What does Ripple mean?
Ripple is a real-time gross settlement system which serves as both a cryptocurrency and a digital payment platform for financial transactions. Ripple was first launched in 2012 by its co-founders Chris Larsen and Jed McCaleb.
Ripple’s native coin is named XRP, which is currently ranked third among the largest cryptocurrencies by market cap, behind Bitcoin and Ethereum. XRP was created for enterprise use, aiming to be a fast, cost-effective digital currency for cross-border transactions.
RippleNet is Ripple’s native network of corporate payment providers such as financial services or banks around the globe. RippleNet connects different payment networks like cryptocurrency exchanges, banks, legal entities, and payment operators utilizing both cryptocurrencies and fiat currencies.
The key process of this network is the payment settlement fund exchange and the funds transfer system comparable with the SWIFT system for global money and security transactions thst is utilized by banks and financial brokers. Ripple’s primary objective is to create a connection between banks, payment operators and cryptocurrency exchanges, making international payments more convenient, cost-effective and faster.
Instead of employing blockchain mining, Ripple utilizes a consensus mechanism via a variety of servers in order to verify transactions. These transactions spend less energy than Bitcoin, get verified within seconds, and the cost is very low, as opposed to Bitcoin transactions which spend more energy, verifications take more time, and cost much more.
One of the main benefits of this platform in the digital currency market is its stake in its native XRP coin. The company holds nearly 60% of all XRP in existence. This means that Ripple’s worth is minimum $20 billion. The company holds a very influential position in the financial world as it can significantly affect the way transactions happen and undertake the old SWIFT system. Its main goal is to enable consumers to make cross-border payments and help extend access to banking via transfers that have no virtual fees.
How to buy Ripple in the United Kingdom?
The cryptocurrency is used by the payment network Ripple, however, traders can buy, trade and sell XRP on a variety of open exchanges. If you want to know how and where to buy XRP in the United Kingdom, read this guide by Monfex.
One of the options to buy Ripple (XRP) in the United Kingdom includes trading Bitcoin (BTC) for Ripple on one of the cryptocurrency exchanges like Binance, or eToro – traders that want to buy other cryptocurrencies as well might find this option the most useful, as it lets them trade Bitcoin for any other listed currency.
The second and most convenient option is CEX.io, a cryptocurrency exchange and former Bitcoin cloud mining provider. This option lets traders trade cryptocurrencies for fiat money, such as GBP, EUR, USD and RUB. CEX.io has somewhat higher fees than other exchanges, as it offers the easiest way to buy XRP.
Where to buy XRP in the UK?
- Buying XRP with BTC on an exchange
This is the best-price option to buy XRP. It’s particularly good if one is looking to buy other digital currencies as well, because it’s easy to buy other cryptocurrencies with BTC. There’s a wide range of exchanges that allow traders to trade BTC for other cryptocurrencies - Binance, eToro, Kraken, BC Bitcoin etc.
For this step-by-step guide, we will use Binance, as it’s one of the most popular exchanges out there.
Step 1: Create a free account here.
Step 2: Log in to your new account.
Step 3: On top of the page, click on Funds -> Deposits.
Step 4: Click on the dropdown menu on the left side and enter the cryptocurrency (Bitcoin) that you want to deposit.
Step 5: Once you do that, you will get your deposit address. Copy and paste the address to your wallet in order to send the tokens.
Step 6: Now that you’ve sent the coins to your wallet, click on the panel on top of the page and go to Exchange -> Basic.
Step 7: Using the panel that’s on your right, enter “XRP” in the search tool.
Step 8: Click on Buy XRP. Once you do that, you will have to choose between 3 different purchase types: Limit, Market and Stop-Limit.
Limit is a type of order traders place with a certain limit price. Traders decide what the limit price is. Once traders make a limit order, the trade will not be carried out unless the market price meets the limit price that was previously set (or higher). As a result, traders can place limit orders to make purchases a smaller price or to sell at a higher price compared to the present market price.
Market: This is a type of order that lets traders instantly buy or sell at the lowest available price. This requires liquidity, which means that the order is carried out depending on the limit orders that were made earlier.
The difference between a limit and a market order is that a limit order is made on the order book, while market orders are performed immediately at the present market price, which also means that a trader pays for the charges as a market taker.
Stop-Limit: To gain a better understanding of this type of order, it’s better to explain what stop price and limit price are first. The stop price is what sets off a limit order, while the limit price is a particular price of the limit order that was set off. Whenever the stop price has been met, it will instantly make the limit order on the order book.
Once you’ve chosen the type of order, set the values that you want and click on Buy XRP.
- Buying XRP with GBP at CEX.io
Step 1: Create a free account at CEX.io and log in.
Step 2: On top of the page, click on Buy/Sell.
Step 3: From the dropdown menu on the left select XRP. From the dropdown menu on the right select GBP (you can also choose EUR and USD).
Step 4: Choose one of the amounts or enter it manually and click BUY.
Step 5: Enter the credit card info and you’re all set!
III. Other options
Next to Binance, there are other exchanges where you can buy XRP such as CoinCorner, Coinbase, Bitpanda, and other. Take a look at the list of exchanges here.
Another option is LiteBit.eu, a cryptocurrency broker that lets traders buy XRP with Euros using a bank transfer (SEPA).
How to buy Ripple (XRP) with GBP?
Apart from CEX.io, there are additional options you can choose to buy XRP with GBP. Let’s take a look at some of the choices.
Local Bitcoins is a website that utilizes the over-the-counter type of trading where buyers trade the local currency for cryptocurrencies. Sellers at Local Bitcoins post ads showing their conversion rates and means of payment for trading cryptocurrencies.
It is a P2P trading platform that allows trading cryptocurrencies for traditional currencies through OTC trades.
To find out who sells XRP near you, go to https://localbitcoins.com/, select United Kingdom from the dropdown menu and choose a payment method from the dropdown menu on the right.
Coinbase is a California-based digital currency exchange that we’ve mentioned earlier. However, Coinbase is one of the exchanges on which traders from the United Kingdom can buy XRP with GBP. Monfex covered how to link your UK bank account and make a GBP deposit on Coinbase.
Once you’ve created your account at Coinbase, follow these steps:
- Head to Settings > Linked Accounts and link your UK bank account
- Go to Accounts located on top of the page
- In the GBP wallet, click on Deposit.
- Here you can perform a wire transfer in GBP from your UK bank account. Don’t forget to enter the Reference Code to make sure that the deposition is properly linked with your Coinbase account. The reference code should be included exactly as shown, no spaces.
When you’re done with that, let’s see how you can buy XRP on Coinbase.
Assuming that you’re already logged into your account, follow these steps to buy XRP:
- Head to Prices located on top of the page
- You will come across a list that includes various cryptocurrencies. Find XRP on the list and click on the blue Trade button next to it.
- Enter the amount you’re willing to pay (for example £100 worth of XRP) and select Preview Purchase.
- Once you’ve done that it will show you how much XRP you will receive for the amount you’ve previously entered based on the GBP/XRP conversion rate at that moment. It will also display the conversion rate itself as well as the Coinbase fee.
- If you’re happy with that select the blue Buy Now button.