π₯ Ripple (XRP) wallet put to the test: our experiences in 2021!
If you plan to invest profitably, you will have to decide against well-known products. Because savings books such as current or fixed deposit accounts are absolutely unsuitable today, so that one has to think outside the box in the direction of alternative investments. And here you will very well come across the topic of cryptocurrencies. Ultimately, it's the success stories all around Bitcoin and Co., who have ensured that even security-oriented investors try to find the right one crypto currencies to find that will have a similar price history. It should be noted that the rising price of Bitcoin did not take place without corrections. It went up and down steeply again and again.
It is important that you inform yourself accordingly and take a look at the technology in the background before you decide to go into a Investing in cryptocurrency. It still has to be clarified whether you want to invest or speculate with the price. Because if it is all about investing, access via a cryptocurrency exchange is necessary - if you only want to speculate with the price, you have to use the services of the online broker. Unless you choose eToro - this is an online broker that also provides the services of a cryptocurrency exchange.
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A look behind the scenes at Ripple
Ripple represents a payment network based on a so-called open source protocol. Ripple was developed by Chris Larsen, an entrepreneur, Ryan Fugger, the web developer and JedMcCaleb, who did the programming. The goal? Become a distributed peer-to-peer payment method that has integrated the foreign exchange market. The Ripple network should therefore be compatible with every currency and not just with the company's own Cryptocurrency XRP.
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How the platform works
Many modern monetary systems are ultimately based only on trust. Cash like government bonds are nothing more than government bonds. If you are working with a digital account, you must place your trust in the bank. Because the 5.000 euros in the account are only available if the bank has the money and pays out. Ripple starts exactly at this point. This is because we are trying to put a mechanism on a digital currency transfers, so that liabilities between individuals and institutions are documented in a register. The advantage? The entries are readable for everyone, as they can be viewed by the public.
The IOUs, that is, promissory notes, are then stored in the register. That means, here you will find the information that person A βowesβ person B a certain amount. An unbalanced IOU balance is therefore a liability between two parties or individuals.
Ripple Gateways then represent the special case. This is about the established means of payment, whereby IOUs are also issued, which can then be redeemed at any time. The gateway here more or less takes on the role of a bank. However, the liabilities of the gateway are recorded in the register and are not to be found in a document to which only the bank, for example, has access. This means that redeeming a gateway IOU means that there was a payment but it was outside of the Ripple's network must have taken place. It can be a cash payment or a transfer. If the payment does not take place in the network, then the liabilities adjust between the individual individuals.
However, it should be pointed out at this point that the liabilities can be saved, but there is no possibility of enforcement. Because if there is no direct relationship of trust between the sender and the recipient, the network tries to find out the path taken by users so that a ladder of trust can subsequently be established. Then the payments begin to seep through the social graph - "to ripple".
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XRP: The network's digital currency
The cryptocurrency, XRP, which is often referred to as "ripple", fulfills two network functions: XRP prevents network spam and acts as a bridge currency, so that other digital currencies can subsequently also be used.
To prevent so-called network spam, an amount of 0,00001 XRP is destroyed with each transaction. This means that there is a reduction in the total amount available Coins.
XRP also functions as a source of funding for Ripple Labs. Here, the company emphasizes again and again that the cryptocurrency would also exist if the company no longer existed. For this reason, a separate logo was designed for the crypto currency in summer 2018.
The lawsuit
In December 2020, the US Securities and Exchange Commission - the SEC - a lawsuit against the company brought in. The company is accused of making around $ 1,3 billion from an unregistered security offering. A decision (as of June 19, 2021) is still pending. A guilty verdict would have fatal consequences. Not just on the company, but on the entire market. Ripple emphasized several times that XRP would remain.
The lawsuit, which was brought in at the end of 2020, above all against the management team around CEO Brad Garlinghouse and Executive Chairman Chris Larsen, concerns that the US regulatory authority SEC alleges that the company has more than 1,3 billion US dollars distributed through an unregistered and ongoing offering of digital securities. This is supposed to be the offer with XRP that has existed since 2013.
