XRP is a cryptocurrency that runs on the XRP Ledger, a blockchain created in 2012 by Jed McCaleb, Arthur Britto and David Schwartz.<\/p>\n
XRP can be bought as an investment, as a coin to exchange for other cryptocurrencies such as Bitcoin, or to finance transactions on the Ripple payments system\u2014created by Britto and McCaleb as an alternative to leading money-transfer network SWIFT.<\/p>\n
It\u2019s important to note that cryptocurrencies are given to volatile price swings and are not for everyone. Australian consumer groups, including CHOICE, warn against scams and huge losses<\/a> within the crypto industry and are advocating for greater consumer protection. <\/p>\n The Federal Government\u2019s Moneysmart website<\/a> advises investors of the risks of crypto and the need for due diligence.<\/p>\n Both a crypto exchange and a crypto broker can help you buy XRP, but the two are slightly different.<\/p>\n An exchange is a platform on which buyers and sellers can trade cryptocurrencies. A broker is an interface that interacts with exchanges on your behalf.<\/p>\n Some exchanges only deal in crypto, so if you\u2019re new to investing and need to use a fiat currency (AUD in Australia) to buy crypto<\/a>, make sure you choose an exchange that accepts it.<\/p>\n If you choose a broker instead, be aware of its rules around moving your assets off a brokerage platform because some brokers don\u2019t allow you to move your holdings out your account. If you wanted to store your XRP in a crypto wallet for added security, this would not be possible.<\/p>\n Most exchanges let you add funds to your account from your credit or debit card, bank account, crypto wallet or other payment service. Transaction fees may apply, and your payment method may have a bearing on the amount you\u2019ll pay.<\/p>\n Use a credit card and the card issuer will treat it as a cash advance, which will be subject to a higher rate of interest than a normal purchase.<\/p>\n Within your chosen exchange, find the XRP currency and enter the amount you\u2019d like to invest.<\/p>\n Unlike a bank account holding fiat currency, cryptocurrencies like XRP aren\u2019t protected by the Financial Claims Scheme (FCS)<\/a>. This means you would not be immediately entitled to reimbursement if your XRP were stolen, you lost your access codes or if the exchange or broker went bust.<\/p>\n A broker may give you no choice about where your XRP is stored, but while an exchange may provide an integrated crypto wallet, you\u2019re free to store it in wallets elsewhere \u2013 whether \u2018hot or \u2018cold\u2019.<\/p>\n Hot wallets are stored online, making them more convenient but also more exposed to hackers.\u00a0<\/p>\n Cold wallets are external storage devices such as hard drives or solid state drives. They\u2019re arguably more secure but if you were to lose your own access codes there may be no way for you to ever access your assets.<\/p>\n Whichever you choose, you may be charged a fee for exporting your XRP to an external wallet.<\/p>\n Buying shares in an organisation which uses or owns cryptocurrencies and the blockchain<\/a> that powers them is another way to invest in cryptocurrency. If the company is subject to regulatory scrutiny, you may feel this is a more secure way to invest.<\/p>\n Nvidia (NVDA), for example, is a manufacturer of graphics processing units which are used by cryptocurrency miners. Paypal (PYPL), meanwhile, allows users to buy and sell select cryptocurrencies.<\/p>\nHow to buy XRP in 4 steps<\/strong><\/h2>\n
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Alternative ways to invest in XRP<\/strong><\/h2>\n