What is Ripple (XRP) and Why to Invest in Ripple? : Future of Banking

Ripple (XRP) is one of the most popular projects working on decentralized technology to help Financial institutions such as Banking, So exactly what is Ripple and How Ripple XRP works?

If you are crypto investors or blockchain lover in both cases this guide is going to explain everything about Ripple.

Why Ripple has been introduced, the history behind its existence, who is using Ripple and most interesting future of Ripple.

This time while the whole world looking on another side of decentralization than to fasten banking process Ripple (XRP) came into the picture.

What is Ripple and XRP coin

Blockchain Technology is the new way to head over to technology because of high security and decentralized platform.

If you are not aware then Ripple (XRP) is already been accepted by the number of banking projects as the pilot project, what are those?

Everything is here in this detailed guide and finally, we will conclude Ripple XRP as worth for investment or not?

To start with first let discuss what is the difference between Ripple and XRP?

What is Ripple and XRP: Difference?

Ripple Prototype started way back in the year 2004 before Bitcoin but was in the initial stage and that was just started.

But the actual popularity of Ripple got in the year 2012 when Jed McCaleb invited multiple people to join this platform.

Ripple is managed by Ripple Lab Inc and this is an open source project which can be used by anyone.

While we talk about banking transactions than the first thing which came into our mind are

  • Transaction Fees
  • Time to Confirm transaction

Above two are the current biggest challenge not only for banking institute but to the user as well.

There are few other parts as well such as privacy and security of transferring data.

Currently, banking institutes are using SWIFT network to transfer messages or transactions for cross border payment.

Which takes the longest time to process transactions and around 3% in transaction fees in such cases it is going be overburden on banking users.

To solve this cross border payment Ripple network has been introduced which clear the transactions in just 4-5 seconds if you use their native token XRP.

The interesting thing that ripple costs you less than 1 cents which is close to nothing.

So you can get the speed of transactions and lower transaction fees in both cases it is a win-win situation.

You got an idea behind having Ripple, but what is the difference between Ripple and so call XRP?

This is the most confusing term among Ripple interested people.

What is Ripple?

Ripple is a technology which is built by Ripple Inc Lab to create this cross-border payment.

Ripple is not like Bitcoin or other cryptocurrency built on blockchain technology, it is having its own protocol called Distributed Ledger Technology (DLT).

Where security is maintained by consensus protocol, will explain this in a later guide.

Currently, Banking Institute is using SWIFT as a common layer to transfer payment from one point to other as secure messaging queue.

But It won’t change since 1974 when it was first introduced and currently, the world is moving very fast then how can you deal with low processing transactions.

The solution to this problem is the Ripple network which avails a common platform to transfer any type of currency on that platform.

The transaction would clear in just 3-4 seconds max which is far better than an hour or day low processing times by SWIFT.

Ripple won’t limit to transact digital assets using this platform you can send any fiat from one point to another.

In summary, Ripple is a technology which allows only banking financial institutions to replace their traditional SWIFT transferring process to new decentralized technology.

If this is call Ripple than what is the use of XRP?

What is XRP?

While considering another cryptocurrency like Bitcoin and Litecoin to transact any data on their platform can cause you to require their native coins such as BTC or LTC.

The case with Ripple is different, the native token which is used on the Ripple platform is XRP.

It could work as a mediator between two financial institutions if both parties agreed on the same currency.

Did not get? Let me explain in detail.

If you request to transfer USD to EUR or EUR to USD  on typical platform call SWIFT which in result cause a lot much conversion fees.

Let say in future both parties agreed on the same token to use on Ripple network which is XRP than Ripple network will find the best rate of conversion and do the transaction.

The transaction fee to complete this process is just 0.00001 XRP only which is less than 1 cents today.

In summary, XRP is a token or cryptocurrency which can be used on the Ripple network if both parties agreed on the same.

But to make sure, it is not mandatory to use XRP tokens on Ripple network, why will explain in its types.

How Ripple Network and XRP Works?

Ripple is the solution only to provide cross border payments, it is not made with a vision to replace existing fiat currency with XRP.

As we learned earlier XRP is a currency can be used on the Ripple platform to freely exchange for any currency, it acts as a form of currency which can be turned into any form.

Current supply limit of XRP is 100 Billion which is already created, so nothing is left to mine.

Approx 55 Billion of total XRP tokens are held by Ripple Inc Lab and that somewhere making this platform as Centralized.

