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XRP: A Complete Guide for Beginners for Investing!

Ripple and XRP are well-known names in the cryptocurrency market. However, many would be surprised to know that Ripple and XRP are not the same things.  It is important to know that Ripple, RippleNet, and XRP are different things. RippleNet is the digital payment platform and the currency that runs it is called XRP. The distributed ledger database of the platform is known as XRP Ledger. Ripple is the company that runs the RippleNet digital platform. It is also very important to note that the XRP Ledger is not based on blockchain and is essentially is open-sourced in nature. 

RippleNet payment platform is essentially an RTGS (real-time gross settlement) system that helps in carrying out instant monetary transactions globally. XRP is the native coin of the XRP Ledger system. However, any currency can be used for transacting on the platform. 

It was Ryan Fugger who first came up with the idea of the Ripple payment platform back in 2004. However, the project was taken over by Jed McCaleb and Chris Larson in 2012 and it is from this time the Ripple project started to be built. At that time, the project was called OpenCoin. 

What is XRP? How XRP Coin of Ripple Works? What are its Benefits?

XRP does a very important service in the Ripple Ecosystem. It facilitates using the utilities of the network, thereby working as a utility token in the network. XRP token represents the value transfer across the Ripple Network. 

XRP can be thought of as the mediator for exchanges, which can in turn include fiat currencies as well as cryptocurrencies. XRP works as a wild card that helps participating banks in facilitating global money transfers without having to consider the exchange rates of fiat currencies. 

XRP vs Traditional Cross-Border Bank Transfer: An Example

Suppose, a US bank in California wants to send US$5 million to another institution located at a place in European Union, say, Paris in France. If transfer were to be made under normal conditions (through the usual SWIFT system), it would have taken a lot of time to transfer and it would have involved a lot of costs. 

This is mainly because the funds would have to be gone through many 3rd party verification systems for ensuring that:

  • the funds were actually available and 
  • the funds were sent in a secured manner

The total transaction cost involved in the usual SWIFT system of cross-border payment is very high. This is mainly because the 3rd party verification systems involved add to the total cost of the transactions. On top of it, the banks involved in this transaction consider the international money conversion rate.  

This is where XRP trumps over the SWIFT system and serves the utility purpose perfectly. If the US bank uses the Ripple ecosystem for transferring funds from California in the United States to France’s Paris, the bank would need to convert funds to XRP. The XRP system is very simple to use. It is as simple as choosing the number of funds of your choice for conversion and clicking a button.  

Once the fiat currency of the bank is converted to XRP tokens, the cross-border fund transfer process becomes extremely easy. The best thing about the fund transfer through RippleNet is that you can transfer funds to any part of the world at a fraction of the transfer cost of the traditional system. 

Benefits of XRP Payment System

Let me give you an example of how much money the XRP system can save a bank when they use XRP for transferring funds instead of the traditional SWIFT system. If a bank sends US$1,000,000,000 to any other institution in the world, it would have cost them thousands of US Dollars for the transfer. If they use the Ripple payment system, it would take just cents for the same amount of transfer. 

There is another important aspect of fund transfer through XRP. There is currently no limit to sending funds across the world with the help of the Ripple payment system. However, many additional regulatory requirements are to be met by banks for making cross-border payments over US$1 million. 

Moreover, the traditional SWIFT system takes up to 3-days time for completing transactions. However, the Ripple ecosystem does away with the transaction delay issues. 

XRP coin-based cross-border payment system is a less costly, faster, and more scalable alternative than the traditional SWIFT monetary payment system and other digital assets. 

Ripple (XRP) Coins: Facts & Figures

All these facts and figures will help you to make a decision on investing in Ripple XRP by making XRP price predictions :


  • XRP cryptocurrency price (Current): US$0.8816 (as of Sep 20, 2021)
  • Trading Volume (24 hour): US$4,366,572,454
  • All-Time High (ATH) Price: US$3.84 (reached on Sep 20, 2021)
  • All Time Low (ATL) Price: US$$0.002802 (reached on July 7, 2014)
  • YTD (Year-To-Date) Return: +355% (Jan 1, 2021 to Sep 20, 2021)
  • Market Cap: US$41,713,690,463
  • Crypto Rank (in terms of market cap): 6
  • Fully Diluted Market Cap: US$89,483,102,854
  • Max Supply: 100,000,000,000
  • Total Supply: 99,990,263,493
  • Circulating Supply: 46.62 billion XRP (47%)

Who are XRP Partners?

The leading XRP partners are Bank of America (BoA), American Express and Santander, SBI Holdings, MoneyGram, National Bank of Fujairah PJSC (NBF), MoneyMatch, Standard Chartered Bank (SCB), Westpac Institutional Bank and Bank of Australia, Royal Bank of Canada, Reisebank, UBS Group AG, Canadian Imperial Bank of Commerce, Alberta Treasury Branches (ATB Financial), National Bank of Abu Dhabi, MUFG Bank, DBS, and many more.

