Let’s face it, there’s not a lot of money to be made in Bitcoin for beginners. Unless you’ve been mining the cryptocurrency for a while, or bought a significant amount years ago, it’s price is currently too prohibitive to consider making a late investment.
Images courtesy: Reuters
Luckily, there are a lot of other cryptocurrencies available for the enthusiast looking to get involved. Ripple (XRP) is considered the second-most valuable alternative to Bitcoin at the moment. At the start of last year, it was selling for around $0.006 per token, with a market cap of over $127 billion. As of the time of writing, it’s value has risen to $3.29
Unfortunately, Ripple isn’t as easy to buy as Bitcoin. After all, it’s not available on popular cryptocurrency trading services like Coinbase. Instead, you need to mess around a little first.
Ripple has a few exchanges suggested on its website, some of which support dollar payments. However, you may be in for some trial and error as it seems a lot of them are plagued by technical issues. Of course, whichever you join, you’ll need to set up a trading account, after which it’ll show you the going rates for various cryptocurrencies. Some of these exchanges also have support for counterparts like Coinbase, so that makes things a bit easier.
Why? Because you’re likely not going to be able to buy Ripple directly with your cash. That means buying Bitcoin or Ether (Ethereum’s cryptocurrency) first. Keep in mind, there’s a processing fee as well, and you may also get a call from your bank to make sure your debit or credit card hasn’t been stolen.
Now, you’re going to have to transfer your Bitcoin (or Ether) into your Ripple trading account. Hit deposit in the app to generate and address, and copy it. Then open COinbase and tap the wallet link and hit send. Choose how much you want to send and enter the address you copied earlier. Again, there’s a processing fee here, and the transfer should take about 30 minutes.
Now, in the Ripple app, use the funds you’ve received to buy Ripple, after making sure you’re happy with the rate you’re buying at. Remember that cryptocurrency is volatile, so waiting a bit might get you a lower rate than what you’re currently looking at.
Great! You are now the proud owner of XRP coins. So, when does the money start flowing in? Well, it does and it doesn’t You see, just like Bitcoin, Ripple’s value will fluctuate over time, hopefully for you going in the upward direction. When that happens, you’re actually sitting on theoretical money, because you only have to options; spend it, or sell it back. And selling it back for a profit means you need the price to have risen, which means you need to hope other people have bought it and increased the demand while reducing the supply.
If you invest your savings in it, you could be a millionaire in a few months or years, or you could be broke, depending on how the cryptocurrency’s value changes. It’s all a gamble really, so don’t ever invest money you’re not ready to lose completely.