But Ripple Inc claims that they put 55 Billion tokens to Escrow wallet to release 1 billion token every month for the next 55 months, hence now Ripple Lab Inc has no control over this token.

This can believe everyone as Ripple XRP now becomes a decentralized crypto platform.

The actual use of XRP will get increase only if the Ripple network is being used for cross border platform.

Ripple coins XRP is already been created, so no mining is available and no miner, so how the transactions will be validated?

Ripple has authorized few nodes all over the worlds which act as a validator for every transaction running on Ripple network.

Let me explain in a few steps.

  • If A initiate funds of 1000$ to B.
  • Ripple network will first identify the basic verification of A and B.
  • If all set than from the second node it will verify whether node A has enough fund to send?
  • If all good than settlement happens.

While validating transactions it follows the consensus mechanism which works as below.

  • Ripple network takes a transaction from various nodes and put them all together in a batch.
  • This batch will be passed to all the nodes or validator to approve them.
  • Once it got approved by 50% approver than it will pass on to next level approval.
  • Once it reached to 80% approval, it will be loaded to the ledger and completed.

In such a way, the integrity of the network will be maintained and every transaction will be validated in the network.

What are Ripple Offering Services?

Ripple is offering the number of services on the Ripple network and every service has its different use.

While talking about Ripple than we have a total of 4 things to discuss.


xCurrent is one of the most adopted services provided by Ripple network. This will allow the banking institution to do cross border payments.

In this process first, both sender and recipient node will be authorized and it will also confirm payment details before initiating the final transfer.

It is not that much support for the cross border as trading pair is liquid which needs to have liquidity of Euros and Dollars.

Hence this won’t require XRP tokens to complete payments, till date this service has been accepted by 100+ companies.


This platform works better, if you have traded pair in the liquid such as XRP tokens on Ripple network.

If Company A from UK planning to send money to B in the USA which needs liquid pair which does best rate conversion.

So on this platform Ripple network will take GBP from UK node and exchange that for XRP and on another node XRP exchange back to USD.

So in result minimum transaction fees and minimum conversion fee.

This is the actual implementation we are looking for if want to increase the price for XRP tokens.

Till date, few foreign money transfer companies like MoneyGram and Western Union has started using this network as a test phase.

But it would also need liquidity of XRP to exchange for other cryptocurrencies.


It is kind of API request which allows the user to send additional information with transactions such as invoices.

It is a combination of xCurrent and xRapid.

Now, I hope you a good idea about Ripple and its technology, let discuss the future of Ripple XRP?

Future and Price Prediction of XRP?

If we check the history of Ripple token XRP back in the year 2012 till date we saw that it was initially traded at the price of 0.005882$.

By the end of 2017 and the first quarter of 2018, it touched its all-time high price of 3.23$.

It is in the third position of coinmarketCap place with the highest market capitalization after Bitcoin and Ethereum.

Ripple XRP Price History

XRP has the capacity to handles 1500 transactions per second and can able to handle the same throughput as a VISA.

Currently, Ripple is been accepted by 100+ companies like  MoneyGram, Axis Bank etc.

Ripple Tech Companies

But the real use of XRP token is in place only with Money Gram and Western union companies only.

Because they are using XRP tokens to complete transactions, for each successful transaction 0.00001 XRP tokens will be used.

After finish to that transaction, the transaction fees of 0.00001 XRP will be burned and out from the economy.

Ultimately increase in XRP tokens price as if it been used by multiple companies.

Currently, most of the companies are using the Ripple network to process quick payments, not the XRP tokens.

Somewhere in future if they agreed to use xRapid instead of xCurrent or both agreed to exchange a common currency XRP then will result in an increase in price.

So no one can guarantee the price prediction for Ripple, it is kind of gambling which can up or can not.

But currently, it is available for the minimum price of 0.31$, so if you have money to invest than definitely try with XRP cryptocurrency.

There are few predictions done by the various technical analyst based on acceptance of the technology.

WalletInvestors predict to price go down to 0.0520 USD by end of 2019  but this is just technical analysis however actual market runs on emotions and joint partnerships as we saw the same in 2017.

Smartereum has done its own analysis and they found very optimistic and expecting price to 3-5 $.

No one can actually guarantee or predict the real price but yes the vision for the team is truly great actual implementation is getting started.

Few of the companies after pilot testing actually implemented the Ripple network to live transaction processing.

There is one more competitive project which is also been introduces with the same vision called Stellar Lumens (XLM).

Stellar Lumens (XLM) is also developed by the same brain who was behind Ripple Mr. Jed McCaleb.

