Crypto Basics

What is XRP (Ripple) Crypto - A Comprehensive Guide

Learn everything about XRP (Ripple) crypto and how it works in this descriptive guide.
Token Metrics Team
7 minutes
MIN

‍Cryptocurrencies have quickly become an important part of the global financial system, allowing users to make secure, low-cost transactions without needing a bank or other financial institution. One of the most popular and well-known cryptocurrencies is XRP (Ripple), a digital asset designed specifically for payments, remittances, and other forms of financial transactions. 

In this beginner’s guide to XRP, we'll look at how this cryptocurrency works, its benefits, and how it differs from other digital assets. We'll also discuss the process for buying and selling XRP and some potential issues that users need to be aware of. Whether you're new to cryptocurrency or just looking to learn more about XRP, this guide should provide a comprehensive overview of this digital asset and its potential uses.

What Is XRP (Ripple)?

XRP/Ripple is a blockchain network and digital token created to facilitate low-cost, secure, and fast international payments. Unlike other cryptocurrencies, XRP was designed from the beginning to be used for these financial transactions instead of a more general purpose like Bitcoin, Ethereum, and Litecoin. 

XRP can transfer money across borders quickly and with extremely low fees, making it ideal for banks, payment providers, and other financial institutions. XRP can complete these transfers quickly due to its use of a consensus protocol that allows it to confirm transactions within just 4 seconds. 

The XRP token is used to pay network fees for these transfers and is also used by financial service providers as a source of liquidity for cross-border payments. However, the XRP token is not required to use the Ripple network.

Benefits of Using XRP

There are many benefits to using XRP, including:

  • Low fees
  • Fast transaction times
  • High scalability
  • A large network of liquidity providers. 

These benefits make it an ideal choice for banks and other financial institutions that need to process international payments quickly and cheaply. Individuals can also use XRP to make international transfers, but they'll need to purchase the asset before doing so. XRP has advantages over other cryptocurrencies, including Bitcoin, as it was designed specifically for financial transactions. ‍

"Ripple can process almost 1500 transactions per second, compared to Ethereum's 21 and Bitcoin's 7."

How does an XRP Transaction Work?

To send money from one person to another, the sender must create a transaction sent to the network and verify. This process also involves creating an "offer" where the sender specifies the amount of XRP and the network fee. Once completed, the sender's wallet submits the transaction to the network and the fee. 

The network then forwards the transaction to one of the XRP "liquidity providers," who will purchase the amount of XRP specified by the sender and release it to the receiver of the transaction. These liquidity providers hold large amounts of XRP and sell it to other users. After the transaction has been verified by the network and the fee paid, the receiver will receive the money in his or her account.

How to Buy and Sell XRP?

Anyone with access to internet can purchase XRP and store it in a digital wallet. However, some exchanges require users to undergo a verification process before they can begin trading. In addition, most exchanges charge a small trading fee for each transaction, which can add up if you buy and sell frequently. 

Once you've obtained XRP, you can store it in a digital wallet, allowing you to access it from anywhere and providing you with control over the private keys.

Various wallets are available for storing digital assets, including hardware and paper wallets.

Potential Issues with XRP

Like all cryptocurrencies, XRP has potential network risk and governance issues. The community has debated these issues since XRP was first created, but they still need to be resolved.

XRP has a large network of validators that are responsible for verifying transactions. However, the network is centralized, which means it is vulnerable to a single point of failure. If the validators decide to act maliciously, they may be able to prevent other transactions from being verified or even reverse transactions that have already been approved.

XRP vs. Other Cryptocurrencies

XRP is different from most other cryptocurrencies because it was created specifically for financial transactions. This means that Ripple can process almost 1500 transactions per second, compared to Ethereum's 21 and Bitcoin's 7. XRP differs from other digital assets because it is not mined like other cryptocurrencies.

XRP Price History Over The Years

Ripple's token, XRP, became available in 2013 when the company conducted its first fundraising round. Following this initial coin offering (ICO), the price of XRP remained relatively low for several years, with the coin's price dropping below $0.01 in 2016.

However, XRP saw a significant spike in value in 2017, increasing by more than 36,000%. Since then, the price has fluctuated, but it has remained relatively high, and at the time of writing, the price of XRP stands at just under $0.50.

