Ripple is often used interchangeably with XRP. Ripple is the company and network that powers the XRP cryptocurrency. Ripple launched XRP in 2012 as a global payments provider with the purpose of enabling “secure, instant and nearly free global financial transactions of any size with no chargebacks“.
This differs from other cryptocurrencies as Ripple’s aim is to help facilitate and improve payments through its coin XRP, this makes it different as its aim is to serve financial institutions and not consumers first.
Despite its differences from other cryptocurrencies, XRP can still be bought and sold like any other cryptocurrency through a platform or by using a cryptocurrency exchange. As an overview a currency exchange brings two parties together to trade directly, where are a broker/platform operates as a middleman when parties are looking to trade.
How to Buy Ripple (XRP) in the UK Using Our Preferred Trading Platform: eToro
1. Sign up with eToro
You need to create an account with eToro. You do this by going to their site, www.etoro.com, and selecting the join now button and the below form will appear, complete it and it will take you to the next page.
2. Account Verification
Verify your account. When prompted, complete your profile, and keep your National Insurance number nearby to get everything verified. You’ll need to upload a valid proof of identity (e.g. passport or driver’s license) and proof of address (e.g. bank/credit card statement, internet bill).
3. Deposit fiat currency
Connect your bank or e-wallet, deposit funds to fund your account using the following options pictured below. You must have fiat currency in your eToro account to buy XRP.
4. Navigate to XRP and make a purchase
Once your funds are available in your account, you’ll be ready to buy Ripple (XRP)! Simply navigate to the XRP page and make your first purchase.
5. Ripple (XRP) is added to your eToro portfolio
Best Ways to Buy XRP in the UK
What makes eToro such an attractive proposition to buy XRP in the UK is a combination of its low fees, increased transaction types and liquidity. It also offers social trading and the ability to copy top traders, allowing newer traders to get a better understanding of when they should and shouldn’t buy XRP.
This helps them both better understand the market more making them better traders as well as potentially helping reduce losses for newer traders.
|Fees||Currencies Supported||Transaction Type|
|$5 for withdrawals (even for UK investors), 0% on trades, although spread costs apply, eToro also only operate in USD so you will also face spread costs for any other currencies||18 supported||Buy, sell, market orders and limit orders|
eToro claims to have no trading fees and whilst it doesn’t charge a commission for trades, there are some fees to be aware of including $5 for withdrawals – irritatingly they only work in USD, meaning all USD to GBP transactions may incur further foreign exchange fees. Further to this, eToro do charge spreads on all trades which change depending on market factors, but this is standard across most brokers or platforms.
eToro has a number of features including increased transaction types compared to other platforms such as market orders and limit orders, beyond the normal buy or sell transaction types. It also supports 18 cryptocurrencies including XRP. Beyond this, eToro also uses technology to increase its liquidity, helping traders execute trades including XRP in more optimal timings compared to other platforms or brokers in the market.
Another benefit of eToro is the increased liquidity. XRP is a very volatile currency at the present time and a platform that can offer as much liquidity as possible if traders want to exit or enter their position quickly is valuable. eToro’s increased liquidity can help traders execute in a way that other platforms just may not be able to compete with.
The main drawback to eToro is that it only funds in USD, meaning UK-focused customers are likely to be impacted by either exchange rate fees or spreads depending on how they fund their account unless they use a payment service with better rates, such as (Transfer)Wise.
Binance is the world’s largest cryptocurrency exchange and another great option for buying XRP. It makes a great option as it has the highest number of active users increasing liquidity to help traders optimise their trades and reduce the negative effects of illiquidity when trading XRP.
This is especially useful for day traders or during big swings and wanting to exit quickly, this could be especially important to XRP traders if SEC rulings don’t go in Ripple’s favour. This liquidity makes Binance a great option for buying XRP.
|Fees||Currencies Supported||Transaction Type|
|0.02%- 0.1% purchase and trading, 3% to 4.5% for debit card purchases, free single EuroPayment Area transfer, or $15 per wire transfer in the US, Free UK bank transfers||Over 500 for global investors, 49 in the US||Limit order, market order, stop-limit order, trailing stop order, post only order, peer-to-peer trading, margin trading, one-cancels-the-other order.|
Binance offers a lot of features to XRP traders, such as a large variety of transaction types, like limit orders, market orders, stop-limit orders, trailing stop orders, post only orders, peer-to-peer trading, margin trading, one-cancels-the-other orders. This supports traders who use more complex XRP trading strategies.
Also, being the biggest cryptocurrency exchange in the world, it benefits from a large amount of liquidity due to the large number of traders. However, unlike eToro, they don’t use outsourced partners to increase this liquidity meaning traders could be more exposed to the effects of illiquidity (although arguably this is less of an issue with XRP compared to other cryptocurrencies).
