How to Buy Ripple (XRP) Cryptocurrency

What Is Ripple (XRP)?

Ripple, or XRP, is both a cryptocurrency and a platform. Technically, Ripple is the name of the company and network, and XRP is the cryptocurrency. The Ripple platform is an open-source protocol designed to allow fast and cheap digital transactions.

Key Takeaways:

  • Ripple, or XRP, is both a cryptocurrency and a platform.
  • The company and network platform are typically referred to as Ripple, and XRP is considered the cryptocurrency.
  • The Ripple platform allows fast and cheap digital transactions.
  • XRP can be purchased on various exchanges such as Bitstamp, Kraken, and GateHub.
  • Several U.S. exchanges delisted or temporarily halted XRP trading after the Securities and Exchange Commission launched enforcement actions against Ripple.

Understanding Ripple (XRP)

Ripple has made a name for itself, and some financial institutions and analysts predict a strong future for this network. The network is expected to increase the global liquidity of money by allowing transfers around the world to take place at record speeds and for low fees.

Unlike Bitcoin and other decentralized cryptocurrencies, XRP relies on a consensus mechanism controlled by a limited group of bank-owned servers to confirm transactions. As of December 2021, XRP is the eighth-largest cryptocurrency, with a market cap of around $40 billion.

XRP Price History

XRP hit its all-time daily high on Jan. 4, 2018, when the value of one XRP reached $3.84. However, a downward trend ensued after the peak, and by September 2018, XRP had lost more than 93% of its value from its January 2018 high, hitting a new low of $0.26 on Sept. 11, 2018. Although there appeared to be periods of optimism, the downward price trend persisted through 2018 and 2019, and the continued poor performance resulted in XRP reaching its all-time daily low of $0.12 on March 13, 2020.

In November 2020, XRP experienced an upswing in price—its daily high peaking at $0.77 on Nov. 24, 2020. Since November 2020, the price of XRP has shakily trended upward, reaching a daily high of $1.96 on April 14, 2021. The notable and widespread May 2021 price fluctuations in the crypto market that applied to the majority of exchange-traded digital assets are currently reflected in XRP's price. As of Nov. 19, 2021, the adjusted close of XRP was $1.05.

June, 2012

The XRP software was first launched in June 2012 by the future founders of Ripple Labs.

How to Buy XRP Cryptocurrency on an Exchange

Like other cryptocurrencies, Ripple is available on several online markets and can be bought with fiat currency, Bitcoin, or other cryptocurrencies. As of November 2021, the following exchanges offered XRP trading pairs:

  • Coinbase
  • Binance
  • Huobi
  • Bithumb
  • Bitstamp
  • FTX
  • Bitfinex
  • Poloniex
  • Gemini
  • eToro

In addition, the XRP Ledger also includes a built-in decentralized exchange, allowing users to trade XRP for other virtual assets.

You can now also buy XRP on the free brokerage app Robinhood.

Legal Restrictions

Though most people around the world can buy XRP with little hassle, that's not true of the United States, where Ripple is embroiled in litigation with the Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Ripple in December 2020, alleging that its sale of XRP was an unregistered securities offering worth over $1.38 billion. As a result, XRP has been delisted from many exchanges, particularly in the United States. Outside the U.S., many international exchanges have imposed trading limits on U.S. traders or blocked American IP addresses altogether.

Exchange Delistings

Rather than expose themselves to potential violations of U.S. securities laws, many exchanges have elected to suspend XRP markets until the legal action against Ripple is resolved. The following are examples of well-known exchanges that delisted XRP after the lawsuit was announced:

  • Coinbase
  • Binance
  • Bitstamp
  • Kraken
  • eToro
  • Abra
  • B2C2
  • CrossTower
  • Bittrex
  • Eobot
  • Beaxy
  • OSL
  • Okcoin
  • STEX
  • Ziglu
  • Wirex
  • Bitwise

Restrictions on U.S. Customers

In order to comply with U.S. securities laws, many international exchanges have restricted trading for U.S.-based customers or even blocked American IP addresses. It is important to review an exchange's policies before depositing any assets.

Phemex crypto exchange, which had previously delisted XRP, has reconsidered its position and has brought XRP back to its trading platform for spot (XRP/USDT) and contract (XRP/USD) trading.

As of November 2021, it is unclear when the legal action against XRP may be resolved and what the ongoing courtroom rulings and motions might imply. Though you may not be able to invest in XRP at the moment, the outcome of this case has historic potential to decide not only the future of Ripple Labs, Inc. and XRP trading, but also set the tone for the regulatory future of cryptocurrencies.

Investing in cryptocurrencies and other Initial Coin Offerings (ICOs) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Because each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not own Ripple.

Article Sources

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  2. Yahoo! Finance. "XRP USD (XRP-USD)." Accessed Nov. 19, 2021.

  3. XRP Ledger. "History." Accessed Dec. 14, 2021.

  4. XRP Ledger. "Decentralized Exchange." Accessed Dec. 14, 2021.

  5. Robinhood. "Crypto: XRP." Accessed Dec. 14, 2021.

  6. U.S. Securities and Exchange Commission. "SEC Charges Ripple and Two Executives with Conducting $1.3 Billion Unregistered Securities Offering." Accessed Nov. 19, 2021.