One of the fastest-growing cryptocurrencies in the past couple of crypto cycles is XRP. And it’s clear to see why this particular token is gaining traction.
Unlike meme coins like Dogecoin, which have propelled to relevancy due to hype, XRP has actual use cases that make it stand out against the sea of crypto tokens. And that lies in its ability to facilitate cross-border payments.
In the past, international money transfers took several business days to process. On top of these excessive delays, processing payments from two different currencies can incur high fees and unfavourable exchange rates.
Understandably, these delays can cause a wide range of problems. From hindered operational liquidity to missed financial obligations, payment delays can impede business growth significantly.
This is where XRP changes things up a bit. With this cryptocurrency, cross-border payments become significantly quicker as long as the users have a crypto wallet, an internet connection, and funds in their account.
If you want to understand how XRP works and why it’s so beneficial for this particular purpose, then you’re in the right place. Let’s explore the key reason why XRP revolutionises cross-border payments in greater detail.
What Is XRP and How Does It Work?
Before learning how to purchase XRP for your personal use, it’s best to have a complete understanding of the token first.
XRP is a cryptocurrency token created by Ripple Labs designed to simplify cross-border payments. It makes it easier, cheaper, and faster to make payments across the world instantly.
XRP is not merely a store of value like Bitcoin in that sense. It has a practical use case that makes fiat conversion a more accessible activity for anyone.
It doesn’t matter whether you’re trading from USD to SGD or vice versa—doing so using the XRP Ledger, or its parent blockchain, means that people and businesses can send funds quickly across borders.
The XRP Ledger confirms transactions through a network of independent validators instead of a proof-of-work system. It waits until it gets consensus, and this process takes less than five seconds to finish. The total capacity of validated transactions in a second using XRP is 1,500, making it one of the fastest blockchain networks ever.
Given this enhanced speed, XRP is used by many financial institutions across the world. Some big names that adopt the XRP Ledger include Spain’s Santander, Japan’s SBI Remit, and other global companies like MoneyGram, American Express, Goldman Sachs, Western Union, J.P. Morgan Chase, and BitPay.
Besides XRP’s inherent utility, it’s also important to mention its overall standing in the market. It currently sits at the top 4 in market capitalisation in the entire crypto market. This is an impressive feat considering how XRP hasn’t even broken through the top 10 during the initial pre-pandemic years.
Now that you’re aware of the benefits of XRP and how it works, the natural follow-up is: How do you get hold of this token in the first place? That’ll all be covered in the next section.
How to Buy XRP: A Proper Guide
To directly benefit from XRP, the user needs to have this particular cryptocurrency in their account. If you haven’t purchased XRP before and are eager to learn how, then this guide will provide you with step-by-step instructions on getting XRP into your crypto wallet.
Here’s a secure and straightforward method to buy XRP:
1. Choose a Reputable Crypto Exchange
The first thing you must do is choose the main crypto exchange that you’ll use to buy and sell XRP. There are many reputable exchanges that you can consider as your main trading platform, and each one has its own pros and cons.
In any case, it’s essential to know what to look out for when picking a crypto exchange. You’ll be depositing your finances in that platform for a long time, so it’s just right to be picky.
The first consideration to make is its ability to protect itself against cyber threats. Make sure that your chosen platform has solid cybersecurity measures in place to ensure that the risk of data breaches and cyberattacks is minimal, like 2FA and data encryption.
You should also choose a platform that’s legally compliant with your region.
For instance, in Singapore, the Monetary Authority of Singapore is a department that oversees the financial operations of trading platforms. If you’re from Singapore, ensure that your chosen platform is compliant with MAS requirements to ensure that it doesn’t get penalised or forced to close.
Finally, it’s also essential to consider the crypto exchange platform’s reputation among its user base. Does the platform have reliable customer support? Are the fees manageable and not too bad for average users? Is the user interface easy to navigate? Are the customers generally satisfied with the quality of the experience?
Take these factors into consideration to gauge product quality before depositing your funds into the platform to later exchange them into XRP.
