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Investments in ripple. Ripple - what you need to know and why Ripple is not considered a cryptocurrency

Greetings, dear blog readers. Cryptocurrency is one of the important areas for Internet investment, and most importantly, one of the real and profitable ones. And if most people only know about Bitcoin, considering it practically the king of cryptocurrencies, then there are other coins that are worth knowing about and that are worth studying.

What is Ripple; why it was created, how it works; what is XRP and why Ripple is not considered a cryptocurrency.

Interest in Ripple grew in the wake of the explosive jump in the value of the coin, which occurred in December 2017. Now the cost has dropped to almost its original limits, but interest in it has not faded. So.

What is Ripple

In fact, Ripple is not a cryptocurrency in the usual sense (when compared with Bitcoin, for example). Ripple is first and foremost a payment system that was created to become a faster, more transparent and secure alternative to existing ones, such as the same SWIFT that banks use.

XRP- that's what the coins are called Ripple- used to facilitate transfers in various currencies. In existing settlement systems, the basis for conversion is usually the US dollar. The process is associated with additional costs and takes a long time - which is why bank transfers between countries often take up to 3 days.

Ripple vs Bitcoin

If we are to compare Ripple and Bitcoin, we should understand and dot the points and what are their main differences. By the way, this is the most important thing. Ripple has a token called XRP. And XRP is a token used to transfer value on the Ripple network. While Bitcoins are mined, all 55 billion XRP (often called ripples) were generated by the founders.

Why Ripple is not a cryptocurrency

We came to the very interesting moment, which will explain why Ripple is not considered a cryptocurrency and is treated with caution.

Technically Ripple does not use blockchain technology- the basis of Bitcoin and most decentralized cryptocurrencies - in the usual way. The Ripple blockchain is not distributed across a network of computers with “node” software, but is stored on the servers of trusted partners in the so-called “permissioned” network. Fact number one is that Ripple is not a cryptocurrency.

These currently include banks, money transfer systems and educational institutions. Given the fact that all tokens were created by developers and not mined, this means that Ripple is not a decentralized system. Perhaps, and more likely, the high interest of banks around the world in Ripple is due to this centralized, regulated structure of Ripple, while Bitcoin and other truly decentralized systems are considered a threat to their existing hegemony.

In short, it can be summarized as follows: cryptocurrency is decentralization, and Ripple is a centralized system. And Ripple will simply kill the freedom and opportunity that cryptocurrency creates.

How to Invest in Ripple and How to Spend XRP

Another interestingly exciting point is how to invest money in Ripple. Despite everything, the rise in the value of tokens ripple provides an opportunity to receive excellent income and makes this token attractive for investment. How to invest money in Ripple.

The cryptocurrency exchange is the most accessible tool for investing in Ripple. I invest through the Exmo exchange, as it is convenient, accessible and understandable even for beginners. We registered, deposited money into the account, either in cryptocurrency or fiat, and bought XRP tokens.

Another question is whether it is worth doing this, is it worth investing in Ripple? Honestly, based on the profit opportunities, it's worth it, and it will generate income. But not in the long term. Subjective opinion. And most importantly, when investing money, be it cryptocurrency or another asset, diversify your portfolio and invest only those funds that you have identified for this purpose.

In the world of cryptocurrencies, there are systems that are attracting increased interest from consumers interested in low-cost transfers, as well as investors who hope to make money by investing their capital in digital coins. Today we will talk about crypto coins of the Ripple system. We will tell you about the principles of operation of this network, what ways there are to make money using this digital currency on the Forex market, and we will try to understand the prospects for investment in the near future.

In order to profitably invest in crypto coins or play on exchange rate differences within short time intervals, you need to understand what digital cash systems are in general, and what features this or that system has.

The rise or fall in price of coins directly depends on the level of interest of network users, and the interest is determined by the specific advantages that a particular cryptocurrency system provides. Such advantages may be: the speed of transaction confirmation, the level of anonymity of transfers, the ability to use the system for some other needs (for example, as a platform for creating cloud services). Therefore, let's start with a description of the Ripple (XRP) system and consider its distinctive features, and then move on to a description of the earning mechanisms.

What is the interest of investors

The raison d'être of all cryptocurrencies is to provide their users with the ability to quickly and inexpensively transfer money around the world. Banks also pursue approximately the same goal, but their similar services, firstly, are much more expensive, and, secondly, banks cannot provide the proper level of anonymity and require too much personal information from the client. Due to the complete control of banks by the state financial system information about private transfers becomes known to a wide range of people. Moreover, the bank account may be suddenly blocked, and the client will not be able to use the funds belonging to him.

