How to Buy XRP (XRP)

Where to Buy XRP?

You can buy XRP on several exchanges, such as Bitstamp, Kraken, Huobi Global, and Coinbase. XRP is a cryptocurrency that can be used as a payment method or as a way to speculate on price movements.

Here are some crypto exchange and app options that allow you to purchase XRP.

Key Takeaways

• You can purchase XRP on several exchanges, such as Bitstamp, Kraken, Huobi Global, and Coinbase.
• XRP remains one of the top-traded cryptocurrencies by market cap.
• XRP is the native token for the XRP ledger, which was designed as a payment system for business purposes.
• XRP can also be used by investors who enjoy speculating on price movements.

What Is XRP?

The XRP Ledger is a distributed platform on a blockchain with a native cryptocurrency, XRP. It serves as a decentralized market for XRP trading between users. The ledger and its cryptocurrency, XRP, are primarily intended to function as a form of settlement for cross-border finance, but XRP is also a widely recognized and traded cryptocurrency.

To confirm XRP transactions, the XRP Ledger relies on a unique consensus algorithm that operates through trusted sub-networks, interconnected segments of a greater network of geographically distributed validator nodes. Each sub-network trusts a specific set of nodes known as the Unique Node List (UNL), which consists of a limited number of servers owned and operated by diverse financial institutions, including banks.

Buying XRP

XRP can be purchased from centralized cryptocurrency exchanges, peer-to-peer (P2P) services, decentralized finance (DeFi) platforms, cryptocurrency ATMs, payment processors, and mobile wallets. You can also earn XRP rewards by participating in certain earnings programs sponsored by exchanges.

Centralized Exchanges

Centralized and decentralized crypto exchanges are online platforms that allow users to buy, sell, and trade cryptocurrencies. Not all exchanges are regulated. These exchanges typically have a wide selection of trading features and digital currencies, including XRP. Here are some popular exchanges that offer XRP:

• Coinbase
• Binance
• Bitfinex (non-U.S.)
• Gemini
• Bitstamp
• Huobi (non-U.S.)
• Kraken
• KuKoin (non-U.S.)
• OKX (non-U.S.)
• Poloniex (non-U.S.)

Earning XRP

XRP can also be earned inactively from lending, liquidity provision, and rewards programs but not from staking. Staking is the process of locking up or holding a certain amount of cryptocurrency to participate in the validation of transactions on a blockchain network.

In the traditional sense of staking, XRP staking is not possible, where users lock up their tokens to validate transactions and earn rewards. XRP is not a Proof-of-Stake (PoS) cryptocurrency and uses a consensus mechanism called the XRPL Consensus Protocol (or Federated Consensus), which does not recognize staking.

Earning XRP as passive income includes lending XRP to borrowers or participating in liquidity pools on a DeFi platform and holding XRP on certain crypto exchanges that offer rewards programs.

Liquidity Pool Earning

Liquidity pools provide liquidity to a basket of XRP and other cryptocurrencies, allowing traders to swap between those currencies. In return for providing liquidity, you earn rewards in the form of interest payments and trading fees. However, liquidity pool rewards can be volatile, and you may earn more or less depending on the market conditions.

Exchange Reward Programs

Some cryptocurrency exchanges offer rewards programs for XRP holders. These programs typically involve holding XRP in your exchange account (basically staking) for a certain period in exchange for rewards such as bonus interest on your XRP holdings or discounts on trading fees.

Peer-to-Peer (P2P) Services

The P2P economy facilitates the direct exchange of cryptocurrencies between individuals, eliminating the need for intermediaries like centralized exchanges and financial institutions. They also offer greater privacy and control over transactions.

However, P2P services may have lower liquidity and higher transaction costs compared to centralized exchanges. Additionally, due to the privacy they provide, they might be under surveillance by authorities interested in finding money laundering schemes. You could unknowingly and quickly become part of an illegal transaction and find yourself in some legal trouble.

Decentralized Finance (DeFi) Platforms

DeFi platforms are decentralized applications (dApps) built on blockchain technology that provide third-party financial services without the need for traditional intermediaries like banks or brokerage firms.

P2P exchanges and DeFi platforms play complementary roles in the cryptocurrency ecosystem. P2P exchanges can provide additional liquidity for DeFi protocols that require assets for crypto lending and borrowing, as well as other DeFi activities. Both P2P and DeFi offer greater privacy and control over their transactions than centralized exchanges and access to cryptocurrencies for users who may not have access to different financial institutions.

However, unlike P2P exchanges, which focus on buying, selling, and trading cryptocurrencies and direct transactions between individuals, DeFi platforms may involve smart contracts or automated market makers (AMMs) as intermediaries and offer a wider range of financial services, including lending, borrowing, and yield farming.

Here are some notable DeFi platforms that support XRP:

• PancakeSwap
• Changelly
• SimpleSwap
• dYdX (non-U.S.)
• Uphold

Cryptocurrency ATMs

Crypto ATMs are kiosks that allow users to buy and sell cryptocurrencies using cash or debit cards. Crypto ATMs provide a convenient way for individuals to access cryptocurrencies without needing a traditional cryptocurrency exchange account.

Users can search for crypto ATMs that support XRP and other cryptocurrencies on websites that aggregate ATM locations worldwide, such as ATMlocator, Coin ATM Radar, CoinATMs, and CoinMap.

Some cryptocurrency ATM networks that provide XRP withdrawals include:

• General Bytes
• BitAccess
• Local Coin

Mobile Wallets

XRP Ledger does not have a native wallet that allows you to buy XRP directly. However, several third-party wallets support XRP purchases directly within them, and some mobile wallets allow you to buy XRP and store the keys on your phone. Note that while mobile payments are convenient, the fees charged can be high. 

Some popular mobile wallet options include:

• Trust Wallet
• Exodus
• Coinbase Wallet
• Atomic Wallet
• Metamask

Where Can I Buy XRP Now?

You can buy XRP on many centralized and decentralized exchanges. Some wallets also facilitate buying XRP directly, but the fees might be higher using them.

Can You Legally Buy XRP in the US?

Yes, you can buy XRP legally on any of the regulated exchanges in the U.S.

Why Can’t I Buy XRP?

You should be able to buy XRP on Conbase, Binance, ByBit, OKX, UpBit, Kraken, KuKoin, and several other exchanges.

The Bottom Line

XRP is a cryptocurrency intended to speed up global payments at a time when clearing payments can take days. You can’t mine XRP, but you can buy it, receive it, or be rewarded it through centralized, decentralized, and peer-to-peer exchanges, mobile wallets, and payment processors.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes online. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author owns BTC, ETH, ADA, and XRP.

Read the original article on Investopedia.