Best XRP Exchanges
Exchanges are digital platforms that facilitate buying, selling, and trading cryptocurrencies. They provide technological mechanisms to trade digital assets in exchange for money and other cryptocurrencies.
Exchanges are like stockbrokers, listing different cryptos such as Ripple (XRP). This crypto is native to the XRP ledger. It’s built for global payments and is majorly used by financial institutions for cross-border payment.
Being a top ten crypto by market capitalization, many investors are interested in XRP. This article examines the best exchanges to buy Ripple, guidelines for buying XRP, payment methods, and much more.
Top XRP Exchanges in 2022
Exchanges make it quite easy to buy cryptocurrencies. Many platforms have come up, and it’s always a daunting task to find a perfect exchange to buy XRP. We’ve compiled a list of the top beginner-friendly crypto providers to help you get started quickly.
What is an XRP Exchange?
An XRP exchange is an online marketplace where you can buy and sell XRP for fiat currencies such as USD and GBP. These platforms also make it possible to trade XRP with other cryptocurrencies like Bitcoin and Ethereum.
To get the current market prices for XRP, you’ll need to use the spot market. This is the default option for most exchanges.
The good thing with the exchanges is owning your crypto asset. You can even transfer your XRP to an external wallet or to a different exchange.
How Do I Use an XRP Exchange?
Exchanges can be accessed through personal computers or apps on mobile phones. You’ll generally need to open an account before you can buy XRP.
Here is a step-by-step guideline for buying XRP from an exchange such as Binance:
Visit the official exchange and click ‘Signup;.
Create an account by providing details such as email and password
Verify your email and phone number for security reasons
Add your personal information and verify your identity. The Know Your Customer (KYC) process aligns with anti-money laundering regulations (AML).
Link a payment method. You’ll have options such as bank transfer, debit, and credit cards.
On the dashboard, go to the buy section and click ‘Buy’.
On the search functionality, enter ‘XRP’.
Enter the number of XRP coins you want and execute the transaction.
These steps are typically the same in all custodial exchanges. Your XRP will be stored in a wallet on your account.
What Should I Look For in an XRP Exchange?
There are several factors to consider when choosing which exchange to use to trade or buy XRP; these include:
Payment Methods Accepted: Exchanges will accept different forms of payment depending on their integrated payment methods and jurisdiction. Bank transfers, credit, and debit cards are common on most exchanges. E-wallets such as Paypal and Skrill are not widely adopted. Look for exchanges that support your preferred payment option.
Availability of Coins: A lawsuit was set in motion in late 2020 between Ripple Labs, the company behind XRP, and the US Securities Exchange Commission(SEC). Since then, some exchanges, such as Coinbase, have delisted XRP. It’s therefore prudent to check if an exchange supports XRP before signing up.
Geographical Restrictions: Not all exchanges are freely available in all countries. For instance, Coinbase says its covers just over 100 countries meaning there are other jurisdictions where its services are not available.
Fees: Charges vary depending on the economic model of the crypto exchange. Always check the fee schedule before executing a transaction. Consider deposit and withdrawal fees because they vary depending on the payment method used.
Design and Ease of Use: Exchanges that make it easy to buy and sell cryptocurrency typically attract many investors. The customer journey should be easy, and completing transactions should be uncomplicated.
Security Features: Exchanges are custodians of both crypto assets and funds. Breaches in security become extremely costly. Check for exchanges that have 2FA, insurance for stored assets, and cold storage.
Do I Have to Verify My Account on an Exchange?
Account verification is mandatory on regulated exchanges. This is in line with government regulations and the internal policies of the platforms. The need for account verification arises from attempts at promoting accountability, preventing money laundering, and deterring terrorism financing.
Exchanges typically ask for personal details such as legal names, proof of address, and phone numbers. Expect ID verification as well. Depending on your jurisdiction, you will have to upload a driver’s license, passport, or national ID.
Are XRP Exchanges Secure?
Exchanges offer a digital convergence for crypto traders. They hold a lot of cryptocurrencies and funds, proving a tempting target for hackers. Many have implemented multiple security features to prevent and deter malicious actors.
