A Guide To Investing In Ripple (Xrp) Via Coinbase

Ripple (XRP) is a cryptocurrency that enables a frictionless way to send money globally. It is currently the sixth most popular cryptocurrency by market cap. While it is not possible to directly purchase Ripple on Coinbase, it is supported on Coinbase Retail, Prime and Custody. However, XRP is not supported in Japan, the State of New York, and Singapore due to restrictions, and it is also not supported on Coinbase Wallet. To buy Ripple on Coinbase, you will first need to buy either Bitcoin or Ethereum, which you can then use to acquire Ripple on another exchange such as Binance.

How to buy Ripple on Coinbase

Yes, you can buy Ripple (XRP) on Coinbase. Here's a step-by-step guide on how to buy XRP on Coinbase:

Create a Coinbase account

Download the Coinbase app and start the sign-up process. You will need a valid ID and may be asked for proof of address to verify your identity, so be sure to have those ready. ID verification may take longer than a few minutes, depending on where you live.

Add a payment method

Tap on the payment method box and connect a payment method. You can use a bank account, debit card, or initiate a wire transfer.

Select "Buy & Sell"

On Coinbase.com, select "Buy & Sell". On the Coinbase mobile app, tap the "+" button on the Home tab.

Select XRP from the list of assets

On Coinbase.com, click the Buy panel to search and select XRP. On the Coinbase mobile app, search for XRP by typing "XRP" into the search bar. When XRP appears in the results, tap it to open up the purchase screen.

Enter the amount you want to buy

Use the number pad to input the amount you want to spend in your local currency. The app will automatically convert that into an XRP amount. You can tap the arrow buttons to the right of the amount of money you want to spend to switch between the local currency and XRP amount.

Finalize your purchase of XRP

Tap "Preview buy" when you're ready to review the details of your purchase. Once you've confirmed that everything looks good, confirm your purchase by clicking "Buy now". After the order is processed, you'll be taken to the confirmation screen.

Please note that investing in cryptocurrency is high-risk. Don't invest unless you're prepared to lose all the money you put in.

The SEC investigation into Ripple

In 2020, the SEC filed charges against Ripple and two of its founders in regard to XRP. As a result, most centralised exchanges, including Coinbase, suspended XRP trading. However, XRP won the lawsuit in July 2023, and the court declared that XRP is not a security. Despite the lawsuit outcome, XRP trading has not yet been reinstated on many exchanges.

The SEC's lawsuit against Ripple has cast a long shadow over the cryptocurrency's existence. The lawsuit alleges that XRP is an unregistered security, creating regulatory uncertainty for the crypto space. The cancellation of a closed-door meeting between the SEC and Ripple caused a sharp price drop and ongoing uncertainty for XRP holders. The meeting was reportedly delayed by a week, but the absence of "settlement discussions" from the new notice suggests that a resolution may not be imminent.

The SEC's focus may have shifted to the upcoming launch of spot Ethereum ETFs, given the recent news of new approvals. This realignment in priorities has left XRP holders in limbo, with the SEC lawsuit continuing to hang over XRP. Despite the uncertainties, the XRP community remains resolute, reflecting a steadfast commitment to the cryptocurrency amidst the evolving regulatory landscape.

While you can hold XRP on Coinbase, you cannot currently transact with it. There are, however, other platforms that allow you to invest in XRP, such as Uphold, Kraken, and Coinmama.

How to buy Ripple with USD

Yes, you can invest in Ripple (XRP) on Coinbase. XRP is currently available to buy on Coinbase's centralized exchange.

Step 1: Create a Coinbase Account

Download the Coinbase app and start the sign-up process. You will need a valid ID and may be asked for proof of address to transact, so be sure to have those ready. Verifying your ID may take longer than a few minutes, depending on where you live.

Step 2: Add a Payment Method

In the Coinbase app, tap on the payment method box and connect a payment method. You can use a bank account, debit card, or initiate a wire.

Step 3: Select XRP from the List of Assets

On Coinbase.com, click the Buy panel to search and select XRP. On the Coinbase mobile app, search for XRP by typing "XRP" into the search bar.

Step 4: Enter the Amount You Want to Buy

Use the number pad to input the amount you want to spend in USD. The app will automatically convert that into an XRP amount.

