How To Buy XRP

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rated by a trio of engineers in 2012, XRP is a cryptocurrency that runs on the XRP Ledger blockchain.

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Co-founders Jed McCalebm, Arthur Britto and David Schwartz created the cryptocurrency for use on their money transfer network, Ripple. XRP can also be bought as an investment or to buy other cryptocurrencies through an exchange.

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Here we explore the process of buying XRP, along with alternative ways to invest in the cryptocurrency.

Remember that cryptocurrencies are speculative investments where all your capital is at risk, meaning you might lose all your money.

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As most cryptoassets are not specified investments under the Financial Services and Markets Act 2000 (FSMA), it is unlikely that you will be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.

Sign up to a crypto exchange or broker

You can buy XRP through a crypto exchange, or a crypto broker.

Crypto exchange platforms allow buyers and sellers to trade different cryptocurrencies directly, whereas a broker will interact with an exchange to acquire cryptocurrencies on your behalf before selling them on to you.

When choosing a crypto exchange, remember that some will only deal in cryptocurrencies. If you have not purchased cryptocurrencies before, you will need to choose an exchange that accepts fiat currency (such as Sterling).

If you opt for a broker, check its rules regarding coin storage. Some brokers won’t let you move cryptocurrencies out of your account. In practice, this gives you less control over where your XRP is stored.

The FCA has a list of registered cryptoasset companies to consider.

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Decide how you’ll pay for your XRP

Once you have signed up to a crypto exchange, the next step is to fund your account. Most platforms allow you to do this via bank transfer or debit card, or from a crypto wallet.

It is not recommended to use debt to fund cryptocurrency purchases, for example by using a credit card.

You might be charged transaction fees for funding the account, which can vary by payment method.

Place an order for your XRP

Open your chosen crypto exchange and navigate to the XRP currency. If you have trouble finding it, you can usually use a search bar function.

Next, enter the amount you want to invest and follow the exchange’s prompts to complete your purchase.

Store your XRP safely

Cryptocurrencies are not protected by the Financial Services Compensation Scheme, unlike fiat currency held in bank accounts.

Once you have purchased your XRP, it’s up to you to store it securely.

If your XRP gets stolen, your account access details are lost, or the exchange you used went bust, you would lose all your holdings without being entitled to any compensation.

If you invest in XRP through a broker, you may not have a say in where it is stored. With a crypto exchange, on the other hand, you can choose to move your holdings elsewhere (although many offer integrated online wallets.) Some exchanges will charge you a fee to do this.

When selecting a crypto wallet, you have two options. ‘Hot’ wallets (like those offered by exchanges) hold your assets online. This can be more convenient, but your coins are also more exposed to hackers.

‘Cold’ wallets store coins offline. They take the form of hard drives or solid state drives, separate from your computer. Although cold wallets offer better security, you may lose access to your assets permanently if your access codes go missing.

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Buy 70+ crypto assets with a fixed & transparent 1% fee on a highly secure platform.

Join 25M Users

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Credit: www.standard.co.uk /

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