How to buy Ripple (XRP) in Canada

How to buy XRP in 4 steps

1. Compare crypto exchanges
   The easiest way to buy XRP is from a cryptocurrency exchange. Comparing in the table helps you find a platform with the features you want like low fees, ease of use or 24-hour customer support.
2. Create an account
   To create an account on an exchange, you will need to verify your email address and identity. Have some photo ID and your phone ready.
3. Make a deposit
   Once verified, you can deposit CAD using the payment method that best suits you – cryptocurrency, bank and card payments are widely accepted.
4. Buy XRP
   You can now exchange your funds for XRP. On beginner-friendly exchanges, this is as simple as entering the CAD or XRP amount you want to purchase and clicking "buy". If you like, you can then withdraw your XRP to a personal wallet.

What is the cheapest way to buy XRP?

Most exchanges let you buy as little as $5 worth of XRP, if not less. Just type in how much you want to spend in CAD and let the exchange work out the rest.

Some platforms only offer 1 way to buy XRP, while others provide several choices. The 2 most common ways to buy XRP are on the spot market or with an "instant buy" feature.

Instant buy

If it's your first time buying XRP this will be the fastest method – but also the least cost-effective.

You'll usually find the instant buy section under a "Buy now" heading on the platform you've chosen.

It should feature a simple interface that lets you enter the amount of XRP you want to buy, or Canadian dollars you want to spend.

This is usually the only option available for credit or debit card purchases, but you may also be able to make an instant buy if you've pre-funded your account with a bank transfer.

Be prepared to pay a markup on XRP's market rate in exchange for the convenience.

Spot market

If you see colourful charts with a range of prices, you're probably in the spot market.

The spot market is where buyers and sellers come together to place bids for XRP on the open market. It's usually the cheapest way to buy XRP because it lets traders set their own price.

You'll find the spot market under a "Trade" or "Spot" heading on the site or app menu of the platform you've chosen to use.

There are several different order types that you can make on the spot market.

• Market order. This will buy you the amount of XRP you specify at the lowest possible price available. This makes it like an instant buy order, but with much lower fees.
• Limit order. This is the most common order type and lets you purchase XRP at the price you specify. Traders use this to time the market and capitalise on price dips or increases.

How to find the best place to buy XRP in Canada

There are dozens of different trading platforms to choose from when buying XRP in Canada, so to help you find your best option, keep these factors in mind:

• Where it's registered. Using a locally registered exchange is a good idea. It's more likely to accept Canadian dollars and local payment methods like , which helps avoid foreign exchange fees. Choosing from Canada-based exchanges also means it's likely to be registered with the Financial Transactions and Reports Analysis Centre (FINTRAC) which means it has to comply with local laws in Canada.
• Security. Look at the security features the platform has to offer, like 2-factor authentication and PGP-encrypted emails. Cold storage of user funds is considered industry standard, but insurance funds are less common and indicative of good security practices.
• Fees. Check the fine print to find out exactly how much your transaction will cost. Depending on the platform you choose, these could include spreads, trading fees and deposit and withdrawal charges.
• Transaction limits. Are there any minimum or maximum limits on the amount of XRP you can purchase? Does the exchange restrict the amount of funds you can withdraw from your account in any 1 transaction or 24-hour period?
• Other platform features. Look out for other features that suit your investment or trading needs. For instance, many exchanges now let you earn yield on your holdings, while some issue crypto debit cards to help you spend your coins.
• Customer support. If you ever have a problem with a transaction, will you be able to quickly and easily get in touch with the customer support team? Are they based in Canada? Check what contact methods are available and find out how quick the team is at responding to enquiries.
• Insurance fund. A small number of exchanges now insure user funds. Beware that policies vary greatly between exchanges, so you'll need to research this thoroughly if insurance is important to you.
• Reputation. As a young industry, reputation can provide a lot of clues when choosing an exchange. For instance, who are the founders? Have there been any controversies? Are their business practices transparent? If you can't find any of this information, that may be a red flag.
• Range of coins. If you're thinking about adding other cryptos to your portfolio in the future, check to see what other coins you can buy through the platform.
• Read reviews. Finder's crypto exchange reviews include user feedback, which helps you get a better idea of what the exchange is like to use for other people starting out just like you.

