Have you been looking for a way to gain exposure to one of the most widely-used and talked-about cryptocurrencies – Ripple XRP? If Coinbase is your exchange of choice, you may have found purchasing XRP to be difficult or impossible lately.
In this comprehensive guide, I‘ll walk you through everything you need to know about buying XRP in 2024 and explain how you can still invest in this intriguing digital asset despite the recent issues surrounding Coinbase XRP trading.
Here‘s what I‘ll cover:
- A Brief History of Ripple and XRP
- The Controversy Around XRP and Ripple Labs
- Why You Currently Can‘t Buy XRP on Coinbase
- The Best Alternative Platforms to Purchase XRP
- How to Securely Store XRP
- Is XRP Still a Good Investment?
- Final Thoughts on Investing in XRP
Let‘s start at the beginning – understanding the background and vision behind Ripple and its XRP cryptocurrency.
Contents
A Brief History of Ripple and XRP
The origins of Ripple date back to 2004 when software developer Ryan Fugger first came up with the idea for a decentralized monetary system he called RipplePay. This allowed members of an online community to create IOUs and make payments to each other through a network based on trust and credit lines.
In 2012, Fugger handed over this novel concept to the newly-formed Ripple Labs. They aimed to expand on his ideas to build a real-time gross settlement system for global financial transactions using blockchain technology.
Ripple Labs released the first iteration of the Ripple protocol in 2013 along with its native cryptocurrency, XRP. 100 billion XRP was created at inception, with the company holding the majority of tokens.
The core innovation of the Ripple network is to facilitate ultra-fast, low-cost cross-border payments and currency exchanges.
XRP enables banks and financial institutions to route transactions without the need for inefficient pre-funded nostro accounts. It acts as a "bridge currency" allowing the conversion of value between any fiat currencies.
For example, with RippleNet, a local bank in the US can transfer USD and convert it instantly to Japanese Yen using XRP as the intermediary. This avoids tying up capital in rarely-used nostro accounts while still enabling real-time global payments.
Today, RippleNet links over 300 institutions worldwide and processes millions of transactions using XRP. According to Ripple, their network can settle transactions in 3-5 seconds at a cost of just 0.00001 XRP – fractions of a penny.
Compare this to cross-border bank payments that typically take 3-5 days and incur high fees. It‘s easy to see why RippleNet is gaining traction as an appealing alternative.
The Controversy Around XRP and Ripple Labs
Ripple‘s progress has been hampered over the past couple years by a major SEC lawsuit alleging XRP is an unregistered security.
In December 2020, the SEC filed charges against Ripple Labs and its executives, claiming they raised over $1.3 billion through an ongoing illegal securities offering. This stemmed from Ripple‘s large periodic sales of XRP to fund company operations and expand the network.
The SEC asserts that these ongoing XRP sales constituted an investment contract where purchasers were led to expect profits from Ripple‘s efforts to expand the XRP ecosystem. They argue Ripple violated federal law by not registering XRP as a security or following exemptions.
Ripple maintains that XRP should be classified as a currency, similar to Bitcoin and Ether which are not considered securities. They hold that XRP is decentralized and exists independently from Ripple the company.
This legal battle is still ongoing with no clear resolution yet. But the fallout for XRP has been significant.
Many major exchanges like Coinbase suspended XRP trading for US customers to err on the side of caution. And overall investor uncertainty has weighed on XRP‘s price, which peaked near $4 in late 2020 before the SEC allegations crashed the market.
However, Ripple has continued making progress in proving XRP‘s utility for cross-border payments and independence as a digital asset. While the SEC lawsuit has certainly been a roadblock, many experts believe Ripple has a solid case and is likely to prevail or reach a favorable settlement.
A resolution confirming XRP‘s legal status as a true cryptocurrency would remove major regulatory questions slowing adoption and likely lead to a surge in investor interest and trading volumes.
Why You Currently Can‘t Buy XRP on Coinbase
In light of the high-profile SEC lawsuit, Coinbase decided to suspend all XRP trading pairs in January 2021. This halt affects all direct purchases of XRP using fiat currency, cryptocurrency, or USD Coin (USDC) on Coinbase.
So currently, you cannot buy, sell, convert or make any trades involving XRP on one of the most popular crypto exchanges for US investors.
Coinbase is taking this cautious approach until there is clearer regulatory guidance on XRP‘s status. If the SEC lawsuit ends with a judgment that XRP is not a security, Coinbase would be expected to promptly relist XRP and reopen trading.
For now though, the only option for Coinbase users holding XRP is to transfer it off the platform to an external crypto wallet or another exchange where trading is still allowed. But fresh purchases and sales of XRP are off the table.
Thankfully, there are still a number of reputable exchanges offering XRP for US customers…
The Best Alternative Platforms to Purchase XRP
While you‘re out of luck buying XRP on Coinbase currently, plenty of other top exchanges facilitate XRP trading for US citizens and residents. Here are some of the best options:
Kraken
Founded in 2011, Kraken is one of the oldest, largest and most respected crypto exchanges. US clients can fund accounts with USD via wire transfer to directly purchase XRP and other cryptos. Traders praise their excellent liquidity and security features.
