Ever since the introduction of electronic payments, moving money has been easier than ever before; however, transferring funds across borders still requires immense time and paperwork.
Ripple aims to eliminate these issues by allowing users to transfer any form of currency to anyone in the world in mere seconds with little to no fees involved, making it one of the most versatile payment platforms on the market today.
Keep reading to learn more about how Ripple works and how you can benefit from its advanced payment system.
How Does Ripple Work?
Ripple uses distributed ledgers to facilitate instant, secure, and nearly free global financial transactions of any size with no chargebacks. Ripple is open source and peer-to-peer. There’s no single point of failure. Anybody can participate in running a Ripple network node without permission or fees.
Ripple’s base layer technology makes it possible for customers around the world to transact instantly without paying international transaction fees. Banks can use XRP as an on-demand liquidity solution for cross-border payments.
This allows banks to provide better service at a lower cost to their customers, sending payments across borders. Banks also have access to real-time FX data through Ripple’s market data APIs, allowing them to make better decisions about sourcing liquidity globally.
How Do I Get Some XRP?
XRP is not just a currency, it’s also a cryptocurrency. This means it can be bought, sold, and traded. However, XRP can only be obtained by purchasing it on an exchange, much like you would do with Bitcoin or any other altcoin.
This can be done through your bank account, credit card, or even cash, depending on what that particular exchange accepts payment methods. One of those exchanges includes Bitsane in Ireland, where can I buy XRP for fiat currency via wire transfer or SEPA.
To purchase XRP at Bitsane, you will need to sign up first and then follow these steps:
What Can I Do With My XRP?
If you’re just getting into cryptocurrencies, you may be wondering what your XRP is actually worth. You could mine for them, but you won’t find any of these coins in the wild. This means that if you want a piece of your XRP pie, it will probably have to come through an exchange (which we’ll get into later).
In terms of tangible uses, Ripple has a few. For example, let’s say that you wanted to send $100 from one person to another. With traditional currency transfers, you would likely use something like PayPal or Western Union and pay a fee for their services. However, with XRP transfers, there are no fees-at least not when sending money between two parties who trust each other enough to avoid escrow agreements or other forms of security.
Additionally, because transactions happen so quickly on Ripple’s platform-typically within 5 seconds-you can also use XRP as a sort of bridge currency when trading between other currencies around the world. For example, let’s say that I wanted to buy some euros from someone who only accepts U.S dollars and vice versa.
Using my USD, I could first trade it for XRP and then trade my XRP for EUR. Of course, both people need to agree to accept payment in XRP before making such a transaction-but it’s possible.
Another key feature of Ripple is its ability to freeze accounts based on certain conditions; while they’re still pending review by human moderators, frozen accounts cannot receive new funds or make outgoing payments until the moderator has approved them.
How Do I Store My XRP?
XRP is stored in digital wallets. Ripple recommends using either GateHub or Toast Wallet for storing XRP. GateHub is an online wallet that stores many different types of cryptocurrency and can be linked with your bank account. Toast Wallet stores XRP but doesn’t connect with any external bank accounts, making it offline storage similar to a hardware wallet.
How Do I Buy XRP?
You can purchase XRP on several exchanges, including Bitstamp, Kraken, Gatehub, and others. These exchanges have daily limits for buying large amounts of currency, so you may need to sign up with multiple exchanges if you want to buy more than $1,000 worth at once.
On most exchanges, there’s also a limit on how much cryptocurrency you can purchase at one time and periodic restrictions based on your country or state of residence.
It’s important to know these limits before attempting to buy XRP because otherwise, you might find yourself waiting days before being able to access your currency again due to exchange limitations.