Is XRP safe to invest in?

You shouldn't invest in any asset, including XRP without doing plenty of research first. Before you buy XRP, make sure you understand and weigh up these risks:

• Price volatility. XRP's price is largely based on speculation, which means it can rise or fall in a short time. It's not uncommon for XRP to lose more than 10% of its value in a single day.
• Perceived value. XRP is a unique asset that does not have any tangible value. It derives most of its value from utility and speculation.
• Exchange vulnerabilities. Leaving your XRP on a crypto platform exposes you to several counterparty risks, including:
  • Scams. Scammers frequently try to trick exchange users into handing over their username and password, often by phishing with malicious emails or fake website links. Use 2FA and encrypted emails to help protect your funds.
  • Hacks and theft. Exchanges are vulnerable to hacks and theft, so choose one with good security practices and a track record of safety.
  • Fiscal mismanagement. In mid-2022 a number of crypto platforms froze user funds after it was revealed they had engaged in irresponsible funds management.
  • Insurance. Unlike stocks, only a small handful of exchanges provide insurance on your cash deposits.
• Regulatory uncertainty. The regulatory environment for XRP and other cryptos is constantly changing. It's important to understand how international rulings have the potential to impact XRP's future – for better or worse.
• Novel technology. XRP was created in 2013 which makes it relatively new as a form of technology and as a currency. XRP doesn't yet have the same track record or performance history as some other asset classes.
• Technical learning curve. Evaluating the tech behind XRP before you invest is important, but requires a deep understanding of the blockchain and other aspects of decentralised finance. You should be prepared to do plenty of research.
• XRP vs Ripple Labs. Although the XRP asset is considered independent from Ripple Labs as a company, the 2 projects are still closely related and often confused for one another. Despite this close link, the success of Ripple does not necessarily guarantee that the price of XRP will appreciate. Ripple Labs has several technologies and services that do not incorporate XRP.
• SEC lawsuit. The US Securities and Exchange Commission (SEC) is arguing that due to how XRP was issued to investors, it should be considered an (illegally) registered security. Although this lawsuit has been developing since 2020, it is yet to conclude and still has the potential to negatively impact XRP prices.
• Majority owned supply. As the creators of XRP, Ripple Labs and its founders received 80% of the 100 billion total XRP supply after its token generation event. Although there are now precautionary measures in place – including a max distribution of 1 billion XRP per month – this makes the issuance of XRP centralised and the volume of tokens released each month may negatively impact prices.

Today's XRP price versus ATH

Compare today's price of XRP ($0.5083 USD) against its all-time high (ATH) price of $3.40 USD on January 07, 2018. The closer the bar is to 100%, the closer XRP is to reaching its ATH again.

How is XRP taxed?

XRP is considered a digital asset by the Canada Revenue Agency (CRA) and is taxed like an investment. This means you'll be taxed when you dispose of XRP (i.e. sell, gift, exchange or trade it).

For individuals, profits or losses are reported as capital gains or losses. For businesses, XRP earnings are reported as income or capital gains, depending on how a business classifies cryptocurrency.

Learn more in our guide to crypto tax in Canada.

After you've bought XRP

Bottom line

If you want to buy XRP, start by comparing a range of crypto brokers and exchanges available in Canada. Look at their features, fees, security and overall reputation to decide which platform is the right fit for you. Consider an exchange registered with FINTRAC for added peace of mind.

Remember that owning and using XRP is not without its risks. Carefully consider investing in XRP as part of a wider strategy, and talk to a financial advisor if you have any questions.

Once you've bought some XRP, think about what your short and long-term goals are. This will help you decide whether to keep it on an exchange, or move it to your own wallet.

FAQs