Ripple is an open-source global system of payments, settlements, and exchange aimed at empowering financial institutions with the benefits of advanced blockchain technology. Ripple’s native currency XRP facilitates real-time transactions without needing a central intermediary, it all runs on the Ripple Network.
Due to the growing popularity of the digital assets sphere, several Ripple exchanges aimed at facilitating seamless crypto buying/selling have emerged in recent years. Most exchanges offer a wide range of features along with security for both new and experienced users.
Here is our guide to choosing the best Ripple exchanges in 2023.
Ripple’s XRP is the third-largest cryptocurrency by market capitalisation and hence is offered by most cryptocurrency exchanges. However, choosing the Ripple exchange that fits your requirements and caters to your needs can be confusing. Here is our list of the top Ripple exchanges based on unique features and benefits.
A Ripple exchange is a platform that allows users to sell and purchase XRP for other cryptocurrencies and vice versa. Ripple exchanges are intermediaries who match buyers and sellers of digital assets for a commission fee. XRP runs on a Real-Time Gross Settlement System which is a digital currency exchange and remittance ripple network that is validated by independent servers. Ripple exchanges’ unique selling proposition is the avoidance of huge fees and wait times often associated with banks.
Users can access various options and functions based on the type of Ripple exchange. Some exchanges cater specifically to the needs of new investors whereas others offer advanced features for seasoned users. They also differ in speed and privacy policies.
You can register an account on any Ripple exchange by filling out a sign-up form on the exchange’s official website. Most platforms are beginner-friendly and only require you to enter personal details such as your name, email address and phone number. Based on your local laws, the platform will then require more details to verify your identity.
Crypto exchanges follow strict Know Your Customer (KYC), and Anti-Money Laundering (AML) guidelines while completing the process of identity verification. You can verify your identity either through a government-issued photo identity document or through a utility bill. All regulated exchanges require users to complete identity verification to withdraw any funds from the account to protect consumers from fraud. It is very risky to go through an unregulated exchange that allows users to bypass KYC regulations as such platforms lack oversight.
Once your account is verified you can start trading or purchasing XRP. Fund your account using the payment methods supported by the exchange such as credit and debit cards and after the funds are in the account, navigating the platform and buying/selling is very straightforward.
You can either store the coins on the platform or withdraw to a private crypto wallet using a method of your choice. Most Ripple exchanges offer 24/7 active customer support through executives who can be contacted if there are any issues.
Trading XRP or any financial asset isn’t possible without money. To start trading XRP on Ripple exchanges, you have to register with the cryptocurrency exchange and fund the trading account. These exchanges allow you to trade XRP against a wide range of fiat currencies and cryptocurrencies.
With centralised exchanges and peer to peer platforms, you will need to verify your ID according to the KYC and AML requirements. The exchanges will require you to upload your proof of ID, proof of residence, bank statement, and more. These verifications measures are put in place to ensure that your funds are protected on the platforms.
You can trade with platforms that don’t require KYC, but it is risky since you are blindsided by the people you are dealing with, and it could be for criminal purposes. You can fund your exchange account using any of the accepted payment methods, including debit cards, credit cards, e-wallets, bank transfers, and more. Similarly, place a withdrawal request on the exchange to withdraw funds from your account.
The Ripple exchanges allow you to trade XRP against stablecoins, other cryptocurrencies and fiat currencies. You can buy or sell XRP via the ‘Buy’ or ‘Sell’ orders.
A cryptocurrency exchange is similar to the traditional stock exchange as it acts as a middle-man between buyers and sellers who buy/sell based on the current market price of the cryptocurrency. Crypto exchanges charge a transaction fee and are popular among average users who don’t deal in large amounts. A crypto exchange allows you to buy, sell and store crypto tokens and is a great option for long-term storage of the digital currency.
However, for high-volume trades, crypto brokers are the most preferred choice. Ripple brokers offer a wide range of benefits and are hence perfect for seasoned traders. Crypto brokers offer greater flexibility and the option to trade the derivatives of a main digital asset like Ripple. They offer the ability to trade CFDs, options, and futures.
This section explores the functioning, advantages and disadvantages of the various types of cryptocurrency exchanges:
Centralised exchanges are intermediatory platforms that allow users to buy, sell and store cryptocurrency for a nominal transaction fee. They are beginner-friendly, easy to use and navigate, especially compared to the advanced features offered by decentralised platforms. Centralised exchanges are highly regulated and strictly follow AML and KYC norms that protect consumers from the dangers of fraud.
Centralised exchanges run on private servers and are thus vulnerable to attack. However, it is crucial to note that deals on centralised exchanges are not tracked on a blockchain and hence such exchanges are often deemed to be against the spirit of cryptocurrency.
Decentralised exchanges eliminate the need for an intermediatory by directly facilitating peer-to-peer (P2P) trading. The funds of a decentralised exchange are stored on a blockchain and are hence more secure than their centralised counterparts.
Further, decentralised exchanges are not regulated and allow users to trade anonymously and freely use the platform. However, it is crucial to remember that decentralised exchanges are advanced and hence require some amount of knowledge on the workings of the crypto market. Further, decentralised exchanges have had issues with liquidity that might be problematic for high volume users.
Local crypto exchanges allow users to buy and sell crypto on their terms, using any payment method. It is convenient, easy-to-use, and has a simple infrastructure. The platform enables you to exchange tokens directly with another person, sidestepping slow middlemen. You can chat with the prospective buyer/seller without revealing your details and conduct seamless transactions in a matter of minutes.
Fait exchanges are trading platforms that enable you to buy XRP cryptocurrency using a fiat currency payment method like dollars or euros. These are designed for beginners and provide a crucial insight into the functioning of the crypto market. Pure exchanges facilitate only crypto-to-crypto transactions.
As one of the leading cryptocurrencies, XRP is readily available on a wide range of crypto exchanges. Trading with the wrong platform can affect your financial progress as you have to deal with issues like high fees, difficulty in deposits, and withdrawals and more. To avoid such situations, learn a few things about a crypto exchange before you start using it. You can assess a Ripple exchange using the criteria discussed below.
The decision to buy or trade cryptocurrencies depends on the trader. The trader’s objectives and market knowledge usually play a role in determining if they should trade or invest in XRP. If you intend to buy and keep the cryptocurrency for the long-term and earn profits in the process, then you are an investor. However, by leveraging the cryptocurrency’s price volatility and making money daily, you are a trader.
A key piece of advice to traders and investors is always to start small. XRP is trading below $1, which makes it a cheap cryptocurrency to buy. You can always start trading small and grow your investment from there. Ensure you seek knowledge of the crypto market as you grow your investment. The presence of derivative products like futures, options and CFDs (Contract for Difference) have made it possible to access XRP and other cryptocurrencies without owning them.
Ripple exchanges allow users to buy/sell and store cryptocurrencies like XRP in real-time. Registration is simple and most platforms are user-friendly and offer seamless transactions. However, different digital currency exchanges offer different benefits and it is important to understand them before investing through the platform.
Security of the platform, design and usability, convenience, transaction fee and speed are a few factors based on which you can evaluate top Ripple exchanges. You should also choose whether you want to go for the highly liquid and fast centralised exchanges or the privacy and safety of the blockchain-powered decentralised exchanges. It is also crucial to remember to always refer to your local crypto laws when in doubt and invest only what you can afford to lose.
For a look into the other platforms that offer the best place to exchange crypto check out our full guide best place to exchange crypto. In addition, take a look at the Ripple Price here and the predictions for the price of Ripple here.