Ripple for beginners: A step-by-step guide to XRP | finder.com
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What is Ripple? A step-by-step guide to XRP

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Ripple is a fast money transfer network and cryptocurrency. Read why it has enjoyed steady growth, and how to buy.

The Ripple network has been accepted by several banks as a legitimate money transfer system, and the currency (XRP) offers a range of useful features. It’s a bit more complicated than most cryptocurrencies though.

This guide goes through what Ripple is, how XRP works, what to consider before trading and where to buy.

Learn more Buy Ripple

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What is Ripple?

Binance Cryptocurrency Exchange

Buy Ripple (XRP) on Binance

Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.

  • 100+ cryptocurrencies
  • Multi-language support
  • High liquidity
  • Backed by an established team
  • Low transaction and withdrawal fees
  • Bounty and reward programs
Promoted
IconSymbolInitial release dateAlgorithm typeMax. supply
XRP2012Ripple Protocol Consensus Algorithm (RPCA)100 billion XRP

The goal of Ripple is to be a global settlement network, a platform to allow anyone to transfer money in any currency to any currency in a matter of seconds. This is an ambitious goal meant to eliminate the use of older systems like Western Union or SWIFT.

How does Ripple work?

Consider this scenario: Alice and Bob need to send some money to each other. Alice uses Jamaican dollars (JMD) to conduct her business, while Bob operates in Bangladeshi taka (BDT).

While it might not be evident to end users, the process behind Alice sending Bob money involves converting the JMD to a common currency like USD, then transferring the money between Alice’s bank and Bob’s. Finally, the USD in Bob’s bank is converted back to BDT.

This incurs a lot of fees at every exchange and wastes a lot of time. The Ripple network and currency aim to fix this problem.

The alternative Ripple proposes is the use of XRP as a common currency underlying all money transfers between different currencies (USD is currently the most common currency). Not only are transaction fees much lower to convert from one currency to XRP and back, but transfers take a maximum of 4 seconds to execute and verify.

Quite a few global banks have already started embracing Ripple as it saves them a lot of money in the long run by avoiding exchange fees.

Exchanges that list Ripple (XRP)

Name Product Deposit methods Fiat Currencies Available Cryptocurrencies
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.
Credit card, Debit card, SWIFT, SEPA, Cryptocurrency
USD, EUR, RUB, GBP
BTC, DASH, ETH, XRP, ZEC, XLM
Use your USD, EUR or RUB to buy and sell cryptocurrency at competitive exchange rates and with high maximums for verified accounts.
Credit card, Debit card, Neosurf, Cashlib, Trustpay, ePay
USD, EUR, GBP, JPY, CNY, KRW, AUD, CAD, DKK, NOK, SEK, TRY, HKD, SGD
BTC, ETH, XRP, DASH, LTC, BCH, ETC, OMG, ZRX, CVC, BNT
Buy cryptocurrency with cash or credit card and get express delivery in as little as 10 minutes.
Cryptocurrency, Wire transfer
USD
BTC, ETH, XVG, SC, XRP, DOGE, STRAT, XMR, ADA, OMG, ETC, BCC, XLM, DGB, UKG, QTUM, ZCL, RDD, LTC, NEO & 120+ more
Buy from one of the largest cryptocurrency exchanges with a selection of over 190+ cryptocurrencies and 3 USD pairings.
Cryptocurrency, Bank transfer
JPY, USD, SGD, AUD, EUR, CNY, PHP, HKD, INR
BTC, ETH, QASH, XRP, BCH, NEO, UBTC, RKT, QTUM, BCH, DASH
A global exchange which offers users both cryptocurrency and fiat currency deposit options.
Cryptocurrency
-
BTC, ETH, HT, LTC, BCH, XRP, DASH, IOST, EOS, TRX, ETC, OCN, ONT, ELF, ABT, CMT, ELA, ZEC, OMG & 75+ more
Huobi.pro is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
Cryptocurrency
-
BTC, ETH, XRP, DOGE, XLM, ETC, STRAT, LTC, SC, DGB, BCH, LSK, XMR & 50 more
Trade various coins through a global crypto to crypto exchange based in the US.
Credit card, Debit card, Cryptocurrency, Perfect Money, SEPA, Wire Transfer, Payza, CryptoCapital, Money Polo, Payeer, Giropay, Yandex Money & more
USD, EUR, RUB, PLN, UAH
BTC, BCH, ETH, ETC, XRP, KICK, DASH, WAVES, ZEC, XMR, LTC, DOGE, USDT
A UK-based cryptocurrency platform that provides buyers with a wide variety of payment options.
Cryptocurrency
-
BTC, BCH, KCS, DRGN, DBC, XRB, ETH, PRL, LTC, SNOV, DENT, RPX, QLC, NEO, UTK, BNTY, ACT, POE, UKG, LA, LEND, VET & 50+ more
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.
Cryptocurrency
-
BTC, BCH, DRG, UKG, ENJ, TRX, LDC, MGO, AMLT, EZT, LALA, IPSX, FLIXX, STU, 1WO, TPAY, ETH, WIN, LTC, SPHTX, RKT, UBTC, ETN, ECH, QASH, NEO, HAV, XRP, ETC, STAC, FLUZ, VZT, XEM, XLM, VET, BMC, ONG, FDX, XMR, DENT, MCO, IND, GAT, ZEC, CAN, STX, QTUM, OAX, IXT, STORJ, MTN, REP, FCT, DASH
Owned by the team behind QUOINEX, QRYPTOS is a global crypto-to-crypto platform which supports over 50 cryptocurrencies and offers negative trading maker fees to generate liquidity.
Electronic Funds Transfer, SEPA, Wire Transfer *payment methods vary per country
USD, EUR, GBP, JPY, CAD
BTC, BCH, ETH, ETC, XMR, DASH, LTC, XRP, XLM, REP, ICN, MLN, ZEC, USDT, GNO, EOS
Exchange multiple cryptocurrencies through a range of payment methods, including Electronic Funds Transfer, SEPA or Wire Transfer.
Credit card, Debit card
USD, EUR
BTC, BCH, ETH, XMR, ZEC, DASH, XRP, ETC, LTC, DOGE, XLM,1ST, ADX, AMP, ANT, BAT, BCN, BNT, BTG, CFI, CVC & 70+ more
Access competitive crypto-to-crypto exchange rates for more than 35 cryptocurrencies on this global exchange.
Wire Transfer, Cryptocurrency, Express Polish Post Office 24/7, Express ?abka Market, Express DotPay
USD, EUR, PLN
BTC, BCC, BTG, LTC, ETH, LSK, GAME, DASH, KZC, XRP, XIN
This Polish-based exchange offers a variety of accessible payment methods, including Express Polish Post Office 24/7 service and Express DotPay.
Cryptocurrency
-
BTC, BCH, BTG, ETH, ETC, FUN, 1ST, ANT, BAT, BNT, BLK, CVC, CLAM, DASH, DCR, DGB, DNT, DOGE, EDG, EOS, FCT, GAME & 25+ more
A global exchange where no account is needed to begin trading cryptocurrency to cryptocurrency.
Cryptocurrency, Wire transfer
KRW
BTC, BTG, BCH, DASH, ETC, LTC, EOS, XRP, ETH, QTUM, TRX, ICX, VET, XMR, ZEC, MITH
A global platform where users can make KRW and cryptocurrency deposits to purchase up to 15 popular cryptocurrencies.
As of 20/06/18, Bithumb has announced that it has temporarily suspended deposit and withdrawal services.

