Coinbase And Xrp: Invest In This Cryptocurrency?

XRP is the native token of the XRP Ledger, a decentralized platform on a blockchain with its own cryptocurrency. It was launched in 2012 as an alternative to other digital currencies with a focus on speed and energy efficiency. XRP is currently available to buy on Coinbase's centralized exchange. In this article, we will discuss how to invest in XRP on Coinbase and the things you need to know before investing.

How to buy XRP on Coinbase

XRP is the native coin of the Ripple blockchain platform, which is designed for fast and affordable financial transactions. It is different from decentralised blockchains like Bitcoin because it is controlled by major banks and financial institutions.

XRP was delisted from Coinbase in January 2023 following a lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs Inc. However, as of February 2024, XRP is now live on coinbase.com and the Coinbase iOS and Android apps.

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, so have those ready. Verifying your ID may take longer than a few minutes, depending on where you live.

Step 2: 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.

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 your local currency. The app will automatically convert that into an XRP amount.

Step 5: Finalise Your Purchase of XRP

Tap "Preview buy" when ready. You’ll be shown the details of your purchase. Make sure everything looks good and then confirm your purchase by clicking "Buy now".

Other Ways to Buy XRP

Although Coinbase now supports the direct purchase of XRP, you can also buy XRP using USD on other platforms like Binance, Bitstamp, Bitfinex, Uphold, Kraken and Coinmama.

XRP Ledger and its benefits

The XRP Ledger is a decentralized, open-source, peer-to-peer blockchain with a native cryptocurrency, XRP. It was launched in 2012 as an alternative to the Bitcoin blockchain, with a focus on speed and energy efficiency. The XRP Ledger offers several benefits, including:

• Speed and Efficiency: The XRP Ledger boasts lightning-fast transaction processing speeds, with an average settlement time of just a few seconds. This makes it ideal for real-time payment systems and cross-border remittances.
• Cost-Effective Transactions: The XRP Ledger employs a unique consensus mechanism, the "XRP Ledger Consensus Protocol," which significantly reduces transaction fees. This makes it an attractive option for businesses and individuals looking to minimize expenses while enjoying blockchain technology.
• Decentralization and Security: The XRP Ledger utilizes a unique consensus algorithm that doesn't rely on energy-intensive mining, ensuring lower environmental impact and robust security measures. This makes it a trusted platform for a wide array of applications, including asset issuance and decentralized finance (DeFi).
• Interoperability: The XRP Ledger seamlessly integrates with other blockchains and payment networks, enabling developers and businesses to create innovative cross-chain applications and payment solutions.
• On-Demand Liquidity with XRP: XRP, the native cryptocurrency of the XRP Ledger, serves as a bridge currency for swift and cost-effective cross-border transactions. Its liquidity and availability on numerous exchanges worldwide make it a convenient choice for institutions and individuals moving funds across borders.
• Immutability and Transparency: The XRP Ledger's immutable ledger ensures that once a transaction is confirmed, it cannot be altered or tampered with, guaranteeing data integrity and transparency.
• Developer-Friendly Ecosystem: The XRP Ledger provides a rich set of tools and resources in multiple programming languages, encouraging innovation and the creation of custom applications, smart contracts, and tokenization of assets.

XRP's use cases

XRP is the native token of the XRP Ledger, and the cryptocurrency used by the Ripple payment network. XRP was introduced as an alternative to other digital currencies with a focus on speed and energy efficiency.

• Micropayments: XRP is used as a payment method for international business transactions. It is designed to act as a bridge currency to smooth out price fluctuations across borders, allowing businesses in different countries to transact and minimize transaction costs.
• DeFi: XRP Ledger supports DeFi platforms, which are decentralized applications built on blockchain technology that provide third-party financial services without traditional intermediaries like banks.
• CBDCs: XRP Ledger supports Central Bank Digital Currencies, which are digital versions of a country's fiat currency.
• Stablecoins: XRP Ledger also supports stablecoins, which are cryptocurrencies designed to maintain a stable value relative to an external asset, such as the US dollar or gold.
• International supply chain payments: XRP enables banks and payment providers to send and receive international supply chain payments.
• Global currency account: XRP allows users to hold and transact in multiple currencies simultaneously.
• Real-time cash pooling: XRP facilitates the pooling of cash in real time, enabling efficient management of cash positions.
• International bill pay: XRP makes it possible to pay bills internationally, bypassing the traditional cross-border payment system.
• Real-time remittances and international P2P payments: XRP enables individuals to send and receive remittances and peer-to-peer payments globally in real time.

XRP's history

XRP is the native token of the XRP Ledger, and the cryptocurrency used by the Ripple payment network. Built for enterprise use on a global scale, XRP powers cost-efficient cross-border payments. The XRP Ledger is a distributed platform on a blockchain with a native cryptocurrency, XRP. It serves as a decentralized market for XRP trading between users.

XRP was launched in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto as an alternative to the Bitcoin blockchain with a focus on speed and energy efficiency. In September of the same year, they, along with Chris Larsen, founded the company that is today known as Ripple. The XRP Ledger architects gifted a large amount of XRP to Ripple so that the company could build use cases around the digital asset.

Ripple is a real-time gross settlement system, currency exchange, and remittance network that is open to financial institutions worldwide. It was created by Ripple Labs Inc., a US-based technology company. Ripple purports to enable "secure, instant, and nearly free global financial transactions of any size with no chargebacks". The ledger employs the native cryptocurrency known as XRP.

In December 2020, Ripple Labs and two of its executives were sued by the U.S. Securities and Exchange Commission (SEC) for selling XRP tokens, which the SEC classified as unregistered securities. In July 2023, a federal judge ruled that XRP, as a digital token, is not a security. However, the litigation is ongoing and may be subject to appeal.

XRP's price and market cap

XRP is the native token of the XRP Ledger, which is an open-source, decentralized technology that was launched in 2012. The XRPL is permissionless and offers several benefits, including low-cost transactions, quick settlement times, scalability, and eco-friendly attributes. XRP is also the cryptocurrency used by the Ripple payment network, which is built for enterprise use on a global scale.

As of August 2024, the price of XRP is $0.48 to $0.56 per token, with a 24-hour trading volume of $1.86 billion to $2.13 billion. The price of XRP has been on a decline, decreasing by 0.37% to 1.00% in the last hour and by 14.48% to 2.91% in the past 24 hours. In the past week, XRP's price has fallen by 6.57% to 21.94%.

The all-time high of XRP is $3.84, which is the highest price paid for XRP since its launch. Currently, XRP is valued at 85.34% to 87.63% below its all-time high. The market cap of XRP is $31.58 billion, with a circulating supply of 55,999,283,950 XRP.

XRP is one of the top-traded cryptocurrencies by market cap and is ranked 11th to 12th among tradable assets on Coinbase.

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