what is the Ripple (XRP)? – Bitcoin – News 2020

Definition of Ripple

Discover the characteristics and specificities of the Ripple (XRP), 3e the world’s largest cryptocurrency in terms of market capitalization. What is behind this company, world leader in spontaneous fund transactions, and what are its objectives?

Definition of Ripple (XRP)

If the management of cryptocurrency is so special, it is because it does not depend on state control or that of central banks. Spotlight on cryptocurrency, blockchain and the Ripple case.

What is a cryptocurrency?

Unlike conventional currency and traditional currencies, such as the euro, dollar or yen, cryptocurrency is a electronic and virtual currency who can be issued by anyone in order to enter into a contract or to settle a financial transaction. Its secret lies in its management method, knowing that any natural or legal person can issue this currency devoid of physical form :

  • Companies;
  • Organizations;
  • People…
Different cryptocurrencies

What is blockchain?

This virtual currency is called ” decentralized “, Because it can be used from a single network that assumes full management. This management is carried out thanks to a mechanism driven by open source software which distributes copies of each transaction: the blockchain.

Blockchain network operation

Simply put, blockchain is like a big account book who would public. All members can write to it, but no one has the right to erase the information contained therein. She serves especially history for all transactions taking place there guaranteeing so whate system is not based on one and the same person in charge of validating all transactions.

The blockchain also has the following characteristics:

  • It provides all the data from the issuing and receiving accounts;
  • It is available on the Internet;
  • It brings complete transparency to the cryptocurrency operating network.

What is the Ripple (XRP)?

According to the Ripple-France.fr site, this is a “Technology company that provides efficient solutions for global money transfers ” Ripple is therefore a start-up specialized in interbank exchanges at very high frequency between financial institutions and individuals, and in a rather unprecedented way.

Ripple is created in 2004 by Ryan Fugger with the concept of creating a decentralized system where anyone could create money. The network is definitely launched in 2012 and has seen an ever-increasing influx. So then, why is cryptocurrency involved if Ripple is a business?

This is where it is important to make the difference between Ripple and XRP, often associated with a single entity. In reality, the XRP is a ” independent digital asset with an open source blockchainRipple is therefore a company who created the Ripple payment protocol, the XRP being a cryptocurrency token used by the latter.

History and operation of the Ripple (XRP)

Contrary to appearances, the Ripple business is older than it looks. Its protocol will not be developed until later in the life of the company.

The creation of Ripple (XRP)

Ryan Fugger designs Ripple in 2004 with the aim therefore of create a decentralized monetary system that can allow individuals and communities to create their own currency. Subsequently is created RipplePay, very first iteration of the system imagined by Fugger.

In parallel, from 2011, a certain Jed McCaleb begins to develop a “virtual money system in which transactions are verified by consensus among network members, “unlike the mining process used by Bitcoin.

In 2012, Fugger and McCaleb team up and begin to develop the Ripple protocol as well as the Ripple payment and exchange network. In 2016, the Ripple company officially and legally obtains a virtual currency license and becomes the fourth company with a “BitLicense”.

What are the principles of Ripple (XRP)?

If the Ripple company has embarked on such a project, it is primarily to save time by moving the agent quickly and cheaply. The Ripple network, in a few first points, is:

  • A direct competitor to banking institutions and current financial;
  • Using the concept of SWIFT code ;
  • 3.5 seconds to transfer funds anywhere in the world ;
  • More innovative and faster than ever when it comes to payment processing.

By replacing the traditional, costly and sluggish clearing houses, Ripple revolutionizes and thus softens liquidity and global finance. The Ripple transaction network is primarily used by financial institutions, while the XRP cryptocurrency can be used by anyone. It is impossible for an individual to buy Ripple shares.

XRP was never intended to be a payment method for buying goods online, unlike Bitcoin which aims to become a globally adopted currency as well as to improve or even replace conventional money. It is mainly used for:


  • Speculative purposes;
  • Make a contract;
  • Ensure the settlement of a financial transaction.

The Ripple company aims to shake up money transfer networks with a Save time, security and money, even if it means one day replacing traditional institutions.


Where and how to buy Ripple (XRP)?

Ripple (XRP) is the 3e largest cryptocurrency after Bitcoin (BTC) and Ethereum (ETH) in terms of market capitalization. It is therefore easy to find in 2019, knowing that the online trading sites that offer its acquisition are flourishing more and more.

