Ripple (XRP) Is an Alternative to Bitcoin
The unprecedented surge of Bitcoin has garnered a huge influx of interest in the cryptocurrency market. In fact, according to Google search statistics, “How to Buy Bitcoin” has overtaken “How to Buy Gold.”
The problem is that the price of Bitcoin is so high, it’s prompting people to look at other cryptocurrencies that are still affordable.
Among these newer cryptocurrencies is one that’s being hailed as the cryptocurrency of the future: Ripple (XRP). This very web site carries a concise Ripple wiki that gives you all the info you need about Ripple. But today, we’ll discuss the all-important aspect of how to store Ripple (XRP) once you get them.
How to Store Ripple
Currently, there are four different ways to store XRP. All of them have their unique advantages and certain drawbacks.
- Identify a trusted name like Gatehub and store your XRP with them. In exchange, you get promissory notes (IOUs) that you can use to redeem an equivalent amount of fiat currency upon request. This is similar to depositing money in a bank, and the IOU is your account balance.
- You sign up for an XRP wallet and store your Ripple in it. In fact, there is a trick to it. But, before you learn the trick, you might be keen to know what an XRP wallet actually is. Don’t worry, I’ve devoted an entire section to XRP wallets.
- You store your XRP on hardware that supports multiple blockchain technologies. A good example is “Ledger Nano S,” which looks very much like a USB device/thumb drive. The challenge will be not to lose it.
- The lazy way to store your XRP is to not do anything, and to leave them on the exchange in your brokerage account.
Of the four, I believe that the best way to go about it is to store your Ripple in an XRP wallet.
What Is an XRP Wallet?
At the basic functional level, an XRP wallet is quite similar to a physical wallet, in that it allows you to receive, send, and store digital currency. In essence, it is software that stores private and public keys. The program interacts with various blockchain wallets to help XRP holders send and receive digital currency and monitor their balance.
Unlike Bitcoin wallets, which are free, you need 20 XRP to book your XRP wallet. So, if you add 100 XRP to your Ripple wallet, for the first transaction, 20 XRP will be used to book the wallet. Further transactions to the same wallet will not be pinged. So, unless specifically required, it makes sense not to use multiple XRP wallets (this is the trick I was referring to earlier).
As there are quite a few XRP wallets, the dilemma that many investors face is how to select the best Ripple wallets or what factors are important when it comes to selecting the best XRP wallet.
How to Select the Best XRP Wallet
As I mentioned before, all XRP wallets require you to put in 20 XRP to book a wallet. But, in addition to that, there is a transaction fee that varies from wallet to wallet. The other factor to consider is safety. The level of security will depend not only on the wallet itself, but on the type of wallet (desktop, mobile, online, paper, or hardware) that you choose.
Online wallets are incredibly effective, but they carry the risk of being exploited by hackers who can steal your funds. Offline wallets are far less risky, as they eliminate this risk completely.
If you do opt for online wallets, there are ways of lowering your risk. Look for wallets that allow you to add more layers of security. Use wallets that offer two-factor authentication procedures and are reputable. You could also consider going for multi-sign wallets that require the permission of another user to make a transaction. (Source: Ibid.)
Best Ripple Wallets
Ripple is the world’s fourth-most traded cryptocurrency after Bitcoin, Ethereum, and Bitcoin Cash. So it’s not surprising that a lot of investors are curious about the best Ripple wallets. Given that most investors are likely to stick to a single wallet address rather than having multiple XRP wallet addresses, it makes a lot of sense to understand your long-term requirements first and then select the best wallet for your requirements.
This is the official online wallet of Ripple, where you can easily buy and sell XRP using regular currency and also store your XRP. What I like most about this is the user interface. Another great feature is that Gatehub.net allows you to check real-time stats and market trends before any XRP transaction. On the flipside, if you forget your Gatehub password, you cannot recover the funds or store additional funds in your wallet.
If you’re into trading cryptocurrencies, Poloniex is a great exchange to do it on. Not only can you buy XRP by exchanging your Bitcoin, Ethereum, or other currencies, you can store XRP on Poloniex. Exchanges differ from place to place. While Poloniex is great for United States and Canada, Coinspot is the exchange of choice in Australia and New Zealand, Coinone is the most popular one in South Korea, and Kraken is popular in Japan.
This is more than just a wallet. It offers an easy gateway for merchants to accept payments in cryptocurrencies. The merchants also have access to a very safe and secure wallet, where they can easily store their XRP for a small duration.
Many cryptocurrency enthusiasts prefer to store their digital coins in desktop wallets, as this gives them complete control over them. Among the available desktop wallets, Rippex is the most trusted and easy ways to store your XRP. And the great thing about the Rippex app is that you can easily download it on “Windows,” “Linux,” or “Mac.”
Ledger Nano S:
This is the finest hardware wallet that your dollar can buy. If you are a regular in the crypto-world, you’ll naturally gravitate toward this type of wallet, as these wallets are offline. This means they offer top-notch security and enable you to safely store your coins for long periods without hassle. The Ledger Nano S hardware wallet has recently added support for Ripple.
The best Ripple wallet chart below gives you a fair idea of how these top five wallets stack up.
Best Ripple Wallets
|Name||Type||Cost of Operations||Safety||Storability|
|GateHub||Online Wallet||0.3% +20 XRP||****||***|
|Poloniex||Exchange||variable +20 XRP||***||***|
|CoinPayments||Payment System||0.5% +20 XRP||****||***|
|Rippex||Desktop Wallet||0.2% +20 XRP||****||****|
|Ledger Nano S||Hardware Wallet||$65.00 +20 XRP||*****||*****|
For readers and investors new to Ripple, the above Ripple wallet review might seem a little confusing, so let me make a simple analogy.
Think of your XRP as your online information. Though “Gmail” may be the fastest way to get and send your information, your inbox might not be the best place to store your information.
In the same way, although online wallets offer a lot of convenience, when it comes to safety, there’s nothing quite like storing it in hardware of your own. Which is why I’d store my XRP using Ledger Nano S. True, there is a bit of up-front expenditure (approximately $65.00) to buy the hardware, but the safety it affords your growing stash of XRP and their rapidly increasing value makes it more than a good investment.