Step 5: Finalize Your Purchase of XRP

Tap "Preview buy" when you are ready to review the details of your purchase. Once you've confirmed that everything looks good, confirm your purchase by clicking "Buy now".

Other Ways to Buy XRP with USD

In addition to Coinbase, you can also buy XRP with USD on other centralized exchanges such as Uphold, Kraken, and CEX.IO. These exchanges allow you to purchase XRP using a credit card, debit card, or bank transfer.

It's important to note that not all exchanges are regulated, and the process for trading XRP may vary. It's advisable to conduct your own due diligence before using any third-party exchange or technology.

The differences between Ripple and its competitors

Yes, you can invest in Ripple (XRP) on Coinbase. Here's a step-by-step guide on how to buy XRP on Coinbase:

• Create a Coinbase account by downloading the app and signing up. You will need a valid ID and proof of address.
• Add a payment method such as a bank account, debit card, or wire transfer.
• On Coinbase.com, select "Buy & Sell." On the mobile app, tap the "+" button on the Home tab.
• Select XRP from the list of assets by searching for "XRP" in the search bar.
• Enter the amount you want to buy in your local currency, which will be automatically converted into XRP.
• Finalize your purchase by previewing the details and confirming.

Now, here are the differences between Ripple and its competitors:

Ripple (XRP) is unique in the cryptocurrency market due to its focus on improving international money transfers. Unlike most cryptocurrencies designed as digital alternatives to traditional currencies, Ripple aims to enhance the efficiency, speed, and cost-effectiveness of cross-border transactions. This focus on cross-border payment solutions sets it apart from other cryptocurrencies.

• Target Audience: While most cryptocurrencies target individual users, Ripple primarily targets banks and financial institutions. The RippleNet platform integrates with banks' existing infrastructures, making it attractive to these institutions for improving their cross-border payment operations.
• Transaction Efficiency: Ripple offers high transaction speeds and low costs. Transactions are settled in seconds at a fraction of the costs associated with traditional banking systems and other cryptocurrencies.
• Compliance and Regulation: Ripple actively works with financial regulators and institutions to comply with international banking laws. This approach differs from the typical cryptocurrency ethos of decentralization and regulatory avoidance, but it makes Ripple a favored choice among financial institutions.
• Technology: Ripple utilizes a blockchain ledger similar to Bitcoin but with technical differences that claim to make it easier and faster to process transactions while maintaining security.
• Creation and Distribution: Ripple (XRP) was created by a private, for-profit company, and 100 billion XRP were initially released, with 20 billion held by the creators and the rest given to Ripple Labs. In contrast, many other cryptocurrencies are decentralized and have no central authority.

Some of Ripple's notable competitors include Stellar (XLM), Ethereum (ETH), Algorand (ALGO), Decentraland (MANA), Chainlink (LINK), Cardano (ADA), and Cosmos (ATOM). These competitors offer similar benefits in transaction speed and cost or explore innovative technologies like smart contracts and decentralized finance (DeFi).

The future of Ripple

Ripple (XRP) is a blockchain-based digital payment company that has created a network and protocol that uses the XRP Ledger blockchain and XRP, its native cryptocurrency. It is designed to facilitate faster and cheaper cross-border payments.

Ripple is unique in the blockchain and cryptocurrency financial services industry as it created the first financial services platform and network that accesses and uses blockchain and cryptocurrency for enterprises. It has developed products that provide liquidity and uses cryptocurrency as a bridge currency to speed up international transactions and reduce costs.

Ripple is currently the sixth most popular cryptocurrency by market cap. In 2012, 100 billion XRP tokens were pre-mined and released into the market, with 20 billion being held by the creators and the rest given to Ripple Labs. In 2017, Ripple transferred 55 billion of its 80 billion XRP tokens into an escrow account to improve the transparency and predictability of XRP sales.

In 2020, the SEC filed charges against Ripple and two of its founders, alleging that the company had sold unregistered securities in its fundraising activities. This resulted in most centralized exchanges, including Coinbase, suspending XRP trading. However, in July 2023, XRP won the lawsuit, with the court declaring that XRP is not a security. Despite the legal challenges, XRP is still extremely popular, and there are platforms where it can be traded.

Looking ahead, there is a high degree of risk involved in investing in Ripple, but given its low price point, it does have the possibility for a high return with a low barrier to entry.

Frequently asked questions