The Bitcoin network became the first cryptocurrency system where transfers, firstly, were free, secondly, anonymous (to make a transfer, it is enough to know only the wallet number), and, thirdly, had high level security. Since the system is decentralized (control is carried out entirely in automatic mode), the mechanisms of the crypto network ensured that wallets could not be blocked. After it became clear that digital currencies are becoming more popular than the traditional banking transfer system. Developers began to appear and wanted to repeat the success of Bitcoin and make good money from it. Accordingly, the likelihood of rapid growth in the exchange rate began to attract investors.

Distinctive Advantages

Many digital coins were developed using the same technology as BTC (Bitcoin stock ticker) - Blockchain (block chain), creating a new coin was not so difficult, since this technology has open source code. However, some coins, although built on the same principles (anonymity, speed, low cost translation) are based on other algorithms. One of these was Ripple (stock ticker XRP). The project started in 2012, shortly after BTC was opened to the world. To date, the cost of one coin has increased hundreds of times, from $0.0002 to $0.1631, and the currency is traded on many cryptocurrency platforms.

Platform

Ripple, like Bitcoin and many of its analogues, is a kind of ledger that records all the movements of each coin. Here, too, transaction confirmations are required to make an entry and change the owner of funds; these processes are carried out automatically and completed in a very short time. It’s just that the Ripple network was built and operates not on Blockchain, but on a system of payment gateways, and in principle, such a system can be used not only for transferring units of account within itself, but also for exchanging any currencies.

Protection

Users have only 35% of the issued coins in their hands; the rest is under the control of Ripple Labs - this helps prevent speculative manipulations that could cause a collapse in the value of the coin. The mechanism for protecting the network from hacks or failures is implemented as follows: as the load on the network increases (a sharp increase in transactions can be a sign of fraud), the payment for transfers also increases sharply. This forces the attacker to incur significant costs and makes the attack financially unprofitable. When the number of transactions returns to the average level, commissions are reduced. In addition, the scheme for distributing payment units also performs protective functions.

Mining

A distinctive feature of this currency is also the inability to obtain new coins through mining. The deflationary model of the system assumes a one-time emission of all tokens at launch, and over time the number of coins is reduced, unlike other cryptocurrencies, which increase the number of units of account through mining. It is noteworthy that the commission charged during the transfer (extremely insignificant amounts) is simply written off and destroyed (no longer circulated in the system). These crypto coins are not intended to reward miners and are not the profit of the development company. Due to write-off, the number of coins in the network is reduced; this process ensures the implementation of the deflationary model.

Interest of banks and government agencies

The difference between Ripple and Bitcoin and many crypto-networks is a departure from the principle of decentralization. The network is managed by Ripple Labs, whose developers created the digital currency. Accordingly, transfers within this network are less anonymous. Banks cannot use decentralized cryptosystems, nor can they interact with them or work on equal terms, but here, in this regard, there is an obvious advantage. From this it is clear that the scheme of this cryptosystem can, in principle, be introduced into the banking sector.

Combination of controllability high speed payment processing (at a low cost), as well as multi-currency potential, are all also attracting the attention of banking networks to XRP. In its current state (and even in its potential), that infrastructure and organizational system do not allow for radically cheaper and faster transfers; in some cases, a transaction can take several days to be confirmed. When it comes to banks studying cryptocurrencies (in particular, the head of the Central Bank of the Russian Federation recently confirmed that virtual cash systems need to be carefully studied), Ripple is most often meant.

Today, the phenomenon of digital currencies is also being studied by government agencies. Many states have already come to the conclusion that if it is impossible to prohibit the circulation of cryptocoins, then they can at least find mechanisms for tracking payments (in order to prevent their use for illegal purposes), as well as impose taxes on payments. Research work in this area is being paid for all over the world, and some lead to quite interesting conclusions. We will now present the results of one such study.

Forecast for further development of cryptocurrency

It may seem that the active popularization of cryptocurrencies could lead to the destruction of the traditional banking system, because why then banks with their expensive transfers, when there are networks where the transfer actually costs nothing (the base cost of a transaction in Ripple is 0.00001 XRP - thousandths cent). IN best case scenario the development of cryptosystems will lead to a decrease in state participation (from the point of view of control and taxation) in the circulation of funds.

