Ripple (XRP) is a  digital payment system and currency exchange network that can process transactions worldwide. It’s a global payments network, with major banks and financial services as its customers. The idea behind Ripple is to serve as a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers.

Ripple operates on an open-source and peer-to-peer decentralized platform that allows seamless money transfer for various fiat currencies, cryptocurrencies, and even commodities like gold.

XRP is the native token that runs on the XRP Ledger, an open-source, permissionless, decentralized blockchain technology that can settle transactions in 3-5 seconds. XRP can be sent directly without third parties, making it an intermediate mechanism of exchange between two currencies or networks—a temporary settlement layer denomination.

Read on to learn everything you need to know about XRP Ripple and how to purchase XRP in a few simple steps.

Let’s jump right in!

What Is XRP (Ripple)

Ripple is a payments settlement system and currency exchange network designed to become a replacement for SWIFT and facilitate exchanges for a variety of fiat currencies, cryptocurrencies, and even commodities like gold. The network deducts a minimal amount of XRP as a fee to conduct transactions on Ripple.

XRP is the native coin of the XRP Ledger, used to facilitate transactions on the network. You can buy XRP as an investment or as a way to finance transactions on the Ripple network.

XRP Founders

Web developer Ryan Fugger developed Ripplepay, the forerunner to Ripple, in 2004. Fugger aimed to build a decentralized financial system that offered communities safe and secure online payment solutions. Jed McCaleb, David Schwartz, and Arthur Britto,  three software developers, decided to create a more sustainable system for sending value without Bitcoin’s high energy consumption and scalability issues. In 2012, they developed a distributed ledger that improved upon these fundamental limitations of Bitcoin, initially naming the code Ripple. The ledger included a digital asset that would initially be called “ripples” (XRP as the currency code). Ripple stood for the open-source project, the unique consensus ledger (Ripple Consensus Ledger), transaction protocol (Ripple Transaction Protocol or RTXP), the network (Ripple network), and the digital asset (known as “ripples”).

80% of the XRP was gifted to NewCoin, soon renamed OpenCoin, and rebranded as Ripple Labs or “Ripple.”

Founded in 2020, the XRPL Foundation is an independent and nonprofit entity with a mission to accelerate the development and adoption of the decentralized XRP Ledger. The Foundation received an initial donation of over $6.5M from Coil, Ripple, and Gatehub

Today, Ripple has created a use case leveraging the XRP Ledger and XRP for liquidity management in its cross-border payments business. The RippleNet payment platform is a real-time gross settlement (RTGS) system that enables instant monetary transactions globally.

RippleNet’s ledger is maintained by the global XRP Community, with Ripple, the company as an active member.

How Does XRP Work

Ripple funds the Interledger Protocol, a software platform that facilitates transactions between cryptocurrencies and bank ledgers. XRP also leverages RippleX, allowing developers and entrepreneurs to integrate blockchain technology into their applications with tools and services built on top of the XRP Ledger.

The Ripple network does not run with a proof-of-work system like Bitcoin or a proof-of-stake mechanism like Ethereum 2.0. Instead, it employs a system known as the XRP Ledger Consensus to protect and validate transactions on the system. The consensus works to improve the integrity of the system by preventing double-spending.

Contrary to popular belief in the crypto community, XRP does not rely on any central body for enabling transactions. Its goal is to provide a seamless payment system affordable to all users. In so doing, it uses the Unique Node List (UNL), a decentralized network of validators.

The XRP Ledger is powered by a community of users (or validators) who must agree (create a consensus) to approve all transactions. Unlike other blockchains, however, these validators aren’t compensated so that their performance isn’t affected. Instead, the XRP Ledger is based on the assumption that if a corporation needs to utilize the blockchain, it’s in that company’s best interests to participate in the consensus process and engage honestly.

XRP allows for instant payments and cross-border settlements in as little as four seconds. In comparison, ETH takes 2 minutes to confirm a transaction, but BTC might take an hour or more. XRP can also handle 1,500 transactions per second, outperforming ETH, which can only handle 15 transactions per second.

RippleNet Offers Three Noteworthy Products:

xRapid — offers on-demand liquidity and ensures that transactions like swaps and transfers are readily handled using XRPs kept in escrow accounts.

xCurrent — allows financial institutions to make seamless cross-border payments. It also provides the same institutions with a communication channel to transmit messages and confirm transactions from end to end.

xVia – a simple payment interface that allows institutions to transmit payments, generate invoices, and track deliveries internationally.

Every transaction on the XRP Ledger requires the use of the XRP coin. XRP is destroyed after each transaction.

What Is Ripple Protocol Consensus Algorithm (RPCA)

Ripple XRP page
Ripple XRP page

Ripple uses its consensus mechanism, the Ripple Protocol Consensus Algorithm (RPCA), to confirm transactions. Ripple transactions are faster, use less energy, and cost less than Bitcoin or Ethereum transactions because they avoid the Proof-of-Work energy-intensive mining. However, some believe that XRP’s centralized architecture renders the network less secure, censorship-resistant, and permissionless than open-source blockchain networks.

