Although not at its 2017–2018 peak yet, XRP has been on a steady incline for the past couple of years, and its constant presence on most major crypto exchanges makes it an attractive option for many investors. By conducting your business with a reliable cryptocurrency exchange and doing some research beforehand, you can navigate the XRP market with higher prospects of profit.
In this guide, we offer simple step-by-step instructions on how to buy XRP in the UK, with the pros and cons of trading and investing in this cryptocurrency.
Intermediate Traders and Investors
What Is XRP?
XRP is a cryptocurrency developed by Ripple, a blockchain software company that exists independently of XRP, and, therefore, should be referenced as such. XRP was created before Ripple was founded as an open-source, decentralized independent digital asset, which acts as a bridge between two fiat currencies in order to facilitate faster and more efficient cross-border payments.
While a common mistake, Ripple does not operate the XRPL or own XRP. XRP is a digital asset built for payments. Ripple is a software company independent of XRP and XRP exists without Ripple. Anyone can download and run an XRP Ledger validator, and the XRP Ledger will live even if Ripple goes away as a company. Ripple did not issue and does not oversee XRP. Ripple is just one player within the XRP ecosystem.
The speed of XRP transactions is ensured by one simple fact: XRP is the native token of a decentralized, open-source blockchain known as XRP ledger (XRPL). Since it operates on a consensus protocol, XRPL can conduct transactions within seconds, unlike some other blockchains, which require proof of work or stake mechanisms for each transaction settlement.
The idea for Ripple and the XRP ledger was born in 2011, and it became a reality the following year, with the founders, Ryan Fugger, David Schwartz, and Arthur Britto, hoping to bypass some of the limitations by the then highly popular Bitcoin (BTC).
How to buy XRP in the UK: Step-by-step
To invest in XRP in the UK, follow this simple step-by-step guide:
Step 1: Choose a broker
The initial and most important step to investing in XRP in the UK is selecting a reliable cryptocurrency broker. With a large number of exchange platforms to choose from, settling for one might seem overwhelming, especially since XRP is a rather popular token.
However, once you’ve had a clear overview of your investment strategies and needs, you’ll have a much easier time choosing the right investment platform. Before making any investments, consider the following factors:
- Fees and costs: Seeking lower transaction fees and taxes when purchasing XRP and other cryptocurrencies is always advisable. Naturally, you should not neglect other factors that we shall mention below when looking into transaction, withdrawal, and deposit fees;
- Security: You must prioritize security and privacy before making any investments. The essential first steps are to make sure the exchange platform complies with all rules and regulations, features two-factor authentication (2FA), etc.;
- Token availability: If the exchange of your choice does not support XRP, take your business elsewhere, preferably to a more popular platform that supports a wider variety of tokens and has all the necessary documentation that will guarantee a safe transaction;
- User interface (UI) and user experience (UX): An unintuitive UI and less than helpful client support are usually telltale signs of a platform that does not accommodate its clients’ needs. In other words, look for exchanges that prioritize a user-friendly investment experience;
- Deposit and funding method: Make sure the exchange platform supports your deposit method of choice;
- Liquidity: The ability to convert and exchange crypto for fiat currencies is as important as a wide selection of tokens;
- Advanced features: Seamless investments are important, but other features, such as analytics tools, charts, etc., are never amiss on a good exchange platform.
Where to buy XRP in the UK?
XRP is a widely available token, so there are numerous crypto exchanges that offer it. If it’s your first time investing, it’s advisable you choose an exchange that will facilitate a seamless investment with fair transaction fees, a good user interface, and proper security measures.
For a secure XRP investment in the UK, consider eToro, a regulated platform with all relevant Financial Industry Regulatory Authority (FCA) licenses:
- 1% fees for cryptocurrency;
- No account minimums;
- 30+ supported cryptocurrencies;
- Numerous tutorials and guides;
- Staking services;
- Copy-trading: The option to follow in the footsteps of top-performing traders.
Step 2: Create and fund your account
Once you’ve chosen your exchange, it’s time to make an account. Most exchanges will require you to register and go through a verification process, which requires you to submit some kind of official document as proof of identity, for example, your passport.
In addition, you’ll usually be asked to provide an address, which you can verify in a similar way, for example, with a bank statement. Such a lengthy registration process is necessary to ensure the security and legitimacy of your investments.
Once you’ve registered, you need to consider potential payment methods. These will vary depending on the exchange you’ve chosen. You can typically link your bank account and exchange accounts directly using payment cards (credit, debit, prepaid), but you can also transfer your funds to a third-party payment service such as PayPal first, for example, if you have a prepaid card not accepted by eToro.
Step 3: Do some research on XRP
Cryptocurrencies, including XRP, are known for their price volatility, so you must get acquainted with the market before transferring any funds.
Before investing in XRP, make sure you:
- Stay up-to-date with the current prices;
- Follow crypto news and developments that might affect your purchase;
- Seek advice from more experienced investors.
Step 4: Figure out how much you want to invest
Once you’ve made your account and researched the market, it’s time to look at your budget, see how it fits the current XRP prices, and see how many XRP tokens you want to buy. Also, make sure you don’t go overboard — invest only as much as you are comfortable with potentially losing.
Step 5: Finalize your investment and buy XRP
To finalize your investment and place your order, follow the following steps, log in to your crypto exchange platform, (such as eToro), head to the cryptocurrency section, look for XRP, and specify the amount of XRP you wish to buy.
