Cryptocurrency actually started out life in an earlier form in the 1980s, when something called cyber currency was developed.
Bitcoin is the name that is most associated with cryptocurrency, and it was the launch of this coin in 2008 that saw the cryptocurrency market roaring to life.
This coin was created by the mysterious Satoshi Nakamoto, who many believe to be an alias for one or multiple anonymous programmers.
In the last few years, especially, the cryptocurrency market has become a financial juggernaut and is now estimated to be worth a staggering $3 trillion US dollars.
This article will focus on another of the top-performing and most popular cryptocurrencies, XRP.
We will look into its creation, its relation to the Ripple payments system, and touch on the current SEC controversy that surrounds Ripple.
Why Is Cryptocurrency So Popular?
One reason is that there are minimal fees associated with using cryptocurrency, which is fantastic compared to the often extortionate banking or transaction fees one might pay elsewhere.
A huge appeal is also the attempt to remove some of the power of the world’s central banking system.
This monopoly has far too much control over the financial markets and too much sway when it comes to geopolitical events.
By transferring more and more wealth away from this system, people are able to gain more financial independence and reduce their interactions with the often corrupt financial system.
What Is Ripple?
Ripple is a blockchain-based worldwide digital payment network on which users can exchange cryptocurrencies, fiat currencies, and even physical commodities like silver and gold.
It’s a peer-to-peer decentralized platform that is intended to be both a cheaper and more efficient banking service.
Unlike other cryptocurrencies, Ripple works by creating a distributed ledger across all nodes within the network.
These nodes do not require a third-party intermediary, but rather operate independently and simultaneously while updating each block of data.
Unlike other coins that use public ledgers like the blockchain, Ripple’s ledger is private, meaning only approved members have access to it.
A huge benefit of using Ripple is its ability to settle payments almost instantly, compared to potential long waits via traditional banking systems.
What Is XRP?
XRP is the native cryptocurrency to the Ripple software, and it was launched in 2012 alongside the software itself.
Users of Ripple pay their minimal transaction fees via the XRP in their accounts.
It is also used as an independent digital coin and as an intermediary currency for exchanges between two assets or networks.
Users can also use XRP as a global bridge currency to allow trades of multiple fiat currencies.
Where Can You Buy XRP?
XRP can be purchased and traded on a number of exchanges including Binance, Kraken, Houbi Global, and Bitstamp.
It should be noted that some exchanges have delisted XRP due to an ongoing legal case with the U.S. Securities and Exchange Commission.
Let’s take a quick look at what this case is about.
The legal case in question is expected to be resolved in 2022, with many financial commentators and industry insiders firmly believing that the SEC will lose the case.
It came about in December 2020 when the SEC charged Ripple with raising money through an unregistered offering of digital asset securities.
They raised $1.3 billion, and the issue is that the SEC wants clarification on whether the XRP token is a security under federal security laws.
XRP is still regarded as a sound investment by many and is still tradable despite some of the aforementioned exchanges delisting the token.
Where Can You Sell XRP?
XRP can be directly traded on all compatible exchanges, though with some in the U.S. delisting it, this does limit your options somewhat.
When trading with or selling XRP, you have two main options from which to choose.
1. Sell your XRP for USD (or other fiat currency
2. Sell your XRP for another cryptocurrency
Sell Your XRP For USD (Or Other Fiat Currency)
There are a couple of ways in which you can trade XRP for fiat currencies.
The easiest and most straightforward is by using an XPR compatible exchange. This will allow for direct trade between XRP and fiat currency.
Another route that’s a little more of a fuss is by trading out your XRP for another digital currency.
This new digital currency can then be traded for the fiat currency on any compatible exchange.
Things to consider:
- Is this a good time to sell? Look at market action, transaction size, transaction limits, and trading costs.
- Exchanges charge a fee for transactions.
- Fiat exchanges are considerably more costly for fees.
- The exchange may have limits set for new traders.
Sell Your XRP For Cryptocurrency
As XRP operates as a digital cryptocurrency token, it means that it’s rather simple to sell or trade your XRP in exchange for other digital tokens.
You can simply trade it for other cryptocurrencies directly, the easiest way is to do so on any exchange that XRP is listed on.
It may be the simplest way is to sell it on the exchange that you initially purchased them on.
This way you already have an account set up, experience using the interface, and of course your linked bank account.
You will also not need to resubmit all of your personal information to ensure that you meet the Know your Customer and Anti-Money Laundering (KYC/AML) regulations.
If you wish to sell them on another exchange, then of course you need to set up an account on there.
Despite some U.S. exchanges delisting XRP, there are still loads to choose from, so if you are moving to a new exchange, take your time to do the research and find the right one for you.
What are its features? What are the costs? How easy is it to move your funds around?
Final Thoughts
Have you taken the first step into the world of cryptocurrency?
Whether you’re a new or experienced trader, XRP continues to be a reliable and consistently performing cryptocurrency.
The results of the legal dispute with the SEC will undoubtedly cause a change in the value and perception of XRP in the financial world.
If, as expected, Ripple win their case, then we could see the value skyrocket.
Of course, I am only speculating and not giving financial advice!
