XRP is one of the most popular and traded cryptocurrencies, being currently the 6 crypto by market cap, and it is issued by Ripple, one of the leading crypto companies in the Web3 space. After the quite positive result in the SEC vs. Ripple lawsuit, more and more traders are investing in XRP due to its unique goal and competitive advantages since it provides a secure B2B infrastructure for financial services. In this in-depth guide, we will learn how to exchange USD to XRP using our secure all-in-one crypto PlasBit platform. The process is easy, but before investing in any cryptocurrencies (or any other financial asset), you need to understand the underlying technology and project, to evaluate its potential and risks and make a conscious investment decision. So, let’s start our guide and learn more about Ripple and how to exchange USD to XRP.
What is XRP?
XRP is the cryptocurrency of Ripple, the leader in providing blockchain infrastructure for financial services. XRP serves to facilitate and improve financial transfers and currency exchanges, allowing users to send cross-border payments in real-time and be at the forefront of asset tokenization. XRP is one of the oldest cryptocurrencies, and it was founded in 2012 in San Francisco. The company was originally called OpenCoin, later rebranded to Ripple Labs in 2013, and then only Ripple. Even if Ripple and XRP struggled with SEC lawsuits over the years, Ripple seems to be the crypto project in pole position for providing compliant infrastructure to institutions worldwide. Ripple can help banks, companies, and payment providers implement blockchain solutions for transfer, custody, and stablecoin needs while ensuring security, automation, and transparency through blockchain technology. The tokenization of assets is still in its early stages, and Ripple is well-positioned to be a key player in this finance evolution.
Exchange USD To Ripple: Step-By-Step Guide
If you’re interested in XRP and are looking for a platform to exchange USD to Ripple, you’re in the right place since PlasBit is an all-in-one crypto platform that allows you to transact with crypto with ease and security. Follow these simple steps for a secure experience.
1. Log in on PlasBit and go to the “Deposit” section
Click on the “Login” button located in the upper right corner to start using the PlasBit crypto wallet. If you’re not registered yet, select “Get Started” to create an account, insert your email, and be sure to choose a robust and secure password using numbers and special characters. Store your password in a secure place.
2. Select USD from the dropdown menu
In the “Deposit” section, select USD from the dropdown menu and insert the amount oyou want to deposit on the platform.
3. Enter the amount you wish to deposit
Click the ”Deposit” button next to the Swift transfer. Pay attention to the added fees and decide the amount of USD you wish to deposit through bank transfer.
4. Complete the deposit on PlasBit
On the deposit details page, you will find PlasBit's bank information. Use the given information to start a bank transfer to PlasBit. Remember to check the conversion data and verify the exchange rate and the amount of USD needed to process the transaction.
Important Notes:
- The referral code must be entered under "Notes" to help us identify your deposit with your bank account.
- The name on the bank account from which you make the transfer must match the name registered to your PlasBit account. Trying to transfer funds from a joint account will likely result in a decline as well.
5. Go to “Exchange” section
After the deposit is completed, click on “Exchange” to start the exchange from USD to XRP.
6. Select XRP and choose the amount to buy
You can decide the amount to buy or sell in 2 ways: choosing the amount of XRP to buy, or choosing the amount of the USD to sell. Filling out one of the 2 requested parameters, the other one will be calculated automatically based on the exchange rate.
7. In “Amount to sell” select USD
Select USD as cryptocurrency to convert to XRP.
8. Click “Buy XRP with USD”
After verifying the transaction details, proceed to confirm the transaction to complete the exchange from USD to XRP. To confirm, click on “Buy XRP with USD”.
9. Confirm and submit the order
After confirmation, the amount of XRP received will be shown in your wallet, and the transaction will be concluded!
How to Buy XRP via Bank Credit or Debit Card
If you prefer to buy XRP with USD via bank card, please follow this step-by-step guide to complete the process.
1. Go the the “Deposit” Section
Click on “Deposit” to navigate to the deposit section and start the process.
2. Enter the amount of EUR you with to buy and select “Deposit via bank card”
In the deposit section, insert the amount of EUR you wish to deposit on the platform, and then select “Deposit via bank card” to use a debit or credit card for the payment.