Once you’ve figured out your ideal crypto platform, you can then proceed to make deposits. Want a good platform to start your trading journey? Buy cryptocurrency XRP with Independent Reserve.
2. Create, Verify, and Secure Your Account
Once you’ve decided on a crypto trading platform, the next step is to create an account on it. The first portion of this task is fairly straightforward: you simply have to sign up using your email address, password, and other important personal details. It’s also optimal to get a mobile version of the platform if applicable.
Following that, you’ll have to prove your identity to the platform as part of the KYC protocol. This would require a picture of your ID, a selfie, and proof of address. You may be asked to verify the email in your email address, and you should do that.
Once the verification process is complete, you’ll then be allowed to buy and sell on the crypto platform with no restrictions.
3. Deposit Funds
With your account verified and secured, the next step is to deposit funds into your exchange wallet. Most popular platforms make it easy for users to deposit using fiat currency, either through wire transfer or credit card payment. It’s also possible to deposit USDT if you have an existing crypto address with the amount.
Consider the deposit fees, processing time, and your financial circumstances when choosing your preferred funding option. Follow the exchange’s instructions carefully and double-check account details before confirming the deposit.
Once your money is reflected in your account, you can then proceed to the fun part: buying XRP.
4. Search for XRP and Place Your Order
In the market page of your chosen crypto exchange platform, search for XRP by typing it in the search bar. You’ll see a couple of listing pairs for it, such as USDT and SGD. Choose the listing pair that corresponds to the funds that you’ve recently deposited.
Once you’ve done that, place an order for XRP using the available funds in your account. XRP is available in the vast majority of exchanges due to its global relevance, so finding it should not be a problem.
You can pick one of two order types: market order and limit order. A market order buys XRP instantly at the current price, whereas a limit order lets you set a price and only executes if the market hits it. This grants you more control over your purchase.
From there, enter the purchase amount of XRP you wish to buy. Consider the trading fees, and if you agree with the terms, go ahead and publish the purchase.
Once your order has been received and placed in the market, all you have to do is wait for a seller to match it. When this happens, you can see the XRP immediately in your exchange wallet.
5. Secure it in Your Wallet of Choice
While you can technically leave the newly-purchased XRP in your exchange wallet, a better solution is to keep it in a separate wallet that you personally instead. This reduces the risk of your funds getting tampered with in the event of a system-wide data breach.
Two primary wallet types in the crypto space you can consider are a hot wallet and a cold wallet.
A hot wallet is a digital wallet that’s connected to the Internet. This wallet is ideal for everyday or frequent use. Trust Wallet and MetaMask are some common hot wallets that are reliable and popular.
A cold wallet, on the other hand, is a hardware device that stores tokens and keys offline. This is a better wallet type for long-term storage. Ledger and Trezor are some good cold wallet brands that can be excellent for long-term storage of crypto tokens.
By putting your XRP in these wallets, you can keep it well-guarded against cyber threats. That said, be sure to note down the seed phrases of these wallets, as they’re vital for you to access your funds.
How to Use XRP for Cross-Border Payments
To be able to use XRP for cross-border payments, you need to follow these steps.
- Set up an XRP-compatible wallet: MetaMask and Trust Wallet support XRP and the XRP Ledger. Ensure that you have the recovery phrase with you and have two-factor authentication enabled.
- Purchase XRP: Acquire XRP through exchange platforms like Independent Reserve, Binance, or Kraken. The steps above should serve you well.
- Transfer XRP to your personal wallet: Move XRP from your exchange wallet to your hot wallet for added protection.
- Initiate the cross-border transfer: Send XRP internationally by getting the receiver’s wallet address, reviewing and confirming the sender’s details, and then sending the specified amount.
- Get confirmation from the recipient: The recipient will receive the XRP in 5 seconds or less. They can then convert the XRP into their own currency however they wish.
- Get receipts: The XRPL Explorer is a useful blockchain explorer to track transaction statuses. You can look through your previous transaction logs for future reference through these explorers.
It’s as simple as that! We hope this guide can serve you well in your next XRP transaction. Happy trading.
