Following the initial success of Bitcoin, Ripple came into existence! This privately-funded token is a product from Ripple Labs, Inc. and is based on the Ripple ((XRP) Transaction Protocol.
The currency has long been working alongside the likes of popular crypto projects like BTC and ETH. Though not as famous as the others, XRP still ranks as the second-largest crypto in its market capitalization, with over $14.7 billion.
But what makes the token a reliable investment tool? And how do you buy the Ripple currency in South Africa? Continue reading this blog as we walk through the different methods with which you can buy ripple in South Africa.
Why Invest In Ripple?
Even after Ripple has had a great time enjoying its popularity, the token has never shared its spotlight with other popular cryptos like BTC & ETH. However, what sets this altcoin apart is the transaction speed with which it initiates operations.
One of the most significant challenges digital currencies have encountered in their competition with fiat currencies is the transaction processing time. Credit card firms generally handle more than 5,000 transactions every second, to put this in context. On the other hand, Bitcoin can only take about seven transactions per second, but Ethereum can process 15 transactions per second.
The Ripple blockchain has a transaction rate of 1,500 transactions per second. While this isn’t quite up to the speed of credit card companies, it’s higher when compared to the likes of Ripple transactions which can be utilized for real-world purchases. In other words, XRP is a more practical credit card substitute than Ethereum or Bitcoin.
Another reason to like Ripple is that its inventors, Ripple Labs, have worked hard to bring cryptocurrencies into the mainstream. Ripple Labs manages a network of over 200 financial institutions that use XRP to make international payments alongside fiat currencies. As a result, these banks and financial organizations set up cross-border accounts using Ripple, saving approximately 8.5 million ZAR per year by eliminating transaction fees that are often added to foreign transactions.
Adding to it, the XRP prices have increased significantly earlier this year, in February. This is because the emerging documents around regarding the SEC’s legal case are coming to light. In 2020, the SEC filed a lawsuit against Ripple, alleging that XRP was security rather than a currency, possibly exposing it to securities laws. However, a federal court in New York recently ordered the unsealing of records that might disclose the SEC’s case faults. In early February, XRP jumped more than 30% in response to the news. Purchasing XRP used to be relatively simple until it came under regulatory scrutiny; it was formerly accessible for purchase on practically every exchange.
All of these factors have made it a reliable altcoin for investors! However, you can’t simply walk into a financial institution and buy XRP in South Africa; you’ll have to follow different processes mentioned in the following section.
How To Buy Ripple in South Africa
Interestingly, there are not one but three different ways to buy ripple in South Africa. Here are the various methods for the process:
Open an Account at a Cryptocurrency Exchange
Before you start opening a crypto account, you’ll need access to a funded account, such as a bank account. While most of these exchanges demand a bank account to fund your transactions, some exchanges allow you to use debit and credit cards, PayPal, and other electronic cash transfers.
However, before you venture into investing in XRP via a crypto exchange, you should be completely informed of the dangers and have some understanding of how to trade cryptocurrencies before you begin. You can register an account with a cryptocurrency exchange that welcomes South African users once you’ve secured a source of financing.
Besides, while many accounts accept funding via a South African bank account, you might have to wait once your account is verified! These exchanges generally take a few days before the funds are highlighted in your account for trading in cryptos. Additionally, it should be noted that you cannot buy Ripple directly; you will be required to trade XRP indirectly.
Get a Cryptocurrency Wallet
You must remove XRP from your crypto-wallet or exchange to trade it and maintain complete control over your transactions. A crypto wallet for your transactions is included when you establish an account with reliable crypto exchanges. A cryptocurrency wallet is essentially software that allows you to carry transactions over the crypto network.
You use this software to trigger transactions across the Blockchain networks. The program may be installed on smartphones, tablets, or laptops. You can also use a web-based wallet which won’t require any download option.
