These days, there are so many new cryptocurrency coins available that it can exist hard to go along rails of them all. From the heavy-hitters like Bitcoin to lower-priced coins like Ripple’south XRP, various cryptocurrency coins now make the headlines — and intrigue potential buyers — on a regular basis.
Near the finish of 2020, Ripple and its network cryptocurrency XRP began making waves due to legal battles with the U.S. Securities and Exchange Committee (SEC0, a federal regulatory agency “responsible for protecting investors, maintaining off-white and orderly functioning of the securities markets, and facilitating upper-case letter formation” (Investopedia). We’ll become yous caught up to speed on Ripple and XRP, delving into where you tin purchase them besides equally the legal issues surrounding the brand.
Ripple is not a cryptocurrency in itself, just a blockchain-based currency exchange and payment settlement organisation that was designed to be used worldwide. One of Ripple’south main selling points is that it makes it much cheaper and easier to exchange coin internationally.
By quickly facilitating and confirming transactions between two parties, Ripple makes it possible to send payments in under five seconds. This cuts out the demand for pre-funding, equally well every bit the lengthy settlement period that’due south usually required when transferring money between two financial institutions.
Ripple also cuts the costs of international transaction fees, by charging a standard fee of 0.00001 XRP coin. In other words, if one XRP is worth $1.59, the substitution fee would just be $0.0000159. Because information technology operates on blockchain engineering, Ripple also tends to be incredibly secure and transparent. Best of all, Ripple can handle the exchange of everything from Bitcoin to gold to fiat currencies and currently offers 40+ currency payout options.
What Is XRP?
XRP is the official cryptocurrency of Ripple and goes a long way in helping make currency exchange easier. Say, for instance, that you lot are currently in the United States and want to ship a payment of $200 to a friend in London. Traditionally, y'all would accept to worry near not only how to get your friend the money, just as well how to first exchange dollars for pounds.
And that’s where the XRP comes into play. If you chose to apply Ripple instead, you’d only buy $200 worth of XRP and transport them to your friend.
Upon receipt, your friend would then greenbacks in the XRP for their worth in pounds. As you lot can come across, this process eliminates the need to get through a third-party exchange. The ease of such transactions has attracted not only banks and other financial institutions, but as well companies who do business internationally. For instance, companies like Santander, Centrality Bank, and Yes Bank are already integrating Ripple into their payment structures.
How Is XRP Different From Bitcoin?
While Bitcoin and XRP are both cryptocurrencies, the similarities pretty much terminate there. Most notably, Ripple and XRP are centralized, unlike other cryptocurrencies, which grew to popularity based partially on their decentralized nature. Moreover, there are several other major differences yous should also exist aware of if you lot’re thinking of investing in XRP.
Unlike Bitcoin, which uses traditional blockchain mining methods, Ripple uses a consensus machinery that validates transactions via polls. While this can exist a little tricky to empathize, suffice to say that it makes confirmations much faster.
Another point to annotation is that XRP’s cap is much larger than Bitcoin’s. While XRP is capped at 100 billion, Bitcoin’s cap is 21 million. This means that while only 21 meg Bitcoins can ultimately be, in that location volition someday be billions of XRPs on the market. Bitcoin’s lower cap is part of what makes investors willing to pay and so much more than for information technology, while XRPs are more intended for everyday utilize and fiscal substitution.
As mentioned above, one of the other factors that sets XRP apart is that it doesn’t use mining to create and introduce new coins into the market in the aforementioned way that Bitcoin does. XRP coins are all pre-mined, which means that 100 billion tokens already exist in the XRP ledger. The idea is that these new coins volition exist released in a boring, periodic way into the system to forbid oversaturation.
The Ripple vs. SEC Fiasco
The problem began back in December of 2020 when the SEC declared that it was suing Ripple for raising over $1.3 billion through an “unregistered securities offering.” Basically, what it all comes down to is that the SEC claims that XRP is an investment security, while Ripple claims that information technology’s a currency. What’s the departure betwixt the two?
A security is something that represents value and can be exchanged for something of actual financial value. For instance, stocks, bonds, options, banknotes, and treasury notes are all securities.
Something that can be used every bit money.
While the divergence is a bit murky, whether XRP is indeed a security or a currency makes all the departure on a legal level. If it is a security, as the SEC claims, then XRP should have been abiding by a whole other set of regulations. Considering they were operating under the assumption that XRP was a currency, nonetheless, Ripple has largely ignored such regulatory rules.
The instance has been confusing, even for Ripple’southward CEO, Brad Garlinghouse — especially in low-cal of the fact that Bitcoin and Ethereum are both considered currencies past the SEC. Recently, Garlinghouse actually called out the confusion surrounding cryptocurrency regulation in the U.Due south. “It is the but country on the planet that has said XRP is anything other than a currency,” Garlinghouse remarked. “The SEC has said… XRP is a security. And and then we’re now engaged in a court word. So far, I feel practiced about how that’due south been going, but it’southward certainly frustrating.”
Where Can Yous Buy XRP?
As a result of Ripple’due south ongoing legal tussle with the SEC, several major exchanges, such as Coinbase, have suspended XRP trading on their platform until things settle downwardly. If you’re interested in investing in the controversy-rich crypto, however, in that location are still a few places where you can merchandise and purchase XRP in the U.South.
Check out other exchanges, including:
- Crypto.com: Crypto.com is nevertheless offering XRP, as well equally a huge variety of other cryptocurrencies. From well-known coins like Bitcoin and Ethereum to upwardly-and-comers like Shiba Inu and Safemoon, Crypto.com has got you covered.
- Binance: Binance is known equally the world’s largest crypto exchange and it definitely lives up to its proper noun. While information technology’s great for seasoned traders, it may come beyond equally a tad overwhelming for beginners.
To check out more exchanges that are currently selling XRP, visit Coin Market place Cap.