For each investment, you’ll have two available orders:
- Market order: This order lets you buy XRP at the current best market price, and the transaction will be done immediately;
- Limit order: With a limit order, you specify the price at which you’d like to purchase the token. When the price parameters are met, or if the price drops even lower than the value you designated, the purchase will be placed.
Step 6: Monitor your investment
Investing in cryptocurrencies requires a lot of patience. Market values fluctuate daily, sometimes even on an hour-to-hour basis, so each little micro-adjustment you make can be a potential game-changer. To make your investments fruitful, keep track of the market and adjust your investment strategies accordingly.
Also, remember to diversify your portfolio with additional assets, such as precious metals like gold or silver, which can be a safe haven in times of economic turbulence.
It is also important that you take certain precautions to ensure your XRP remains safe. Most importantly, consider using a crypto wallet:
- Cold wallet: Cold or offline wallets are one of the safest storage methods as they don’t require an internet connection. These wallets usually come in the form of USB drives or external HDDs. However, you still run the risk of losing or breaking them, in which case you might permanently lose your tokens;
- Hot wallet: These wallets are stored on internet-connected devices, such as phones and computers. Although convenient, they come with an increased risk of cyber theft.
XRP price UK
Should I invest in XRP?
XRP is a risky investment, just like other cryptocurrencies. However, the risk is accompanied by a potential for substantial profits, so if you’re willing to put in some effort and familiarize yourself with the crypto trading market — and if you’re willing to take a risk, of course — investing in XRP might be a good idea.
To see whether you’re ready to make an XRP investment, consider the following key points:
- Your investment goals: Are you looking for short-term gains? For long-term security? Knowing what you’re trying to achieve with your investment is essential before transferring funds to the broker;
- Your budget: A good rule of thumb for beginners is: If you can’t afford to lose it, don’t invest it. As we’ve said, crypto investments come with inherent risks, so it helps to be prepared to lose before you win;
- The state of the market and your knowledge of it: Is XRP doing well in the crypto market? What do the experts say? The crypto market is volatile. It changes on a regular basis, so the perfect investment opportunity might come at any moment;
- The diversity of your portfolio: Remember: putting all your hopes in one crypto is a bad idea. If you’re looking to invest large sums, consider diversifying your portfolio first.
Common mistakes to avoid when investing in XRP
It is important to stay aware of some of the more common investing mistakes when buying XRP and other cryptocurrencies. Most commonly, investors fail to:
- Do research: Diving into something as complex as the crypto market, with a lot of money at stake, is a recipe for disaster, so be sure you know what you’re getting yourself into;
- Consider their budget: Investing blindly and spending more money than you can afford to lose will lead you nowhere. Instead, understand that crypto prices fluctuate and that what seems like a good idea in the heat of the moment might actually be a disaster waiting to happen;
- Stay on guard against scammers and needless hype: The crypto market is known to attract a large number of frauds and scammers, so make sure you invest with licensed brokers only and don’t fall for hyped-up projects;
- Take security measures: Transferring funds and obtaining the token is only a part of the process — you also have to take safety measures to ensure your investment is safe, for example, by opening a crypto wallet;
- Think long-term: Thinking short-term usually leads to impulsive buying, which is detrimental to long-term profits.
Pros and cons of investing in XRP in the UK
- It’s a fast bridge currency for international transactions: As mentioned above, one of the initial ideas behind XRP was to facilitate international transactions and make them as fast as possible;
- Use cases are numerous: A number of banks and financial institutions have shown support for XRP in the past.
- It’s volatile: Cryptocurrencies are volatile by nature, so you have to be careful before investing large sums;
- Ripple itself owns a huge chunk of it: Ripple owns a huge share of XRP, which might result in prince inflations;
- Ripple is in an ongoing lawsuit with the Securities and Exchange Commission (SEC): In 2020, the SEC accused Ripple of dealing with XRP in an unregistered security offering, which makes the future of the uncertain;
- It’s pre-mined: XRP is pre-mined, and Ripple releases it at intervals. If too much of it is released, the price might fluctuate unpredictably.
As with other cryptocurrencies, investing in XRP involves substantial risks. The ongoing uncertainty around the SEC v. Ripple case, also makes investing in XRP an unviable option for many newcomers to the crypto market.
However, all investments in the crypto world revolve around the risk vs. reward factor, and XRP seems to be making a breakthrough in the mainstream despite the controversies, so putting some of your assets into XRP might be a good way to at least diversify your portfolio.
In short, it is important that you understand both the limitations and benefits of XRP before investing. Do the speed and low transaction fees outweigh some of the volatility? Would you like a more stable long-term solution? Does blockchain ledger technology seem appealing? No one can answer these questions for you, so be sure you come up with a bulletproof strategy before investing in XRP.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy XRP in the UK:
Can you invest in XRP in the UK?
Yes, it is possible to invest in XRP in the UK. You can do it via a reputable and licensed crypto exchange.
How to buy XRP in the UK?
To buy XRP in the UK, you can use a regulated and trusted investment platform that offers cryptocurrencies. eToro offers a crypto exchange that supports trading in 30+ cryptocurrencies.
Where to buy XRP in the UK?
There are a number of crypto exchange platforms operating in the UK. We recommended eToro as a multi-asset brokerage.
Is investing in XRP safe?
Investing in XRP is safe, provided you stick to reputable exchanges and follow the advice provided in this article.