Compare up to 4 providers

Exchanges where you can buy crypto with fiat

Name Product Deposit methods Fiat Currencies Available Cryptocurrencies
Credit card, Debit card
AUD, USD, EUR, GBP, CAD, CNY & 50+ more
BTC, BCH, ETH, LTC
Buy and sell bitcoin, Ethereum, Litecoin and Bitcoin Cash on one of the world's most renowned cryptocurrency exchanges.
Cash, Credit card, Debit card
USD, EUR
BTC, ETH, ETC, BCH, LTC, ADA, QTUM
Use USD/EUR to buy bitcoin and Ether with credit card or cash on the Coinmama cryptocurrency exchange.
Cryptocurrency, Payeer, AdvCash, Perfect Money, Capitalist, QIWI* Only available for RUB deposits
USD, RUB
BTC, BTG, DASH, ETH, LTC, DOGE, WAVES, LSK, BCC, TRX, NANOX, PAC, ZEC, XVG, EOS, ETC, RDD, TOKC, B2X, TTC & 400+ more
Pay in USD, RUB or trade crypto to crypto at this Russian-based cryptocurrency exchange with hundreds of coins listed.
Credit card, Debit card
USD, EUR
BTC, BCH, ETH, XMR, ZEC, DASH, XRP, ETC, LTC, DOGE, XLM,1ST, ADX, AMP, ANT, BAT, BCN, BNT, BTG, CFI, CVC & 70+ more
Access competitive crypto-to-crypto exchange rates for more than 35 cryptocurrencies on this global exchange.

Compare up to 4 providers

How is Ripple different from bitcoin?

The Ripple coin and the Ripple Network have been built with slightly different purposes in mind, and it’s worth considering whether they provide advantages over bitcoin.

Fast and cheap

Ripple transaction processing only takes four seconds since it’s significantly less active compared to bitcoin. This has the added bonus of cheaper transaction fees, whereas the price for bitcoin transactions has been on the rise lately as more people adopt the platform.

Mining-free

All the 100 billion XRP that it’s possible to use on the platform already exist. While they’re not all on the market – a few are released into the market every month to avoid flooding – there is no use mining as there is nothing of value to be added, unlike in more traditional cryptocurrencies.

XRP in escrow

In May 2017, Ripple pledged to lock up 55 billion XRP in 55 different smart contracts, essentially putting billions of dollars in escrow. Each month, a contract then releases 1 billion XRP into the market.

The primary motivator for this move was the fear that Ripple would suddenly reduce the price of the coin by releasing the billions of XRP that it’s holding onto the market.

The move to lock up XRP will mimic the effect of mining as seen in other currencies like bitcoin, with the goal of keeping XRP steadily growing.