3. Select XRP and read Terms
Select XRP from the list of cryptocurrencies, and read the terms and conditions to understand mechanisms and fees.
4. Click on “Buy now”
After verifying the data of your purchase, click on “buy now” to continue.
5. Enter your credit card details
After confirming the amounts, currencies, and data, continue and insert your credit card details to finalize the deposit.
6. Complete the payment and get XRP
After authorizing the last process, you will be able to complete the deposit and get your XRP. If successful, you will receive the XRP to your XRP wallet within a few minutes.
What Can You Buy With XRP? List of Vendors that accept XRP
Finally, the number of shops that accept XRP as a payment method is now increasing. Let’s explore some of them to understand how you can spend XRP directly.
Travala
Travala is an online travel agency that is famous for accepting crypto payments. Using their platform, digital nomads and crypto enthusiasts can easily book their flights and accommodations by paying with XRP or other cryptocurrencies. In this way, you can basically travel worldwide using cryptocurrencies, making them an effective tool for daily transactions and expenses.
Jura Watches
Jura Watches is one of the largest independent luxury watch shops in the UK and one of the first merchants to accept XRP as a payment method. Once you select your product on their website and insert the shipping details in the payment section, you’ll be able to select the crypto payment method, and you can choose among various available cryptocurrencies, including XRP, BTC, ETH, and more.
Twitch
Are you a Twitch enthusiast? If streaming and watching gamers are some of your favorite hobbies, you’ll be happy to know that Twitch, the most popular streaming platform, accepts XRP and other cryptocurrencies as payment methods. You can easily pay for your favorite streamers using only cryptocurrencies with just a couple of clicks.
British Red Cross
If you want to donate cryptocurrencies for charity purposes, you should know that the British Red Cross accepts cryptocurrencies as a donation method. You can send XRP and many other cryptocurrencies to the British Red Cross to do charity and help people. However, remember that they do not accept anonymous payments to ensure transparency and compliance.
AGE - American Gold Exchange
If you want to convert your XRP into a tangible physical investment asset, AGE could be the right solution for you. You can easily pay with cryptocurrencies, including XRP, to buy precious metals like gold, silver, platinum, and more. Cashing out your XRP to buy physical precious metals is a good strategy if you want to diversify with less risky assets.
Mullvad VPN
If you want to use your cryptocurrencies to ensure an additional layer of privacy, you can purchase a monthly subscription for a VPN (Virtual Private Server) with Mullvad, that accepts XRP and other cryptocurrencies. In this way, you will be protected 2 times: by paying with cryptocurrencies, ensuring pseudonymity, and by using a VPN that increases your privacy and security level.
Hostry
In 2024 you can run a business online mainly using only cryptocurrencies. If you need to host your website on a server, or you need a database infrastructure for your automation, bots, scripts, or app, you would need a server, and Hostry provides all the solutions by also allowing for XRP payments.
We H0dl
We H0dl is a streetwear brand famous for bringing together cryptocurrencies and streetwear on one single platform. They’ve created interesting and high-quality streetwear clothing collections that focus on crypto topics, and are the perfect gift for a crypto enthusiast. Additionally, if you’re aiming to spend only cryptocurrencies for your expenses, you can leverage their shop to dress clothing purchased only with XRP and other cryptocurrencies.
Factors to Consider When Buying XRP
Before proceeding to make a transaction and exchange USD to XRP, you need to carefully evaluate some factors to make conscious and responsible decisions based on your needs and requirements.
Security
You must always prioritize security when executing crypto transactions on an exchange. Select crypto exchanges and platforms that implement robust security measures and institutional-grade best practices. Remember, if you buy crypto on a custodial platform, you’re basically entrusting them with your funds, so it’s essential that the platform is safe and trustworthy. Before making fiat currency deposits, be sure to implement Two-Factor Authentication (2FA) for advanced security measures and an additional layer of protection. However, if your goal is investing in crypto and hodling them in the long term, remember that a cold wallet could be the right choice for maximizing security and privacy: You can keep your assets offline and consequently safeguard yourself against potential hackers and cyber threats.
