● Beginner Technology

Ripple Vs. Bitcoin: What is XRP?

5 minutes 2 years ago

While Bitcoin remains the most prominent and popular cryptocurrency in circulation, it's far from the only prominent player in this dynamic market. Since the launch of the iconic coin in 2009, it's faced competition in the market from many different currencies and tokens offering a range of features and benefits.

One of the more notable ones - both in market capitalisation and feature set - is XRP. The native cryptocurrency of the Ripple payment protocol and network, XRP is one of the most popular and well-known cryptocurrencies, sporting a global user base and the third largest market cap of any coin - just behind Ethereum.

At CoinSpot, we're excited by what XRP and its parent network Ripple can offer users. Read on and understand how XRP compares to Bitcoin and why investors should consider the benefits that Ripple could offer them.

What is Ripple?

Like many coins, what sets XRP as a currency is what sets Ripple apart as a platform. While Bitcoin was always designed as a currency, Ripple was instead designed as a payment protocol. A highly flexible and adaptable platform, Ripple allows users to transact in a variety of traditional and cryptocurrencies. Where XRP enters is during this conversion process. XRP serves as an intermediary currency, serving as a bridge between different fiat currencies and cryptocurrencies. In this way, vendors can get paid in the currency of their choice without the buyer needing to hold that particular currency. XRP is also used to pay the transaction fees on the network, removing it from circulation in the process.

How does it compare to Bitcoin?

As a coin, XRP differs from Bitcoin in a number of ways. First and foremost is the method of acquisition. All XRP is pre-mined - meaning that unlike Bitcoin, there is no way to mine XRP through the Ripple network. Instead, XRP is released on a regular basis by the parent company Ripple, protecting the liquidity of the coin and guarding against hyperinflation.

For an individual user, XRP offers speed and flexibility. Apart from the aforementioned ability to transact in any coin through the Ripple network via the common medium of XRP, the network also offers incredibly fast payment processing times - confirming transactions in seconds as opposed to Bitcoin's 10 minute minimum. Transaction costs for Ripple are also very low, making it significantly cheaper to move funds.

Where can I get Ripple?

Right here! CoinSpot makes it easy to buy, sell and trade XRP in just a few clicks. Sign up for an account today, connect an Australian bank account and purchase XRP with AUD in seconds. With all accounts on the Ripple network required to hold at least 20 XRP in reserve to trade, CoinSpot makes it easy to get started working with this exciting payment platform.

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