To many, cryptocurrency investing seems limited to Bitcoin (BTC) and Ethereum (ETH). These two are indeed the most well-known cryptocurrencies and control market capitalization. However, the crypto market has almost 2,000 options that can benefit those who like portfolio diversification. Ripple’s XRP is one of the market’s heavily traded coins. This article delves into XRP, which type of coin it is, how it works, and more.
XRP Coin
Table of Contents
What Is XRP?
XRP is a cryptocurrency created by Ripple Labs, described as a “digital asset built for global payments,” used for real-time gross-settlement system, remittance, and currency exchange. It’s important to differentiate XRP and Ripple because people confuse and use them interchangeably. Ripple is the company that invented XRP, while XRP is the native cryptocurrency on Ripple’s XRP Ledger. You can buy XRP as crypto, an investment, or payment remittance systems like SWIFT or PayPal through the ledger. You can have XRP in Canada and send it as Euros or Pounds to the receiver. By using online conversion tools, you can easily determine how much XRP is worth, say for converstion from XRP to AUD (Australian Dollar). Today, XRP is the seventh most popular cryptocurrency and the third-largest coin in total market capitalization.
How XRP Is Different from Other Cryptocurrencies
XRP is unique and operates differently from other cryptocurrencies. Other cryptos are decentralized for the people by making their ledgers and verifications open to anyone who can solve them.
XRP uses a centralized system. Anyone can download the validation software, but the company maintains unique node lists. Users can use this list to select and verify their transactions after viewing profiles and settling on the participants who’re least likely to defraud them. Ripple developed XRP to help individuals, companies, financial institutions, banks, and others move money quickly across the border or around the globe at less cost.
How Does XRP Work?
XRP is centralized, meaning that the company can monitor transactions making it secure, and the user can select and validate participants who are less likely to defraud. As the XRP system generates new transactions, the ledger validators are updated every three to five seconds. This helps to ensure that they are legitimate and match the other ledgers. If a mismatch occurs, the validators stop to find out the problem, and for the transaction to be verified, it must be accepted by the majority of the validators. This is why the network is considered the safest mode of money transfer because it can efficiently, and securely validate transactions.
An average XRP transaction takes less than five minutes at the cost of 0.00001 XRP. This is why it’s often described as a crypto service for international security exchange and money transfers and a network for banks and financial intermediaries. The technology used in XRP mining also uses less energy than other Crypto coins.
How to Buy XRP
You can buy XRP coins with other cryptos in an exchange that supports it or use fiat currency. Most exchanges that list XRP don’t operate in the U.S. because of the investigation of the ongoing SEC (security and exchange commission). However, you can buy XRP in Canada on exchanges such as eToro, Binance, Netcoins, Kraken, etc.
Finally
XRP is the world’s solution to secure the transfer of large amounts of money and currency exchange. It can be used like any other digital currency for investment, transactions, and exchange currencies. It is fast, secure, reliable, uses low fees, and available all over the globe.