Choose your platform to buy Ripple

With the objective of achieving a profitable return investment, from the start, you will have to carefully choose the site or sites that will be used to buy Ripple (XRP), because there are many fraudulent online sites who claim to sell them.

It will be about choose the safest sites in terms of security, focusing in particular on: age, number of users, reputation, fees, payment methods offered … Here are some popular sites in 2019 that sell XRP:

  • eToro;
  • Binance;
  • Kraken;
  • Bitit;
  • Coinbase;
  • Markets.com;
  • Poloniex.


To briefly define what an online trading platform is and what it is for, it can be said that it is a cryptocurrency exchange platform which allows the exchange between them or against a currency issued by a central bank, or which allows to convert them into fiat money. So you can buy ripple (XRP) with euros or dollars, or if you already have one or more other cryptocurrencies exchange them against the latter.

Buy Ripple

You can then store your XRP online through two means: one wallet (wallet) or simply leave them on the platform less secure. What to do next ? It is up to you to decide whether you want to keep the cryptocurrency in order to later speculate on the upside or exchange it for currencies to recover the value by:

  • Euros;
  • Dollars;
  • Yen;
  • Yuan, etc.

Ripple exchange (XRP) for traditional currency

Do you want to acquire the equivalent of your XRP in euros, dollars or any other currency, because you think this is the right time? Still using an online trading platform, in addition to a few platforms specializing in this type of exchange, it is therefore possible to exchange your cryptocurrency for a currency. Again, to avoid any unpleasant surprises, it will be a question of choosing carefully and safely the platform which will be used to carry out this exchange.

If you don’t want to do it online, there are other so-called “physical” platforms such as currency exchange office or some distributors with a put option where you can go in person and leave with the money in hand. Make sure that these platforms provide Ripple exchanges (XRP). Bitcoin being very popular it is preferred.

Ripple Exchange

When writing this content (August 2019), the price of the Ripple is € 0.23 per XRP. Keep in mind that the fluctuation in the price of cryptocurrencies is unpredictable and can increase as falling from one minute to the next. Then as mentioned above, that the Ripple (XRP) is not intended to be a means of payment.

Why invest in Ripple (XRP)?

Choosing to invest in the Ripple is a thoughtful decision, considering both its pros and cons.

The Benefits of Buying Ripple (XRP)

The Ripple is a cryptocurrency that is the perfect opportunity to invest and profit from the blockchain. Among the arguments in his favor are:

  • You only need 3.5 seconds to move money on the Ripple network using a high transaction frequency (10,000 / second against only 7 for Bitcoin);
  • The XRP blockchain holds the 3rd largest market capitalization just after Bitcoin and Ethereum: it is therefore accessible on the main cryptocurrency platforms, because it is very popular;
  • The energy costs are weak, because the tokens XRP are already all present and premined;
  • With Ripple technology, we can now manage the identity of the parties who trade. This confidentiality in the transaction is a guarantee of security;
  • It’s about a bridge currency to other currencies, because it facilitates trade between them and other currencies.

Apart from the advantages of blockchain, we can also count on an increase in the price of the Ripple thanks to the many partnerships that the company is starting to conclude, in particular with the giant of the financial transfer Moneygram.

The risks of buying Ripple (XRP)

However, it should not be forgotten that investing in a cryptocurrency does not remain 100% reliable, because:

  • It is difficult to predict any significant increase in the value of XRP, since it is still little used;
  • As Ripple is not a public company, there is no “Ripple” shares to buy. The question is whether he (Ripple) could generate dividends afterwards. These two points are in a way obstacles or unanswered questions that XRP owners who wish to take advantage of its long-term bullish trajectory must face.
  • Ripple (XRP), unlike other cryptocurrencies, is not not fully decentralized (this is what makes cryptocurrencies characteristic), because a section of its network, RippleNet, controls part of it;
  • Like any cryptocurrency, investing in the Ripple (XRP) presents investment risks. It is important to know exactly what you are about to invest in and to understand this activity in depth before embarking on this project.

You now know what Ripple (XRP) is and are ready to invest in this atypical cryptocurrency. Keep in mind that investing always and inevitably involves risks, so good advice: invest only what you are ready to lose!

what is the Ripple (XRP)? – Bitcoin – News 2020
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