Bank acceptance

The Ripple platform and coin being accepted by banks gives the process legitimacy and, at least from a purchaser’s standpoint, can be a little more reassuring. This is not the case with bitcoin and other currencies as they are seen as competition by the banks.

Ripple history price graph

Where can I use Ripple?

XRP is still a long way from being as widely accepted as coins such as bitcoin, Litecoin or Ethereum. It was never the goal to use Ripple as a payment method. Instead the aim has always been to use XRP to grease the wheels, in order to make fiat money transfers easier, faster and more secure.

However, there are still some merchants that accept Ripple. You can find a list here on the XRP forums.

Using Ripple to transfer money

Transferring money with Ripple works like any other cryptocurrency:

  1. Have some XRP available in your wallet. XRP wallets are the same as, for example, bitcoin wallets. Buy XRP on an exchange and then transfer the coins to your wallet.
  2. Scan or enter the recipient’s address. Whether they provide you with the hashed wallet address or a QR code, just follow the simple instructions on your wallet of choice and you’ll be done in no time.
  3. Enter the amount and send. The transaction should be verified in a few seconds and you’re done.

Other ways to get Ripple

Unless you’re a bank willing to invest into the Ripple platform, and because there is no mining allowed on Ripple, there are only two major ways to make money from it.

Get paid in Ripple

Anyone who decides to get paid in XRP will see the coin sitting in their wallets but will also be helping the currency gain legitimacy and wider use. Ripple will benefit from any merchant accepting the currency.

Purchase Ripple

While the Ripple platform might not be easily accessible to traders, anyone can find a way to buy XRP. As more and more merchants and banks adopt the platform, it’s possible its price will increase too.

What to watch out for

As much as some people love Ripple and see it as the next generation of cryptocurrencies, there are also some who have concerns over privacy and centralization.

  • Privacy concerns

Cryptocurrency has always been considered the poster child of privacy and anonymity. Ripple’s decision to market its platform exclusively to banks has been a cause of concern for some users who worry about big brother keeping an eye on their transactions.

  • Centralization

Ripple’s platform is extremely centralized whereas most cryptocurrencies aim to be as decentralized as possible. The reason for this is that Ripple owns the vast majority of the coins available on the platform while currencies like bitcoin allow anyone to mine and acquire coins. The move to lock coins inside smart contracts was a step in the right direction to fix this issue, but every time the coins are released they first go to Ripple to do with them as it pleases.

What’s next for Ripple?

The company behind Ripple plans, as a priority, to improve the lack of decentralization from which the platform is currently suffering. By adding more trusted validator nodes, the company plans to shake off the image that it’s just another central bank controlling the Ripple currency.

With that said, the future of Ripple appears to depend entirely on the adoption of the platform by banks, and that’s where the focus of the people behind Ripple probably needs to be. As more banks join the network, the price of XRP will no doubt continue to rise, driving more people to the coin and enticing banks to join the platform.

Frequently asked questions

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8 Responses

  1. Default Gravatar
    FadiMay 5, 2018

    Dear Sirs,

    I bought some ripple and had my account activated by Bithomp. I want to transfer some of the coins to an exchange. How do I go about it? The Bithomp website says it is just an explorer and there is no link on how to transfer the coins. I am new to this and am really stuck
    Thanks for your answer.

    • finder Customer Care
      JoshuaMay 7, 2018Staff

      Hi Fadi,

      Thanks for getting in touch with finder.

      The Bithomp is a Ripple Explorer. It isn’t a wallet nor an exchange. It only allows you to explore Ripple accounts for balances, transaction, history and other info.

      In case you want to find the right exchange, please use this page. Take advantage of our comparison table above to obtain an overview of what each exchange has to offer. An exchange will allow you to transfer digital coins such as Ripple.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  2. Default Gravatar
    StephDecember 31, 2017

    Can you store ripple xrp in electrum wallet?

    • finder Customer Care
      JoanneJanuary 2, 2018Staff

      Hi Steph,

      Thank you for visiting finder, we are a financial comparison website and general information service.

      The wallets where you can store ripple is listed on this page above. Currently the electrum wallet supports only Bitcoin, you may read further on this page to know more about electrum.

      Cheers,
      Joanne

  3. Default Gravatar
    AlexDecember 21, 2017

    Which wallet offers the purchase of Ripple Curency?

    • finder Customer Care
      HaroldDecember 21, 2017Staff

      Hi Alex,

      Thank you for your inquiry.

      You can check specific wallet you can purchase ripple currency on this page.

      I hope this information has helped.

      Cheers,
      Harold

  4. Default Gravatar
    DavidDecember 17, 2017

    Where can I buy ripple in Oklahoma, preferably in or around Tulsa

    • finder Customer Care
      JoanneDecember 19, 2017Staff

      Hi David,

      Thanks for reaching out.

      You can buy Ripple as you would buy any other cryptocurrency and that is from an online exchange. Most will require you to go through a verification process but once done you just buy the XRP as you would any other product online. Finally, transfer the coins to your wallet for safekeeping.

      Cheers,
      Joanne

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