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How To Buy XRP In the US

Last updated 19th Aug 2022
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Due to an ongoing lawsuit with the Securities and Exchange Commission (SEC), buying XRP in the US has become significantly more difficult for crypto investors. Several cryptocurrency exchanges have delisted the coin, limiting the number of places you can purchase them.

XRP’s price has also plunged since showing signs of recovery earlier in 2021. This uncertainty means getting a complete picture of whether the coin is worth buying is challenging.

However, this guide has detailed all the options still available to you if you live in this country, including the payment methods you can use. We’ll also discuss whether we think it’s worth buying XRP.

Best Brokers to Buy XRP in the US in 2022

Before buying XRP in the US, it’s worth thinking about the different platforms you can buy the cryptocurrency from. Below, we’ve listed the top crypto brokers for purchasing XRP in the country.

1
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Key Takeaways

  • XRP is challenging to buy in the US due to ongoing legal disputes.

  • XRP is trying to be a stablecoin.

  • Your payment options are limited for buying XRP in the US.

  • Many major crypto exchanges have delisted XRP.

  • The few platforms you can buy XRP on might not be available in the state you live in.

What Options Do I Have When Buying XRP in the US?

As mentioned, it’s more difficult to buy XRP in the US than in other countries. There are still a few ways to buy your coins in the country. Below, you’ll find a breakdown of each option to help you make the decision that suits you best.

Decentralized Exchanges:

  • Some decentralized crypto exchanges serving the US market will let you buy XRP from them. When you use this type of platform, the primary difference is that the coins aren’t owned by the exchange, whereas they are if you used a centralized platform instead.

  • To buy XRP, submit a buy order and deposit money into your account. After that, choose to purchase the coins. Paybis is one example of a decentralized exchange where you can purchase XRP.

P2P Marketplaces:

  • P2P marketplaces are a viable option for purchasing XRP in the US, and in some cases, you might have better luck buying cryptocurrencies from here instead of exchanges. When buying XRP from a P2P marketplace, you’ll buy from another user instead.

  • If you use a P2P marketplace for buying XRP in the US, remember that scams can and do take place on these platforms. You must interact with the buyer before you transfer any money. Always check ratings before making a purchase. Coinmama is an example of a P2P marketplace where you can buy XRP if you’re based in the US.

Centralized Exchanges:

  • Many centralized crypto exchanges have delisted XRP due to the ongoing legal dispute with the SEC. However, a small selection of platforms still lets US crypto investors buy the coin.

  • When you buy from a centralized exchange, the platform will own all of the coins before you make a purchase. You can buy XRP by funding your account with fiat money and submitting a buy order. In some cases, you can also exchange other cryptocurrencies for your money. CEX.io is one centralized cryptocurrency exchange that will let you buy XRP in the US.

Is using a broker the best way to buy XRP in the US?

Pros

Fees tend to be lower when using a broker

Cons

Most brokers in the US won’t let you buy XRP

How to Buy XRP In the US

Once you’ve found a place to buy XRP in the US, the process is relatively straightforward. The sign-up and purchasing will differ slightly from platform to platform. In this instance, we’ll show you how to use Paybis.

Follow the steps below to get started:

Step 1: Sign up with PayBis
Step 2: Pass the know your customer (KYC)
Step 3: Creat wallet
Step 4: Select preffered coin
Step 5: Confirm your order

Where to Buy XRP In the US?

Most cryptocurrency brokers in the US won’t let you buy XRP, so you’ll most likely get your coins from an exchange instead. Even then, you won’t have many choices. When you sign up for a platform, it’s important to take into account how familiar you are with trading cryptocurrencies. If you’re a beginner, you’ll want something easy and probably won't require advanced tools like leverage.

To help you choose a better place to buy XRP based on your skills, we’ve listed options for both beginners and seasoned investors.

Buying XRP in the US for Beginners

Paybis:

  • Paybis is a decentralized cryptocurrency exchange and one of the few places where it’s possible to buy XRP in the US. The platform is suitable for beginners because it offers few complications and a user-friendly interface.

  • To use Paybis, you can sign up either on your smartphone or desktop device. The service is available in 48 of the 50 US states, which is much better than other solutions like Binance (which doesn’t sell XRP to US customers anyway).

  • In terms of features, Paybis is relatively straightforward for individuals. You can access real-time price charts in addition to a cryptocurrency calculator. Both will continue to serve you as you become more advanced in your investment strategies.

Pros

Available in almost every US state
One of the few platforms where you can buy XRP in the US
Available in both English and Spanish

Cons

Not available in all US states
Paybis restricts residents in some states on how much they can use the platform

Buying XRP in the US for Advanced Crypto Investors

CEX.io:

  • If you’re more of an advanced crypto investor, CEX.io is a better choice than Paybis for buying XRP in the US. The interface is a little more complicated, which will overwhelm beginners. CEX.io offers plenty of tools to improve your cryptocurrency investment strategies. These include instant buy options and ways to earn money for staking specific cryptocurrencies. If you’re more interested in trading, leverage and spot trading can be utilized.

  • Like Paybis, you can use CEX.io in most US states; New York and Virginia are the only two where you can’t enjoy the service.

Pros

A wide selection of tools for advanced crypto investors to use
Available in most parts of the US
A secure platform to buy XRP from

Cons

High fees involved
Not available in New York and Virginia
No advanced tools available for US customers

What Are the Regulations and Taxes When Buying XRP in the US?

