Since Bitcoin's conception, a huge number CryptoCurrencies with a wide variety of applications have been popping up everywhere. If you missed Bitcoin, keep reading, this will change your life forever. If you haven't already, you need to sign up for Coinbase in order to buy Bitcoin and later on invest in Ripple. 💵
Ripple is a CryptoCurrency that currently works with over +75 banks worldwide (15 of the top 50), is part of the Federal Reserve System’s Faster Payments Task Force (yes, the Federal Reserve), executives who sit on the International Monetary Fund's High Level Advisory Group, and has notable investors such as Google, the worlds biggest search engine, and Andreessen Horowitz, a highly successful private venture capital firm. This a small taste of what this CryptoCurrency has going for itself.
If this sounds like something that may interest you, or if you already missed Bitcoin, read on, because this may change your life forever. Pay close attention and continue reading, we'll teach you everything about it and how to safely invest.
The Special CryptoCurrency
What is this so called special CryptoCurrency we speak of? It's name is Ripple, and to be more precise, XRP. In short, Ripple enables fast, cheap, and certain international payments of nearly any size with no chargebacks.
Ripple is a company started from an idea by Ryan Fugger in 2004 called RipplePay. It's also a network and protocol which serves as a real time gross settlement system, currency exchange, and remittance network.
What is remittance? Well, remittance is when payments are being sent from one country to another. Why is remittance important? Remittance is important because everyday people, businesses, and governments want and need to send money globally.
What's wrong with the current way banks and other entities engage in remittance? It's extremely slow and costly. People should be able to move money in the same way information moves on the internet. This is soon possible with the technology being developed by Ripple and will change the financial technology sector forever.
Ripple is aiming to give rise to an Internet of Value, also known as IOV, where money and value can move around as fast, secure, inexpensive, and globally as possible, building the infrastructure necessary to connect market makers, financial institutions, and other groups and people to create a vast network of liquidity, creating new opportunities for revenue and saving huge amounts of money in the process.
After hearing so much about Ripple, you may be wondering what does XRP have to do with this Ripple thing then? XRP is the native digital asset of the Ripple network. It is the only asset on the network that can be traded with zero counterparty risk, and as of now it is the fastest and most cost efficient way to transfer value on the network, boasting transaction times of just around four seconds and costs hovering near $0.007! Does that sound insane and too good to be true to you?
Well its real alright, this is why we're surprised more people don't already know more about Ripple and its advantages over other CryptoCurrencies and even the traditional banking system. Ripple is creating the global payment infrastructure necessary for today and tomorrow, for everyone including emerging markets and established financial institutions, like true forward thinkers.
Four pillars of Ripple
Ripple is primarily focused on solving 4 things for banks. These problems they are solving are:
Access: In the majority of cases, funding multiple positions and nostro accounts to engage in cross border settlements is simply too expensive for financial institution. These institutions usually rely on correspondent banks to provide limited access to other corridors of the world. By doing so, this results in non competitive foreign exchange, fees, and liquidity. This causes banks to unnecessarily lose money and revenue opportunities. With Ripple, anyone is able to access this global network that enables international payments without having to pre-fund accounts.
Certainty of settlements: Within traditional payment infrastructure, intermediaries route payments instead of banks directly communicating with one another.
As seen in the above image, this gives banks extremely limited transaction visibility, leading to a plethora of errors and unpredictability. With Ripple, there is full clarity on all transactions with no errors, the transaction either goes through and is confirmed to you or doesn't.
Settlement speed: Depending on the corridor, international payments at times can take up to weeks, due to payments having to be routed through a set of intermediary banks, with each step along the way requiring the intermediary banks ledger to be "online". You have most likely experienced this yourself if you've ever done a wire transfer to someone abroad, it is quite a hassle and can cause unnecessary stress. With Ripple, transactions take only four seconds due to the way the technology is carefully and brilliantly engineered.
Settlement costs: Due to payment processing, lack of strong liquidity, compliance fees, and treasury operations, banks can be hit with large costs if they engage in cross border settlements with the traditional infrastructure banks use. With Ripple, all of the unnecessary hassle normally associated with international payments is removed, resulting in smooth, fast, and cost efficient payments. Ripple transactions can reduce settlement costs by a huge margin, saving the banks incredible amounts of money due to how much money they process.
Solving these four main problems is essential to creating a more smooth global payment infrastructure that enables fast, cheap, and certain payments accessible for everyone. No longer are the days where banks are required to collateralize nostro accounts, instead they can consolidate all into one XRP pool where the bank is only required to hold their domestic currency and hold just one account with XRP, and they only need to hold enough XRP based on what they expect will be the largest payment they have to service will be.
By creating markets directly between only their domestic currency and XRP, banks drastically reduces the number of intermediaries that need to be involved, while increasing their markup on spreads.