In turn, banks operate under the control of the government, and digital currencies are not easy to control, so inaction on the part of government agencies (around the world) looks more than strange. But we can look at this process and the attitude of government officials towards it from a slightly different angle.

Environment for existence and development

The first step is to pay attention to the fact that such tools simply could not appear if there was no environment in which they could develop. That is, without the Internet there could be no talk of any digital coins. But banks, for example, could do without the Internet (for example, in the Middle Ages), and, theoretically, can do so now.

The World Wide Web is a medium for the exchange of information, and the development of this environment does not stand still. At first, data was transmitted over the Internet, then programs appeared that work on the network with data located on this network.

New branch: Internet of things

Later, technologies appeared that themselves initiate and carry out the exchange of information between objects (equipment, instruments) without human participation. For example, a refrigerator can itself analyze the presence of certain products in it, and if any of them runs out, it can send a request to the delivery service. This phenomenon has been called the Internet of Things, the direction is actively developing, and more and more manufacturers (in a variety of industries) are equipping their products with the appropriate chips.

The next step is the Internet of money

With the advent of digital currencies, in fact, a new direction has emerged - the Internet of money. Initially, funds (paper, coins) themselves represented, so to speak, a data repository; each coin carried information about the comparative value of material goods equivalent to the value of a particular product. Digitalcoins also perform the same function; given the existence of the Internet, there is no need to translate information into any physical objects.

We can come to the following conclusion: subject to the continued existence global network Cryptocurrencies (regardless of the platform type) will inevitably develop. Destruction of Internet money is possible only if for some reason The World Wide Web(as a method of communication, the Internet of things and money) will disappear, which is quite difficult to imagine. Only under the described conditions will there be a return to funds that have a material carrier (gold, paper, etc.).

Prospects for Ripple

Based on this, we can assume that over time, digital currencies will soon replace real money, which means that the cost of coins will gradually increase. Therefore, in the long term, investing capital in them is a completely logical decision.

Accordingly, at the state level also there will be a change money circulation models, and in this moment, perhaps, in some countries the most effective (but at the same time controlled) cryptosystem is selected. And only when the selection is completed will concrete steps begin to oust other networks from the market.

If we talk directly about Ripple, then it should be noted that this is one of the few systems that are integrated into the existing banking environment, so the growth in the cost of banknotes of this system will grow faster than that of its competitors.

How to earn

There are several ways to make money on Ripple, which we will now consider:

Direct investments within the exchange platform. To buy cryptocurrency, you need to register in the Ripple system and create a wallet. Then you need to go through the registration process on a cryptocurrency exchange; today this currency is traded on many platforms, the largest are EXMO, KRAKEN, Poloniex, Livecoin. An account will be created in your exchange account to which you need to transfer money, as well as an XRP wallet.

After this, all that remains is to place a purchase order at the most favorable price, and when the price reaches the level you specified, the order will be satisfied. Money will be debited from your account and the system title units you need will be sent to your wallet.

Then you can leave the coins in the exchange account or withdraw them to the wallet that you registered in the system. For long-term investment you need to choose reliable way storage, since cryptocurrency exchanges are periodically attacked by hackers. You can sell Ripple on the exchange when you think that the rate has risen sufficiently and it’s time to take profits.

To speculate in the short term, you need to determine price range, in which the coin is traded, and buy at the lower border in order to sell when the rate rises.

Investing in Ripple through a Forex broker. When working through the same trading technologies are used as during direct investments on the stock exchange. However, this method has its advantages:

Due to leverage (from the broker), you can get more profit than on the stock exchange with the same amount of capital;
The broker's trading platform has more tools for market analysis.

Is it worth mining Ripple?

In conclusion, I would like to compare Ripple with Bitcoin; this will help to clearly assess the prospects. BTC's current popularity is based on its long-standing reputation as a stable and efficient transfer system, while XRP's popularity is growing due to its prospects for development as a government system.

Therefore, it cannot be ruled out that the growth in the value of the cue ball may slow down somewhat, especially considering that in the last few months this growth has been occurring solely in the wake of the excitement associated with the recent sharp rise in price. But the interest in Ripple has, so to speak, a real basis, so it can even overtake Bitcoin in terms of speed of development.

However, when planning investments, it is worth remembering the risks; investing in cryptocurrencies is no less risky than working with any other Forex instruments.