XRP Supply and Tokenomics

The total supply of XRP is limited to 100 billion, which were pre-mined at launch and released gradually into the market by its main investors. As of February 2022, XRP has a circulating supply of 47.8 billion and a market cap of $33.19 billion.


Upon its formation, Ripple deposited a certain number of XRP coins into escrow accounts to be released at predetermined intervals to ensure that market supply was predictable. Ripple started with 55% of the entire supply; even though Ripple launched with 55 billion XRP, 1 billion fresh XRP are released each month.

Any unused quantities of the 1 billion XRP distributed each month are returned to escrow and re-released in the first month without fresh XRP releases.


XRP is a deflationary currency, and every transaction on the XRP Ledger is subject to a modest charge (to prevent spam attacks). Each XRP transaction has a minimum cost of 0.00001 XRP (also known as 10 drops, or a fraction of a cent). Certain transactions, such as multi-signature or escrow transactions, will incur higher costs. The fees, and hence the burn rate, can be changed by the agreement at any moment. Although designed to be deflationary, the circulating supply of XRP will continue to grow as Ripple releases XRP from its escrow accounts.

XRP Price

XRP Price on CoinStats
XRP Price on CoinStats

The XRP price (like that of many other cryptocurrencies) has been highly volatile throughout the coin’s lifetime. Ripple, which had been trading at a fraction of a penny for several years, surged to over $3 between December 2017 and January 2018. This increase was proportionate with the 2017-2018 highs in Bitcoin and Ethereum, which piqued the curiosity of many investors in cryptocurrencies for the first time.

However, Ripple quickly plummeted, following Bitcoin. For much of 2018, the XRP price dropped below $0.50 per token, and by the start of 2020, the coin was only worth $0.19. Despite this, Ripple has continuously been the third most valued cryptocurrency, after Bitcoin and Ethereum.

When the COVID-19 epidemic struck, XRP plunged to a multi-year low of less than $0.14 per coin. By August, the price had recovered to $0.30 and had stayed reasonably steady for the rest of the year. The currency’s value quadrupled to $0.65 per coin in November 2020. However, the positive momentum was halted by the SEC’s claims that Ripple had failed to register XRP as a security. XRP plummeted below $0.22 per token before rebounding in February 2021. Ripple soared to $1.81 per coin after Elon Musk reignited interest in cryptocurrencies in April. XRP price was $0.83 at the beginning of 2022.

How to Buy XRP

Follow these easy steps to buy XRP coins:

  1. Find a Cryptocurrency Exchange That Allows You to Buy or Sell XRP
  2. Create an Account
  3. Fund Your Account
  4. Make a Purchase
  5. Purchase a Wallet (Optional).

Let’s look into each step below:

Step #1: Find the Best Exchange to Buy Ripple

Despite XRP’s widespread popularity, few exchanges support XRP due to its legal struggle with the SEC. Most exchanges delisted XRP and banned trading XRP, including Coinbase, one of the major cryptocurrency exchanges.

Although XRP is embroiled in a legal struggle, buying Ripple in many countries worldwide is still legal. Furthermore, there are a handful of trustworthy cryptocurrency exchanges where you can buy XRP.

The best platform to buy XRP is ideally an exchange that offers low fees, top-tier trading features, and an integrated XRP wallet. You should also seek a Ripple broker who supports several payment methods.

Now, let’s examine the three best cryptocurrency exchanges that support XRP trading.

1. eToro – Best Place to Buy XRP

eToro is one of the world’s most popular financial service platforms. The service is well-liked for supporting thousands of assets across multiple categories. You can purchase DeFi currencies like AAVE and major crypto-assets like Bitcoin, Ethereum, and Ripple (XRP).

The exchange offers many advantages to users, including commission-free trading, a rapid account opening procedure, and an Imitate Trading tool allowing you to copy the moves of some of the best traders. However, eToro only offers one base currency and imposes a $10 inactivity fee after a year of inactivity.

Few cryptocurrency exchanges can compete with eToro in terms of costs. You can purchase XRP tokens without paying any fee. The broker will charge you a 0.5% Forex fee when you make a deposit. Depositing and withdrawing funds is quite simple. The portal accepts PayPal, Neteller, and debit cards as payment methods.

2. Huobi – Secured Crypto Exchange to Buy XRP

Huobi was established in 2013, soon after Ripple. Since then, it has become a well-known household brand in the crypto world. Huobi – also known as Huobi Global – hasn’t been hacked or experienced any other security concerns. As of 2022, Huobi is assisting and advising Bitmart, a small cryptocurrency exchange, to help them strengthen their security measures.

