How To Buy Ripple Using Coinbase
So, you heard XRP is resurging and you want in, huh? And you want to conveniently use your Coinbase account, huh? Well, sadly, the Rolling Stones were right. You can’t always get what you want. But let’s talk a little more about how to buy Ripple using Coinbase.
- Is it possible to buy XRP on Coinbase?
- Why was Ripple suspended?
- What is Ripple and what is XRP?
- What is Destination Tag Technology?
- What countries do they support?
- Step by step guide for buying XRP on Coinbase
- What's A Ripple Wallet and why do I need it?
- Be aware of the 20 XRP cost
- A workaround for getting XRP in the US
- But, is it safe to invest in Ripple?
Is it possible to buy XRP on Coinbase?
The short answer is no. Currently, you can’t purchase XRP on Coinbase.
You could in a not too distant past, though. And you can still hold them in Coinbase’s wallets, they’ll keep them safe for you.
Sadly, they can’t legally sell them. You see, the U.S. Securities and Exchange Commission sued Ripple and two of its executives.
The charges, “Conducting $1.3 Billion Unregistered Securities Offering.”
The case is still unfolding.
Ripple Labs blames the lack of clarity of the US government regarding cryptocurrencies for the misunderstanding.
Ripple’s CEO Brad Garlinghouse went on record and said that the US:
“Is the only country on the planet that has said XRP is anything other than a currency. The SEC has said XRP is a security. And so we’re now engaged in a court discussion. So far, I feel good about how that’s been going, but it’s certainly frustrating.”
Why was Ripple suspended?
In all of the pages relating to XRP on their website, Coinbase informs:
“Given the SEC’s recent action against Ripple, trading on our XRP order books has been suspended in all regions. You’re still able to deposit and withdraw XRP. While XRP funds will remain safely stored in your account after the trading suspension, you will not be able to buy, sell, or convert.”
So, right now, Coinbase is not the best exchange to buy XRP. The infrastructure that binds them is already built, though.
If Ripple’s legal troubles are resolved, the commerce between both organizations will immediately begin.
What is Ripple and what is XRP?
Unlike Bitcoin, there’s a company behind the XRP cryptocurrency.
That company is called Ripple or Ripple Labs. Its main product is the XRP Ledger, a blockchain.
It’s a highway for businesses and financial institutions to instantaneously move money transatlantically.
A global payments network with low transaction fees that uses a on-demand liquidity solution for speed.
The XRP is the XRP Ledger’s native coin.
It can be seen as the bridge between the different fiat currencies that Ripple’s six-figures clients work with.
The XRP is the glue that binds together the payment network.
According to the legend, the whole system was originally conceived as a way for regular people to send remittances globally for a low fee.
The creators quickly realized where the big money was.
When the company flipped to serving big business, they became the enemy of the Internet.
And to this day, they still are.
So, to summarize:
- Ripple Labs is the company
- The XRP Ledger is the product
- XRP is the coin
Everybody calls everything “Ripple,” though. It’s not even considered a mistake to call the coin Ripple.
What is Destination Tag Technology?
Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) don’t use destination tag because each wallet has one or more unique public addresses.
When it comes to Ripple (XRP), each exchange uses the same address for all of their Ripple clients.
The way to differentiate one from the other is the Destination Tag.
As you might imagine, this little piece of code is key.
If you make a mistake when trying to send XRP, your funds might end up in limbo, or in another user’s account.
Coinbase themselves published a guide about this, it says:
“You must always include the correct Destination Tag before sending a deposit to Coinbase. Omitting or using an incorrect Destination Tag will cause a delay in crediting the transaction to your Coinbase account. Under certain circumstances, these funds may not be creditable.“
What countries do they support?
You’ll be able to buy and sell cryptocurrencies in:
- the US
- United Kingdom
You can only use their wallets in all other countries. And you can trade one coin for another.
You’ll never get Fiat currencies from them if you’re not in the listed countries, though.
Step by step guide for buying XRP on Coinbase
Let’s face it, XRP is not Bitcoin.
You can’t use Coinbase to buy it at the moment.
If you’re not a US resident, you can use other crypto exchanges, like Kraken, Bittrex, or Bitstamp.
