XRP is a popular asset among cryptocurrency investors due to its use for cross-border payments and transfers between banks. Traditional bank transfers can take up to five days to complete and carry substantial costs. To improve the movement of value between borders and banks, Ripple labs issued XRP so that these transfers could happen instantly and with near-zero fees. Investors that are bullish on the future of XRP note that the digital asset may be able to take market share from SWIFT, which manages approximately $5 trillion in transfers every day.
How to Choose a Ripple Wallet?
An easy way to store your cryptocurrency is directly on the exchange you purchase it on. If you properly secure your account with a strong password, 2-factor authentication, and other advanced measures like withdrawal limits and IP whitelisting, this will likely be the best route for you. At Beaxy we have even greater protection in the form of third party institutional grade custody, which ensures your funds are truly safe. However, having your cryptocurrency in online exchange wallets on other exchanges may subject you to additional risk. A secure way to separate it for much more control, ownership, and access would be to put it in an offline wallet, or another digital wallet of your choosing.
There are a lot of Ripple wallet services, each with their different pros and cons. There are two main types of wallets to store your Ripple (XRP). Those are software and hardware wallets.
- Software Wallets
Software wallets are the most common storage service and are connected directly to the internet (hence the name software). The benefit of these types of wallets is that they can be accessed as long as there is an internet connection. However, they aren’t the most secure as they can still be attacked by hackers, even if you use secure passwords and 2FA.
- Hardware Wallets
Hardware wallets are the more expensive (software wallets are often free) yet most secure storage option. These wallets are physical storage devices that can keep your XRP safe offline, away from all manner of cyber-attacks. There are some that feature a recovery procedure that can recover lost funds should it get damaged, lost, or stolen.
Why you should Buy, Sell and Exchange Ripple (XRP)
Ripple (XRP) nowadays is bought and sold by millions of users and entities over numerous exchange platforms. It’s primary stated use case providing liquidity for banks that facilitate cross-border transfers and remittances. Reasons often given in support of XRP include:
- Transaction fees
Ripple allows for low cost payments and transactions, among the lowest fees of any cryptocurrency network. This is often cited as a point of importance, given their frequent comparisons to large payment networks like Visa, Mastercard, and Paypal.
- Transactions are lightning-fast
Ripple (XRP), being supported and facilitated by cutting-edge technology, allows itself for lightning-fast transaction speeds. With an average transaction time of just four seconds, it out-sped the average time of one hour for Bitcoin and one to two business days for most banks.
- It is accepted and recognized by many banks
For larger net worth clients, including many banks globally, XRP and the Ripple payments network are used to facilitate transfers of funds. This means that investors, traders, banks, and companies looking to move funds around the world may use XRP to do so. Given the speed and low fees mentioned above, this can make XRP and the Ripple payments network a good way to move large amounts of cash.