13.11.2017

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The current year, as expected, has been very successful for the most popular cryptocurrencies – Bitcoin and . But unexpectedly, Ripple jumped into the top three in terms of market capitalization. And this despite the fact that now its cost is only 20 cents (versus $7,000 for Bitcoin and $300 for Ethereum). But the increase in its value in the current year alone amounted to as much as 3000%. Why was such a cheap currency able to come close to the recognized leaders of the cryptocurrency market? How to buy it and is it worth doing it right now? What's next for the unusual currency? Let's try to figure it out.

What is Ripple and how does it work?

The forerunner of the modern Ripple platform, the RipplePay system, appeared back in 2004. Canadian programmer Ryan Fugger managed to create a decentralized payment platform for a wide range of users. However, despite a good idea, the project did not receive much success, and Fugger decided to go even further - change existing system bank and interbank payments. Or rather, make them decentralized, independent of intermediaries and third parties.

The updated system appeared in 2012 and was named Ripple. The company developing and maintaining the platform was named Ripple Labs. Fugger, together with other developers, created secure decentralized platform for making payments between physical and even legal entities(primarily banking institutions). In addition, the platform launched its own cryptocurrency, called Ripple with the designation XRP.

The functioning of the system is based on a unique algorithm. Ripple uses its own secure RPCA protocol that connects different nodes systems (so-called entry points). It is an open source protocol that allows all users on the system quickly and securely exchange resources(be it dollars, bitcoins, gold or even air miles), make payments and conclude transactions, while paying a single minimum commission in ripples.

The example of an apple and a movie ticket is often used to explain the concept of Ripple. For example, you live in Krasnodar and you have an apple, but you want a movie ticket. Petya has a ticket, but he lives in Toronto. Between you there are many other people, each of whom also owns certain resources. Together you can unite in unified system for exchange. You “launch” an apple into the system - Vanya buys it for a ball - Petya buys a ball for a movie ticket - you get your ticket by giving the apple. In a simplified form, this exchange network of yours is Ripple. You exchange resources with other users and do not depend on third parties.

You give one resource and receive another, paying only the minimum commission that is needed to maintain the system. In the same way, you can exchange a million dollars for bitcoins and pay the same minimum commission for it. It is not surprising that such a system immediately appealed to world banks– such an algorithm can significantly simplify the payment procedure.

That is, in the system itself, ripples act as “fuel” for transactions. To exchange their resources for others, the user pays a commission in ripples. In addition, he can purchase another currency for the same ripples. However, this cryptocurrency is completely different from the usual Bitcoins, Ethereums or .

Features of Ripple as a cryptocurrency

Ripple cannot be mined. It’s not even that it’s impossible, it’s just that such an option is not provided by the cryptocurrency developers. They themselves mined about 100 billion coins, kept 65% of the mined assets, and released the remaining 35% to the market.
Ripple does not use blockchain technology. Instead, the system operates on so-called “gateways” through which all transactions pass. Dozens of servers installed in the company’s offices in different countries peace.
The mandatory commission for transactions is only 0.00001 XRP. It is noteworthy that immediately after the transaction, this amount “burns out”, that is, it completely disappears from the system. This is done to reduce the likelihood of spam attacks. There is a special category of attackers who send out a huge number of false requests for transactions in order to overload and “crash” the system. And if regular user will not even notice the removal of the commission, then for the spammer who created many applications, this will result in a round sum. That is, spamming Ripple is simply unprofitable. In addition, the “burning” of coins leads to a gradual decrease in their total quantity, which contributes to a natural increase in the market value of Ripple. The fewer coins in circulation, the higher their price.
The popularity of Ripple as a cryptocurrency is determined by the number partner banks, which use the Ripple payment system. So, in 2016, the company entered into a contract with more than 20 banks, and the price of Ripple immediately increased by 200%.
The meager cost of Ripple today is explained by big amount issued coins. With a decrease in the number of coins and an increase in the popularity of the entire system, the cost of Ripple will naturally increase.

Main advantages of ripple:

high transaction speed (higher than in the Bitcoin network and even SWIFT);
the ability to exchange any currency for any other currency or value (for example, gold, shares or even precious metals) with a single minimum commission;
high level of protection against spam, hacking and hacker attacks;
impossibility of inflation (all coins have already been mined, it is impossible to get new ones, and a hypothetical excess of coins is leveled by their “burning” when paying a commission);
reversibility of transactions - any transaction can be canceled or edited if an error was made.

