XRP is one of the leading altcoins in the market that has been gaining popularity because of it’s fast as well as cheap transfer rate. It just takes a few seconds to process a transaction which is the core feature of the digital asset. If you are new to cryptocurrency or just got to know about XRP, then you got to read this article. In this article, we are going to answer the top FAQ about XRP and Ripple so that you won’t have any doubts regarding the same. Let’s get started with the top Frequently asked questions about XRP given below:
There are plenty of crypto exchanges available in the market that lets you purchase XRP. However, before you go ahead and buy the altcoin from any exchange, make sure it is well-reputable and provides all the necessary services. For example, if you want to buy Ripple using USD, you will have research a little bit. Most of the exchanges out there let you buy XRP using other leading cryptocurrencies like Bitcoin or Ethereum. Purchasing Bitcoin using fiat is quite easy as compared to other altcoins, so unless you are willing to buy XRP using other cryptocurrencies, research well and find an exchange that accepts fiat currencies. Some of the top crypto exchanges to buy Ripple are CEX.IO, Binance, Changelly, Kraken and Bitstamp.
Let’s start with Ripple. Ripple is a privately held company based in California of which XRP and XRP Ledger are components.
XRP is the cryptocurrency of the Ripple platform that is native to the XRP ledger.
XRP transactions are recorded on XRP Ledger. Through decentralization, XRP ledger is more immune and flexible to SPOF (single point of failure). However, the security of your XRP tokens also depends on various factors such as the exchange and the wallet you are using to buy and store your assets. One of the key point to keep in mind if you want to secure your XRP from any fraud is to buy it from a well-reputable and store in a cold storage (hardware) wallet.
If you are looking forward to purchasing XRP, you would need to use an exchange. Furthermore, you would need to have a secure crypto wallet to store your XRP private keys as well as manage your XRP transactions.
One of the most commonly asked questions about Ripple is if it is centralized or decentralized. Well, if you’ll check the website of Ripple, it clearly says that XRP is open-source and hence decentralized. While some believe that Ripple is hideously centralized, the fan of Ripple argues that it is even more decentralized than Bitcoin. So what the truth behind it? Is it centralized or Decentralized?
The reason why some calls Ripple to be extremely centralized is that more than 50% of the voting power is controlled by Ripple only. Furthermore, most of of the Ripple coins are owned by Ripple addresses, and it also lacks many features such as resistance to censorship.
According to these aspects, it can be said that XRP is under the control of Ripple for the most part.
However, as per the CEO of Ripple, XRP is even more decentralized than Bitcoin and Ethereum in terms of its consensus mechanism. According to Brad Garlinghouse, even if Ripple would be ceased, XRP will continue to work, which is the core indicator of decentralization. No one can control the consensus mechanism behind the asset. It can be said more decentralized as compared to other leading cryptocurrencies like BTC and ETH, which is mostly controlled by a few miners in the chain.
Now, it’s your decision to make whether you consider the asset centralized or decentralized.
If you are considering to invest in Ripple, then you must have a wallet to store them securely. There are plenty of crypto wallets available in the market that provides support for XRP; however, we suggest you use hardware wallets like Ledger Nano X, Ledger Nano S and Trezor. Hardware wallets are much more secure than software wallets as your private keys are not stored on online servers but in a USB sized device. Only you have access to your private keys; hence there would be no issues of getting it stolen or hacked. The hardware wallet needs a passphrase to process any transactions, which makes it impossible for anyone to use your device without your knowledge.
No one can freeze XRP transactions not even Ripple because no one has control to the XRP ledger.
As XRP Ledger is decentralized, not only Ripple anyone around the world can monitor the transactions.
There’s no feature in the ledger that allows anyone to create XRP. No even Ripple itself can generate more XRPs. Moreover, even if anyone creates XRP, say due to a bug or something like that, there’s a code in the ledger that will stop the transaction.
So, these were the top FAQ about XRP and Ripple. We hope you have no more doubts left about XRP now. However, if you are looking forward to knowing more about such crypto assets, including Bitcoin and Altcoins, you can check out our guides for help.
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