How to Buy Ripple (XRP)

XRP is the native cryptocurrency of Ripple’s XRP Ledger (XRPL). The XRPL or Ripple Protocol is a cryptocurrency platform that was launched in 2012 by Ripple Labs. Since then, the altcoin is best known for its low transaction costs and efficient cross-border payments. In recent years, XRP has attracted the attention of individual traders and institutional investors, making it an appealing starting point for new traders. However, new traders are often confused as to how to buy Ripple (XRP) and how to trade with it.

In this guide, we provide a step-by-step guide on how to buy XRP.

Let’s take a look!

Direct Buying XRP

Some exchanges offer a quick buy offer where you can directly buy XRP cryptocurrency through various methods. You can sign in to your account on any centralized exchange, choose your desired payment method (bank transfer, credit card, debit card, or cryptocurrency trade), confirm the payment, and you will receive your recently purchased XRP coins in your wallet.

Double your advantage on Bybit: 10% off trades + ,000 up for grabs! Sign up now and claim these exclusive rewards. Offer expires soon!

Buying XRP on the Spot Market

Here is how you can buy XRP on the spot market of a centralized exchange.

Choose a Reliable Exchange

To buy XRP, you must first select a trustworthy and reliable cryptocurrency exchange. Some of the most reputable platforms to buy, sell, and trade XRP are Binance, Coinbase, Kraken, and Bitstamp. When choosing a platform, research the exchange's regulatory status in your country and check its user interface. You must also prioritize security over everything. Look for a cryptocurrency exchange that offers security measures such as cold storage and two-factor authentication.

You should also ensure that the cryptocurrency exchange of your choice supports fiat currency such as USD, EUR, or GBP if you wish to buy XRP directly with cash. There are certain platforms that allow traders to purchase XRP using popular cryptocurrencies such as Bitcoin or Ethereum.

As a new trader, you should also review the fee structure of the exchange. This includes checking the trading fees, withdrawal charges, and deposit fees.

Create and Verify Your Account

You must create your account and verify it. Most cryptocurrency exchanges will require basic details such as your name, email address, and password. However, in order to comply with the global anti-money-laundering (AML) regulations, some exchanges may ask you to verify your identity through a process called KYC or Know Your Customer.

In this process, you will be asked to verify your identity by uploading identification documents, such as your driver’s license or passport. You will also have to share a picture or selfie to verify your identity. This way, the platform secures your account and even grants you higher transaction or withdrawal limits. This whole process takes up to a few hours, depending on the platform.

Deposit Funds into Your Account

Once your account is verified, you should deposit funds into your account. Most exchanges accept debit or credit cards, bank transfers, and even third-party payment services. Usually, bank transfers come with lower fees. Although it may take longer to process, many new traders prefer this method. Credit or debit card purchases are instant, but they may incur higher transaction fees.

If you already own cryptocurrencies such as Ethereum (ETH) or Bitcoin (BTC), you can trade XRP with them. However, you must always double-check your wallet address before transferring cryptocurrencies to avoid irreversible losses.

Purchase XRP

Now that you have funds in your exchange account, you can buy XRP. To do that, you need to go to the trading section of the platform and find an XRP trading pair such as XRP/USD or XRP/BTC. Most exchanges offer two types of orders that are market orders and limit orders.

A market order will immediately buy XRP at the current market price. This is the easiest way for beginners to purchase XRP without any complications. A limit order will allow the traders to set a specific price at which they are willing to buy the XRP coins. This will give traders more control, but it requires patience. The order may take some time to execute because the exchange will wait to meet the exact limit set by the trader.

Once your order is confirmed, the exchange will execute the trade, and you will see your newly purchased XRP in your wallet within seconds.

Securely Store Your XRP

Even though most exchanges offer a hot wallet to the traders for their convenience, it is better to store your cryptocurrency separately. In case the platform is hacked, your cryptocurrency can be among the stolen crypto. To avoid this, you should secure your XRP in a personal wallet where you have complete control of your private keys.

Important Reads: How to Store Your Crypto Safely?

You have two main options, i.e., hot wallets and cold wallets. Hot wallets are connected to the internet (mobile or desktop apps) and are ideal for short-term trading. Cold wallets, such as hardware devices like Ledger Nano X or Trezor, store your crypto offline and offer the highest level of security for long-term holders.

Important Reads: Hot Wallets vs. Cold Wallets: Which Crypto Wallet is Right for You

When transferring XRP to an external wallet, remember to include the destination tag if required, as omitting it may result in the permanent loss of funds.

Monitor Your Investment

Always monitor the performance of your XRP investment. The cryptocurrency market is highly volatile, and prices of assets can fluctuate dramatically in a matter of minutes. You should always keep track of the market trends, consider portfolio-tracking applications to view real-time prices and analytics, and follow credible crypto news sources.

If you are planning on actively trading XRP, you should use stop-loss orders to manage risk and set price alerts.

Buying XRP Via P2P

There are other ways to buy XRP for traders. One of them is P2P trading or peer-to-peer trading. In this method, traders use a P2P exchange marketplace to trade with another user directly. The traders can use their fiat currency or any other preferred payment method to purchase a stablecoin and then use that stablecoin to purchase XRP.

Buying XRP on DEX

You can also purchase XRP on Decentralized Exchanges (DEX). For that, the trader needs to connect to a self-custody wallet to a decentralized exchange. They must select a trading pair with XRP, such as XRP/ETH or XRP/USDT, and ensure that their wallet has the supported cryptocurrency or fiat. Before confirming the purchase, you should always check the prices and fees on the platform. Once you are happy with everything, you should execute the process and purchase XRP on DEX.

Common Mistakes to Avoid

Buying XRP is straightforward, but new investors often make avoidable mistakes. Here are some common mistakes that you should look out for.

• Purchasing XRP from unverified or unregulated platforms can expose you to scams or losses. Always ensure your exchange has a solid reputation and transparent operations.
• Neglecting security, using weak passwords, or skipping two-factor authentication can make your account vulnerable.
• Never share your wallet’s private keys or recovery phrases with anyone. If someone has your private key, they effectively own your funds.
• Avoid investing more than you can afford to lose. Cryptocurrency investments can be profitable but are also unpredictable. Having a clear plan and risk management strategy will keep your investment journey sustainable.

Final Takeaways

Buying XRP is a simple process once you have mastered the basics. You should always start by researching to find a secure exchange, complete verification, add funds to your account, safely make your first purchase, and transfer your XRP coins to a secure wallet. XRP can be a great way to diversify your crypto portfolio!

Start trading on Bybit today and get 10% off fees PLUS up to ,000 in bonuses! Sign up today and start saving while you earn. This exclusive offer won't last - claim yours now!

FAQs