XRP: What it is and How to Buy XRP in Canada
Designed for both beginners and experienced traders, this guide will provide an overview of the popular digital asset, XRP.
What is XRP?
XRP is a digital asset and is part of the wave of new cryptocurrencies that arrived after the invention of Bitcoin. The token takes its own approach to facilitating finance and global remittance, and is designed to make transactions more seamless in the real world.
The token aims to allow anyone to conduct transactions virtually and proponents believe it can serve as a substitute for physical money.
What is the difference between XRP and Ripple?
The terms ‘Ripple’ and ‘XRP’ are often used interchangeably. However, the minds behind the project continue to stress that XRP and Ripple are separate.
Ripple Labs (Ripple) is a technology company that aims to provide efficient solutions for sending money globally. It uses XRP in its product, xRapid, but does not control the digital asset or the technology. However, the company does hold a significant amount of XRP tokens.
Ripple is run as a company and its success is reliant on its founders and employees. This differs from XRP, which serves as an asset that is not under the control of any single entity. Instead, the token’s success relies on how the broader public chooses to use and adopt the token.
For example, the question “how to buy ripple in Canada” is not the same question as “how to buy XRP in Canada”. The second question refers to the cryptocurrency, but the first question is asking about buying a whole company.
Who created XRP?
Both the XRP digital asset and Ripple Labs were founded by the same core figures. While an early concept for XRP dates back to 2004, the modern token came to life in 2012.
Formerly known as OpenCoin, Ripple Labs was founded in 2012 by E-Loan co-founder, Chris Larsen. In 2015, it changed its name to Ripple Labs and made its Ripple network protocol open source.
Today, as with other cryptocurrencies like Bitcoin, XRP is largely at the hands of the community. While Ripple Labs is still the largest developer behind the digital asset, anyone can make changes to the token if they are adopted by a majority of the community.
How does XRP work?
At its core concept, XRP works in a similar fashion to Bitcoin and other popular cryptocurrencies. It makes use of blockchain technology in order to facilitate transactions that are not dependent on individual entities, but rather community consensus.
This means that XRP serves as a way of sending decentralized payments that are outside of the control of intermediaries.
However, there are many factors that separate XRP from its contemporaries. For instance, the token does not make use of Proof of Work (PoW) like other digital currencies, meaning it cannot be mined.
Instead, the token’s ledger makes use makes use of a consensus protocol in order to address the double spending problem. Its proponents claim that this model allows for fast and cost-effective transactions.
Is XRP legal in Canada?
It is completely legal to hold and trade XRP in Canada.
How do I buy and sell XRP in Canada?
Today, there are more options than ever for purchasing digital assets and cryptocurrencies in Canada. With numerous options available, a large portion of the public is now able to get started with digital assets.
Using an Online Exchange: Those that wish to hold and trade XRP are in luck, as it is now available on exchanges in Canada. Coinsquare, for instance, now offers a quick and effective method of purchasing the token and other cryptocurrencies directly with CAD.
In order to comply with the country’s Know Your Customer (KYC) regulatory obligations, cryptocurrency platforms may require information that can be used to confirm your identity and negate the risk of illicit spending.
Overall, cryptocurrency exchanges are considered the easiest method of purchasing digital assets.
Using a Bitcoin ATM: One method of purchasing XRP is to first purchase Bitcoin (BTC) at a physical Bitcoin ATM. Increasingly, these can be found around Canada and allow the public to purchase cryptocurrencies in-person.
Once a user has purchased BTC, they can then trade their BTC for XRP online. However, this method may prove difficult for new users and could result in higher conversion fees.
How do I store XRP?
Just as you would likely store cash in your wallet, digital assets need to be stored in a digital wallet in order to be secure. These wallets can take the form of either software applications or hardware devices that contain important information that gives you ownership of your digital assets.
To store XRP, you’ll need to find a digital currency wallet that supports the currency. These are increasingly common thanks to the token’s popularity, and there are a wide variety of physical wallets and software wallets that you can use to keep your funds secure.
Additionally, when purchasing a digital asset like XRP through Coinsquare, you are automatically granted a web-based wallet that will secure your funds. You have the option of either transferring these funds from your web-based wallet into another digital currency wallet of your choosing, or simply leaving your digital assets as-is to avoid the hassle.
Additional links for XRP/Ripple
Official Dev Portal
Official Technical FAQ
Image Credit: XRP logo
Buy XRP and other cryptocurrencies on Coinsquare, Canada’s most secure trading platform.
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