XRP Mining

Unlike other cryptocurrencies, Ripple was not designed to be mined like Bitcoin and Ethereum. Ripple's creators created 100 billion XRP tokens at the start of the project and distributed them to investors.

However, new XRP tokens are added to the network every few months through a process known as "escrow," where the network creates enough tokens to provide liquidity to the global financial system.

XRP Wallets

Some of the best XRP wallets you can use to store your coins in include:

  • Ledger
  • Trezor
  • Coinbase
  • Binance
  • Kraken

Top Exchanges To Buy XRP

Now that you know what XRP is, you can simply create your account in any of the exchange platforms below, complete your KYC and instantly buy your XRP tokens.

  • Binance
  • Kraken
  • Huobi
  • Bitfinex
  • eToro

Is XRP a Good Investment?

Owing to the technical analysis of the XRP, it is expected to reach a minimum price of $0.54 and a maximum of $0.64. Hence, the average trading price at $0.56. Experts believe that this crypto asset has great potential in terms of growing in value.

Having said that, it is always suggested for you to do your own research before arriving at a decision.

The Future of XRP

Ripple aims to create a global network of financial institutions and payment providers that use XRP for cross-border payments. If this vision is achieved, Ripple's cryptocurrency could become one of the world's most widely used digital assets, with billons of dollars flowing through the network daily.

There are some challenges that Ripple will have to overcome to achieve this goal. For example, Ripple needs to expand its network to include more financial institutions while convincing them to use XRP instead of their existing payment networks. 

The Bottom Line

Ripple has streamlined the process of global payment network while providing a useful service for existing financial institutions. Although there is also uncertainty about whether the XRP token should remain centralized or if it should be decentralized, it is one of the coins to keep an eye on. 

Disclaimer

The information provided on this website does not constitute investment/trading/financial advice and you should not treat any of the website’s content as such. Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you.

Do conduct your own due diligence and consult your financial advisor before making any investment decisions. We only offer comprehensive information which may change over time.

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Cryptocurrency offers unmatched freedom, but with that freedom comes responsibility—especially when it comes to how to store cryptocurrency securely. Unlike traditional banking, crypto is self-custodied. If you lose access to your wallet, your funds are gone forever.

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  • Types of crypto wallets
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  • Tips for securing your assets
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đŸȘ™ Why Is Storing Cryptocurrency Important?

When you buy crypto—whether it’s Bitcoin, Ethereum, or a promising moonshot altcoin—you receive private keys that give you access to your funds. Anyone with that key can spend your coins.

That’s why safe storage is critical. Without it, your assets are vulnerable to:

  • Hacks and phishing scams
  • Lost devices or forgotten passwords
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You are your own bank, and your security strategy is your vault.

🔐 What Is a Crypto Wallet?

A crypto wallet is a digital tool that stores your private and public keys. It lets you send, receive, and manage your crypto.

There are two main types:

  1. Hot wallets – connected to the internet
  2. Cold wallets – offline and physically secured

Let’s explore both.

🌐 Hot Wallets: Convenience Meets Risk

Hot wallets are always online, making them easy to use for trading, DeFi, or daily transactions.

Types of Hot Wallets:

  • Web wallets (e.g., MetaMask, Trust Wallet)
  • Mobile apps (e.g., Coinbase Wallet, Phantom)
  • Desktop wallets (e.g., Exodus, Electrum)

Pros:

  • Quick access to funds
  • Easy integration with DApps and exchanges
  • Great for beginners and active traders

Cons:

  • Higher risk of hacks, malware, and phishing
  • Device or browser compromise can expose keys

Best Practices for Hot Wallets:

  • Use 2FA (Two-Factor Authentication)
  • Never store large amounts
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🧊 Cold Wallets: Ultimate Security

Cold wallets are offline storage solutions, ideal for long-term investors or large holdings.

Types of Cold Wallets:

  • Hardware wallets (e.g., Ledger Nano X, Trezor)
  • Paper wallets (QR code + private key printed on paper)
  • Air-gapped devices (old smartphones with no internet access)

Pros:

  • Immune to online hacks
  • Best for HODLing and large sums
  • You own full control

Cons:

  • Less convenient for daily use
  • Loss or damage without backups = permanent loss

Best Practices for Cold Wallets:

  • Buy hardware wallets directly from the manufacturer
  • Backup your seed phrase on metal plates or offline storage
  • Keep backups in secure, separate locations

🔄 Custodial vs. Non-Custodial Wallets

🏩 Custodial Wallets

Managed by exchanges (e.g., Binance, Coinbase). You don’t own the private keys.