The main disadvantages of ripple:

high monopolization (Ripple Labs personally owns 65% of existing coins, which gives it the opportunity to manipulate the rate);
high centralization (only developers decide how many coins to “throw” into circulation right now).

In theory, these shortcomings should work against the developers. By controlling the circulation of coins and manipulating the exchange rate, they cannot make their currency as popular as Bitcoin, the price of which is determined only by user demand. In the case of ripple, the price is essentially set by the holders of the underlying assets, that is, Ripple Labs. However, thanks to the previously described mechanism of “burning” coins, their total number gradually decreases, which means the price of one coin will gradually increase. Another thing is that there is clearly no need to talk about a cost comparable to Bitcoin or even Ethereum. The most positive ones are 2 dollars for 1 ripple.

How to buy ripple?

As we have already figured out, it is impossible to mine Ripple in the traditional sense of the word. That is, you won’t be able to buy an ASIC or a farm and start mining blocks - there are simply no such blocks.

Although there is still some semblance of mining.

By going to the official website of the company ripplelabs.com, you can join scientific developments, supported by the corporation. To do this, you need to “mine” scientific projects - carry out calculations or perform other prescribed actions using computational algorithms. The company regularly pays for the work of such “miners” with ripples.

The second method is more familiar - on a stock exchange or exchange office.

Considering the popularity of Ripple, you can exchange it in almost every place - you can find out about the current offers and rates on the monitoring site BestChange.ru. There should be no problems with exchanges either - Ripple was accepted by all leading players in the cryptocurrency market, including Poloniex, Kraken, Bittrex, Korbit, BitStamp, Coinone, CoinCheck, EXMO, etc.

Where to store ripple?

From the very beginning, Ripple Labs offered users to store cryptocurrency in wallets within the system itself. But most users did not like the idea - only ripples could be kept on the internal wallet. But not everyone was eager to create a separate wallet for the then not very popular cryptocurrency.

As a result, the company closed its wallet, and offered Ripple owners two ways to store currency:

Download and install special

In addition to the main program, you will also have to purchase a special device that supports the wallet on your computer. Outwardly, it resembles a regular flash drive and costs almost 60 euros. Not so cheap, but the level of security for your wallet increases several times, and the threat of hacking tends to zero. Such wallets are also called hardware wallets (since in addition to the program there is Hardware- the same flash drive), and they are produced by the well-known company Ledger. Today, this manufacturer’s line includes two wallets that support XRP – Nano S and Blue. In addition to ripples, they can store bitcoins, ethereum, litecoins, and several other popular cryptocurrencies.

Create a crypto wallet on GateHub

The resource supports Ripple, but to activate the wallet you will have to provide a lot of personal data: current address Email, number mobile phone, real name and surname, date of birth, screenshots of identity documents, and even your own photo. The registration procedure is quite long and tedious, but at the end you will receive several bonuses. So, you can be sure that only you will have access to your wallet - the likelihood of your account being hacked is virtually eliminated. In addition, after registration you will receive 20 ripples as an incentive gift.

How to make money on ripple?

In general, the Ripple system itself and the cryptocurrency associated with it are oriented not for a wide audience of users, but for banks.

The same Bitcoin was created as an alternative to conventional payments, including bank payments. And Ripple technology is aimed specifically at improving the banking payment system to make it faster, more efficient and secure.

However ordinary users can make money on ripple:

Buy Ripple now and sell it when the currency rises in price.

The method is simple, but does not promise fabulous profits in the near future, because now we are talking about meager amounts. However, given the rapid growth of the market value of Ripple and the high level of security of the system, it is definitely worth investing in it. Conventionally, if now, when the price of 1 XRP is 20 cents, you buy cryptocurrencies for $100, then next year, if the rate reaches the expected $2, you will sell the currency for $1000. And this is $900 net profit.

Invest in the company's developments.

Experts predict that Ripple will soon be used as the main interbank payment system. It is more convenient, secure and faster than SWIFT. Therefore, it makes sense to invest money in the company’s developments in order to then receive legitimate dividends as an investor. Open offers for investors are regularly posted on the company's official website.

The main argument in favor of a successful future for Ripple is stunning growth of its market position. Just a year ago, Ripple’s capitalization was about $200 million, and the coin did not appear in the world’s top cryptocurrencies. Today, the total value of issued coins is estimated at almost 7 billion dollars, and Ripple takes an honorable third place after Bitcoin and Ethereum.

Experts call Ripple and related cryptocurrency payment system future.