You may keep your cryptocurrency on a hardware wallet, a peripheral device that connects to a network, for further protection. All crypto-wallet accounts have two parts: a public address, which is similar to an email address and can be used to send and receive cryptocurrency, and a private key, which is identical to your email password.
Like your email password, your private key lets you conduct cryptocurrency purchases. It must be kept confidential. Whether you want to register an account with an exchange or not, you may download a variety of wallets in South Africa.
Find an XRP to ZAR Exchange Agent
As an alternative to crypto wallets, you can purchase Bitcoin via iceCUBED or Luno and swap it with an exchange for buying and selling XRP. By searching for the XRP/BTC currency combination on CoinMarketCap, you may find many exchanges where BTC can be exchanged into XRP.
Other cryptocurrencies, such as Ethereum (ETH), Litecoin (LTC), or any other cryptos that can be traded using the iceCUBED or Luno account, can also acquire XRP.
You’ll need to go through an exchange or broker to trade the XRP cryptocurrency underlying the Ripple network, just as with other cryptocurrencies. In addition, you’ll need a unique crypto wallet to keep your XRP after you’ve opted to purchase and sell it.
Now that you have an idea of the different measures to buy XRP in South Africa let’s look at the various platforms that allow you to purchase XRP.
Platforms To Buy Ripple In South Africa
First up, we have Capital.com, a leading CFD and forex broker known to have its global presence with offices in cities like London, Belarus, and Cyprus. Referred to as a fintech company by its founders, the platform has been active since 2016, providing beginner investors and traders with multiple financial assets.
Besides Bitcoin, users can access financial tools like ETFs, stocks, commodities, Forex, and Indices to diversify their folio. And since the platform allows users to trade cryptos as CFDs, user’s don’t need to worry about the ownership or storage of the cryptos.
Interestingly, the platform allows XRP investors and traders to access a 2:1 margin. However, the zero trading & commission fee set the platform apart. In addition, users signing up for the platform can get started with funds as low as $20 and enjoy its regulation backed by CySEC (the Cyprus Securities and Exchange Commission).
Second, on our list, we have the Coinbase trading platform, a reputed name, attracting over 35+ million followers worldwide. The platform has a reputation for its user-friendly approach to buying, selling, and trading cryptos.
The platform allows you to access several cryptos when buying Ripple in South Africa using Coinbase. In addition, the platform adds to the security of its users via its regulation under FCA and added security measures under the two-factor authentication (2FA) feature. Besides, users can also utilize the email notification and address whitelisting features on the Coinbase platform.
Now, while the direct purchase of Ripple is temporarily suspended over the platform, users still have the option to swap & diversify their portfolios. The platform will charge 3.99% of the deposit amount over credit and debit card deposits for carrying out transactions. Besides, the exchange converts your Rands to USD to help you invest in purchasing Stella Lumens (XLM).
We have Binance, the largest global platform that helps you simplify digital trading assets in high volumes. The low-fee policy and stringent security measures make Binance a reputable name in the industry.
Users of the platform have the option to access thousands of cryptos to get started with their investment journey. Additionally, if you’re considering using Binance to purchase Ripple price in ZAR in South Africa, this platform will help simplify the process.
However, it should be noted that Binance won’t allow you to buy Ripple in exchange for Rands. To buy XRP, users will first have to convert their fiat to any other prominent crypto like BTC, LTC, or ETH to initiate transactions. Once you’re done with the purchase, you can later swap the token for Ripple.
In terms of funding, the platform charges you a fee of 3 to 4.5% for initiating real-time, fast deposit confirmations.
Last on our list, we have Libertex, one of the leading CFD trading platforms which can help you buy Ripple in South Africa. The platform offers CFDs across 35 different cryptos, including XRP. Once registered with the broker, you won’t have to bother setting up a digital wallet because the platform isn’t a complete crypto exchange.
Trading Ripple CFDs with Libertex has several advantages, one of which is the low cost. Libertex does not have changeable spreads and charges a set fee of 1% for each trade. The broker also offers a 2:1 leverage and only requires a minimum transaction volume of 365 ZAR.
