Ripple is a fascinating altcoin, designed to serve as an intermediary between fiat currencies around the world and altcoins. The idea is simple. If you need to turn one currency into another, a process that is laborious, expensive, and time-consuming using traditional methods, you buy some Ripple with one currency, and then sell it to convert it to the other. The process takes seconds. First, of course, you have to have some XRP, the abbreviation of Ripple. Here is how to get it.
Step One: Join An Exchange That Sells Ripple
Ripple is tightly controlled by the company that mines it, so you will not find it on every exchange. Ripple has a list of exchanges it recommends, and for the purpose of this post, the exchange used will be Kraken. Joining a new exchange is fairly straightforward, so pick the one you like the most or the one with whom you are already doing business.
Note that since Ripple is defined as a financial instrument, and the company takes its regulatory obligations extremely seriously, you should check to ensure that you are verified to buy Ripple if you are already on an exchange. If not, you will simply need to provide the exchange with more personal information.
Step Two: Check XRP Pricing
Remember, the entire goal of Ripple is currency exchange, so this is a bit more involved than just Googling it. Ripple’s price is generally expressed as XRP/Currency, so in American dollars, it would be XRP/USD, and if you were converting it to yen, it would be XRP/JPY. This is a good moment to ensure that Ripple is exchangeable for your currency, although it supports all major ones.
Step Three: Deposit Funds
As with any exchange, you will need to deposit funds. Unlike most exchanges, though, you will likely want to know both the overall price in your currency and the overall price in the currency to which you are converting. For example, sticking with the yen example, suppose you are using Ripple to convert enough USD to enough yen to rent a hotel room for the night. At the time of this writing, XRP is trading at about 67 yen per coin, and you need about 7000 yen to rent a cheap hotel room. So you need about 150 XRP, and in the US, where XRP as of this writing is about 61 cents, that means you would need $80 or so USD, bar any fees or costs from the transaction elsewhere. Yes, it is a little complicated.
Another point to remember: to convert from one currency to Ripple, you buy Ripple with that currency, and then sell it to convert to another.
Step Four: Purchase Ripple
Once you make a deposit into your exchange account, it is simply a matter of choosing the correct currency to use for the purchase.
All this raises a question worth asking. Should you buy and hold Ripple? That depends on what you are trying to do with it. As a long-term investment, it is worth remembering that Ripple is tightly controlled to limit volatility, which means any bitcoin-esque spikes are unlikely. Of course, it also means that you can generally count on XRP to hold its value over time.
To convert currency, it is quick and effective. If you spend a lot of time converting currency, whether for personal use or as part of your business, it is probably worth it to use Ripple instead of current foreign exchange systems. To learn more about Ripple and other altcoins, subscribe to the Bitcoin Market Journal newsletter today!