Already today it is used by such banking giants as UniCredit, UBS, Santander And Western Union. Among the partners of Ripple is even Microsoft, and the corporation Google invested almost $60 million in the company's developments.

By the way, it was the abundant financial influence from a world-famous corporation that became the reason for the sharp increase in attention to Ripple. If such serious people invest in Ripple, then this enterprise is doomed to success.

There are a huge number of digital money nowadays: some of them are unique in their own way and offer the user know-how, others are like twin brothers. In this diversity is also an unusual coin called Ripple, which, in fact, is not a cryptocurrency in the traditional sense. Why this is considered so and whether it is worth investing money in it - answers to all questions in this article.

Features of the Ripple cryptocurrency

The first and to this day the main cryptocurrency is Bitcoin and, whatever one may say, all subsequent coins are similar to it. And even if they are super-mega-unique, the very fact that they work on , confirms that altcoins have borrowed at least something from their older brother. But the same cannot be said about the Ripple cryptocurrency - it has no connections to the blockchain and works on its own protocol. This very protocol is based on a distributed registry, is open source and operates armed with the principle of consensus, that is, agreement.

Let us immediately note that the developers of Ripple did not even think about any cryptocurrencies - work on the project began in 2004, when cryptocurrencies were unheard of. Initially, the creators had a different goal - to create a system of global and free payments. This idea was quite successful and, as a result, the internal settlement coin Ripple was born, which was successfully included in the ranks of cryptocurrencies. And it is not just in these ranks, but conveniently located at the very top of the cryptocurrency TOP - its capitalization is 7.7$billion. Today, Ripple ranks fourth among all respected cryptocurrencies, but there were times when it briefly climbed to second place after Bitcoin.

But Ripple has a very specific relationship. Many experts say that if the role of the world’s reserve currency shines on the crypto fraternity, then Ripple is more likely to receive this honor, and not cue ball. And no matter how much we love Bitcoin, we must admit that technical parameters it is inferior to many cryptocurrencies. Ripple, as a global settlement system, has found active use in the banking sector and a huge list of financial institutions around the world have already adopted its protocol. Very soon, Ripple can greatly change the face of the banking industry, because today it is already creating real competition for systems such as SWIFT and Western Union. And yes, they are already nervously smoking on the sidelines, watching as bank after Ripple bank squeezes out their market.

Does Ripple Mining Exist?

If you think that now with a slight movement of your hand you will download the program and start mining Ripple in your wallet, then we advise you to cool your ardor. As mentioned above, the coin and the entire system are fundamentally different from other cryptocurrencies and Ripple simply does not. Coin mining is not included in its concept, because the system works well without miners - it doesn’t need them.

Since the start of the project, which occurred in 2014, 100 billion XRP coins have been “minted” and their further production is not provided for by the system. It is noteworthy that out of these hundred billion ripples, only 20 are distributed among users, the rest are entirely controlled by the developers. This causes a lot of controversy that the project is not decentralized and the creators of the cryptocurrency can easily influence its rate. To calm down the raging masses, Ripple Labs has personally blocked access to coins with smart contracts and from time to time they can receive small parts of the amount for the development of the project.

Since there are no miners in the system, the role of confirming authorities is played by trusted nodes. There are many of them on the network, but again, only the user who has passed the Ripple Labs certification becomes a node. So there are still problems with decentralization and they confuse many users.

Where can you buy Ripple?

In terms of capitalization, Ripple sits in an honorable fourth place, which means it is present on almost all cryptocurrency exchanges. The coin is popular, and any demand generates supply and trading platforms willingly include it in their listings. Therefore, if you are planning to acquire Ripple, then you will not have any difficulties in this process. Many popular exchanges support Ripple, including:

Poloniex;
Kraken;
Bittrex;
Bitfinex;
Bithumb et al.

At the same time, there is a large number of crypto exchanges created in honor of the Ripple coin, and it occupies a key place on such sites. If you don’t want to deal with crypto exchanges, then there is a familiar alternative for us - you can purchase ripples through exchangers.

Ripple (XRP) cryptocurrency rate

The Ripple coin began trading on the exchange at a cost of 0.005$, and reached its maximum in May 2017 – 0.36$. Today the rate has fallen slightly and is quoted at around 0.2$, but even with such a rise in price, investors who invested money in this cryptocurrency from the start were able to make very good money. In any case, over the long term, we should expect Ripple to rise in price, and not only because large investors and banks are paying attention to the coin and the system as a whole. The very concept of cryptocurrency includes a strict number of coins that are not produced, and this will counteract inflation. And at the same time, the developers introduced the process of burning 0.00001 XRP for each transaction. This was done to prevent spam transactions, and in practice it will not only prevent an attack, but will also help reduce the number of coins. Even with stable demand, as the number of XRP decreases, the price of coins will increase.

