Trade Ripple to BTC on Beaxy

XRP is the base currency for the XRP Ledger, an open-source cryptographic ledger powered by a peer-to-peer network of nodes. XRP was built for speed and cost-effectiveness so that it may serve as a viable alternative to SWIFT, which currently manages the movement of approximately $5 trillion per day. A year later, Chris Larsen, Arthur Britto, and David Schwartz joined McCaleb’s team. After a meeting with McCaleb and Fugger’s respective teams, the projects were merged under the name Opencoin. The company was rebranded as Ripple Labs in 2013. Later on, in 2013, Ripple officially launched XRP, the digital asset that would serve as the base currency of the XRP Ledger. The launch of XRP created 100 billion tokens with 80% being held in reserve for Ripple Labs and the remaining 20% were divided amongst the founders. Throughout 2013, the company would go on to raise more than $7.5 million from venture capital firms located in the United States. Once XRP began to circulate, the company began focusing on persuading financial institutions to adopt XRP for the customer and internal remittances. Currently, XRP is used by institutions and private individuals seeking on-demand liquidity through Ripple’s xRapid product.

Ripple Lab’s xCurrent, a platform that connects participants on the Ripple ledger, is a technological innovation that the native asset, XRP, benefits from. The four components of the xCurrent system are: Messanger This is an API-based messaging platform that connects banks to various third-parties. This makes it easier and safer for sensitive data like KYC information to quickly move from one party to another with less risk of the data being decrypted. Validator The validator uses cryptography to validate that payments on the network for legitimate and processed successfully. The validator also mitigates settlement risk and facilitates the transfer of value through all transacting parties. ILP Ledger This is a sub-ledger that records and stores transactions for a particular entirety instead of the entire network. This feature of xCurrent tracks payments across all channels for a specific entity. Fx Ticker This component enables liquidity providers on the network to attach fx rates to their messages and transactions. The FX ticket providers exchange rates for every currency being used within a sub-ledger.

Ripple Labs decided that XRP would run on a centralized blockchain protocol when the digital currency was developed. Due to this, XRP coins can not be mined. The maximum supply of XRP has already been created and nearly half of it is currently locked out of the circulating supply.
Despite the absence of mining for XRP, you can still acquire it by purchasing the digital currency on an exchange. To do this, you will need to sign up for an account on an exchange such as Beaxy. Once you have a verified wallet on the exchange, you can fund your account with your bank account, credit card, or other digital currencies that you own. After you have funded your account on Beaxy, you can buy or sell XRP and securely store it in the wallet provided to you on the exchange.

Investment Risk XRP carries an investment risk that isn’t typically present in other digital currency. This is because XRP is a centralized protocol. Ripple Labs, the creator of the XRP cryptocurrency, is in control of the asset and sells the assets in scheduled allotments. This has a tendency to cause the price to drop for a short or medium-term period. Beyond that, XRP is a volatile asset that has traded for as low as $ 0.002 and as high as $3.84. Security Risk XRP has security risks that are more complicated than that of other asset classes such as stocks or real estate. It is important to reduce your attack surface as much as possible. You can do so by holding your XRP in a wallet that is not connected to the internet. This requires a hacker to get your private key before they could gain access to your wallet. When using a wallet that is connected to the internet, a hacker may only need your password to a website in order to steal your XRP. When using an offline wallet with a properly recorded and stored private key, you have significantly reduced your attack surface. Regulatory Risk XRP has heightened regulatory risks compared to other cryptocurrencies. Similar to the investment risk, XRP carries additional; regulatory risk because it is controlled by an established corporation that frequently sells the asset to fund their future developments. This leaves some liability for XRP as it has the potential to be deemed a security. In the event that it happened regulations and additional legislation surrounding the asset would be expected. If there were particularly harsh rules applied to XRP there would be significant potential for the digital asset and protocol to lose value.