How are people buying XRP?

XRP, the native cryptocurrency of the XRP Ledger and used by Ripple, has seen growing interest from investors and cryptocurrency enthusiasts in recent years. As the third largest cryptocurrency by market capitalization behind Bitcoin and Ethereum, understanding how to purchase and store XRP is important for those looking to invest in this digital asset.

What is XRP?

XRP is a cryptocurrency that was created by the founders of the company Ripple and released in 2012. The cryptocurrency aims to provide fast, affordable and reliable cross-border payments and settlements for financial institutions.

Unlike Bitcoin, which was created as a decentralized alternative to fiat currencies, XRP was designed specifically for institutional settlement and remittance through Ripple’s solutions for global payments. XRP transactions take 3-5 seconds to process and the fees are negligible compared to other major cryptocurrencies like Bitcoin and Ethereum.

Ripple holds the majority of XRP tokens and releases them periodically from escrow. Today, over 48 billion XRP are in circulation out of a total supply of 100 billion. Banks and payment providers can use XRP for on-demand liquidity when facilitating cross-border payments for their customers.

Why are people interested in buying XRP?

There are several key reasons why XRP has attracted strong interest from retail and institutional investors:

  • Speed and cost – XRP transactions are extremely fast and inexpensive compared to other major cryptocurrencies.
  • Real-world utility – XRP is designed for institutional use by banks and payments companies, giving it practical utility compared to cryptocurrencies aimed at just storing value or serving as currency.
  • Market liquidity – XRP has high liquidity and trading volume, making it easier to enter and exit positions.
  • Speculation – Some investors believe XRP could see gains as adoption increases, leading to speculative interest.
  • Accessibility – It’s relatively easy for mainstream investors to purchase XRP compared to more obscure altcoins.

As major financial companies begin leveraging blockchain technology, XRP is well positioned to benefit through Ripple’s existing relationships and proven use cases.

How to buy XRP

For those new to crypto investing, buying XRP may seem like a daunting task. However, the process is actually quite straightforward once you understand the steps involved. Here are the main ways individuals purchase XRP today:

Cryptocurrency exchanges

The most common way to buy XRP is through an online cryptocurrency exchange. These platforms allow you to trade dollars, euros and other fiat currencies for digital assets like XRP. Some popular exchanges that offer XRP trading pairs include:

  • Binance
  • Coinbase
  • Kraken
  • Bittrex
  • Poloniex

To start, you’ll need to sign up for an account on one of these exchanges. The registration process involves providing your name, email, proof of ID and other personal details similar to opening a bank account. Once your account is verified, you can deposit funds via bank transfer or debit card.

Most exchanges will also allow you to trade cryptocurrencies directly for XRP. For example, you could use Bitcoin or Ethereum to purchase XRP within the exchange’s markets. This avoids having to deposit fiat currency.

Here are the basic steps to buy XRP on a centralized exchange:

  1. Sign up for a trading account
  2. Verify your identity by providing personal information
  3. Deposit fiat currency like USD or crypto into your account
  4. Navigate to the XRP trading market
  5. Place a buy order for the amount of XRP you want
  6. XRP will be credited to your exchange wallet

P2P platforms

Peer-to-peer (P2P) trading platforms provide another way to purchase XRP directly from other users. These sites connect individual buyers and sellers of cryptocurrencies. Some examples include LocalBitcoins, Paxful and Bitquick.

P2P platforms allow you to trade fiat, stablecoins and other cryptocurrencies for XRP. For example, you could use PayPal to buy XRP from a seller, avoiding centralized exchanges entirely. Transactions are conducted between users privately.

Benefits of P2P platforms include:

  • More payment methods – Bank transfers, gift cards, cash deposits, PayPal
  • No ID verification required in most cases
  • Typically lower fees than centralized exchanges
  • More flexibility in what you use to pay for XRP

However, P2P also comes with some downsides to consider:

  • Higher risk of fraud
  • No refunds or reversals in most cases
  • Liquidity can be low compared to exchanges
  • Fluctuating XRP prices between sellers

Overall, P2P platforms provide an alternative way to buy XRP that is fast, private, and doesn’t require intensive verification. But you’ll need to do your due diligence on sellers and transact at your own risk.

Cryptocurrency funds

For investors who don’t want to self-manage crypto holdings, cryptocurrency index funds have emerged as simple vehicles to gain exposure to digital assets. These funds operate similar to traditional ETFs or mutual funds – by pooling investor capital and purchasing a basket of underlying assets.

There are now several index funds in the market that include XRP:

  • Bitwise 10 Crypto Index Fund
  • Grayscale Digital Large Cap Fund
  • CoinShares Blockchain Global Equity Index

These passive funds provide an easy way to invest in XRP without having to directly buy and securely store the tokens yourself. Many also offer IRA eligibility, meaning U.S. investors can allocate retirement funds to gain crypto exposure in a tax-advantaged account.

Minimum investments for crypto index funds are often between $25,000 to $50,000. So this route makes more sense for accredited or institutional investors who want broad diversified exposure to digital assets.

International brokers

For investors outside the U.S., online brokers based internationally may offer the ability to trade XRP CFDs. A CFD (contract for difference) allows you to speculate on XRP’s price movements without owning the actual cryptocurrency.