Where to store Ripple?

If you are someone who still stores any coins on an exchange, then this is very dangerous. Crypto exchanges are very active in scamming and the recent case with a large exchange proved this. Therefore, it is better to trust storage to wallets, but in the case of Ripple, everything is not so simple - there is no official client for the coin, and the developers do not position it as a monetary unit outside their system, but suggest using the Gatehub platform for this. However, there are alternative options.

Wallets for Ripple cryptocurrency

You can use a variety of wallets to store the XRP cryptocurrency. The popularity of the coin contributed to the fact that many developers of multi-currency wallets paid attention to it and added it to their clients. But there are also specific wallets that are designed specifically for Ripple.

RIPPEX— if you are a fan of desktop wallets, then you should give preference to this application. The client can be downloaded for almost any operating systems, the storage of private keys is carried out by the user, but everyone can check the authenticity of the client’s work, thanks to the open source code. The big advantage of the wallet is that there is a software and online option.
Gatehub– a platform recommended by the developers of RippleLabs, allows you to store XRP, send it to other users, and even exchange cryptocurrencies among themselves. Overall, the wallet is very convenient and perfect for beginners.
Ledger Nano S– the most reliable storage option. The developers of the famous hardware wallet recently added support for the Ripple cryptocurrency and now you can place your coins in this cold storage. Ledger has a lot of advantages and disadvantages, but there is a significant disadvantage - it is a paid wallet, for the purchase of which you will need to shell out about 60 euros, as well as pay for delivery from France itself.

How to create a Ripple wallet?

It is very easy to create your account on the official Gatehub platform, as well as use it in the future. But storing a large number of ripples in online storage is not recommended - if you purchased large volumes of coins and want to keep them for a long time, then the best option hardware Ledger or free RIPPEX.

To create your wallet on Gatehub follow the instructions:

Go to the official Gatehub website and select the “Sign Up” section.
Then enter your email, password (twice) and go through the anti-bot verification.
You will be offered your wallet access key, which must be stored in a safe place, or better yet, in several places and on different media.
The next stage is email confirmation, and after the first login you must undergo forced verification in the form of filling out personal information. After this, you can fully use the functionality of the wallet.

Again, we note that it is better to store small amounts of money needed for quick transactions in online wallets, while the place for all your long-term investments is in software clients. This is explained by the fact that desktops are secure, but not so convenient to use, while coins stored on third-party servers can be used comfortably, but it is not safe to trust these same servers with too many funds.

Ripple cryptocurrency – forecast for 2018

Summarizing all of the above, it is worth noting that Ripple is a very unusual cryptocurrency that has a powerful technical part, and its protocol is actively being introduced into the banking sector. Already today very large investors, such as Google, are paying attention to it, which clearly indicates good prospects. It is also very important that the coin was not intended to be a speculative instrument, as is the case with most dummy cryptocurrencies, and its development is not going in that direction. At the same time, it cannot be denied that Ripple’s decentralization is limping on both legs and the community can’t do anything about it until the developers themselves decide to take appropriate measures.

Not only in 2018, but also in the future, we should expect an increase in the Ripple exchange rate, because the number of coins will decrease and demand will increase. Therefore, now, when the cryptocurrency rate is quite low, it is worth buying at least a small amount of XRP, which in the future may dramatically increase in price. Well, we still won’t look into the distant future - whether Ripple will live up to the forecasts and surpass Bitcoin or become the property of the banking sector exclusively - in any case, the coin and the protocol will still have time to loudly declare themselves.

September 16, 2017

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13.11.2017

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What is Ripple and how does it work?

The forerunner of the modern Ripple platform, the RipplePay system, appeared back in 2004. Canadian programmer Ryan Fugger managed to create a decentralized payment platform for a wide range of users. However, despite a good idea, the project did not receive much success, and Fugger decided to go even further - to change the existing system of banking and interbank payments. Or rather, make them decentralized, independent of intermediaries and third parties.

