As bitcoin grows more and more widely and is known to everyone, even to those who are not familiar with the world of the stock market, there is another virtual currency that is gradually establishing itself: Ripple. Considered the third largest cryptocurrency on the market today, Ripple is slowly starting to overshadow its competitors. Zoom on this virtual currency and its few characteristics.
What is Ripple?
Founded in 2012, in San Francisco, the Ripple company has implemented a cryptocurrency called XRP whose logo represents an X surrounded by a purple, blue and turquoise green circle. Although very often thought of as the name of a virtual currency, Ripple is actually the name of the company that created XRP, which is now available in all of the major financial markets. Like any other cryptocurrency, XRP aims to provide secure and fast financial transactions through blockchain. This virtual currency is similar to tokens, the price of which varies constantly according to supply and demand. Like its main competitors, bitcoin and Ethereum, it is possible to buy Ripple and sell it in different international markets.
Creator of the Ripple payment protocol, the American company wishes, in the long term, to be able to replace the SWIFT protocol, which allows funds to be transferred from one country to another in a completely secure manner.
The SWIFT protocol being particularly slow (it can take up to several days of processing), Ripple relies on its speed to take precedence over its competitor. Today, the Ripple company works with more than 70 international banks, including Le Crédit Agricole, American Express and the BBVA.
How does it work ?
With Ripple, it is possible to send money to anyone, all over the world. The various intermediaries in this transaction then do all the conversion work, from one currency to another. For example, if you send an amount in euros to someone who resides in America, they will receive the dollar equivalent thanks to the work of two different intermediaries. The first intermediary is responsible for converting your euros into XRP cryptocurrency, then the second will convert this amount of XRP into dollars in order to transmit them to your final recipient.
Please note, the Ripple network includes two taxes that should be taken into account before any operation. The first is a transaction tax which serves to protect the network from false financial transactions. This tax is variable and is voted by the validators of the network.
Finally, the gateway tax is 1% and is implemented to manage conversions between real currency and XRP.
Ripple in a few figures
Although slightly inferior to bitcoin, Ripple is one of the most popular virtual currencies in the world! Today, the total number of existing tokens stands at over 99 billion of which 40 billion are currently in circulation. The parent company owns “only” six billion of these tokens.
On the other hand, Ripple supports a total of around 1,500 transactions per second, where Bitcoin only supports six and Ethereum fifteen. With the most remarkable speed of execution, the transaction time of Ripple does not generally exceed five seconds when that of bitcoin approaches an hour!
How to buy Ripple?
Now, it is possible to buy Ripple on the vast majority of investment platforms, against dollars or euros. However, it is also possible to obtain it by exchanging other tokens or virtual currencies such as bitcoin or Ethereum. There are two purchase options available to you:
- On the one hand, you can make your purchase via a bank transfer, your credit card or through the online payment platform PayPal.
- On the other hand, you can also buy bitcoin before transferring it to exchange platforms to turn it into XRP.
As with all other virtual currencies, it is advisable to buy Ripple on well-known and perfectly secure sites such as eToro, Coinbase or Binance.
How to store Ripple?
For storage conditions, the Ripple is no exception. Thus, it is possible to keep it in any crypto wallet, like all other virtual currencies. Some like the Ledger Nano or the Trezor safe are particularly recommended. These famous wallets, also called “wallets” allow those who use them to store the cryptocurrencies obtained there. They can be compared to safes since they allow your investments to stay warm, safe, while waiting to be used.
Most of the time, these wallets take the form of software, mobile applications or carefully encrypted files. In any case, these wallets all have a password or a secret key, which only the user should know and use.
Even though you have a wide variety of apps designed for this purpose available to you, you can opt for the official Ripple wallet. To do this, go to the Gatehub site and create an account.
What are the advantages of Ripple?
Like all cryptocurrencies, Ripple has many different advantages. Among them is the speed of transactions, an area in which the company is brilliantly illustrated. Indeed, compared to bitcoin, whose transaction time can sometimes go beyond an hour, Ripple records very fast transactions, of the order of 2 to 5 seconds only! All this, without counting the possibility of making approximately 1,500 transactions per second.
On the other hand, in addition to offering international fund transfers with very little cost, the Ripple company has a very high number of partnerships, especially with some of the largest banks in the world.
What are its disadvantages of Ripple?
Finally, among the few drawbacks of Ripple, we can note the high volatility of XRP for the banking sector and a relatively high centralization. On the other hand, it is not possible to mine XRP, so interim accounts must be constantly pre-populated with currency conversion forecasts.
Finally, Ripple records too large a difference between the total number of existing tokens and those in circulation on the market. A gap that could make this cryptocurrency lose value in no time …