Compared to many countries, cryptocurrency laws and regulations in the US can be a little complicated. To understand US crypto laws, it’s worth keeping in mind that some aspects will differ on a state-by-state basis. If we look at regulations from a federal perspective, all crypto exchanges in the country must register with the Financial Crimes Enforcement Network (FinCEN).

Cryptocurrencies they’re classed as a currency by the Treasury. However, the Commodity Futures Trading Commission (FTC) refers to them as commodities. Like in many countries, you need to report and pay tax on cryptocurrency profits that you make in the US. Several scenarios are taxable, including selling your coins for cash. When announcing cryptocurrency profits, the IRS will class these as properties. If you earn below $40,400 in long-term gains from crypto over a fiscal year as an individual — or $54,100 if you’re the head of a household — you won’t need to pay tax. If you earn more than $40,000 in long-term crypto gains within a year (or $54,100 if you’re the head of your household), you’ll pay 15% up to $445,850 as an individual. This figure rises to $473,750 as of the head of a household. Anything above the figures mentioned above is taxed at 20%. If you’re filing as a married couple, your allowances are double that of a regular individual.

Short-term gains are taxed a little differently in the US. You’ll pay taxes on these in the same way you would income for a job, with the percentage ranging between 10% and 37% based on your tax classification.

Below are the thresholds and percentages you will pay according to your tax classification:

Individual%
Up to $9,95010
$9,951-$40,25512
$40,526-$86,37522
$86,376-$164,92524
$164,926-$209,42532
$209,426-$523,60035
Anything above $523,60037
Married couple%
Up to $19,90010
$19,901-$81,05012
$81,051-$172,75022
$172,751-$329,85024
$329,851-$418,85032
$418,851-$628,30035
Anything above $628,30037
Head of household%
Up to $14,20010
$14,201-$54,20012
$54,201-$86,35022
$86,351-$164,90024
$164,901-$209,40032
$209,401-$523,60035
Anything above $523,60037

Other Considerations When Buying XRP In the US

We’ve already covered a lot about buying XRP in the US, but there are still a few other things you need to consider. Below, we’ve included these in a bulleted list with a brief explanation.

Volatility:

  • XRP was highly volatile in 2021, and its price has fallen significantly in the past few months. It could continue falling, but there’s also the chance that it’ll rise before long. Remember that even though you can make significant profits, it’s also possible to lose a lot of money if you aren’t careful.

Security:

  • When you buy XRP, it’s crucial to remember that cryptocurrencies are constantly threatened by hacking and other cyber risks. We recommend storing your coins in a wallet, we’ll discuss that in more detail later.

You Can’t Reverse Transactions:

  • When you send XRP or try to buy the currency using different crypto, it’s crucial to remember that you cannot switch your transactions. Therefore, you must make sure that you send them to the desired destination.

What Payment Methods Can I Use to Buy XRP in the US?

When you’re ready to purchase XRP, you can deposit money into your crypto exchange account using one of a few methods. We’ve listed some of the most common ones for US users below.

Credit/debit card:

  • One of the easiest ways to deposit money into your account is by using your credit or debit card. To do so, all you need to do is enter your card details and select how much you’d like to deposit or buy. This convenience comes at a price; you’ll often need to pay high depositing fees.

Bank Transfer:

  • Another simple way to fund your account is via bank transfer. Doing so is secure, but you might need to wait a little longer for the money to arrive. Moreover, some methods can come with hefty costs.

Trading Other Cryptocurrencies:

  • The least expensive way to buy XRP in the US is through other cryptocurrencies. If you go onto an exchange, you can pair the coins you already have with XRP before getting those in return. To be the most effective, you already need to have other currencies in your arsenal.

How to Store Coins?

When you’ve bought your XRP, you can store the coins in either a hot or cold wallet. These differ slightly, and we’ve described the pair of them below.

Hot Wallets:

  • Hot wallets are software wallets that require signing in via an app or website. Your coins are stored in a blockchain when you don’t use them, and many exchanges will offer their own versions. Trust Wallet is an example of a popular hot wallet that lets you store XRP.

Pros

Often free
Easily accessible
Many exchanges offer them

Cons

Easier for hackers to get into your wallet

Cold Wallets:

  • Physical wallets, also known as cold wallets, are slightly different from their software counterparts. These wallets still have apps, and your money is stored in a blockchain when you don’t use it. However, you need to verify your identity offline, which adds extra security. Ledger is an example of a cold wallet that lets you store XRP.

Pros

More secure than hot wallets
Available for XRP and other cryptocurrencies

Cons

Expensive
You need to make sure that you don’t lose the physical verification documents and objects

Final Thoughts

XRP is one of the oldest cryptocurrencies and enjoyed a renaissance in 2021 before things started to slow down. The currency aims to be a stable coin but hasn’t yet achieved the limited volatility it requires.

Currently, XRP is difficult to buy in the US because of ongoing legal disputes. If its legal issues are settled, the country’s major crypto exchanges might choose to relist it. But for now, we recommend investing in an alternative.

FAQs

Do I need to pay tax on profits in the US?
Can I buy XRP without an ID in the US?
Where can I buy XRP in the US?
Stephen Ngari

Stephen Ngari

Stephen is a seasoned crypto and fintech specialist with industry experience. Having worked in tech, helping people send money globally and rollout solutions, he understands the impact that tech like blockchain brings to real world issues. He is passionate about crypto, writing and basketball.