How To Buy And Sell XRP: A Simple Guide

XRP is a cryptocurrency that has generated significant visibility since coming into existence in 2012. Focused on payment, XRP is the native digital asset of a decentralized network known as the XRP Ledger, which can settle transactions in between three and five seconds.

This article will provide some basic information on the digital asset, including where interested parties can buy and sell it. Fortunately, the XRP digital token is widely available, and you can purchase it through many different exchanges and marketplaces.

Why Buy XRP?

XRP has drawn quite a bit of attention since coming into existence in 2012. The digital currency benefits from a robust community, which provides this cryptocurrency with significant support. It has very strong engagement on social media platforms like X (formerly Twitter), which helps illustrate the enthusiasm of its backers.

The digital currency is one of the most valuable by total market value, ranked as the fourth-largest cryptocurrency by total market capitalization at the time of this writing, according to CoinMarketCap. While the XRP token was worth close to $0.25 at the start of 2020, it had a value of roughly $2.45 at the time of this writing, according to figures provided by Forbes Digital Assets. As a result, people who opt to purchase the digital token could benefit from substantial upside.

Preparing To Buy XRP

Investors interested in XRP have several options for buying the cryptocurrency. They can use exchanges, payment platforms, DeFi platforms and even some ATMs to purchase the digital asset. These different methods have their own unique costs and benefits, so interested parties should be sure to perform their due diligence before making any transactions.

Choose A Cryptocurrency Wallet

There are many different kinds of wallets, which give users a way to hold the private keys they need to access their XRP and make transactions using the digital currency. One type is hardware wallets, also known as “cold” wallets. These offer a high degree of security because they are not connected to the internet and are therefore invulnerable to being hacked. At the same time, they can be expensive to buy.

Online wallets, also referred to as “hot wallets,” can also store your private keys, but these are susceptible to hacks because they are connected to the internet. Another consideration is that using one of these hot wallets puts your private keys in the hands of the third party providing the wallet.

Ledger provides several hardware wallets, which range from the Ledger Nano S Plus, a small device that can be connected to a laptop or smartphone, to the more advanced Ledger Stax, which comes with a touchscreen. An article published in Money in March 2025 named the Ledger Nano S Plus the best hardware wallet for crypto.

Another company that provides hardware wallets is Trezor. This company released the Trezor Model One in 2014, therefore issuing the first hardware wallet for crypto. Since then, the company has created new models. The Trezor Model T, for example, came out in 2018. It followed up with The Trezor Safe 5, which offered some improvements over the Trezor Safe 3, in 2024. Trezor’s software is open-source, meaning that the broader community can review its code and offer constructive criticism or suggestions for improvement. This aligns with the desire for “trustless” transactions that is fundamental to the digital currency space. Interested consumers can use Trezor’s proprietary app, Trezor Suite, to send, receive and even stake their cryptocurrency. Currently, investors can purchase Trezor hardware wallets for between $49 for the Trezor Model One and $169 for the Trezor Safe 5.

Another option for a hardware wallet is the Cypherock X1, which does not require a seed phrase, a combination of random words that can be harnessed to recover one’s cryptocurrency. More specifically, the Cypherock X1 does not obligate its owner to back up a seed phrase. Instead, it uses a sharding technique to split the private key into five shards. The Cypherock X1 stores one of these shards, and four X1 cards. To access the private key, a user needs to have any two of these five shards.

Select A Cryptocurrency Exchange

Cryptocurrency exchanges are basically marketplaces where interested parties can buy and sell digital assets. Several exchanges, including Coinbase, Binance and Kraken, offer trading of XRP.

Any potential investors considering these exchanges should be sure to do their own research, as most crypto marketplaces have been hacked at one point or another, a development that has resulted in billions of dollars worth of losses. In 2024, these events caused the loss of more than $2 billion worth of digital currencies.

Step-by-Step Guide to Buying XRP On An Exchange

If you want to purchase XRP, one of the most popular methods for doing so is an exchange. Buying the digital asset in this manner requires fulfilling several specific steps.

Create An Account On A Crypto Exchange

To get the ball rolling, set up an account on a cryptocurrency exchange that offers XRP. Fortunately, there are many digital currency exchanges, including Binance, Coinbase and Kraken, which allow you to trade this digital token.

Establishing an account will require providing various pieces of information. Setting one up on Coinbase, for example, would involve supplying your email address and phone number, and any verification codes sent to these methods of communication. You can sign up either through a desktop browser or the Coinbase mobile app. Individuals who are setting up new accounts must verify their identity, which has varying requirements depending on where that individual resides.

Alternatively, signing up for an account on Kraken requires an account holder to supply their email address and the country where they reside.

Deposit Funds And Buy Crypto

Before making any purchases on Coinbase, an individual needs to both add and verify a payment method, for example a bank account. The payment methods allowed vary based on the jurisdiction. Once you have verified a payment method, you are free to purchase cryptocurrency. The method for doing so will vary based on whether you want to use a desktop browser or the Coinbase mobile app.