In near future, only one will rule this industry so check our Extensive Guide on XLM. It is worth checking the differences between Stellar vs Ripple.

Latest Facebook has announced its own Cryptocurrency called Libra which is focused on the same aim as what Ripple is working on, so this is going to be challenging for Ripple to expand its network further.

Overall Ripple looks real, believable and futuristic technology which somewhere in the future will definitely give you something close to your expectations.

In terms of undervalued 1$ or growing Altcoins to invest check for Tron (TRX)  and Cardano (ADA).

If you are clear with this process then let me help you, how to Buy Ripple XRP Tokens?

How to Buy Ripple XRP tokens?

Ripple is one of the oldest cryptocurrency, hence it is already been registered to the number of buy-sell exchanges.

While you talk about CoinBase than unfortunately, it is not there to buy. so the other best option which you have is to find out the exchange.

The only exchange which provides you best Rate XRP tokens is Binance. Yes because most of the other exchanges which provide trading is charging high transaction fees.

The Binance has just 0.1% transaction fees and even this can be reduced to more 50% if you use BNB (Binance Coin).

The process to buy XRP is as explained below.

  • If you already have Cryptocurrencies like BTC or ETH, then you can exchange that for Ripple (XRP).
  • If you want to Buy using Credit or Debit card, you can do this by Binance.

In the first case, transfer your ETH/BTC to Binance BTC/ETH Wallet, in this case, I would refer transfer ETH because it has lower transaction fees.

If you haven’t had an account than Do Sign Up Binance here.

Now ETH is available on Binance, this time is to exchange your ETH for XRP Tokens.

Ripple Binance Exchange

  • Check the ETH market and search for XRP Tokens.
  • If you have ETH than same will be available there in Buy XRP available ETH.
  • Do not change the price of ETH, it will default display per XRP price in ETH on which currently the market is traded, you can change this price for which you want to buy.
  • Enter Amount of XRP you want.
  • Multiplying Toal XRP with ETH price and will display automatically total ETH amount, which must be less than or equal to the existing balance of ETH.
  • Simply Enter Buy and You are done with the purchase of Ripple (XRP).

Same this is the case with BTC trading market, where instead of ETH, BTC will be used to trade.

What if you do not have any ETH or BTC, than Binance also offers to buy them using the Debit/Credit card, to do so follow the below steps.

Go to Fund–> Buy Credit cards

Buy XRP with Credit Card

Now the best part with Binance, it directly offers to buy XRP with Credit card. You won’t need to buy ETH first than to exchange that with XRP.

So select XRP in Order amount and amount in USD/EUR to total charge (Including Fees). Transaction fees will be 3.5% or 10$ whatever is maximum.

Buy Ripple XRP by Card

Simply process to Buy Now and follow the rest process to enter user details, payment card details, and submission of address proofs.

Once all done than verification email will be sent to your registered email ID for verification than Ripple(XRP) will be credited to your Binance wallet.

You can check your available XRP balance under Fund->Balance.

Search for XRP than your wallet balance will be displayed there.

XRP Balance Boom!! You are done with the process of buying XRP tokens and I can consider that you got an idea what is Ripple and XRP Coin?

To learn more about how to Buy sell on Binance and how to trade with any cryptocurrency check our detail guide on Binance, will help you a lot to understand.

My View on Ripple and XRP Coin?

Ripple is not available to mine but yes it is available to buy, so the only option to hold this token is buy buying from the exchanges.

To buy or not buy this token all depends on you, I have shared best of Ripple knowledge such as what is Ripple and what is XRP and how this is going to change the industry.

This is the revolutionary change in financial industries and helping them a lot to transfer quick payments and increase scalability.

This is been already accepted by 100+ financial industries but the actual price of the token will only increase if they start using XRP tokens.

It has already touched the max price of 3.22$/XRP which was started back by 0.005$ and this explains it has bright potential.

It is a long run project which is started back in 2004 and still continue and already been used as a pilot project in different financial industries.

In future wide adoption of the Ripple network will definitely increase the price of the XRP coins, but no one can guarantee about it.

If you are planning to invest in Cheap Altcoins than check our Top 7 best Altcoins guide.

I have already shared what is the Ripple network and how XRP is been used on this platform.

Let me know what do you think about Ripple and XRP tokens and will it price increase or not in future trading market?

I am an Engineer and a passionate Blogger, who loves to share tips on Blogging, SEO, Google Ranking, Digital marketing, passive income, Cryptocurrency and Blockchain technology. Read More

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