Pros:

  • Easy to use
  • Ideal for beginners

Cons:

  • Not your keys, not your crypto
  • Vulnerable to hacks or platform failures

🔓 Non-Custodial Wallets

You own the keys. Wallets like MetaMask, Trust Wallet, or hardware devices.

Pros:

  • Full control and ownership
  • Safer long-term storage

Cons:

  • Losing your seed phrase = permanent loss
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Tip: Token Metrics recommends non-custodial wallets for storing long-term holdings and moonshot tokens.

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🧠 Tips to Keep Your Crypto Safe in 2025

✅ Use Hardware Wallets for Large Amounts

Your long-term Bitcoin, Ethereum, and moonshot tokens should live on a hardware wallet, not on an exchange.

✅ Store Your Seed Phrase Offline

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✅ Use Multiple Wallets

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✅ Avoid Suspicious Links and Apps

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✅ Monitor Wallet Activity

Use platforms like Token Metrics Alerts or Etherscan to track your wallet and get notified of suspicious activity.

đŸȘ™ How to Store Different Types of Crypto

‍

🧭 Final Thoughts

Storing cryptocurrency securely is just as important as choosing the right tokens to invest in. Whether you’re a day trader, long-term investor, or moonshot hunter, knowing when and where to store your crypto is key to protecting your wealth.

In 2025, the best strategy combines:

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  • Hot wallets for convenience and trading
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When you store your crypto properly, you don’t just protect your assets—you gain peace of mind.

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Crypto Basics

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In today’s fast-moving financial markets, Exchange-Traded Funds, or ETF stocks, have emerged as one of the most popular investment vehicles for beginners and professionals alike. But what exactly is an ETF stock, how does it work, and why is it considered a smart way to invest?

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📌 What Is an ETF Stock?

An ETF stock refers to a share of an Exchange-Traded Fund—a type of investment fund that trades on stock exchanges, much like individual company stocks. Each ETF holds a basket of underlying assets such as:

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When you buy an ETF stock, you’re buying a fractional share of the entire portfolio of assets held by that ETF.

🔍 How Does an ETF Stock Work?

ETF stocks work like this:

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  3. Trading: Investors can buy and sell ETF shares throughout the trading day, just like they would a stock like Apple or Tesla.
  4. Price Movement: The price of an ETF stock fluctuates during the day based on the Net Asset Value (NAV) of its holdings and supply-demand dynamics in the market.

This model provides a liquid, transparent, and low-cost way for investors to gain diversified exposure to entire markets or sectors.

📊 Example of an ETF Stock

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✅ Benefits of ETF Stocks

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2. Liquidity

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3. Lower Costs

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4. Transparency

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5. Flexibility

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⚠ Risks of ETF Stocks

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1. Market Risk

ETF stocks are still subject to market volatility. If the underlying assets decline in value, so will the ETF.

2. Tracking Error

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3. Overexposure

Because ETFs make it easy to invest, some investors may unknowingly become overexposed to a particular sector or strategy.

4. Liquidity Risk

Not all ETFs are created equal. Low-volume ETFs may have wider bid-ask spreads, increasing trading costs.

đŸȘ™ Crypto ETFs: The New Frontier

In 2025, crypto ETF stocks have become a hot trend. These funds allow investors to gain exposure to digital assets without managing private keys, wallets, or blockchain protocols.

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  • Futures ETFs: Track the price of crypto futures contracts.

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  • ETHX (Ethereum Spot ETF)

Crypto ETFs have opened the door for institutional and traditional investors to gain exposure to the crypto market in a regulated and simplified manner.

đŸ€– How Token Metrics Helps You Trade ETF Stocks Smarter

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📊 3. Price Forecasts

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🔔 4. Smart Alerts

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🧠 Final Thoughts

ETF stocks are a powerful investment tool in 2025, offering instant diversification, low fees, and easy access to traditional and crypto markets. Whether you're looking to build a retirement portfolio or ride the next Bitcoin rally, ETF stocks make it easier than ever to invest with confidence.

And with platforms like Token Metrics, you don’t need to guess your way through ETF trading. Use AI-driven insights, price predictions, and real-time data to get ahead of the curve—no matter what markets you trade.

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