Although Bitcoin might be what the public thinks of when cryptocurrency is discussed, Ripple is a company that shouldn’t be overlooked. Founded in 2012, Ripple sells a currency settlement and exchange platform and issues the third-largest cryptocurrency in the world (based on market capitalisation).
This distinction doesn’t come from Ripple being a Bitcoin copycat, on the contrary, it is one of the most unique cryptocurrencies in the market. Ripple’s overall aim is to improve the current global payments system and expedite the cross-border payment transfer process.
What is Ripple?
The company behind XRP, Ripple is a payment settlement system and currency exchange network that can process transactions globally.
Ripple serves as a trusted agent between two parties during a transaction, as the network can quickly confirm that the exchange went through correctly. As a bonus, Ripple can facilitate exchanges for a variety of fiat currencies and cryptocurrencies, such as Bitcoin as an example.
The way that Ripple makes money is that whenever users make a transaction using the network, there is a small fee deducted from XRP. The standard fee is set at 0.00001 XRP, minimal compared to other bank fees for conducting cross-border payments.
What is XRP?
XRP is a cryptocurrency that runs on the XRP ledger and is used by Ripple, which facilitates transactions via XRP. This cryptocurrency can be bought as an investment, as a way to finance transactions on the Ripple network or as a crypto exchange for other cryptocurrencies.
It’s important to know that XRP’s blockchain works differently from most other cryptocurrencies. Other cryptos open their transaction ledgers and verification processes to anyone who can solve complex equations quickly, but transactions remain secure as the majority of ledger holders must agree with the verification to be added.
Notably, XRP’s blockchain operates a little differently than most other cryptos. Other cryptocurrencies open their transaction ledgers and verification processes to anyone who can solve complex equations quickly. But transactions are secure as the majority of ledger holders must agree with the verification for them to be added.
XRP’s Ripple network differs as it centralises things and uses a consensus protocol. Anyone can download the validation software, but it maintains unique node lists that users can select to verify their transactions based on which participants they believe are less likely to defraud them.
As new transactions come in, the validators update their ledgers every three to five seconds to make sure they match the other ledgers. If there are any issues, they stop to figure out what went wrong, and where. This means the network can securely and efficiently validate transactions, giving it an edge over other cryptocurrencies such as Bitcoin, as Bitcoin transaction confirmations take between minutes and hours, and have high transaction costs, whereas XRP confirms transactions in four to five seconds with lower cost.
XRP: This is the native digital asset used on the XRP Ledger, and functions as a payment for products such as remittance systems, asset exchange and payment settlement.
XRP Ledger: This is a permissionless network of peer-to-peer servers used to validate XRP transactions.
Ripple: This is the fintech company behind the creation of XRP, XRP Ledger and RippleNet.
RippleNet: A quick global payment network that utilises the XRP Ledger to validate transactions between banks and other financial institutions.
What Sets XRP Apart?
To summarise all of the above quickly, XRP is the native digital company used on the XRP ledger platform, which is an open-source decentralised blockchain platform, used for high-speed global transactions. XRP itself was created by Ripple, a privately held fintech company that provides a high speed and affordable alternative for transferring funds globally using RippleNet, which is Ripple’s global payment network used by banks, payment providers and financial institutions.
XRP can be sent directly between two independent network participants on the Ripple network without the need for intermediaries. XRP transactions use a consensus mechanism known as the XRP Ledger Consensus Protocol, which accommodates faster, global transactions.
Unlike other digital currencies and Bitcoin, XRP does not rely on energy and a computing-intensive proof of work mechanism to verify transactions. IT instead relies on independent servers for the validation process, and the servers can belong to any person or global financial institutions.
One of the best benefits XRP has is to reduce wait times and avoid fees, allowing for Ripple and XRP to compete with banks in the way that it offers payment settlements to users of its network.
Why Buy XRP with Swyftx?
If you’re looking to buy XRP Ripple on an Australian crypto exchange, you can’t go past Swyftx. Swyftx is a home-grown Australian cryptocurrency exchange that offers support for over 300 crypto assets. They have some of the lowest trading fees on the Australian Crypto market, allowing you to trade XRP Ripple frequently and increase your profits over time.
Known as Australia’s highest-rated cryptocurrency exchange, they aim to simplify the process of buying, selling and trading cryptocurrency. Their trading platform incorporates TradingView charts to show you real-time market data and allows you to conduct your own scrutiny of XRP and other cryptocurrencies based on previous performance.
Some of the best features this platform has are things such as:
Demo Mode: customers can use the demo mode to practice trading strategies without financial risk before committing to trading with their own money.
Online Customer Support: the clock customer support is available to assist customers with questions or concerns they may have.
Automated Trading: there are multiple order options on Swyftx, allowing you to automatically execute trades at scheduled intervals or at chosen price points.
How to Buy XRP with Sywftx
Buying cryptocurrencies in Australis is easy when you have an account with Swyftx. When you trade XRP on Swyftx’s trading platform, you will always be paying the lowest trading fees with the smallest spreads on the Australian crypto market. The company even has a dedicated mobile app that can help you purchase XRP instantly, anytime and anywhere.
Here is a step-by-step guide on how to buy XRP Ripple with Swyftx.
- Create an account.
To sign up to Swyftx you will need to provide details such as your full name, email address, and phone number and create a password.
Verifying your account can take no more than 5 minutes, all you need to do is authenticate your email address, phone number, and identification, such as a passport and driver’s licence.
- Deposit Funds
Once your account is verified you can make your first deposit of fiat currency (AUD) through your payment method of choice. This can be everything from bank transfers, credit or debit cards, OSKO, POLi and PayID.
- Buy Ripple
Now that you have a deposit, just navigate to the ‘buy XRP’ page and select how much you want to purchase. This amount can be the quaintly of XRP or, the Australian dollar equivalent. Once you make a purchase, it’s immediately available in your Swyftx wallet.
When you think about it, Ripple is a major player in the crypto world due to its partnerships and strong financial backing. This, and its focus on bridging the gap between traditional banking and the newer digital currencies, it is targeting a sector that is in dire need of disruption.
Only the test of time will tell if Ripple has the product to challenge the old guard of the world’s financial industry, so we recommend researching the project thoroughly and making a decision yourself. In the event that you do want to buy XRP, no one beats Swyftx! Click Here