Transaction Fees
Before making any transactions, verify the transaction fees of the crypto platform, because they can seriously affect your conversion rate and consequently your final balance. Especially if you’re purchasing small or large amounts of cryptocurrencies, ensure that the transaction fees don’t impact so much the exchange from USD to XRP. Check both for trading and withdrawal fees and compare various crypto exchanges and platforms to choose the best one for your needs, always remembering to prioritize security and low fees.
User Interface
Crypto trading can be difficult, especially for newcomers. Users need a clear and simple dashboard that facilitates and prioritizes the user experience without overcomplicating the navigation. Evaluate various platforms and, after verifying security and fees, opt for an exchange that offers an intuitive, user-friendly interface.
Liquidity
Another important factor to evaluate when choosing a crypto exchange is liquidity. It directly affects transaction costs and speed since it basically indicates the market depth between buy and sell orders. If there is low liquidity on the platform, the spread between buy and sell orders can affect the price slippage and add additional hidden costs. On the contrary, an exchange with high liquidity facilitates crypto trading and allows users to open and close positions at more predictable prices.
History of XRP
Ripple, originally known as OpenCoin, was founded in 2012 through a collaboration between famous people such as Jed McCaleb, also the founder of Mt.Gox, and Chris Larsen, a famous American entrepreneur and angel investor, and with the participation of high-skilled developers such as David Schwartz, Arthur Britto, and Stephan Thomas. In 2013, they officially changed their name from OpenCoin to Ripple Labs, and in 2015 the company was rebranded from Ripple Labs to Ripple. During the years from April 2013 to December 2019, Ripple closed five rounds of funding, including angel funding, seed funding, and Series A, B, and C rounds. In 2014, Brad Garlinghouse joined Ripple as a CTO and was promoted to CEO in December 2016, replacing the Co-Founder and previous CEO Chris Larsen. Since 2016, Brad Garlinghouse has been the CEO of Ripple and has led the company through the most substantial project funding in 2019, raising $200M in a series C funding round. The price of XRP increased over the years, starting around $0,01 in 2013 and reaching its all-time-high in 2018, touching $2,4 per coin. Then, the price decreased until 2020, when it started growing again and reaching around $1,7 per coin in 2021. Since June 2023, the price has oscillated in a range between $0,2 and $0,7.
Ripple Mission
Just like the Bitcoin mission, the goal of Ripple is to enhance an easier, faster, and more secure way to make transactions and contracts globally compared to traditional finance. However, Ripple focuses on B2B services instead of B2C, providing the technical infrastructure to enhance companies’ transactions and operate with cryptocurrencies and stablecoins, bridging the gap between traditional finance and blockchain solutions.
$XRP Token Economy
XRP's total supply is 100 billion tokens, but right now, there are around 45,000 billion tokens in circulation. The token, as you can understand, is issued by a private company (Ripple), at a predetermined rate, allowing the company to sell 1 billion per month. In this way, Ripple can be considered the currently best solution for businesses and institutions that are looking for B2B services and want to evolve to a blockchain solution without complete decentralization. Consequently, Ripple solutions are more suited for institutions and businesses rather than final consumers.
Is XRP a Security Token? SEC against Ripple
Blockchain regulation is challenging and still evolving, and being compliant is difficult, especially if you've been building in cryptocurrencies since 2011. The SEC started the lawsuit against Ripple in late 2020, and the main point relies on offering unregulated security tokens and raising over $1.3 billion. Not only that, but the SEC also charged two of its executives, Brad Garlinghouse and Christian Larsen. However, at the end of a complex and exemplary legal case in 2023, the court declared that XRP cannot be considered a security when sold to the public on an exchange, but it can when sold to institutional investors. Consequently, it can be considered a victory for Ripple since it authorizes Ripple to raise money by selling XRP to retail investors. However, even if the lawsuit is over, the battle for fines and penalties is still ongoing, with the SEC imposing a $125 million penalty on Ripple in the last judge's decision.
The Howey Test: Is XRP a Security Token?