Some well-known international brokers offering XRP CFD trading include:

  • eToro
  • AvaTrade
  • Plus500
  • Pepperstone

Opening an account with these platforms is similar to a cryptocurrency exchange in terms of KYC verification. You can deposit local currency and then trade the price swings of XRP without directly interacting with the Ripple blockchain.

CFDs come with notable risks, as they allow investors to trade with leverage (meaning potential for outsized losses). But they do provide an alternative way to gain exposure to XRP price movements.

Cryptocurrency debit cards

For investors who already hold XRP or other cryptocurrencies, crypto debit cards allow you to easily convert into fiat and spend your holdings. These cards function similar to normal debit cards, except they are topped up using cryptocurrency from your personal wallets.

Top crypto card providers like, CoinZoom and BitPay support XRP funding. So you could easily liquidate XRP holdings through these cards to pay bills or make purchases in legacy currencies.

Other ways to spend XRP directly include:

  • Shopping at merchants who accept Ripple’s PayString
  • Using XRP tip bots on social media platforms
  • Donating XRP to content creators and nonprofits
  • Transferring funds internationally to family and friends

As more businesses and individuals adopt XRP, investors will have greater ability to utilize XRP as a medium of exchange. But for now, crypto debit cards provide the simplest way to indirectly spend XRP at everyday merchants.

How to store XRP

Once you’ve purchased XRP, you’ll need a safe place to store your investment. Unlike physical cash, cryptocurrency holders must self-custody their own assets. Here are the best storage options for securing your XRP holdings:

Cryptocurrency wallets

Cryptocurrency wallets provide one of the simplest ways to store XRP. Wallets come in both physical “cold” storage devices as well as software “hot” wallets. Examples include:

  • Ledger Nano hardware wallet
  • Exodus software wallet
  • Atomic Wallet (mobile & desktop)
  • Rippex wallet (desktop)

When you set up a cryptocurrency wallet, you’ll receive a “public key” address where XRP can be deposited. You’ll also be given a “private key” passphrase for authorizing transfers out of your wallet. It’s critical to never share your private key with anyone.

Wallets that support XRP allow you to fully control your tokens. You can monitor balances, send/receive XRP payments, and integrate other apps through XRP Ledger decentralized finance (DeFi) apps.

Custodial exchanges

Leaving cryptocurrency on an exchange like Coinbase or Kraken is considered “custodial storage”, since private keys are managed by the exchange instead of yourself. Many investors choose to store some of their XRP holdings on custodial platforms for the convenience of quickly buying/selling or earning interest yield.

However, individuals with very large XRP positions may want to minimize exchange exposure due to hacking risks and withdrawal limits. Holding 1,000+ XRP on an exchange may make more sense than storing millions worth of tokens.

Institutional custody

For wealthy crypto investors and institutions with millions in XRP, institutional custody solutions provide an extra layer of security and regulatory compliance. Custodians like Anchorage, BitGo and Coinbase Custody keep private keys in cold storage and provide insurance, auditing and governance around fund transfers.

While expensive, institutional custody opens up XRP exposure to hedge funds, family offices, endowments and publicly-traded companies who must meet strict regulatory requirements around cryptocurrency storage.

Is XRP a good investment?

When evaluating XRP as a potential investment, there are several factors to consider:

Use case & adoption potential

As mentioned earlier, XRP is designed specifically for cross-border settlement between financial institutions. Major banks already partner with Ripple for leveraging blockchain in global payments, including Standard Chartered and Santander.

If XRP sees continued adoption for international remittances and payments, demand for the token could surge. However, there is debate around whether banks will use the public XRP token vs. Ripple’s private ledger solutions.

Supply & inflation

Unlike Bitcoin, which has fixed supply, XRP was created all at once with total supply of 100 billion. Today, 48 billion are in circulation. Ripple releases 1 billion XRP from escrow each month, causing some inflation.

However, Ripple has pledged to reduce escrow releases to control circulating supply. With less inflation, XRP may become more attractive to hold long-term.


There are now several blockchains competing with Ripple in the global payments sector, including Stellar, Algorand, and SWIFT’s ISO20222. While Ripple has first-mover advantage, there are questions around its technical advantages vs. competitors.

As banks test and adopt digital asset technology, they may not settle on XRP if other networks provide lower cost or faster settlement finality.


Like all cryptocurrencies, XRP continues to operate in an ambiguous regulatory environment. The SEC has targeted Ripple in a lawsuit alleging XRP is an unregistered security rather than a currency or commodity.

If regulatory clarity affirms XRP as a usable digital asset, it could encourage further adoption. But if deemed a security, exchange liquidity and utility could decline in the U.S.

Given these crosscurrents, XRP remains a highly debated asset within the crypto space. While showing promise, investors should carefully weigh the pros and cons before allocating funds to XRP.


Purchasing and investing in XRP has moved closer to the mainstream in recent years. Support from leading exchanges and payments providers has made buying, selling and utilizing XRP simpler than ever. Now anyone can gain exposure to one of the top cryptocurrencies by market cap.

As with any investment, carefully assess your risk tolerance, time horizon and speculative appetite before deciding to trade or invest in XRP. But for those who see potential in Ripple’s solution for faster global payments, obtaining XRP is now just a few clicks away through centralized platforms and decentralized finance apps.

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