Have you heard talk of Ripple, and wondered how you can trade in your Bitcoin to own some? Or maybe you want to cash out your Ripple, or exchange it for BTC. We’ll talk about a couple of methods for trading bitcoin, Ripple (XRP) and USD. But first, a little background on Ripple.
Ripple is actually the company behind the cryptocurrency XRP, but most people use them interchangeably – like Bitcoin and BTC. Ripple is technically a decentralized network, but unlike Bitcoin it’s not a truly public system since it’s owned by Ripple Labs.
XRP transactions are much faster than BTC, and cost very little in comparison. The main use for XRP is facilitating transactions for other assets. It has proven to be a popular digital payment protocol, and over 200 major banks use the XRP payment network.
When debates rage over the best or most powerful altcoin provider, it usually comes down to Ripple vs Ethereum. The winner is often a matter of opinion.
Unlike every other true cryptocurrency, XRP are not generated over time through the mining process, but instead were all mined in advance. 100 billion tokens were pre-mined, with 55 billion locked in escrow by Ripple Labs to protect the market’s integrity.
Also unlike every other true cryptocurrency, Ripple uses a network of servers instead of the blockchain to validate transactions. This makes it more energy-efficient than blockchain-based crypto, but also more complicated.
Ripple uses a smart contract to release the escrowed coins at the rate of a billion each month before deciding to either sell them or secure them in a new escrow account. Based on the laws of supply and demand, the fixed supply makes Ripple a deflationary system, and the XRP should become worth more over time.
Some online exchanges and mobile wallets will let you directly exchange one digital currency for another. Of course, you’ll pay a fee to do so, but it’s relatively painless. You’ll simply see your BTC balance decrease (or increase) and your XRP balance increase (or decrease), depending which one you’re selling and which one you’re buying.
You can also usually buy or sell XRP to USD, as long as you have your bank account or debit card hooked up. If you don’t, it might take a few days for this to happen. Once you sell Ripple to USD, you can buy BTC with that USD … or you can sell your bitcoin for USD and then buy XRP with USD. Just keep in mind that depending on the platform you’re using, this could take some time.
The fastest way to make a purchase (or sale) of digital currency is to do it with cash, at a Bitcoin ATM, like a CoinCloud. 100% of CoinClouds let you buy AND sell digital currency, including XRP and BTC, for cash (most other companies don’t let you do this – 55% of all two-way machines in the USA are CoinClouds, and the next two largest BTM companies have over 95% buy-only machines).
Most transactions are finalized and confirmed within 10-15 minutes, so it’s way faster than many online solutions. You just choose your digital currency, insert your cash, scan your mobile wallet app, and 15 minutes later it’s in your account. For cashing out, it’s the same in reverse.
CoinClouds offer about 30 different digital currency options. You can learn more about them (including Bitcoin and Ripple) in our free Ultimate Guide to Digital Currency.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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