How to buy XRP (Ripple) – Forbes Advisor UK

XRP is a cryptocurrency that runs on the XRP Ledger, a blockchain created in 2012 by Jed McCaleb, Arthur Britto and David Schwartz.

XRP can be purchased as an investment, as a coin to trade against other cryptocurrencies such as Bitcoin, or to fund transactions on the Ripple payment system – created by Britto and McCaleb as an alternative to the main money transfer network. SWIFT money.

Note: Investing in cryptocurrencies is not for everyone. Cryptocurrencies are given to volatile price fluctuations. The UK’s financial watchdog, the Financial Conduct Authority (FCA), issues regular warnings about the crypto industry.

The FCA reminds future traders that crypto assets are unregulated and high risk. He says this means people are “very unlikely to have protection if things go wrong, so people should be prepared to lose all their money if they choose to invest in them”.

How to buy XRP in 4 steps

1. Choose a crypto exchange or broker

Both a crypto exchange and a crypto broker can help you buy XRP, but the two are slightly different.

An exchange is a platform where buyers and sellers can trade cryptocurrencies. A broker is an interface that interacts with exchanges on your behalf.

Some exchanges only deal in crypto, so if you’re new to investing and need to use fiat currency (sterling in the UK) to buy crypto, be sure to choose an exchange that accept it.

If you choose a broker instead, be aware of their rules regarding transferring your assets out of a brokerage platform, as some brokers do not allow you to transfer your holdings out of your account. If you wanted to store your XRP in a crypto wallet for added security, that wouldn’t be possible.

The FCA has a list of registered crypto asset companies here

2. Choose a payment method

Most exchanges allow you to add funds to your account from your credit or debit card, bank account, crypto wallet, or other payment service. Transaction fees may apply and your payment method may affect the amount you pay.

Use a credit card and the card issuer will treat it as a cash advance, which will be subject to a higher interest rate than a normal purchase.

3. Buy your XRP

In the exchange you have chosen, search for the currency XRP and enter the amount you want to invest.

4. Select secure storage

Unlike a bank account holding fiat currency, cryptocurrencies like XRP are not protected by the Financial Services Compensation Scheme (FSCS). This means that you would not be entitled to a refund if your XRP was stolen, if you lost your access codes or if the exchange or broker went bankrupt.

A broker may not give you a choice of where your XRP is stored, but while an exchange may provide an integrated crypto wallet, you are free to store it in wallets elsewhere – whether they are “hot”. or “cold”.

Hot wallets are stored online, which makes them more convenient but also more exposed to hackers.

Cold wallets are external storage devices such as hard drives or solid-state drives. They are arguably more secure, but if you were to lose your own access codes, you may never be able to access your assets.

Whichever you choose, you may be charged a fee for exporting your XRP to an external wallet.

Alternative ways to invest in XRP

Buying shares in an organization that uses or owns cryptocurrencies and the blockchain that powers them is another way to invest in cryptocurrency. If the company is subject to regulatory review, you may think this is a safer way to invest.

Nvidia (NVDA), for example, is a manufacturer of graphics processing units used by cryptocurrency miners. Paypal (PYPL), on the other hand, allows users to buy and sell certain cryptocurrencies.

To note: Nvidia and Paypal are used for illustrative purposes and are not recommendations.

Investing in publicly traded companies does not guarantee that you will make any money or even get your investment back. You will need an online investment platform to get started.