Libertex’s trading platform is designed for expert cryptocurrency traders, yet it is simple enough for anybody to use. There are dozens of market news feeds, technical analyses, and a calendar on the platform. Furthermore, the Libertex interface is fully customizable and features a sample account for practicing XRP trading before investing real money.
You may also trade on the go using the Libertex mobile app, which has the same set of tools as the desktop version. This program is beneficial for trading XRP on the road, which is essential given that the cryptocurrency market is open 24 hours a day, seven days a week.
Safest Ways to Buy Ripple in South Africa
Do you want to know how to acquire XRP coins in South Africa? You have a variety of payment alternatives, and the entire procedure is uncomplicated and straightforward. It depends on which payment option is most appropriate for your digital portfolio.
The many means of payment that may be used to purchase Ripple in South Africa are listed below.
Buy with PayPal
PayPal only enables you to buy Ethereum, Litecoin, Bitcoin, and Bitcoin Cash; thus, you won’t be able to buy Ripple with it. Instead, you’ll need to hire a broker or an exchanger that can help you move money to your PayPal account. As a result, the digital platform may charge you using PayPal as a payment method.
Several trading platforms take PayPal in South Africa, so finding one is not difficult. Capital.com is an excellent example.
Buy with Debit/Credit Card
Most crypto trading sites, such as Binance and Capital.com, allow debit and credit card payments. This is one of the simplest and most effective ways to deposit funds into your account before purchasing Ripple.
Keep in mind that paying with a credit card solely may result in extra fees from the issuer.
Buy with Bitcoin
This strategy is best suited to investors who already have Bitcoins in their accounts or wallet. For example, in South Africa, you may use your Bitcoin holdings to buy Ripple from any source.
The majority of cryptocurrency exchanges make it simple to deposit Bitcoin into your trading account. After that, you may transfer Bitcoin to Ripple immediately.
Buy with Luno
Luno is a Bitcoin and Ripple trader. Using this exchange facility, you may fund your account with Bitcoin, debit card, credit card, or a bank account. Luno also features a secure crypto wallet where you may save your Ripple.
Because of the added step, purchasing Ripple in South Africa may appear to be slightly more difficult than acquiring Bitcoin. However, after you’ve mastered the method explained above, getting started should be a breeze. Furthermore, going through the procedure will educate you and aid in your understanding of how to store and trade bitcoins.
If the additional Bitcoin transaction prevents you from purchasing Ripple, the simplest method to begin trading Ripple is to register an account with an exchange like CEX.io, CoinDirect, or with different brokers which accept XRP transactions. Keep in mind that using a brokerage will necessitate a minimum margin deposit.
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1. Is there a possibility for XRP to reach US$1,000?
Currently, XRP is placed at a market value of US$0.55 each, presenting a huge gap to cover for the token to reach the $1000 marking a multiplier of 1818 times. With its current market value at US$26 billion and a supply of 46 billion XRP, it might be almost impossible for the token to reach such a level.
2. How do I sell my Ripple for ZAR?
Selling XRP for ZAR is as simple as clicking on the ‘Sell’ button of your XRP wallet. Here, you can either type the desired amount you want to sell as ZAR or simply type the XRP amount to initiate sales.
3. Is Ripple a reliable investment?
Every investment comes with a level of risk attached to it! Ripple, on the other hand, has come a long way in demonstrating the distinct feature that makes it one of the finest crypto investments. While the token has pushed itself to the head by offering fast settlement and low transaction costs. Before investing in Ripple, you should think about your risk tolerance.
Shrey Jain is a Chartered Accountant who holds a forte in creating informative content on niches like Finance, Blockchain, crypto, and Taxation. He is a contributor on Hackernoon and Publish0x, where the audience has highly appreciated his articles. In addition, his knowledge in the finance field has helped both beginners and experts gain valuable insights into the domains of Blockchain and finance.