Everything you need to know about investing in Ripple (XRP)

Ripple is essentially a network for money transfer and payment settlement, designed to meet the varying requirements of the monetary services industry. The native cryptocurrency used on Ripple is XRP, which has consistently been listed as one of the top ten cryptocurrencies by market capitalization.

Continue reading to know what makes Ripple a great money transfer network.

What is Ripple?

Ripple is a crypto token designed to process money at the central databases regulated by major financial institutes to a wider infrastructure globally, thereby tremendously cutting costs. The XRP transactions on the Ripple network are easy, inexpensive, and instant, thus making them beneficial for cross-border payments. XRP Ledger is the software that enables the utilization of XRP on the Ripple network.

Established in 2012, Ripple acts as a reliable agent between the two parties who want to transact money as it quickly confirms that the transaction is processed properly. The network can initiate exchanges for an array of cryptocurrencies and fiat currencies, including Bitcoin. Ensure that you sell or buy cryptocurrency only after thorough research on the present market conditions.

How does Ripple work?

The main aim of RippleNet, the blockchain infrastructure of Ripple, is to offer banks low-cost, simple, and quick cross-border payments. Resultantly, it’s a viable solution to the present foreign payments system most banks use.

To verify a transaction, Ripple’s cryptocurrency XRP uses a consensus web system that involves numerous servers owned by banks. The validators compare the proposed transactions to the latest XRP Ledger version to verify them. A transaction needs to be accepted by majority validators for it to get verified.

What makes Ripple a good choice for investing?

  • Low processing fee:

The fee for processing a transaction on Ripple is 0.00001 XRP, which is comparatively less than the fee banks charge for processing a cross-border payment.

  • Quick settlement:

Transaction confirmations on the Ripple network are surprisingly fast. They ideally take only 4 to 5 seconds, which is minimal compared to the time banks take to settle a transaction. It might take days for banks to finish a transfer or even hours to verify Bitcoin transactions.

  • Utilized by major financial institutions:

Major enterprises and financial institutions can also utilize Ripple to fulfill their transaction needs. For instance, Santander is already using the network, demonstrating that Ripple already has a wider institutional market saturation than many other cryptocurrencies.

  • Versatile transacting network:

Ripple can not only process transactions with XRP but can be utilized for other cryptocurrencies and fiat currencies. Before transacting using XRP, it is important to know the current XRP to INR rates to avoid any confusions or complications.

How to use Ripple and XRP?

XRP can be used just like the other digital currencies, either as an investment or for transactions. You can also use Ripple to process other transactions, such as exchanging currencies.

For instance, if you wish to switch US dollars for pounds, you can first exchange the dollars for Ripple XRP and later use those for buying pounds. That makes the currency exchange process faster, cheaper, and easier, as you don’t have to directly handle the exchange process through the bank and pay the heavy fees it may charge.


Ripple is a good investment choice, but as cryptocurrencies are highly volatile, there is always some risk involved. You can start with small investments and keep a check on your growth and progress. Though it is not as secure as the stock market, you might just make huge sums of money if the Ripple network succeeds.

Meanwhile, one cannot ignore Ripple’s potential. It can possibly replace an outmoded and inefficient internal money exchange system. The very fact that Ripple has bank associations is encouraging. So, do your probe and then make a decision.

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