verify transactions by consensus. He worked with Chris Larsen to co-found OpenCoin in 2012. A new payment protocol followed, which enabled a currency transfer that was instant, direct, and able to support all currency types. A common ledger made up of validating servers was soon introduced, followed by their own currency (XRP). Benefits of using XRP, as opposed to a fiat currency, are that it charges significantly lower fees and there is less waiting time.

It wasn’t until September 2013 that OpenCoin Inc. changed its name to Ripple Labs Inc. This coincided with the release of the Ripple reference server and client as a free and open-source software. With the aim of integrating with banks, Ripple’s protocol has been adopted by a number of financial institutions since its introduction in 2013.

How does it work?


The Ripple blockchain allows for quick and easy cross-border payments between people with different banks. Real-time gross settlement means that payments made via RippleNet can be sent and received in a matter of seconds. Such payments can be made using Ripple’s own currency (XRP) or in a fiat currency, such as USD or EUR. The way Ripple works is that a particular fiat currency goes through a gateway (a person or organization that shares the Ripple protocol, which is one global ledger) and is converted into XRP and sent to another gateway where it can be converted into another fiat currency.

Buying and Selling


At the time of writing, Ripple’s cryptocurrency is in the top three by market cap, totaling over $70 billion. If you’re unsure about where to buy ripple, you’ll be happy to know that there’s no shortage of cryptocurrency exchanges on which you can buy ripple digital currency. In particular, there’s huge trading volume on South Korean exchanges, such as Bithumb and Coinone. The most popular pair is XRP/BTC which can be found on Binance, Poloniex, Bittrex and Bitfinex to name a few. There are also pairs with ETH, USD and JPY among others. Take a look at our guide on how to buy ripple based on your location:

USA: It’s easy to buy Ripple’s digital currency in the USA. While there aren’t many exchanges on which you can buy XRP with a credit or debit card, CEX.IO is one of the few, it’s easy enough to sign up to Coinbase and buy Ethereum and transfer it to another Ripple exchange, such as Binance, before trading to XRP. Buying Ethereum is quicker and cheaper than buying Bitcoin. Alternatively, Bitfinex, Bitstamp, and Kraken all have XRP/USD pairs.

Canada: Arguably the best Canadian cryptocurrency exchange is QuadrigaCX. There you can buy a cryptocurrency such as BTC, ETH, or LTC with Canadian Dollars. It’s then easy to transfer your cryptocurrency to another exchange such as Kraken, where CAD wire deposits are free or even ShapeShift, which doesn’t require any registration whatsoever.

UK: There is one XRP/GBP pair available on Cryptomate, which is a smaller cryptocurrency exchange. One of the quickest methods is to use Coinbase and deposit funds via a credit or debit card. You can then convert ripple to BTC, ETH, or LTC, and transfer this to another exchange, such as Binance, for XRP. If your bank allows you to deposit EUR, you could try Kraken, since a SEPA deposit is free.

Australia: Those of you in Australia can buy ripple on BTC Markets, which is a Melbourne-based cryptocurrency exchange. Another Australian exchange to consider is CoinSpot. There are plenty of other cryptocurrency exchanges which you can use, but unless you already have cryptocurrency to trade for XRP, your best bet is BTC Markets or CoinSpot.

Europe: Kraken, Bitstamp, and CEX.IO all have an XRP/EUR pair available. In particular, you can make a free SEPA deposit to Kraken, which typically arrives in 1 - 2 business days. Alternatively, CEX.IO allows you to fund your account with a credit or debit card. While this method involves higher fees, it’s probably the quickest available.

Storage Options


It’s not advised to leave your cryptocurrency on a Ripple exchange. That’s because you could lose it all if your account is hacked or if the exchange closes down. Unfortunately, there isn’t a wealth of choices when it comes to storing ripple. What’s more, you need 20 XRP in order to be able to book your wallet address. It’s therefore best to choose one very good Ripple wallet rather than having  multiple wallets in order to save!

Wallet Options


Desktop: The two most popular wallets for storing ripple on your desktop are Rippex and Toast. Rippex is forked from the official Ripple wallet, which is no longer available, and generally has good reviews from the Ripple community. Both Rippex and Toast desktop wallets are available for Windows, Mac and Linux. However, Toast is an open source wallet that is also available for iOS and Android.

Hardware: Ledger Nano S is the only hardware wallet that currently supports Ripple. This is a more affordable hardware wallet that has received excellent reviews. It offers multi-currency support and is easy to use. The main advantage is that it allows you to store your ripple offline, which is safe from hackers and viruses.

Mobile: There aren’t many mobile wallets available for Ripple. However, Toast is one of the few. Popular among the Ripple community, this mobile wallet is available for both iOS and Android. Also available for desktop (Windows, Mac and Linux), Toast wallet is free, open source and simple to use.

Web/Online: Web wallets are not the safest option since they’re online and thus vulnerable to hacking. What’s more, it means leaving your private keys in the hands of a third party. Cryptonator is a Ripple wallet option that offers a high level of convenience since it’s an online wallet.

Paper: A paper wallet has the advantage of being offline and can therefore be a safer place to store your cryptocurrency, as long as you don’t lose or damage it. However, making a Ripple paper wallet isn’t as easy as getting another wallet type and should therefore only be done with caution.

Known Partnerships


Ripple’s protocol has been adopted by an increasing number of financial institutions. Indeed, Ripple has many partnerships. One of the very first partnerships was with Fidor Bank in Munich in early 2014. The Commonwealth Bank of Australia, Santander, and Western Union are all known to be experimenting with Ripple. The most recent partnership to be announced was with MoneyGram in January 2017. This will involve the testing of XRP as a means of moving funds faster and cheaper.

Potential Use Cases


The Ripple payment system is designed for banks, payment providers, corporates, and exchanges. It can be used in the following ways:

Banks: With Ripple, banks are able to process cross-border payments through RippleNet. This provides a greater level of certainty, since they can track the payments. It opens up many opportunities since banks are then able to expand payments into new emerging markets and generate new revenue while lowering their costs.

Payment Providers: The benefits to payment providers include the chance to provide their customers with payment services that are faster and more transparent. There’s also the opportunity to increase their payment volume, due to the ability to make real-time cross-border payments.

Corporates: Without the need to build dozens of integrations with payment networks, corporations have the chance to save a significant sum in operational costs. Ripple payments are more cost-effective and can be tracked for greater efficiency.

Exchanges: Exchanges can benefit from new and reliable volume. One of Ripple’s advantages is that it’s highly scalable, with a capacity for over 50,000 transactions per second. What’s more, settlements are much faster than Bitcoin, making transfers almost instantaneous.