Some of the best altcoins I hold are $KMD. Now I look at the prospects of new currencies like $XRP and $RIPPLE, which offer their holders the ability to live in government-recognized ecozones.
XRP is currently the sixth-largest cryptocurrency in market size. However, it may be difficult to purchase this native currency from Ripple’s blockchain network.
As of early 2021, XRP will no longer be available for purchase on most U.S. central exchanges. Ripple Labs, a company whose history is cross over with XRP, has been embroiled in a protracted dispute with the Securities and Exchange Commission (SEC) since December 2020, and XRP holders and anyone who wants to trade XRP will have to wait until a court ruling. The case revolves around the SEC’s classification of XRP as a security, which contradicts Ripple’s statements that XRP is money, not a securities.
In response to a comment request, theSEC said it “does not comment beyond public filings.” In an emailed statement, Ripple acknowledged that the lawsuit “has made it significantly more difficult for U.S. citizens to gain access to or use XRP/Ripple.”
Raj Varghese, a 29-year-old risk analysis expert who purchased XRP in 2017, knows the scene right after purchasing the cryptocurrency. “I assumed it would have a bigger foothold than bitcoin,” he says. Instead, Varghese bought about 5,000 XRP coins worth less than $1. His strategy was to buy his cryptocurrency and hold it long-term.
However, Varghese began receiving warnings from the exchange where he bought and stored his XRP that it would prohibit U.S.-based investors from accessing his XRP while the company was under investigation by the SEC. “They were giving me this notice saying, ‘As of this date, you no longer have access to this account,'” Varghese said. “I finally tried to log in, and it said, ‘Yes, you can’t, we can’t manage this account.'”
Varghese ended up transferring his XRP to another exchange. Although he is still unable to buy more XRP, his account is not blocked as it was with the previous deal.
You may have to figure out the restrictions on buying XRP on the central exchanges. In addition, experts advise new investors to exercise extreme caution and be wary of purchasing altcoins like XRP, as they are much more volatile than more established cryptocurrencies like Bitcoin and Ether.
However, if you are looking to invest in lesser-known cryptocurrencies, there are a few factors you may want to consider when evaluating their long-term investment potential. These include prices, market capitalization, use cases and even who launched a particular coin.
If you’re interested in buying XRP, these are your alternatives.
What exactly is XRP?
XRP was founded in 2012 by three developers who wanted to improve the sustainability and mining process of Bitcoin. The network code was previously known as Ripple, and the coin was known as XRP Ledger. The inventors eventually helped found Ripple Labs, endowed with 80 billion XRP.
Ripple is a decentralized, created, open-source alternative to sending money through the existing banking system, typically charging several processing fees for each transaction. But, according to Ripple’s website, you can transfer XRP from one digital wallet to another in 3 to 5 seconds and for a pittance.
Tip
You cannot purchase XRP on most U.S. cryptocurrency exchanges but can be stored in an untrusted wallet such as Exodus or MetaMask.
How to buy XRP
Most U.S. cryptocurrency exchanges do not support XRP. If the SEC’s lawsuit establishes that XRP is a currency and not a security, that will change. However, if the SEC gets its way, you may have to buy XRP outside the country.
Here are some things you may take right now to obtain it.
Discover a cryptocurrency exchange.
You won’t be able to buy XRP on major prominent exchanges like Coinbase, Gemini or eToro until you get over some technical hurdles. However, you can still find it on more esoteric exchanges like Uphold, or you can buy it outside the United States or on a decentralized exchange. According to experts, it is usually advisable for investors to stick to the more significant exchanges. So, before purchasing on a lesser-known exchange, do your homework and proceed with caution.
Solutions for buying XRP with U.S. dollars.
While buying XRP in the United States is challenging, it is technically possible with U.S. dollars (USD).
CoinMarketCap shows which exchanges allow you to exchange USD (as well as other fiat currencies or cryptocurrencies) for XRP, but note that you can’t buy XRP on all U.S. exchanges.