To obtain crypto through a desktop browser, for example, you go to the homepage and choose “Buy,” and then enter the amount you wish to purchase. Next, you select the “Pay” option and verify the method you will use for the transaction. Next, you select “Buy” and pick out the digital asset you wish to purchase. Following this, you click on “Review order” to verify the specifics, and assuming they are accurate, you can make a transaction by selecting “Buy Now.”

Kraken also requires users to verify their identity before depositing any funds. To do so through the Kraken website, users must provide several key details such as their name, date of birth and address. Depending on the location of their residence, users might also have to provide additional information such as their sources of income and how they plan to use their account.

Next, users will need to upload some form of government-issued, photo ID. The amount a user will be able to deposit and withdraw will depend on their verification level. Once you have verified your account, you can choose “Buy Crypto,” select XRP and the amount you want to purchase, and then complete your transaction.

Safely Storing Your XRP

You can store your XRP using wallets, both hot and cold. Knowing the best options for doing this can make things more secure and convenient for you as an investor. If you buy XRP on an exchange and keep it there, the digital assets will be stored in an exchange wallet.

Transferring XRP To Your Wallet

Alternatively, you can take XRP bought through an exchange and transfer it to an outside wallet, whether that is hot or cold. This will eliminate the risk of losing some (or all) of your cryptocurrency should the exchange holding your digital assets get hacked. The steps involved with such a transfer vary based on the origin of this transfer.

In other words, exchanges have varying instructions for sending XRP to outside wallets. Before transferring any XRP, you will need the destination address for the outside wallet. Investors should be sure to double check that they have the right address, since transfers are irreversible.

Tips For Protecting Your XRP

If you opt to hold your XRP on an exchange, there are a few basic tips you can use to keep it secure. For starters, try using a password that is at least 16 characters long, Coinbase head of security operations Matt Muller suggested in an article on the exchange’s website. The more complicated that password is, the more difficult it would be for someone to guess. It can also be quite helpful to use two-factor authentication, also known as 2FA, which helps provide an additional layer of protection.

Interested parties have many options for securing 2FA, including hardware security keys, authentication apps like Google Authenticator, and SMS. The consensus among most security enthusiasts is that hardware security keys offer the greatest security. Muller suggests that if you can’t use one of these hardware devices, use an authenticator app like Google Authenticator. Investors should keep in mind that using SMS for 2FA makes them vulnerable to SIM-swapping schemes, where fraudsters contact an investor’s cellular service provider in an effort to switch the service to a different SIM. If they do this, they can steal someone’s identity.

Selling Your XRP

You have many options for selling XRP. Selling it through an exchange is perhaps the most direct option, as doing so involves making a few simple clicks. Past that, by taking this option, you might be able to sell your XRP in exchange for your native fiat currency or to increase your balance of a digital currency like USDC.

For example, if you want to sell your XRP through Coinbase using a browser, you can start by selecting “Sell,” and then follow up by choosing the digital currency you wish to sell (in this case XRP), along with how much. When doing so, the reward you get in exchange will be your native fiat currency by default. However, you may be able to contribute to your balance of another digital currency. Next, you pick “Review order” and then choose “Select now” to execute the transaction.

Another way to sell XRP is through a platform like MoonPay. To sell cryptocurrency on this platform, you select the individual digital asset you want to sell from the menu and clarify the amount you wish to sell. After that, you supply your email address and identify your method for receiving payment. For example, you might have the proceeds sent to a bank account, credit card or PayPal account. If you want to exchange your XRP for fiat currency, you pay a modest fee.

Best Practices to Manage Your Investment

Keep Updated On Crypto Market Trends

One of the most common sayings in the crypto space is “do your own research”, and this applies to investigating both the underlying technology of cryptocurrency protocols and also what is going on in the markets. If XRP is in a bull market, which is characterized by a broad, upward trend, that can be very helpful information to know, as a bull market may be a good time to invest. On the other hand, if XRP is in a bear market, characterized by a broad, downward trend, this is also good to know, as you may want to wait before buying the digital currency.

Diversify Your Portfolio

Countless investment professionals would encourage you to avoid putting all your eggs in one basket. This is exactly what you are doing if you decide to diversify your portfolio. Ideally, diversifying your portfolio means combining assets in a manner so that if one component falls in value, another component experiences a corresponding gain, which results in the portfolio maintaining its original value. However, making this happen is a bit easier said than done, as different assets sometimes move in the same direction. Risk assets, for example, will frequently move in tandem based on the sentiment of investors, and risk-off assets, for example bonds, will behave in the same manner.

Understand Your Risk Tolerance

Before you invest in XRP or any other digital currency, it is important to know your risk tolerance, or your willingness to take on risk. To determine your risk tolerance, start by evaluating your investment objectives. What are your goals? Are you looking to do some quick speculation in hopes of generating compelling returns? Are you looking to accumulate wealth for a nest egg or a down payment for a house?

You should also review your time horizon, which is how long you wish to invest in XRP before getting your initial investment back. This is closely tied to your investment objectives, as fulfilling certain goals will involve longer time horizons than others.

Bottom Line

XRP is a digital asset that has generated significant visibility over the years. It has experienced some very substantial appreciation since it first started trading on exchanges, but at the same time, its price movements have been highly volatile. Investors should keep in mind that while it has benefited from some very notable returns, it doesn’t have fundamentals like a share of stock or a bond.