Why XRP is a Good Investment?

Ripple payment system is extremely useful. The money transfer between banks and financial institutions with the help of XRP is less expensive than other digital assets of the SWIFT system. These real-life use cases have helped Ripple company to secure hundreds of partnerships, which include big international banks and financial institutions. These real-life use cases provide strong fundamentals to the company. 

However, the SEC had filed a lawsuit against Ripple and XRP back in December 2020. Though the fundamentals of XRP are strong, the US-based lawsuit has made XRP a high-risk cryptocurrency. Despite lawsuits in the US, Ripple XRP has expanded faster in other parts of the world, especially in Asia. This is one of the reasons why XRP price has kept increasing despite the US-based lawsuit and delisting from major crypto exchanges like Coinbase. 

The XRP Army, proponents and supporters of XRP, have unveiled a speech draft of William Hinman, former SEC director of Corporation Finance. Experts believe that Hinman’s speech is important to the outcome of the case. Fox Business Network’s Charles Gasparino has said:

“BREAKING (1/2): @SEC_Enforcement sources tell @FoxBusiness the logic of the agency's case v @Ripple is that the company's infrastructure is STILL being built out so XRP -- the token which was used to finance the thing -- is considered a security. @ethereum infrastructure is totally built-out and has been for years thus it's clearly a commodity. @HesterPeirce argues that all may be the case, but as @SECGov

 splits hairs, crypto innovation is being stifled so what's needed is a "Safe Harbor" that pulls back all this enforcement action.”

Many experts argue that Ripple will win this case against SEC on the basis of their current defense. 

It is interesting to note that the active XRP wallet addresses have increased by more than 200% in the last 3-months despite the ongoing lawsuit. In fact, XRP price has increased by +355% YTD (Jan 1 to Sep 20, 20201) even after the SEC lawsuit was filed in mid-to-late December 2020. 

This shows that the investors consider XRP as a viable long-term investment option. Most analysts and experts believe that by 2025, XRP price will increase more than 10-folds to around US$10 or even US$20. 

Ripple XRP vs Bitcoin BTC

The global XRP community (including Ripple company acting as an active member) maintains the RippleNet’s ledger. The transactions are processed by the XRP Ledger around every 3-to-5 seconds, which is lots faster than Bitcoin (BTC) and other proof-of-work mining digital assets. 

Will XRP Hit $5? Will XRP Reach $10?

Ripple XRP has lost the momentum, expected out of it, in 2021 because of the SEC lawsuit at the end of 2020 and the consequent delisting from major US crypto exchanges such as Coinbase. Despite such adverse scenarios, XRP price has increased by over 355% in 2021 (Jan-mid-Sep 2021). Analysts believe that the XRP will achieve US$5 to US$10 in the coming 1-5 years, depending upon the outcome of the SEC lawsuit. If the bull market continues for XRP, the price is likely to increase to US$20 by 2025. 

Can XRP be Bought on Coinbase in the United States?

As of now (till September 20, 2021), you can’t buy XRP on Coinbase in the USA. Trade of XRP was suspended by Coinbase on January 19, following the SEC lawsuit. The crypto exchanges that enable US residents to buy XRP are Paybis (except New York and Hawaii) and Uphold.

How to Buy XRP in and outside the USA?

You can buy XRP outside the United States from almost all cryptocurrency exchanges. Some of the best ones are mentioned below:

  • Binance: Canada, Australia, Singapore, United Kingdom, and most parts of the world.
  • Easy Crypto: South Africa, New Zealand, and Australia
  • Paybis: US residents, except New York and Hawaii.
  • Uphold: Best for residents of the United Kingdom and the United States. 

Invest in Ripple XRP and Other Cryptocurrencies

You can buy and sell XRP and other cryptocurrencies against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges (centralized or decentralized exchanges). Use Dollar Cost Averaging DCA strategy to invest in cryptos to minimize the risks associated with high volatility. 

If you want to increase your investment explosively in the coming 5-to-10 years, buy crypto coins now. Keep an eye on the market news, price statistics, block times, blockchain news, and others to time your trading of Defi systems and tokens for maximum profit. 

You can also diversify your crypto coin portfolio by including other cryptocurrencies such as Ripple XRP, Bitcoin Ether ETH, Bitcoin Gold (also called Bit Gold), Bitcoin Cash BCH, Basic Attention Token, Ethereum Classic, Binance Coin, Wrapped Bitcoin (some also call it wrap bitcoin or wBTC), USD Coin, Gemini Dollar, ERC20 tokens (created on Ethereum blockchain), nonfungible tokens NFTs, and others. 

Also, invest in various types of stocks, mutual funds, index funds, real estate, and others to improve your personal finance. If possible, get help from a portfolio manager or wealth management firm for maximum return.