Here’s how to get there:
Use the search bar to search for XRP (in desktop view).
Click the “Marketplace” option at the top of the price chart.
Here is a comprehensive list of exchanges and websites where you can buy XRP.
Notice the ticker symbol for XRP and a second form of the currency in the “Pairs” column. These are the only ways to buy XRP. So, first, search for XRP/USD to buy XRP with the U.S. dollar. Then, look for XRP/USDT to buy XRP with Tether.
Note that even if you use USD, you may have to transact outside the U.S. to buy XRP. Bitstamp, for example, is on CoinMarketCap’s list of places to buy XRP. However, Bitstamp’s website says, “Not accessible in the U.S.”
You may be able to exchange some cryptocurrencies for XRP using an unregulated, decentralized exchange (DEX) such as Pancake Swap. But a word of caution: DEXs and decentralized finance (Defi) generally have no safeguards and require sophisticated knowledge of trading principles such as borrowing, betting and pooling.
Most new cryptocurrency investors would do well to wait until the outcome of this case is known. Then, they may have an easier time once things settle down and XRP becomes easier to acquire and a safer investment overall.
How to keep your XRP safe
You can store your XRP with centralized exchanges like Coinbase, but you won’t be able to use it if you’re in the United States. If you do manage to get XRP, or if you already have it, try storing it in a warm or cold cryptocurrency, which will make it less vulnerable to hacks.
What are the options for XRP?
XRP was created as a bridge currency to connect financial institutions such as banks, payment providers and digital asset exchanges to enable real-time transaction processing and reduce costs.
“The core value proposition [of XRP] is that you can do many, many, many transactions at a very, very low cost,” explains Jonathan Angle, a professor at YieldFarming.com, a Defi school.
However, XRP’s speed and efficiency are essential for organizations and platforms in the financial services sector. Every day, investors may want to buy XRP because they believe it will become more popular and lucrative. In contrast to Ethereum and other smart contract blockchains, XRP is a cryptocurrency that is not used for non-fungible tokens (NFTs), gaming, metaverse purchases or other fun applications. Owning XRP does not have the same applications as holding ETH.
The best wallets to store XRP
Most experts recommend using a self-storage wallet to store large amounts of cryptocurrencies for a more extended period. This is because storing cryptocurrencies in self-storage wallets is safer than storing them on a public exchange. So, for example, if you intend to keep your XRP for a long time, you should consider transferring it to a self-storage wallet.
Self-service wallets use private keys to access your digital assets securely. Each private key is linked to a public key that acts as a digital address through which cryptocurrencies can be sent or received. They also have a unique seed phrase that you can use to unlock or sync your wallet with new devices or recover your password if necessary.
Exodus and MetaMask are two examples of self-storage wallets, according to Angle. “You can use their software to generate a blockchain address,” he said. “You write down your word seed and keep it secure and confidential,” he continued.
Is XRP a good investment?
While XRP looks promising for the financial services sector, individuals are unlikely to benefit significantly.
For starters, Ripple’s speed could come at the expense of security. “There’s a trade-off,” Angle explains. “There are far fewer validators on the network.
With fewer validators, there are also fewer computers to verify and process the accuracy of transactions. And if only half of the validators are compromised, they can easily take over your cryptocurrency. Since hackers would have to break into more computers, there would be a more significant security layer if more validators were on a network.
But is XRP worth investing in? “It seems that a lot of the new entrants into the cryptocurrency sector are very interested in Ripple,” Angle adds. “They have great marketing appeal… But unfortunately, due to the lack of practical smart contracts [such as Ethereum], there are not the same types of applications or the same potential. “Most of my colleagues and clients are not overly interested in [XRP].”
Experts advise investing no more than 5% of your portfolio in cryptocurrencies and never investing money you can’t afford to lose. This is especially true for cryptocurrencies. When you embark on the cryptocurrency adventure, make sure you have a good emergency fund, have paid off all high-interest debts and have a stable retirement fund.
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