The main goal of the Ripple network is to make payment transactions faster and cheaper. Many banks and other payment service providers already use Ripple technology. This success also helped the bridge currency of the network, likewise called Ripple (or, alternatively, XRP), to at times rapid price increases. For a short period, Ripple/XRP was the cryptocurrency with the second highest market capitalization after Bitcoin. At the moment it is still number three (with Ethereum in second place). The following article discusses various options for buying the cryptocurrency Ripple -especially with Paypal-, in order to then ask whether one should still invest in Ripple/XRP.
Buying Ripple with Paypal via Virwox
Let’s get to the first -and worst- option of buying Ripple while paying at least indirectly with Paypal:
First you have to register on VirWoX, where you can buy Linden dollars (SLL) with PayPal. The Linden dollars can then be exchanged for Bitcoin on VirWoX. At this point, you haven’t got any Ripple, but already paid three times – once for Paypal fees and twice for the exchange transactions on VirWoX! In order to get Ripples, you have to send the Bitcoins from VirWoX to another platform to exchange them for Ripple/XRP there. One possible place to do this is the crypto exchange Changelly.
If you think there must be better ways to buy Ripple, then you’re right, and we’ll talk about them below.
Buying Ripple with Paypal on eToro
On eToro you can buy “real” Ripples and not just CFDs in cryptocurrencies, which is incorrect information that you can find in some places. And one of the methods to fund your account on eToro is Paypal. With an eToro account, you therefore have an easy way to buy Ripple with Paypal.
However, there is a significant limitation to the use on eToro. What you can do is trade your cryptocurrencies on the platform, also using the special feature that eToro offers, i. e. automatically copying the transactions of the best traders there. But you cannot send these cryptocurrencies to another trading platform or your own wallet outside the exchange. But even with this limitation, eToro is an interesting place for anyone interested in Ripple, especially when it comes to simply trading with the cryptocurrency.
Buying Ripple through Coinbase and Binance
The next method of buying Ripple takes place without using Paypal and has two steps. Nevertheless, this is a very practical way to get Ripples and also has the advantage that the XRP bought in this way can be transferred to other platforms or wallets.
Buying Bitcoin or Ethereum on Coinbase
Coinbase is one of the largest crypto exchanges. While you can only buy and sell Bitcoin, Ethereum and Litecoin at this moment (which may change soon as Coinbase recently announced it is exploring adding five more cryptocurrencies), they can simply be exchanged for Ripple on another platform. On Coinbase, the cryptocurrencies can be bought with the US dollar, the euro or the British pound, but trading one cryptocurrency for another is also possible. In order to be able to trade there yourself, you must verify your account after registration with an identification document and a webcam. Then you can fund your Coinbase account and start buying Bitcoin or Ethereum to exchange them for Ripple on another exchange. How and where, you will find in the next section.
Buying Ripple on Binance
Binance is a pure crypto exchange that does not support trading in fiat currencies such as the euro or the USD. But one of the cryptocurrencies that can now be traded on Binance is Ripple. You can trade both Bitcoin and Ethereum for Ripple/XRP on Binance. For this you first need an account on Binance. On the Binance homepage, go to Register at the top right, and on the next page enter a valid email address and choose a password. Binance will send you a confirmation link to your email address. Once you click on the link in the email you received, the registration is complete and you can log into your account. To send Bitcoin or Ethereum to your Binance account, go to Funds in the top bar and then select Deposits:
In the next window you may then choose the cryptocurrency you would like to deposit (in the screenshot below it is Bitcoin):
The deposit address you can find on the page and that is specific to the chosen cryptocurrency has to be entered on the platform which you are sending the bitcoins to Binance from (which means that in case you bought Bitcoins on Coinbase it is there that you have to enter the deposit address you get from Binance). After successful completion of the transaction, you can review the details on the Binance page under Funds -> Transaction History.
The next step is trading your Bitcoins for XRP/Ripple. To do this, select the trading pair on Binance and then enter the details on the page for that trading pair:
Especially for those who do not have much experience in trading cryptocurrencies (or in trading on exchanges in general), it is worthwhile checking out some general information and specific options for trades on the relevant page provided on the platform.
Buying Ripple directly on Bitpanda
Bitpanda, an Austrian online exchange, offers an easy way to buy Ripple directly. On Bitpanda, you must first create an account and then verify it with your webcam and with an ID document. Bitpanda offers a range of payment options to fund your account: bank transfers, credit cards, Neteller, Skrill and Giropay. After funding your account, you can buy Ripple or another cryptocurrency of your choice. Bitpanda combines the advantage of directly buying Ripple/XRP with the possibility of transferring the cryptocurrency (this is subject to a specific minimum amount for each cryptocurrency) to other platforms or your own wallet. However, PayPal is not among the payment methods that can be used on Bitpanda.
Should I buy Ripple?
When the price of Ripple rose very rapidly at the end of 2017/beginning of 2018 and reached its peak (so far) in January, Ripple even exceeded the market capitalisation of Ethereum.
The confidence investors had in Ripple reflected in particular the success of the Ripple technology with many payment service providers. The potential offered by this technology for simplifying and reducing the cost of financial transactions is still very large. However, this does not mean that the cryptocurrency Ripple/XRP will benefit from the success of the technology and its applications in like manner. Since most aspects of the Ripple technology can be implemented without resorting to the cryptocurrency itself, you should be cautious if you consider investing in Ripple/XRP.