Could cryptocurrency be the next big thing? Can cryptocurrency become the mode of exchange for all online and offline transactions? We were all amazed at this new digital innovation. If cryptocurrency believers are to be trusted, paper money and a domestic and international currency are expected to come to an end soon.
Cryptocurrency is designed as a digital asset that can be used as a medium of exchange. Cryptocurrency uses a decentralized approach as opposed to the centralized digital currency or the centralized banking system being tracked around the world. Individual cryptocurrency information, such as ownership of the coin, digital transfer details or exchange details, is stored in a digital ledger database using strong cryptography to secure the records. It usually works through a distributed ledger technology known as blockchain, which is used as a public financial transactions database.
Bitcoin was the first decentralized cryptocurrency. Many other types of cryptocurrencies are slowly being introduced. One such cryptocurrency was introduced by a company called Ripple. It is the third largest cryptocurrency in the world by market capitalization.
What is ripple?
Ripple Labs Inc. released the real-time gross billing system, remittance network and currency exchange in 2012. Here everyone can make payments to one another with cryptographically signed transaction names in local currency or the network’s internal currency XRP. Fiat can be defined as a country’s government issued currency. It is legal tender that is government backed and that we use for our daily transactions, such as the rupee issued by the Reserve Bank of India or the dollars issued by the United States Treasury Department.
Ripple’s value on the blockchain
Ripple’s XRP is known as the most scalable and fastest digital asset used in the payments world. The XRP is based on an advanced blockchain technology, the Ripple blockchain. This new technology enables scalability and complete security when working together in different networks.
Ripple’s market capitalization
XRP’s current market capitalization is around $ 140 billion. Registered market capitalization means the amount of cryptocurrency multiplied by the exchange rate i.e. XRP that is currently traded online in the open markets.
Why were Ripple and XRP created?
The Ripple Network and XRP were created after studying the demand for liquidity for cross-border payments. Banks can also use XRP to provide real-time liquidity worldwide on demand. Those looking to make payments can also take advantage of XRP to have an option other than traditional markets by taking advantage of the speed of payment processing and the low or zero price of forex. XRP is already trading on several crypto trading platforms that you can buy and sell on these platforms. In the Indian rupee, the exchange rate denotes from XRP to INR is at 108.249.
How is XRP better than other cryptocurrencies?
XRP has one of the fastest turnaround times; That means you can process your online transaction from XRP within 4 seconds if we compare this to Bitcoin (BTC) which is the slowest at an hour. The Ethereum takes about two minutes. The prevailing systems last around three to five days of the billing cycle.
The high scalability of XRP makes this possible because the Ripple network can process 1500 transactions per second. Bitcoin can execute six transactions per second and Ether 15 transactions.
The XRP is traded worldwide due to its open source technology. Since its inception, XRP has captured every single ledger with no problem or issue.
How do I buy XRP?
Get an XRP wallet – You need to open a digital wallet on one of the Crypto Exchange websites.
Open an account with an exchange – You will then need to open an account at a crypto switch that supports Ripple (XRP). There are a few Crypto exchanges in India you can check that.
Check your account – For the exchange, new users need to verify their account details before they can start trading.
Buy XRP with fiat currency – Once your account is active, you can buy XRP with any fiat money like Indian rupee or USD.
You can also contact a cryptocurrency broker. These brokers usually offer a contract for difference (CFD).
Ripple only sells XRP to banks and institutions that use the SWIFT system – The Society for Worldwide Interbank Financial Telecommunications – to transfer money from one corner of the world to another. Ripple intends to speed up and simplify this international remittance process, which banks and financial institutions still use to conduct high-quality transactions.
In addition to these financial instructions, individual investors can also buy, sell, or exchange XRP through a cryptocurrency exchange in India or abroad. You can buy XRP with other cryptocurrencies or regular currencies. It is good to study the various cost structures and pricing guidelines before trading them.
A thorough study of cryptocurrencies, the physical shift from XRP to INR and XRP versus other currencies, as well as cryptocurrency will help you understand the trade and market for XRP and Ripple. Coin Switch India has many articles to help you meet these new kids on the block and how to trade and exchange them. Expand your knowledge base and trading horizons with Coin Switch.