How to Make Money with Ripple: The Definitive Guide [2020]

Ripple has been one of the true success stories of the cryptocurrency industry, coming from being an obscure project launched in 2004 that eventually was moulded into what could easily become the backbone of global finance for the next 100 years.

As the value of XRP has grown, so has its exposure and adoption, and so have the ways of making money with Ripple.

While many people around the world are already generating revenue from trading and investing in XRP, there are other ways to earn as well that can also be lucrative, and can suit those who don’t necessarily want to invest their funds.

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So it’s with this that we will be exploring what Ripple is, including its history and the technology behind it, as well as covering the many partnerships in the banking sector that Ripple has developed, and the best places to buy and sell XRP online in 2020.

What is Ripple?

Ripple is the project behind the world’s 3rd largest cryptocurrency, XRP, which currently has a marketcap of over $9 billion.

The project is one of only a handful of cryptocurrencies to gain high-level attention, investment and adoption from outside of the cryptocurrency industry, which is in a large part as a result of their deep connection to the finance world.

Ripple has their base in California and has grown to having more than 350 staff. While many other cryptocurrencies have focused on decentralization, Ripple has used a centralized model to provide technical stability and increased performance within their network.

This structure has proved to be attractive to the banking sector who have largely partnered with Ripple and are developing the future of the world’s banking system.

What is the history of Ripple

In 2012 Chris Larson, Jeb McCaleb and Arthur Britto created the XRP cryptocurrency. While 2012 seems like it’s far back into the history of cryptocurrency today, the actual origins of Ripple come from almost a decade earlier when Ryan Fugger created a project called “RipplePay”.

Jeb McCaleb came on to the team of RipplePay in 2011 following the sale of the notorious Mt Gox exchange, which Jeb created.

Larson was hired by Jeb in 2012 and OpenCoin, Inc. was formed which began work on adding to the existing systems in place from RipplePay in what would eventually become the Ripple protocol as we know it today.

Between 2012 and 2015 Ripple secured more than $56 million in venture funding and since then has grown to becoming one of the most significant cryptocurrencies in the world.

Ripple’s success with venture capital highlights the skill of their core team to be able to position the project to ride the huge growth in the cryptocurrency market since 2017. This has complimented the Ripple team’s adeptness for creating important partnerships with institutions from banking and the financial world.

How was Ripple Created?

Ripple was originally a platform called RipplePay which Fugger envisioned being a decentralized network of peers that could transfer value based upon each member’s network of trusted associates.

It took 7 years of working on RipplePay on his own before Fugger brought on McCaleb which would dramatically change the trajectory of the project.

Not only did McCaleb then find and recruit Larson, but between them Ripple changed from being an obscure payments network to receiving massive attention and funding, and redefining what it is to be a cryptocurrency.

The partnership between McCaleb and Larson marked the shift away from the previous scope of RipplePay, towards a modernised and expanded vision for what Ripple would eventually become.

What Gives Ripple Its Value?

Ripple’s Technology

There are 4 important components of Ripple’s technology: XRP, Ripple Protocol Consensus Algorithm (RPCA), the XRP Ledger and RippleNet.

XRP is the cryptocurrency that is used to fuel the Ripple network. Assets can be traded via XRP into other assets, allowing for a fluid system of conversion between many different currencies.

RPCA is Ripple’s equivalent of Bitcoin mining or staking in other cryptocurrencies. Essentially the RPCA is what governs the way that data and value move around the Ripple network. Because of RPCA’s inherent centralization, much high transaction throughput can be achieved than with typical consensus mechanisms.

The RippleNet is the network of transaction providers around the world that allow for cheap, fast payments to be made. RippleNet consists of a group of financial institutions that work together to operate as one system of value transfer from many different currencies in real-time.

The XRP ledger is the record of all transactions between RippleNet members, and is decentralized. It allows for the system to function correctly and provides transparency between all members.

These 4 components of the Ripple system work in tandem to allow for the fast and secure conversion and transfer of funds globally, which is building a network between traditional banks and potentially acting as a blueprint for the way that the world’s funds are moved in the future.

Ripple’s Partnerships

One of Ripple’s greatest strengths is the bevy of partnerships they’ve made with iconic financial industry institutions.

These include Moneygram, SBI Holdings, Euro Exim Bank, Cuallix and Western Union, with funding received from Andreessen Horowitz, the Bitcoin Opportunity Fund, IDG Capital Partners, Google Ventures, Vast Ventures, and Lightspeed Venture Partners.

Funding in earlier rounds was also secured from one of the founders of the Kraken exchange, Jesse Powell, and “Crypto Jesus/Judas”, Roger Ver.

These partnerships are just a few of the many that have defined Ripple’s life as one of penetrating the financial sector and introducing it to the value of blockchain technology.

What are the Best Ways to Make Money with Ripple?

Trading Ripple

PrimeXBT

PrimeXBT has outpaced other crypto trading platforms in 2019 and 2020 to become the world’s largest crypto margin trading platform that also lists a wide range of traditional assets including forex pairs, stock indices and commodities.

