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What is XRP and Ripple | Comprehensive Ripple Guide

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Ripple Explained

Freewallet welcomes Ripple on board. Now you can enjoy XRP on our multi-asset Crypto Wallet on web, iOS and Android. An XRP Wallet for Android devices is coming soon. If you’ve never heard what Ripple is or want to learn more about it, read the following post.

What is Ripple?

Ripple is a fintech company based in San-Francisco with offices around the world, focused on cross-border payment solutions. The company aims to create a platform for instant payments from one point on the Earth to another with any currency. Ripple can replace traditional payment systems like SWIFT, which require more time for cross-border transactions. The network uses XRP as the internal digital currency, designed to facilitate transactions within the platform.

Why is it so cool?

Currently, Ripple is closely working with banks such as Santander, Axis Bank, Yes Bank, Westpac, Union Credit, NBAD and UBS. According to Ripple, the platform allows banks to save an average of $ 3.76 on each transaction. Keeping in mind that banks perform thousands of transactions, this is significant savings for them. How is it possible?
Let’s take an example. It is impossible to make a transaction directly between Japanese yen and Nicaraguan córdoba. So, to do this, the bank has to convert JPY to USD and then USD to NIO and each step requires a fee payment.
Using Ripple, you can exchange JPY to XRP and then XRP to NIO. XRP works as an intermediary currency; although the essence of the process remains the same, the commission at each stage is much lower and that makes it easy to exchange to and from any currency on the Ripple platform.

Ripple vs Bitcoin

Bitcoin was designed as a digital currency to pay for services and goods, while Ripple was aimed at building banking payment systems and facilitating international money-transfers. The core idea of it is to create a system that is faster and cheaper than traditional cross-border systems like SWIFT.
So, its key advantage is its high transaction speed, which only takes a matter of seconds on average, while BTC needs 10 minutes to confirm a money transfer. Users can make fast and cheap transactions with low fees to any place on the Earth. Unlike Bitcoin, XRP cannot be mined. All 100 bln. coins were issued in advance. Part of them are owned by Ripple and kept in escrow accounts for future distribution. So, the circulating supply will be increased over the course of time. 

Ripple on Freewallet

If you are new here, check out what you can do with Ripple coin on Freewallet:

  • Deposit, store and transfer XRP to almost any altcoin address. All transactions within the Freewallet eco-system are absolutely free of charge.
  • Buy XRP for fiat money. This feature is coming soon and will be available only for the web-based version of the Multi-Currency Wallet.
  • Seamlessly exchange Ripple coin to 40+ cryptocurrencies right in the wallet, without having to visit an exchange.
  • Track the price of a coin in the wallet and see your balance in fiat currencies. You will be kept in the loop of all exchange rate movements.
  • Protect your XRP with top-grade security features including 2FA, multisig and transaction limits. The majority of assets are kept in cold storage. It guarantees that your coins won’t be lost or stolen.

In case you don’t have XRP, the best way to buy XRP now is to purchase BTC, ETH or LTC with your credit card in Crypto Wallet and swap it into XRP. Read the full guide how to buy crypto for fiat to know all the nuances.

New to Freewallet? Feel free to sign up and check out our Android and iOS applications.

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