Binance makes a great proposition for buying XRP as it is out of the scope of most regulators. Binance has had action taken by the FCA that had minimal impact in the past. The SEC’s actions could impact other aspects of XRP such as price, but it is unlikely to impact the ability for traders to buy or sell XRP using the Binance platform.
Binance makes a great platform for not just trading XRP but also many other types of cryptocurrency as it has very low fees and fast funding of accounts, it supports a large range of transaction types, which allows for more trading strategies.
Where Binance struggles for XRP trading compared to other platforms is commission charges, whilst Binances are cheap, other platforms like eToro don’t charge these. Also Binance can be fairly overwhelming to new investors which can make it harder as a platform to get started with.
The third option for buying XRP is CoinJar. CoinJar is a great alternative as it offers great functionality for beginner investors, whilst still supporting XRP as a token. Further CoinJar also takes withdrawals and deposits in GBP, which is an advantage over platforms that may not take GBP causing investors to have other costs to consider.
|Fees||Currencies Supported||Transaction Type|
|£0 for withdrawal or deposit, except for a 2% fee on instant buy. Trading fees also vary between 1% through 0.04% depending on type of trade used||13 different currencies including XRP||Buy, Sell, Convert|
Added to this, CoinJar is also an Australian based broker, meaning it won’t be subject to any SEC ruling that might limit the ability for investors to buy or sell XRP if they rule against Ripple. As a side note, CoinJar also offers low fees for trading, as well as no fees on withdrawals or deposits, which makes it a little more competitive than other platforms that support XRP.
Outside of CoinJar’s benefits to buying XRP, CoinJar also has a great user experience, is easy to get set up with and deposits can be credited in minutes, allowing customers to buy XRP using the platform in minutes.
What Is Ripple (XRP)?
Ripple and XRP are commonly used interchangeably, however, there is a difference. Ripple is the platform/network that powers XRP. Ripple provides financial institutions access to secure, instant and ultra low cost payments services using a consensus mechanism (opposed to blockchain mining). XRP is the token that Ripple released to help facilitate these transactions.
Why Buy XRP?
XRP makes a good investment as it is the token for the Ripple network, a token which has a very powerful application. The low fees, near-instant execution and use by over 300 financial institutions globally, such as Santander, makes XRP a very powerful proposition.
XRP also makes a high risk, high reward (even for cryptocurrencies) investment strategy as a result of SEC action. The action has caused the price of XRP to tank from around £2 per coin to £0.36 per coin, but if Ripple can get a positive resolution, it is likely to see a strong and quick recovery.
On this, XRP also benefits that a very small amount is taken out of circulation every time the Ripple network executes a transaction, helping the supply and demand aspect of driving price.
XRP Price Analysis and Prediction
XRP once enjoyed highs of £2.142 per coin, however recent action by the SEC started in 2020 has caused a nasty hit to the coin, with XRP currently sitting (at the time of writing) at around £0.363 per coin. Despite it’s recent and rather brutal hit, XRP is showing signs of recovery.
If the coin can break through £0.447 per coin, then it is likely to enjoy a strong recovery. If it struggles to get through this barrier then it’s unknown what might happen next. With this in mind XRP, makes a high risk, high reward investment for crypto investors.
Things to Remember Before Buying XRP
Don’t put in more than you can afford to lose – remember, XRP like all cryptocurrencies are speculative and you may lose more than you gain, make sure you only trade amounts you’d be willing to lose.
Resist ‘fear of missing out’ – avoid trading on emotions, FOMO is the Achilles heel of many traders who jump in when it’s too high and don’t stay the course, meaning they end up losing money as they invested on an emotional level without thinking things through.
Understand tax consequences – make sure you stay on the right side of your taxes, and cryptocurrencies, like everything else in life, are subject to taxes. Make sure you know your tax liabilities and comply with them.
Long vs short-term investment – consider the benefits and drawbacks when looking at trading any cryptocurrency as a long versus short-term investment. It’s also worth looking at whether your chosen platform or exchange is better suited to long versus short term positions
Is XRP Legal in the UK?
Yes, buying XRP is perfectly legal in the UK, the SEC action against Ripple only impacts US platforms and exchanges in selling to US citizens and has no impact on UK citizens.
Will XRP become the most valuable cryptocurrency?
Anything is possible, especially with cryptocurrency. That being said, it is unlikely, despite it’s powerful applications in payments, that XRP will become the most valuable cryptocurrency.
Can you buy less than 1 XRP?
Yes, fractional trading is available with XRP meaning you don’t have to buy 1 coin.
Is it too late to buy XRP?
We wouldn’t say it’s too late to buy XRP as prices are currently in a dip and could recover, especially if the SEC’s lawsuit against Ripple is either dropped or falls through, XRP is likely to have strong recovery.