To buy any cryptocurrency, you need an exchange. Just as you can’t take your Pounds and spend them in America without visiting a bureau de change, you can’t invest in Ripple without converting your national currency into a digital one. As part of our service, we’ve got all the tools you need to make an exchange. Indeed, when you take a look at our recommended exchanges and brokers, you’ll be able to create an account and start trading today.
However, before you do that, a little bit of knowledge never hurt anyone. Yes, an exchange is a website where you can convert one currency to another. However, there are few more subtleties you should know before you jump into the action. This is where our guide to cryptocurrency exchanges comes in handy. By sticking with us for the next few minutes, you’ll get the full lowdown on exchanges and how you can buy Ripple with confidence.
Embracing Bitcoin Before You Exchange
Even though we’re hot on Ripple, we can’t ignore the fact that Bitcoin still plays a major role in the industry. Because it is the original and, at present, the most valuable cryptocurrency, a lot of exchanges use it as their default token. In other words, you may have to buy some Bitcoin before you can get a different token.
For example, if you joined CryptoGo and wanted to purchase some Ripple, you’d need to buy some Bitcoin first. Most users tend to use a platform such as Coinbase to convert their fiat currency into BTC before transferring it to CryptoGo. Once the transfer is complete, the user can scroll through the list of available cryptos and make an exchange using their BTC balance.
The reason this dynamic has evolved is that many cryptocurrency users still value the anonymity this technology was founded on. Because there is a certain amount of personal information associated with fiat payments, some people want to keep this out of the mix as much as possible. The upshot of this is that some exchanges will only let you but Ripple and other cryptos using another crypto (usually Bitcoin).
Exchanging with a Broker
Of course, that’s not the case with all exchanges. In fact, if you take a look at our eToro review, you will see that you can use traditional payment methods such as Visa, MasterCard or PayPal. Because eToro is a broker rather than a dedicated cryptocurrency exchange, you’re actually investing in a slightly different way. Basically, instead of buying units of currency (in this case Ripple), you’re actually investing in a cryptocurrency as a commodity.
For example, when you visit a bureau de change, you’ll change your currency for another currency. That’s basically what happens when you use a cryptocurrency exchange. In contrast, if you invest in the forex (currency) markets, you’re not actually buying units of currency you could spend in a shop. What you’re actually doing is investing into a currency as a theoretical unit.
In other words, you don’t own any physical units of the currency. However, you can still make a profit if the price you bought in for is lower than the price you sell it at. Cryptocurrency trades on eToro and our other recommended brokers work in exactly the same way. Because of this, you can actually use a traditional payment method to invest in Ripple.
But What If I Don’t Want to Use an Exchange?
That’s not a problem. Because Ripple is one of the best-known cryptocurrencies, you can actually buy it directly through a conversion site. In fact, if you’re a beginner, these platforms are one of the easiest ways for you to enter the Ripple arena. Once you’ve checked out our guide to Ripple and you know what you’re getting into, you can visit a site like Hodly and the rest is simple.
To get some coins, all you have to do is create an account, input your credit/debit card details, and confirm the amount you want to buy. Once the transaction is complete, the funds will be shown on your account page which also doubles up as an online wallet. From here you can move them to a major exchange or send them to your personal Ripple wallet.
Are Exchanges Safe?
Yes. Although nothing on the internet is ever 100% secure, the largest exchanges and brokers all have a range of provisions in place to keep you safe. As well as SSL secured software, the best sites allow you to protect your account with two-factor authentication (2FA). In simple terms, this means you have to enter to two passwords to unlock your account.
The first password is one that you’ve created. This will typically have to feature letters, numerals, upper/lowercase letters and a special character (e.g. !, $. # etc). The second password you’ll have to enter is a random sequence of numbers. This code is generated by the site and sent to your phone or via an app installed on your mobile device, like Authy or Google Authenticator. Either way, the code is always unique, always random and always changing.
Because the code isn’t known by anyone else and can’t be used twice, the chances of anybody hacking into your account and almost zero. This, in short, is why exchanges are not only a safe place to buy Ripple but store your funds. Now, if you have a large amount of coins, you should store them in a personal wallet – preferably, an offline one. However, as a temporary holding place, exchanges are great.
How to Find the Best Ripple Exchange
The easiest way to find the best Ripple exchange is to take a look through our list of partners. Because we’ve done a lot of the hard work, you can basically read through our reviews and get an insight into what each site offers and whether that works for you. Indeed, with so many options out there, finding one that suits your needs is crucial.
Our reviews go through the basics of each site, identify any potential flaws and explain what makes them unique. Using this information, you can weigh up the pros and cons before choosing which one to join. Once you’ve done that, following our secure sign-up links and completing the registration process will have you ready to buy Ripple in just a few minutes. So, if you’re ready to exchange, check out our top-rated exchanges today.