How to Buy Ripple with Credit Cards and Debit Cards
There are many reasons for wanting to buy Ripple. After all, it is unique among all other cryptocurrencies. Whereas others function on a digital network and blockchain that is decentralized, Ripple operates as a centralized payment settlement system. This has resulted in many established banking institutions adopting its payment settlement technology.
While cryptocurrency purists might deride the “institutional” friendliness of Ripple, it cannot be denied that this has helped to fuel its growth. With 70 percent of its network owned by banking institutions, it is no surprise that many are adopting its technology. It is also seen in remittance and forex platforms such as MoneyGram and Western Union.
If you want to get in on the action with Ripple, this guide will provide you with the information you need to purchase Ripple with a credit card or debit card.
1. The Basics About Buying Ripple
Ripple has yet to achieve the name recognition of other cryptocurrencies such as Bitcoin or Ethereum. This has resulted in its presence on some cryptocurrency exchange platforms to go undetected. This is especially true for those who are new to cryptocurrency trading and acquisition.
If you are already registered on a cryptocurrency exchange, it is possible that it already offers Ripple for purchase. Ripple is abbreviated as XRP.
Some cryptocurrency experts refer to Ripple as the “silent giant.” This is due to the fact that even though less than one-tenth of the people who can recognize the term “Bitcoin” can also recognize “Ripple,” it is still the third largest cryptocurrency by market capitalization as of early 2018. Obviously, there is some momentum behind Ripple. Therefore, wanting to purchase Ripple for your own short-term and long-term holdings is perfectly understandable.
2. Fees
When you purchase Ripple using a credit or debit card you will have to pay a fee. The cryptocurrency platform that you choose for making the purchase may assess a processing fee or it may incorporate a modest profit margin within its spread between the buying and selling price.
You should also take into account that ancillary fees that may be assessed by the banking institution that issues your credit card or debit card. These fees fall outside of the domain of the cryptocurrency exchange that you are using. Your banking institution may assess foreign exchange fees when your account is denominated in one fiat currency but you are using a different fiat currency as the base currency for purchasing Ripple.
An example of this would be to have a credit card account denominated in dollars and using that to purchase Ripple on an exchange that charges you in Euro. Your credit card company would then apply their exchange rate for first converting your Dollars to Euros plus charge you the foreign exchange fee.
3. What About Ripple Being “Almost Free to Use”
The phrase, “almost free to use,” is commonly associated with Ripple. Unfortunately, this can cause confusion with those who are new to the cryptocurrency. It creates the mistaken idea that purchasing Ripple implies the lack of fees.
First, you should be aware that the “almost free” phrase refers to the fact that when it comes to processing payments and transactions with Ripple, the processing cost — the one which is usually passed on to one or both parties involved in the private Ripple transaction — is the lowest of major cryptocurrencies. This, however, has nothing to do with the purchase of Ripple on an exchange. When you purchase Ripple you will be charged modest fees as described in the section preceding this one.
4. Ripple Wallet
One thing that you will need when you purchase Ripple is a Ripple wallet. We have articles and guides that explain in detail how cryptocurrency wallets function and the different options that are available to you.
Some of the cryptocurrency exchanges that sell Ripple also offer cryptocurrency wallets for free when you register on their platform. While it may be convenient for you to use these and other online wallets when you first start purchasing Ripple, it is not a bad idea to consider using a cryptocurrency wallet that does not reside online.
There are other alternatives such as desktop-based, hardware-based, and paper-based wallets. There are pros and cons to each type of cryptocurrency wallet. You will have to measure your requirements for security versus convenience in making your selection.
5. CEX.io
CEX.io is a cryptocurrency exchange that offers a user-friendly interface for purchasing Ripple with a Visa or MasterCard branded credit or debit card.
In order to use the platform, you must first register for a CEX account. This will require you to verify your identity as well as the card that you intend to use to make your Ripple purchase. You can verify your identity by submitting an image of your passport, driver’s license or other government-issued ID. It must contain your full name, date of birth, gender, and identification number. You must also provide a contact telephone number.
Additionally, you must provide your residential and permanent address as well as proof of address. There is also a requirement for a selfie holding up your identification document. You must also submit another selfie holding up your same identification document along with the credit or debit card that you plan to register to make payment. Once the CEX compliance department has verified all of these documents and images, you will be able to access the platform and purchase Ripple with your credit or debit card with a few simple clicks.
CEX provides you the benefit of choosing which fiat currency you wish to use as the base for making your Ripple purchase. You can choose between US Dollars, Euros, British Pounds, or Rupees.
Visit CEX.IO Now6. Changelly
Changelly is another cryptocurrency exchange that offers an easy to use interface for purchasing Ripple with credit and debit cards. Just as is the case with CEX, you are limited to Visa and MasterCard branded cards. However, Changelly adds the requirement that your card support the “3D-Secure” protocol. If your card does not, it cannot be used to purchase Ripple on their platform
You can choose between US Dollars and Euros as the base fiat currency for your Ripple purchases.
If you live in the U.S. or Canada, your first purchase cannot exceed $50 dollars worth of Ripple. Four days later you can purchase $100 dollars worth, seven days after that $500 dollars worth. Afterward. there are no monthly limits.
Visit Changelly Now7. American Express
Currently, there are no cryptocurrency exchanges that allow you to use American Express for the purchase of Ripple.
8. Conclusion
Using a credit card or debit card to purchase Ripple for the purpose of getting your first exposure to it can be convenient. However, when the time comes for you to expand your Ripple holdings you may want to consider other payment options such as bank and wire transfers. Make sure to check out our guides on how to buy Ripple with cash.