If you want to buy XRP directly you’ll have to go to Binance.
Nevertheless, you can only do it on the main site, because Binance US also delisted the coin.
It’s also worth noting that crypto to fiat bridge Simplex stopped business with XRP globally, while payment firm Wirex only did it inside the US.
Nevertheless, let’s pretend that Ripple’s legal woes are a thing of the past.
Let’s pretend buying Ripple is once again permitted.
Let’s pretend that Coinbase is once again listing XRP.
First of all, go through the KYC protocols and verify your account. That’s paramount when dealing with this exchange.
- Log in to the site. Open trading view.
- Click on “Wallet Balance” and look for “Deposit.” Click again.
- Click in “Currency Type” and select USD, EUR, or the currency of your choice.
- The deposit screen will pop up. Choose between a SWIFT or wire transfer, bank transfer, credit card, or debit card.
If you use a bank account, make sure that the information perfectly matches the info from your account. The transaction will not go through if it doesn’t.
If you choose a SWIFT transfer, make sure to include:
- Reference Number
- IBAN, and BIC.
Please, and this is important, “The Reference Code must match exactly in order to correctly credit your account.”
Once you fund your account, buying Ripple coins or any cryptocurrency couldn’t be easier.
- On the upper right-hand side, look for Buy/Sell
- Click on Buy and select the digital asset you want to get.
- Enter the amount you want. This can be both in your currency of choice or in crypto.
- Click on Preview Buy and check that everything’s ok.
- If you’re satisfied, click on Buy and that’s it.
Now, you’ll need a Ripple wallet to store your crypto.
What's A Ripple Wallet and why do I need it?
It doesn’t matter if you hold Bitcoin or Ripple, it’s not recommended to leave your funds sitting on exchanges. Period.
The Bitsane case is proof of that. This Ripple-recommended exchange just vanished leaving more than two hundred and fifty thousand users to dry, scamming an unknown amount of US Dollars.
That could have been prevented if said users kept their crypto in their own wallets.
You could go hardcore and get a hardware wallet, which is recommended because they’re the most secure.
You could download a wallet and run it on your computer, these are called desktop wallets. Or you could just use an online wallet, also known as a hot wallet because it’s always connected to the Internet.
These can be for desktop usage, for iOS, or for Android.
Online wallets are considered less safe, but you’ll probably be fine if you follow their protocols and instructions.
And use two-factor authentication.
You should use 2FA with any wallet, actually.
But, what Ripple wallet do we actually recommend? Well, lucky for you, Smart Billions created a handy guide that covers all your options.
Be aware of the 20 XRP cost
Each blockchain has its own rules. To use the XRP Ledger is not free.
To activate an address there, you’ll need to deposit 20 XRP. Those coins will remain locked forever.
They guarantee that the address will be yours forever, though. So not everything is lost. Those 20 XRP are, though.
This fee has its uses. It prevents phantom accounts and unnecessary congestion of the payment network.
A workaround for getting XRP in the US
Look, nowadays, digital currencies are easy to swap with one another.
You could easily go to any cryptocurrency exchange or trading platform, and buy Bitcoin, Litecoin, ETH, or any Altcoin.
Then, you could go to a Decentralized Exchange or DEX and swap those coins for any amount of XRP you desire.
You could even do it using Binance’s P2P trading service, but you already can buy XRP directly there, so what would be the point?
In any case, you can get XRP. The problem then would be converting those into US Dollars, but that’s a topic for another day.
But, is it safe to invest in Ripple?
Using any cryptocurrency as an investment is risky, even Bitcoin. And most of the companies behind those coins aren’t being sued by the SEC.
When that lawsuit was introduced, the XRP market capitalization quickly vanished, every investor swimming for the shore.
Slowly but surely, though, the asset has been making progress. Returning to its former glory.
So, to answer the question: no, it’s not safe to invest in Ripple at the moment. But where there’s a great risk, there’s the possibility of a great reward.
And if Ripple Labs beats that lawsuit, the future looks bright for the XRP Ledger.
Nevertheless, it’s a big if. And if they lose the lawsuit, you could lose it all. It’s as simple as that.