Huobi supports both spot and margin trading and provides up to 200x leverage on some assets, which is more than other XRP trading platforms. It features a free in-house crypto trading robot using the unique ‘grid trading’ technique. The current backtested 7-day yearly yield is 44%, and the ROI performance data is updated weekly. Huobi also provides high-yield crypto staking with up to 50% APY on several assets, crypto loans, and a welcome bonus.

3. – Buy XRP Commission Free is a one-of-a-kind financial services platform. It focuses on contracts for difference (CFDs) – an agreement to pay the difference between the price of an asset today and the asset’s price at a later period when the contract expires. provides access to hundreds of cryptocurrencies, including crypto-to-crypto transactions, and supports fiat currencies such as the Hungarian forint and the Belarussian ruble. The fee structure of the service is also appealing – deposits and withdrawals are free. Swap deals are also highly competitive. However, has several drawbacks – the service has hidden costs, such as overnight fees applied to specific instruments and a $250 minimum deposit for bank transfers, which is a little steep.

Step #2: Create an Account

After you’ve decided on a reliable exchange, the next step is to open a trading account to buy or sell XRP. The requirements differ depending on the platform you pick. To comply with KYC (know your customer) standards and ensure the security of your account, personal information such as your name, contact number,  email address, home address, social security number, and a copy of your driver’s license, passport, or government-issued ID will be required in most transactions. You must provide this information to be authenticated and start trading.

Step #3: Fund Your Account

After verifying your account, you must deposit funds for buying XRP coins and other cryptocurrencies. You can use a credit or debit card, bank account, or crypto from a cryptocurrency wallet to buy XRP. The payment method you use to buy XRP coins will be determined by the platform, location, and preferences.

Popular payment options include:

  • Crypto deposits
  • Wire transfers
  • SWIFT transfers
  • Bank transfers
  • SEPA deposits

Step #4: Make a Purchase

You can buy XRP using fiat currency (USD, EUR, etc.) or another cryptocurrency. Most cryptocurrency exchanges provide instant deposits, enabling you to buy Ripple XRP tokens as soon as your funds arrive.

Choose XRP from the drop-down menu, input the amount you want to spend, and look for the XRP trading pair corresponding to the currency you wish to use, such as XRP/USD. Now, you’re ready to place your order.

You can also buy XRP from CoinStats by clicking the “Buy XRP” button, which will connect you to one of the supported exchanges.

Step #5: Purchase a Wallet (Optional)

You can retain your XRP tokens on the exchange of your choice. Investing in a hardware or software crypto wallet, on the other hand, boosts the security of your digital assets. In the event of a hack, your tokens will be safely kept in your crypto wallet.

Best XRP Wallet

Selecting an XRP wallet is another essential step after your XRP purchase. A Ripple wallet allows you to store XRP tokens safely.

SecuX W20

If you’re looking for a simple method to manage your cryptocurrency holdings on the go, consider investing in the SecuX W20. The SecuX W20 wallet is compatible with various cryptocurrencies, including Ripple,  Ethereum, Bitcoin, and any ERC-20 token. This wallet has a bright touch screen that lets you view and track your crypto holdings without connecting to a laptop or mobile device.

Ledger Nano X

The Ledger Nano X is one of the most popular cold storage alternatives on the market, offering a high degree of protection and customization for storing your funds. The Nano X is compatible with a wide range of currencies and apps and can store up to 100 of them on a single device.

The Nano X also has a Bluetooth connection to instantly access the Bitcoin market from your PC or mobile phone. Regular investors may find it easier to buy and sell coins without transferring them to their wallets.

Pros and Cons of Ripple XRP

Ripple differs from other cryptocurrencies in key aspects, so it’s essential to consider its advantages and disadvantages before making any investment decisions.


  • Interest/tentative adoption by financial institutions 
  • Fixed supply
  • Fast transactions
  • Low fees.


  • Corruptible validators
  • Centralized infrastructure, governance, and issuance
  • Unsupported by various exchanges.

Closing Thoughts

Ripple has sparked quite a bit of debate. Many banks in Japan and South Korea have collaborated with Ripple XRP in using blockchain to facilitate low-cost, efficient cross-border transactions.

The future of XRP is now unknown because of the ongoing lawsuit brought by the Securities and Exchange Commission against it. The claim is that they traded $1.3 billion in their cryptocurrency XRP as security without registering it with the SEC. If validated, Ripple has a good chance of attracting larger institutions over the next several years since it provides a rapid, scalable global payment network while lowering transaction fees. XRP holders can generate massive returns on their investments.

You may also visit our CoinStats blog to learn more about wallets, cryptocurrency exchanges, portfolio trackers, and tokens , such as How to Buy Compound and other cryptocurrencies.

Disclaimer: No part of the information we provide should be interpreted as financial advice, investment advice, legal advice, or any other type of advice on which you should depend for any reason. We provide quick and straightforward methods for you to purchase XRP instantly. We make every attempt to adequately inform our users about each cryptocurrency we provide on our website; nonetheless, we cannot be held liable for the outcomes of any Ripple purchase.