RIPPLE is the fourth largest cryptocurrency in the world but despite its recent success – it still remains an unfamiliar name to many.
XRP, Ripple’s native currency, took off in December, soaring from under $0.01 to $0.30 a coin. But why did its value suddenly increase by 4300 per cent?
How does Ripple work and are there any risks?
Ripple acts as a payment network, RippleNet, and a cryptocurrency, Ripple XRP.
The platform makes it easy to transfer almost any currency to almost any other currency in the world in no longer than four seconds.
Currently, Ripple is focused on working with banks and other institutions in a bid to offer an efficient and cost-effective way of sending real-time payments around the world.
Using Ripple, if one wanted to transfer currency directly from China to the USA, they can trade CNY to XRP, (Ripples currency), and then send XRP to the recipient who will have an online Ripple wallet or a bank in the USA. From there, they can trade the XRP back into USD.
In comparison, transactions on Ethereum can take more than two minutes, and on Bitcoin payments can take more than an hour to be processed.
Why has the cryptocurrency XRP spiked?
Ripple soared by 50 per cent on December 13, reaching a new record high of 0.4442, CoinMarketCap reported.
XRP reputedly gained such a boost in its value because Bitcoin’s new record of $17,2370 benefited the entire cryptocurrency market.
The global market is currently valued at around $488billion, and Bitcoin accounts for less than 40 per cent of the daily turnover, Ripple still a minor 4 per cent.
XRP also enjoyed a surge because of its new partnership with credit card company American Express, who are looking to offer instant block-chain based payments.
Celebrating the AMEX-Ripple partnership, the company’s chief information officer, Marc Gordon said: “American Express has a long history of integrating new technologies.
“This collaboration with Ripple and Santander represents the next step forward on our blockchain journey, evolving the way we move money around the world.
How to buy XRP
Ripple is available on Bitstamp, where other cryptocurrencies such as Bitcoin are availbale, and then you can purchase them with you rlocal currency.
Using an online wallet like GateHub, you can storme them in an online wallet and even send them to other Ripple users.
After creating an account with GateHub, you will need to connect a gateway in order to deposit funds.
Then you will be free to buy XRP on the exchange page.