Ripple vs. Stellar: A side-by-side comparison | finder.com
rippleVSstellar

Ripple (XRP) vs. Stellar Lumens (XLM)

Should I buy Ripple or Stellar?

We know that everyone's situation is unique and we aim to help you find the right product for you. We may receive compensation when you visit our partners' sites or are approved for their products. You can read more about how we maintain editorial independence and how we make money here.

Ripple was created to solve international payments by providing lower costs and faster transfers. Then Stellar was created to solve Ripple.

Find out what the difference is, how they work and what to consider before buying one or both.

This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Learn more Where to buy

Ripple vs. Stellar: How they work

Stellar was initially based on Ripple systems, with the aim of redesigning the global economy for more inclusiveness. But citing the complexity of the system, Stellar later redesigned itself with a brand new system of its own.

Both facilitate international payments but do so in very different ways.

How Ripple works

Banks and multinational corporations use Ripple to make international payments. This is done by transferring the XRP token through the Ripple network. The end result is liquidity on demand.

How Stellar works

Stellar lets individuals trade money directly with each other, using Lumens (XLM) as a medium and “anchors” to handle the fiat currency aspects.

Example

Let’s say Jim wants to send money from a US bank account to a German bank account, converting it to euros along the way. He wants to do it at the best rates possible.

With traditional money transfers

The money will be bumped between several banks on the way. It will be converted from dollars to euros on the way. The entire process takes 3-5 days, incurs fees from each bank on the way and loses Jim money on all the exchange rates.

With Ripple

Jim could just buy Ripple himself and send it to a wallet address overseas, but he doesn’t want to. Fortunately, his bank uses Ripple.

He makes a money transfer as usual. His bank sends Ripple directly to the bank of the recipient account. The payment is made at whatever exchange rates and fees the bank chooses to charge for this service.

If Jim is lucky, they’ll pass some of the savings on to him.

With Stellar

Jim signs onto the Stellar platform and sends money through it. It makes the transfer automatically.

First it converts the USD to euros, then it uses an anchor to transfer the euros to the recipient account.

An anchor is a Stellar partner that’s entrusted with actually transferring the funds. These are usually money transfer companies. Jim can choose his own anchor and shop around for the one he wants.

There are a few different ways that Jim’s USD might be converted into euros.

  • Peer to peer: It looks for people who want to trade euros for USD and picks the best prices.
  • Via XLM: Lumens (XLM) are used to fill the gaps or make up the entire transfer if needed. For example, the Stellar platform might sell Lumens for euros through an existing order on the official Stellar exchange.
  • Chain of conversions: The platform can automatically perform a chain of conversions, such as USD > NZD > CNY > EUR if that’s what it takes.

Between these options, carried out automatically, and XLM to fill in the gaps and grease the wheels, people can make efficient peer-to-peer money transfers or simply convert currency for their own purposes.

Where to buy XRP and XLM

Name Product Payment Methods Available 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 60+ cryptocurrency pairs on this up-and-coming exchange based in China. Multi-language support.
Cash, BPAY, POLi, Cryptocurrency
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 60+ more
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Credit card, Debit card, SWIFT, SEPA, Cryptocurrency
USD, EUR, RUB, GBP
BTC, DASH, ETH, XRP, ZEC
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
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.
Cryptocurrency
-
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 crypto to crypto exchanges with a selection of over 190+ cryptocurrencies.
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.
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.
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.

Compare up to 4 providers

Name Product Payment Methods Available 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 60+ cryptocurrency pairs on this up-and-coming exchange based in China. Multi-language support.
Cryptocurrency
-
XLM, BTC, BCH, USDT, OMG, ZRX, KIN, MOBI & more
Stellarport taps into the Stellar Decentralised Exchange to provide buyers and sellers with access to XLM and various other cryptocurrencies.
Cash, BPAY, POLi, Cryptocurrency
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 60+ more
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Cryptocurrency
-
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 crypto to crypto exchanges with a selection of over 190+ cryptocurrencies.
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.
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.

Compare up to 4 providers

Is Ripple or Stellar better?

Neither is inherently better or worse than the other, and despite having the same functions, each was built for different purposes.

  • Ripple is for… Multinational companies and banks to quickly make cost-effective international transfers and currency conversions, plus access a range of extra features. Ripple is a privately owned blockchain company that provides its services to other companies.
  • Stellar is for… Individuals to make more cost-effective money transfers and currency transfers. Stellar itself is a nonprofit organization with the goal of enabling a more inclusive global payment system.

Prices: Ripple vs. Stellar Lumens

Ripple

1
0
Updated: 21 Apr 2018 19:06:36 UTC

Stellar

1
0
Updated: 21 Apr 2018 19:06:37 UTC

Which is the better investment?

Both Ripple and Stellar saw dramatic price increases at the end of 2017, and their values have tended to mirror each other.

This suggests that many people are investing in both rather than picking just one or the other.

In the short run, it seems likely that Ripple will enjoy faster growth. It has partnered with a lot of high-profile banks, so there’s a lot of money behind it. It also offers a range of features that Stellar can’t match, including smart contract functionality.

But in the long run, Stellar might become the platform of choice. With enough users and anchors, it could feasibly let people exchange currencies seamlessly, and much more cheaply than with Ripple.

Technology has increasingly moved towards the decentralized, and it’s quite possible that Stellar is one step ahead of Ripple in that respect.

Was this content helpful to you? No  Yes
Go to site