The digitalization of currency and assets has radically changed the market. The ever-volatile crypto-sphere has been growing at large, with investors formulating strategies to keep the dice rolling. A lot of spectators did not expect the cryptocurrency market to take the world by storm, yet here we are. Amongst the heavens for cryptocurrency is the UAE. If you are looking for ways to buy XRP in the UAE, then you are at the right spot. Read on to figure out whether you should be investing in XRP or not.
What is XRP?
Ripple (XRP) is a technology that functions both as a cryptocurrency and a digital network that manages transactions. The main process is similar to that of the SWIFT mechanism of payment internationally. The purpose of Ripple is to make the process more smooth, faster, and cheaper. Unlike its more popular counterpart, Bitcoin, Ripple’s token, known as XRP, is premised. Ripple is the company and network’s name, and XRP is the currency token.
Ripple basically functions as a hawala network that secures the digital transfer of money across parties. An example is two parties at either end of a transaction preferring a middleman to secure the transactions. In this case, Ripple functions as the digital hawala network.
A hawala digital money transfer method refers to money being transferred across borders without any actual physical movement of the money. Ripple’s medium to ensure smooth transactions between parties is known as the gateway. This serves as the link between two parties looking to make a transaction. The gateway is a credit intermediary that receives and sends currencies across public addresses throughout the ripple network.
Purpose of XRP
XRP serves to be an intermediary mechanism of exchange between two currencies or networks – as a temporary settlement layer denomination. XRP basically serves to be a bridge for other currencies. It does not discriminate whether you have fiat or cryptocurrency. This, in turn, makes it easier for the exchange to take place in the first place. With Ripple, each currency has its own gateway to open and complete a transaction; one gateway is not necessarily needed to complete the transaction process. The system uses multiple gateways to complete these transactions smoothly, thereby forming a ripple across the users.
How does Ripple Work?
Unlike Bitcoin’s Proof-of-work (PoW) and Nxt’s system of Proof-of-stake, Ripple relies on a consensus protocol. To validate account transactions and balances, the system relies on them. Theconsnesnus improves the system’s integrity and performance by preventing the possibility of double-spending. For example, suppose a Ripple User initiates multiple transactions of the same $100.
In that case, all of these will be blocked except the first. The first transaction is decided by individual nodes that form this consensus protocol. The process takes hardly five seconds and functions smoothly. The Ripple platform is decentralized in nature since no central authority actually supervises these nodes and confirms transactions.
Benefits of XRP
The main purpose of Ripple is to ensure smooth and fast cross-border transactions. Obviously enough, the first and foremost advantage is the availability of fast transactions. Unlike banks that may take days to wire the amount, Ripple takes hardly four to five seconds to complete the transaction. Moreover, bank transfers can be slow and expensive.
Ripple is inexpensive compared to the price you pay for cross-border payments through banks. Adding to the zest of Ripple is another factor. The network utilizes not only XRP but every other fiat currency, cryptocurrency, and commodity.
How much does an XRP cost?
Before you go on and invest in XRP, of course, you would need to know how much it costs. Currently, at the time of writing, One XRP costs 3.037 AED. If you are wondering how much it costs in terms of US Dollars, that would be 0.7432 USD. Both are current ratings and do not guarantee the same value in the future. You need to be highly vigilant about the volatility associated with these cryptocurrencies.
Methods to buy XRP
If you are planning to buy XRP in UAE, then you have a few options to choose from.
The basic option to purchase XRP in the Emirates requires finding a suitable cryptocurrency exchange. Several reputable cryptocurrency exchanges have based their operations in the UAE. These have various other cryptocurrencies as well, which you can swap for if your need for XRP ever changes. Just make sure that the exchange you are opting for is reliable and reputable.
PayPal does not directly support users in buying or trading XRP. However, you can use PayPal indirectly to fund your account through a crypto exchange service. Then you can buy XRP in the UAE with ease.
Can you buy Ripple with Bitcoin?
If you do not want to invest in XRP through your fiat currency, then the other option is digital assets. These include Bitcoin, which is the most popular amongst users. So, if you have ample storage of Bitcoins, you can choose to trade your XRP with Bitcoin through any cryptocurrency exchange you want. Keep in mind there are numerous cryptocurrency exchanges in the UAE, and you can opt for any one of them. The trade process is simple and easy to conduct, so you can buy XRP with Bitcoin.
Methods to store your XRP
Once you receive XRP through a cryptocurrency trading platform, you will need a wallet to store it in. An XRP wallet can be a software, hardware or paper-mode wallet that allows you to securely store your XRP. You can also trade, send, and receive more cryptocurrency through the wallet. Through an XRP wallet, you can also source liquidity through payment providers, market makers, and banks. There are basically two types of wallets. The software types are the ones you store on mobile or desktop, whereas hardware ones are in the form of a USB stick that you can plug into a PC or mobile. The safest of all these wallets is the hardware wallet.
In a nutshell
The methods to buy XRP in the UAE are limited but reliable. Just be sure to choose the cryptocurrency exchange with a reliable reputation. The exchanges offer a good investment method along with the option for crypto wallets that can be used if you want to trade your XRP.