What is Ripple (XRP) Crypto Coin? A Beginners Guide to Ripple

Ripple (XRP) is a cryptocurrency that functions on the XRP Ledger, a blockchain designed to speed up network transactions. The XRP ledger was created by Jed McCaleb, Arthur Britto and David Schwartz. McCaleb and Britto would go on to found Ripple and use XRP to facilitate transactions on the network.  XRP operates in a number of ways:

• A form of investment
• A cryptocurrency to trade for other cryptocurrencies
• A means of funding transactions on the Ripple network

Notably, XRP’s blockchain functions a bit differently than that of many other cryptocurrencies.

What is Ripple XRP used for?

Like all digital currencies, XRP can be used for transactions and future investments. The Ripple network, which runs on XRP, uses a consensus protocol. The Ripple network can also carry out other trades, like currency exchanges.

XRP can be seen as a technology uniting banking and internet finance, allowing all parties to speak the same language. As a result, funds held in several banks or payment systems can be transferred to each other.

Can XRP be converted to cash?

The Ripple Network was created as a quick money transfer platform that dramatically enhanced digital money transfers. With rising market values and growing acceptance and popularity, Ripple has managed to survive and thrive.

Numerous banks now accept it, and its money has several valuable characteristics, such as,

• Instant confirmations
• A peer-to-peer decentralized platform
• Double-spending prevention

Consequently, it shouldn’t be challenging to convert your crypto to cash. If you meet all the prerequisites and follow the correct steps, you should be finished in a short time. That being said, coins can take a little while to appear on the exchange account.

There are several ways to trade XRP for cash, including selling it straight to an exchange that takes XRP deposits and receiving money in return.

Alternatively, you can convert it by exchanging XRP / USDT for another cryptocurrency. Then trade that cryptocurrency for cash on a platform that deals in that particular cryptocurrency, such as on AscendEX

Different exchanges are available in other alternatives, and these exchanges could need more procedures. Read on to the next step to learn more about selling Ripple for cash.

The Exchange Procedure

Register and create a profile. You must use your email to authenticate this account.

After this step, your account needs to be verified. You may be required to provide identification documents containing your name, nationality, and photo. These might include as a passport or national ID card, as well as documentation of your address. This verification is essential if you want to withdraw fiat currency.

Depositing XRP into the account wallet is your next step. Some businesses will charge a fee for this kind of business.

When you see fit you can sell the coins in your wallet and withdraw the money, but keep in mind that there can be charges involved.

Is XRP a good investment, and does it have a future?

XRP is an open-source cryptocurrency project to enhance the cross-border money transfer market.

XRP is an “old guard” member in the crypto sphere. Since 2012, it has been there. Few cryptocurrencies are capable of having a lifespan of ten years or longer, making XRP a fascinating long-term investment.

What gives XRP its worth?

The answer: XRP’s principal application. With the help of the XRP ledger, cross-border transactions may be carried out more cheaply and efficiently.

Financial transaction settlement is one of the most popular uses for cryptocurrencies. XRP’s design has led many to believe it is an excellent proxy for institutional interest in the crypto industry.

That being said, XRP has also received a good deal of criticism. The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in 2020. According to the SEC, Ripple executives participated in illicit securities trades.

That being said, investors are preparing to buy Ripple (XRP) and face the ensuing risk. The risk will be worthwhile if this Ripple wins this case. The expectation is that a resolution will be reached this year. Therefore, XRP may experience tremendous long-term growth if any positive news is revealed.

Note: This is not investment advice.

XRP vs. Ethereum

Even though both XRP and Ethereum are built on blockchain technology and have pretty distinct target markets, comparing them based on their TPS, Ripple has performed better because it is not only faster but also cheaper and has a far higher scaling capacity than Ethereum (ETH / USDT).

What’s the difference?

To facilitate cross-border payments, Ripple was developed as a real-time gross settlement system, currency exchange, and remittance network. On the other hand, Ethereum is an open-source, public blockchain-based platform for dApps.

What is Ethereum?

To securely execute and certify smart contract application code, Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network.

Smart contracts eliminate the requirement for a trustworthy central authority so that participants can transact with one another. Since transaction records are immutable, verifiable, and securely sent throughout the network, participants have complete ownership and visibility over transaction data.

Ethereum accounts can send and receive transactions. A sender must sign transactions with Ether, Ethereum’s native currency, as a cost of processing transactions on the network.

XRP vs. Bitcoin

The Ripple Network uses the coin XRP to represent value transfers. Unlike Bitcoin (BTC) , which creates new coins (up to a maximum number) as compensation for users who contribute processing power to keep the blockchain network running.

What’s the difference?

XRP is based on the privately owned Inter-Ledger Protocol, as opposed to the open infrastructure of Bitcoin, which is managed only by the general public (ILP).

XRP vs. XLM

XRP and XLM are two alternative coins that concentrate on controlling international trade. Most people without access to conventional financial services can buy Stellar (XLM). For those who conduct business with banks, there is XRP.

What’s the difference?

Since Stellar (XLM / USDT) is an open-source technology, anyone can use it. In contrast, XRP and Ripple need users to get permission before using it; thus, only banks and other financial institutions are permitted to utilize the blockchain.