Ripple has a plan
In short, the abridged model for what Ripple is trying to accomplish, as outlined by David Schwartz, chief cryptographer at Ripple, is this:
1: Ripple gets banks to use its payment technology.
2: Banks integrate Ripple's payment system into their system.
3: This helps to eliminate all the technical obstacles to banks routing payments through a CryptoCurrency. (Regulatory, compliance, business rules, integration effort, and more.)
4: Banks use the system to clear payments with each other, probably using mostly ILP. ILP (Interledger Protocol) is a protocol that permits atomic, cross-ledger payments. Most importantly, it allows a "connector" to facilitate the payment even if that connector is not trusted by either the sender, the recipient, or the source and destination financial institutions.
5: Ripple attempt to make XRP the premium connector by targeting inefficient corridors.
6: If XRP can efficiently bridge a percent of payments of payments between banks that use Ripple, it will.
7: This will increase the demand for XRP as connectors need XRP to buy the destination currency for their trades.
8: If XRP is cheap to trade with other currencies, people who don't know what currency they'll need next may hold XRP.
9: If XRP is cheap to trade with other currencies, people who are willing to buy any currency they can get cheaply may hold XRP.
10: This can lead to a cycle of increasing demand for XRP, increasing the price.
Seems cool right? Well they're cool alright. In fact, Ripple is currently partnered with over 75 banks, including the likes of Bank of America, Royal Bank of Canada, The National Bank of Abu Dhabi, and Mitsubishi UFJ Financial Group (fifth biggest bank in the world).
The even sit on the Federal Reserve’s Faster Payments Task Force Steering Committee and co-chairs the W3C’s Web Payments Working Group. They have offices in San Francisco, new York, and Sydney, with over $90 million in venture capital funding. These guys are on a mission to completely change the financial technology industry.
Right now they have three main solutions to offer. These solutions are xCurrent, xRapid, and xVia.
Instant and Certain Settlement
xCurrent is Ripple’s enterprise software solution that enables banks to instantly settle cross-border payments with end-to-end tracking. Using xCurrent, banks message each other in real-time to confirm payment details prior to initiating the transaction and to confirm delivery once it settles. It includes a Rulebook developed in partnership with the RippleNet Advisory Board that ensures operational consistency and legal clarity for every transaction.
Low Cost Liquidity
xRapid is for payment providers and other financial institutions who want to minimize liquidity costs while improving their customer experience. Because payments into emerging markets often require pre-funded local currency accounts around the world, liquidity costs are high. xRapid dramatically lowers the capital requirements for liquidity.
Standard Payments Interface
xVia is for corporates, payment providers and banks who want to send payments across various networks using a standard interface. xVia's simple API requires no software installation and enables users to seamlessly send payments globally with transparency into the payment status and with rich information, like invoices, attached.
So now you're looking to invest in Ripple, XRP to be more precise, in a quick, easy, and safe manner, but you possibly are not sure on how to go about this. Worry not! We will outline the steps so that you can join the global real time settlement network revolution as quickly as possible! Keep reading on to see how.
How do I buy Ripple
Firstly to buy Ripple, you're going to need Bitcoin, and the best place to buy Bitcoin right now is undoubtedly Coinbase. They are the most trusted exchange with some of the best technology in this field right now. We highly recommend you sign up with Coinbase with this partner link here as you get a special offer just for Bitpam readers.
Click the image above to quickly sign up for Coinbase, the most fast and safe way to buy and hold CryptoCurrency like Bitcoin, Ethereum, and Litecoin. You'll also get a free $10 worth of Bitcoin just for you if you sign up through this partner link we have provided!
Once you've acquired Bitcoin from Coinbase, you should set up a GateHub account.
Once you sign up you'll get a recovery key. Save this and keep it in a safe place.
You'll also get an email for verification purposes. Click "Activate Account" and sign in when you're redirected to GateHub's site.
Click "Activate Account" to go here. Choose the account type that best suits you.
Once you go to the identity verification stage, it is not necessary to give any of this information as you can still hold and trade CryptoCurrency pairs, you just won't be able to buy CryptoCurrency with fiat.
On the left side there will be an option that says "Wallet". You can click that, then click "Deposit / Receive" to find out your XRP address.
Now what you can do is go to ShapeShift.io and select the coin you wish to deposit as Bitcoin and the coin you wish to receive as Ripple. Please note that you will need to receive 20 XRP or more if you wish for the transaction to go through successfully if you have a new wallet.
Now what you'll do is after you click continue, you'll be asked to fill in some information here.
Once you fill in your Ripple address and your Bitcoin refund address, you can click "Start transaction".
Now all you have to do is send your Bitcoin to that address and you'll have your Ripple on GateHub, it's that simple!
Feel free to let us know what you think about CryptoCurrency and how easy it is to buy Ripple in the comments, we read and respond to every single comment! 😊