PrimeXBT lists a range of crypto-assets including XRP, as well as others such as BTC, ETH, LTC and EOS, and provides up to 100x leverage on all crypto-assets.

This is the highest leverage available on XRP anywhere, allowing for advanced revenue streams to be created that are not available elsewhere.

The platform is known for having a user-friendly interface combined with a powerful trading engine that can execute up to 12,000 trades per second with an average of under 7.12ms per trade.

PrimeXBT has the lowest fees in the industry, charging only a 0.05% flat rate on all assets including XRP, and this is an enormous drawcard for the premier margin trading platform that has attracted the attention of a large amount of traders that have typically been used to paying up to 10 times more in trading fees.

PrimeXBT has also clearly placed a lot of consideration into designing a high quality customer service system, having recently beat out 4 other crypto margin trading platforms in online research by The Cryptomist to better understand the state of customer service in the industry.

Where many other platforms seem to have taken their foot off the pedal over the last year or two of downwards trending markets, PrimeXBT has surged ahead and seen one of the highest growths in users and trade volume anywhere in the industry during the same period.

Coinbase

Coinbase has been a central part of the crypto industry for many years, and has recently rebranded it’s exchange from GDax to Coinbase Pro — centralizing its brand.

Coinbase has long been seen as a quality provider of trading tools that are at the high end regarding fees. For this reason many institutional investors who don’t mind paying high fees have started to use Coinbase, increasing the overall liquidity of the platform.

Coinbase and Coinbase Pro have intuitive user interfaces, and the trading engines and technologies used to power Coinbase are well made.

Customer support has long been a problem for the platform with reports that users have consistently not received support when requested in a reasonable time.

There is a strong hope that this is something that Coinbase can correct because it is damaging their otherwise fairly clean reputation.

Overall Coinbase Pro is a good platform for trading crypto-assets like XRP and is worth considering if you plan to trade XRP in the future.

Investing in Ripple

HODLing

As with all cryptocurrencies, one of the most common investment tactics is buying and holding long term, or HODLing, which has not only been the go to choice for some newer traders, but also gain itself own cult status within the cryptosphere.

With XRP, investing and HODLing has been lucrative over time with the value of this crypto-asset increasing sharply.

Although long term investments in Ripple can be very profitable, using one of the many trading strategies available for XRP can yield significantly more over the same period of time as investing.

Saying this, if you’re happy to buy XRP and ride out the ups and downs that will inevitably come, then this might be a good strategy for you.

Buying XRP Before the Next Bull Run

Cryptocurrency has continued to be led by Bitcoin, and Bitcoin itself has followed a 4-year cycle throughout its life that has meant that it and the crypto market as a whole have been on a rollercoaster ride for the past decade.

The last peak of the ride was in 2017 when Bitcoin reached a new all time high of just shy of $20,000, and XRP reached an all time high of $3.84.

If the pattern continues we are currently at a low point that will culminate with a new peak in December 2021.

This means that right now may be the best opportunity to generate wealth that will come for the next 6 years in the crypto industry.

Ripple Ad Viewing

Ripple Ad Viewing is as simple as it sounds — in return for watching ads, users are paid in XRP.

This is a simple yet effective way of earning XRP, and doesn’t require investment of money like trading, but only investing time.

Users can watch a large number of ads per day in order to increase the total amount that they earn, and there is also the ability to just watch a few ads and not have to invest as much time.

Ripple Faucets

XRP faucets are the same as other faucets except that all rewards are paid in XRP.

Faucets are basically platforms where users can come and complete simple quick tasks in order to receive a small amount of cryptocurrency.

Where each reward is only quite small, by completing a lot of different tasks the total amount earned can build up to being something quite significant.

Tasks can include things like sharing something on social media, clicking on links, and creating a graphic or some kind of content.

XRPTipBot

Another way of generating income with XRP is using a XRPTipBot.

Users on Reddit, Discord and Twitter to send each other tips in XRP, and these rewards can be generate for a range of reasons including posting quality content, providing handy advice and information, exposing a new platform to a greater audience, or just because they feel like it.

By using these platforms and finding people that are using the XRPTipBot, quality content can be created and shared to them with the hope of receiving a tip.

While this might not be as profitable as trading and investing, it’s a much more versatile way of earning XRP and requires no investment to begin.

In Conclusion: How to Make Money with Ripple

Ripple is poised to dominate the crypto landscape in 2020 with regards to the financial integration of blockchain into existing institutions.

For those who already hold XRP this is great news. As Ripple’s exposure grows so will the value of XRP.

And for those who have an interest in securing some XRP while there is still the chance to before the next bull run, using one of the methods above will allow for you to stockpile XRP.

When selecting a platform to trade or invest at, look no further than our suggestions listed above which are the best platforms online to trade XRP.

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How to Make Money with Ripple: The Definitive Guide [2020] was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.