The updated system appeared in 2012 and was named Ripple. The company developing and maintaining the platform was named Ripple Labs. Fugger, together with other developers, created secure decentralized platform for making payments between individuals and even legal entities (primarily banking institutions). In addition, the platform launched its own cryptocurrency, called Ripple with the designation XRP.

The functioning of the system is based on a unique algorithm. Ripple uses its own secure RPCA protocol, which connects different nodes of the system (so-called entry points). It is an open source protocol that allows all users on the system quickly and securely exchange resources(be it dollars, bitcoins, gold or even air miles), make payments and conclude transactions, while paying a single minimum commission in ripples.

The example of an apple and a movie ticket is often used to explain the concept of Ripple. For example, you live in Krasnodar and you have an apple, but you want a movie ticket. Petya has a ticket, but he lives in Toronto. Between you there are many other people, each of whom also owns certain resources. Together you can unite into a single system for exchange. You “launch” an apple into the system - Vanya buys it for a ball - Petya buys a ball for a movie ticket - you get your ticket by giving the apple. In a simplified form, this exchange network of yours is Ripple. You exchange resources with other users and do not depend on third parties.

Features of Ripple as a cryptocurrency

Ripple cannot be mined. It’s not even that it’s impossible, it’s just that such an option is not provided by the cryptocurrency developers. They themselves mined about 100 billion coins, kept 65% of the mined assets, and released the remaining 35% to the market.
Ripple does not use blockchain technology. Instead, the system operates on so-called “gateways” through which all transactions pass. Dozens of servers installed in the company’s offices in different countries of the world are responsible for the operation of these “gateways.”
The mandatory commission for transactions is only 0.00001 XRP. It is noteworthy that immediately after the transaction, this amount “burns out”, that is, it completely disappears from the system. This is done to reduce the likelihood of spam attacks. There is a special category of attackers who send out a huge number of false requests for transactions in order to overload and “crash” the system. And if an ordinary user does not even notice the removal of the commission, then for a spammer who has created many requests, this will result in a round sum. That is, spamming Ripple is simply unprofitable. In addition, the “burning” of coins leads to a gradual decrease in their total quantity, which contributes to a natural increase in the market value of Ripple. The fewer coins in circulation, the higher their price.
The popularity of Ripple as a cryptocurrency is determined by the number partner banks, which use the Ripple payment system. So, in 2016, the company entered into a contract with more than 20 banks, and the price of Ripple immediately increased by 200%.
The meager cost of Ripple today is explained by large number of issued coins. With a decrease in the number of coins and an increase in the popularity of the entire system, the cost of Ripple will naturally increase.

Main advantages of ripple:

high transaction speed (higher than in the Bitcoin network and even SWIFT);
the ability to exchange any currency for any other currency or value (for example, gold, shares or even precious metals) with a single minimum commission;
high level of protection against spam, hacking and hacker attacks;
impossibility of inflation (all coins have already been mined, it is impossible to get new ones, and a hypothetical excess of coins is leveled by their “burning” when paying a commission);
reversibility of transactions - any transaction can be canceled or edited if an error was made.

The main disadvantages of ripple:

high monopolization (Ripple Labs personally owns 65% of existing coins, which gives it the opportunity to manipulate the rate);
high centralization (only developers decide how many coins to “throw” into circulation right now).

How to buy ripple?

Although there is still some semblance of mining.

The second method is more familiar - on a stock exchange or exchange office.

Where to store ripple?

As a result, the company closed its wallet, and offered Ripple owners two ways to store currency:

Download and install special

In addition to the main program, you will also have to purchase a special device that supports the wallet on your computer. Outwardly, it resembles a regular flash drive and costs almost 60 euros. Not so cheap, but the level of security for your wallet increases several times, and the threat of hacking tends to zero. Such wallets are also called hardware wallets (since in addition to the program there is hardware - that same flash drive), and they are produced by the well-known company Ledger. Today, this manufacturer’s line includes two wallets that support XRP – Nano S and Blue. In addition to ripples, they can store bitcoins, ethereum, litecoins, and several other popular cryptocurrencies.

Create a crypto wallet on GateHub

The resource supports Ripple, but to activate the wallet you will have to provide a lot of personal data: current email address, mobile phone number, real first and last name, date of birth, screenshots of identification documents, and even your own photo. The registration procedure is quite long and tedious, but at the end you will receive several bonuses. So, you can be sure that only you will have access to your wallet - the likelihood of your account being hacked is virtually eliminated. In addition, after registration you will receive 20 ripples as an incentive gift.