Apart from the features implemented on an exchange, it’s paramount that you also take preemptive measures to avoid the loss of crypto assets or funds. Here is what you can check on an exchange:
Insurance for crypto assets stored on the exchange
Cold storage for assets stored on the platform
Bug bounty programs to identify possible loopholes
2FA for logins and withdrawals
Some tips you can follow to ensure your XRP coins are safe include:
Avoid reusing passwords from other websites
Transfer your XRP to a secure private wallet
Avoid accessing your account over public wifi
Use correct URLs
How Fast Are Transactions on Exchanges?
Exchanges provide different order options. Market and instant order transactions are typically fulfilled immediately. You can also stipulate a limit order which directs the price you want to buy a crypto asset. These types of orders are not fulfilled instantly.
Transaction speeds from one exchange to another depends on the underlying blockchain. For instance, transaction validation on the Bitcoin blockchain takes about 10 minutes, whereas the Cardano blockchain can validate 250 transactions per second.
What Payment Methods Can I Use to Buy XRP on Exchanges?
Payment options will depend on your jurisdiction and the exchange you select. However, there are standard methods that you are likely to find across all exchanges. Other exchanges involve third-party payment gateways like Simplex to ensure they cover some of the major payment options.
Bank transfers, credit, and debit cards are widely adopted. E-wallet options such as Paypal, Neteller, and Skrill have limited adoption and can be found on a few platforms. The option of paying via crypto is accepted in all crypto to crypto exchanges.
Do Exchanges Charge Fees for Buying and Selling XRP?
Yes, there are fees for making transactions. The charge will depend on your payment method and whether you are depositing or withdrawing. For card transactions, expect between 0.25% and 3% fees.
Card transactions are typically the most expensive, while bank transfers are the cheapest. Most investors avoid paying fees by transferring money from their bank accounts.
Transaction fees may be in the form of maker-taker fees. These are typically tiered after weighing an account’s trading activity for 30 days. Charges decrease with increasing volumes.
We advocate investors to always check the fee schedule before buying crypto. The fees may impact your overall portfolio or profit.
Are There Fees for Transferring Coins In and Out of Exchanges?
Yes, there are fees when transferring crypto assets from one exchange to another. Charges also apply when moving crypto to an external wallet.
These fees are “miners' fees” or “gas fees” for transactions on the Ethereum blockchain. The charges might be substantial or negligible depending on the blockchain you are using. Ethereum and Bitcoin transfers are typically more expensive.
Do I Need a Wallet to Use an XRP Exchange?
You’ll not need a crypto wallet to buy XRP or use an exchange. After purchasing XRP, the coins will be deposited in the exchange’s in-built wallet. However, we strongly recommend transferring your coins to a secure external wallet if you are not trading them soon.
Large amounts of XRP should be stored in hardware wallets for maximum security. This is to prevent losing your investment in case the exchange gets hacked. However, investors who intend to trade their coins frequently can leave them in the exchange wallet to avoid the fees of moving their assets back and forth.
What Are the Other Platforms That I Can Use to Buy and Sell XRP?
Apart from exchanges, you can use peer-to-peer marketplaces(P2P), crypto brokerages, and CFD trading platforms.
P2P marketplaces are non-custodial platforms where buyers and sellers meet. Sellers can set up adverts for the number of XRP coins they are selling. Buyers can browse and purchase the coins from their preferred vendor.
Brokerages buy and sell crypto on your behalf. They introduce a small markup for the services they offer. Some brokerages offer derivative products.
CFD trading platforms enable investors to trade crypto without owning the underlying crypto assets. Traders can speculate on the volatility of XRP and try to gain profits from price movements.
Note: Some jurisdictions have banned crypto derivatives, including the UK and US. Find out if your country allows such products.
Should I Use an XRP Exchange?
Exchanges provide the easiest and most common way to buy and sell XRP. Some of the standout advantages include:
Availability of popular payment methods
You own the XRP coins
You can transfer or trade your XRP coins
Security features such as 2FA
On the downside, some exchanges have a lengthy registration process, making it difficult to start trading quickly.