Binance.US
The US partner site of global exchange giant Binance offers a selection of popular cryptos to American traders, including XRP. You‘ll have to complete their KYC verification to gain full access and must fund your account via bank transfer.
KuCoin
Based in Hong Kong, KuCoin provides access to hundreds of crypto markets without intensive ID checks. They allow US users to trade XRP for stablecoins like USDT or cryptos like BTC without mandatory KYC verification.
Crypto.com
Crypto.com serves over 10 million users globally on its app and exchange. There is a wide selection of coins available, including XRP paired against USD, USDT and other fiat/crypto markets. You‘ll need to complete KYC verification first.
eToro
As a brokerage, eToro takes a different approach but still allows real XRP purchases. American clients can fund accounts with USD to buy and sell actual XRP – not CFDs or derivatives offered on some other platforms.
Bitstamp
Veteran exchange Bitstamp accepts US customers and allows XRP purchases directly using a USD bank wire transfer. They offer reasonable fees and a decent range of major crypto assets alongside XRP.
There are many other well-established international exchanges like Bitfinex, Poloniex, Huobi Global and Gate.io that also facilitate XRP trading.
The platforms above all provide ample liquidity for XRP, cater reliably to US traders, and implement rigorous security standards. Once purchased, I recommend withdrawing your XRP to a secure wallet you control rather than leaving it on an exchange.
How to Securely Store XRP
To keep your XRP holdings safe, you‘ll want to withdraw them from an exchange to a private wallet where you control the private keys. Here are some of the top options for securely storing XRP:
Ledger Nano S
Ledger‘s hardware wallets are synonymous with crypto security. The Nano S provides offline protection for XRP and thousands of other assets via easy backups and transaction validation on its secure display.
Ellipal Titan
The Titan is an innovative air-gapped hardware wallet that offers excellent XRP support. It provides robust QR code-based transactions without needing insecure USB connections that can expose your keys.
Exodus
A user-friendly software wallet available on mobile and desktop. Exodus offers in-built exchange features, support for 100+ assets including XRP, and customizable transaction fees.
Atomic Wallet
This multi-asset software wallet enables convenient XRP management alongside hundreds of other coins and tokens. They also incorporate exchange capabilities and staking services.
XUMM
Created specifically for the XRP ecosystem by prominent community developers. XUMM provides easy access to XRP tools and integrates functional, secure XRP wallet capabilities.
To protect your investment, be sure to enable multi-factor authentication on linked exchanges and securely back up your wallet‘s seed phrase. Following crypto security best practices will help keep your XRP safe from theft or loss.
Is XRP Still a Good Investment?
Given the ongoing legal issues in the US, is XRP still worth investing in during 2024 and beyond? Here are some key points to consider:
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Bull Case: XRP possesses unique utility for global payments that is gaining traction with real institutions. Ripple continues expanding use cases, development and partnerships, which should increase adoption. A favorable SEC verdict could quickly resurrect XRP‘s price and ubiquity.
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Bear Case: Regulatory uncertainty persists, jeopardizing further adoption in the US market. Competition from other blockchain payments networks is mounting. As a highly centralized asset, XRP lacks the ideological appeal of decentralized cryptos like Bitcoin and Ether.
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Key Stats: XRP remains a top 10 cryptocurrency by market capitalization, indicating sustained investor interest. Over $6 billion worth of XRP trades daily on average, making it one of the most liquid cryptos. RippleNet processes millions of low-cost transactions using XRP.
On balance, XRP appears to retain advantageous properties and use cases compared to most cryptocurrencies, even amidst the legal headwinds. As always, only invest based on thorough research and never risk more than you can afford to lose. But for patient investors, XRP may still hold exciting potential.
Final Thoughts on Investing in XRP
Ripple‘s XRP brings groundbreaking speed and cost benefits to global payments, staking out a unique utility in the blockchain sphere. With Ripple continuing to expand partnerships and develop real-world applications, long-term growth prospects look promising.
However, near-term uncertainty remains due to the ongoing SEC lawsuit alleging improper XRP securities sales by Ripple. As a result, direct XRP purchases are currently blocked on Coinbase along with other major US exchanges.
Thankfully, reputable alternatives like Kraken, KuCoin and Binance.US still provide access for American traders eager to invest in XRP. You can sign up to buy XRP on these platforms using USD or stablecoins like USDT.
Once acquired, withdrawing XRP to a secure private wallet rather than leaving it on an exchange is highly recommended. Leading options include hardware wallets like the Ledger Nano S or software wallets like Exodus and Atomic.
A favorable resolution of the SEC case clearing up XRP‘s regulatory status could pave the way for a dramatic turnaround, potentially triggering resumed exchange listings and surging prices. In the meantime, the case continues presenting headwinds to full US adoption.
Yet for investors who take the time to analyze its merits as a uniquely speedy payments token, XRP may warrant consideration within a diversified crypto portfolio. As always, thoroughly research any investment and implement prudent risk management. If XRP aligns with your crypto investing aims, several platforms stand ready to provide access.