Online brokers and cryptocurrency exchanges - do you want to invest or speculate?
Who visites invest in cryptocurrencies or even want to speculate, you need access to the crypto market. If it is a matter of pure speculation with the price of the digital currency, then you can look for a reputable online broker. But who Buy coins wants or plans to want to invest long-term, you have to be active here via a crypto exchange.
Speculating and investing is possible with eToro. Because eToro is an online broker that also offers the services of a Cryptocurrency exchange offers. eToro even provides its own wallet so that there is no need to use an external provider.
eToro may be one of the most popular and by far one of the best-known brokers on the market, which scores with a fair fee model and is also regulated by the Cyprus Securities and Exchange Commission - or CySEC for short. This is the Cypriot financial regulator, as the broker is based on the island.
With social trading, eToro also offers an interesting and promising way to get around to get support as a beginner. Because with social trading it is possible to copy decisions as well as strategies of successful traders. In the end, you participate in the success of the trader. It is important that one should not believe that there is a profit guarantee - even the experienced trader can go wrong and lose money. So, especially at the beginning, you should only invest money that is freely available.
If eToro meets the self-imposed requirements such as ideas, it may be advisable to open an account.
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Which wallets should you work with?
Who visites Buys coins of the cryptocurrency Ripple, for example via eToro, which can do it internal wallet use. If you do not want that or if you buy coins via another platform that does not offer an internal wallet, then an external provider should be selected. Due to the fact that there are many different types of wallets, it may be advisable to get an overview in advance.
Desktop or web wallets
This is about Walletsthat are only available on the computer. There may be one or the other company that offers a mobile wallet in addition to the desktop wallet, but this is rare. If you use the desktop wallet, you should ensure that your computer is equipped with an appropriate security program - virus protection and firewall must be active.
In addition to desktop wallets, there are also web wallets. Web wallets can be accessed from anywhere because it is a wallet that is always online. This may be an advantage, but it is not without risk, as anytime access means that cybercriminals can also access it at any time.
The best wallets for Ripple are Rippex, Exarpy, CoinPayments and Cryptonator.
Rippex is available for Windows, Mac and Linux operating systems. The costs are 0,3 percent for a Ripple / BLR transmission and 0,2 percent for a Ripple / BTC and Ripple / LTC transmission. Exarpy and CoinPayments are available for any web browser. Exarpy has fees of 0,25 XRP per transaction. With CoinPayments, a flat rate of 0,5 percent is required. Cryptonator can be used on a laptop, desktop or mobile device. There is a 0,1 XRP fee for sending money.
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Mobile wallets
As the name suggests, these may be wallets that you have installed as an app on your smartphone or that you can use directly on your mobile device. There are some apps, but it is important that you make a comparison in advance so that you know which offer corresponds to your own ideas. For Ripple the two wallets "Abra Wallet" and "Toast Wallet!" can be recommended - both apps run on Android and iOS and are available free of charge. This means that it is free to download and use.
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Hardware Wallets
The Hardware Wallets These are tamper-proof and compact USB devices that have been developed for offline storage. These wallets are able to generate digital signatures such as digital keys within the device and store them offline. This means that the devices are immune to hacker attacks and are therefore the safest option when it comes to storing XRP.
I particularly recommend it Ledger Nano S if you want to store XRP coins.
Paper Wallet
A paper wallet may not be a highlight from a technological point of view, but paper wallets are as secure as hardware wallets. This is because the public and private keys are printed on a piece of paper. Cyber ββcriminals don't stand a chance. The disadvantage? Anyone who loses or damages their sheet of paper so that the code can no longer be read, then the stock of XRP is lost.
Conclusion: You should pay attention to these points when making a comparison!
Finally, the advice should be given that it is important to ask yourself what is important to you personally when it comes to storing coins. Constant access? Security from cyber criminals? The acquisition cost? We at Bitcoin News.one find that everyone should ask themselves these questions individually and then choose a suitable wallet accordingly.