As you can understand, the SEC lawsuit against XRP is complex and still evolving, but why did the SEC charge XRP? It’s because they considered XRP a security token, which means that it’s a restricted category of raising funds that requires specific approvals by the SEC and other financial authorities.
Through the Howey Test, the SEC determines if the asset is "an investment in a common enterprise with the expectation of profits", and if it is, then it is considered an investment contract and a token security. Consequently, it is regulated by the Security Act of 1933 and the Security Exchange Act of 1934.
The scheme is useful for financial authorities and regulators to analyze crypto projects and their ICO (Initial coin offering), to determine the nature of the token, its project, and consequently its regulation.
In the specific case of Ripple, the token is considered security only if sold to institutional investors through private sales, while if the tokens are sold in exchange with retail investors, then they are not considered security tokens.
An Unpleasant Case: Brad Garlinghouse Influencer Impersonification
Being Brad Garlinghouse, CEO of Ripple, considered a crypto influencer, the scammers often use his name and person to commit online scams against unsuspected victims. For example, a recent crypto scam occurred on YouTube ads, in which scammers used AI to generate an AI voice similar to Brad Garlinghouse’s one and use it in an existing video, replacing the original voice. In the video, the scammers created a fake Brad Garlinghouse speaking about an XRP giveaway: “If you send your XRP to this address, you will receive the double amount back”. Of course, it was a scam, and many inexperienced crypto traders have been trapped in the scam, sending the funds to that address and losing their money. If something is too good to be true, it probably is. Watch out for scams and always verify that the information is shared from official channels.
Future of XRP
Even if the SEC lawsuit has been a difficult challenge to face for the Ripple team and investors, there seems to be a light at the end of the tunnel. Recently, the court finally declared that XRP could not be considered a security token if it’s purchased by retail investors through exchanges and other crypto trading platforms. It is considered a security token only if it’s sold to institutional investors through private sales, offering them the perspective of making profits from their investment. Consequently, the SEC lawsuit against Ripple can be an exemplary case that creates a precedent for other crypto projects, ensuring that selling tokens to retail investors through public exchanges cannot be considered a security asset sell. The effects of the SEC lawsuit have been hard for Ripple, with the price of the token decreased by over 80% since the lawsuit’s inception. However, now that the court has made (partially) clarity, the price is recovering, and investors are now recovering trust in Ripple and XRP. We can say that it can be considered an important victory for Ripple, however, the court's decision stipulated that XRP offered to institutional traders fell under the category of asset securities, necessitating SEC registration. Nevertheless, it didn’t affect the enthusiasm of retail investors, and the market capitalization started growing again following the court decision, resulting in a surge in market capitalization from $24.7 billion to $42.8 billion. This positive momentum prompted the SEC to drop charges against individual Ripple executives, CEO Brad Garlinghouse and co-founder Chris Larsen, in October 2023.
During the years, XRP and Ripple have demonstrated great resilience and perseverance, winning an incredibly difficult lawsuit from one of the most powerful finance regulators in the world, the SEC. Ripple introduced new products and services for businesses and companies, gradually gaining regulatory approvals and institutional support in various countries. One of the last remarkable milestones occurred in June 2023, when the company secured a license to offer digital payment token products and services in Singapore, a strategic financial hub in Southeast Asia.
Conclusion: Seamless Exchange USD to XRP
Exchanging USD for XRP involves navigating various avenues, from centralized exchanges to wire transfers and crypto bank cards. Each method presents its unique advantages, contributing to the versatility of XRP as a digital asset. The expanding use cases for XRP, from online retail to gaming and charitable contributions, underscore its potential as a medium of exchange and an investment asset. Considering the cryptocurrency market's dynamic nature, individuals must stay informed, prioritize security, and diversify their portfolios. The future of XRP, marked by legal battles and regulatory developments, remains uncertain, but recent court rulings and Ripple's strategic moves hint at potential resilience and growth. As the cryptocurrency evolves, exploring alternative investment opportunities beyond XRP, such as other promising altcoins, can contribute to a well-rounded and diversified cryptocurrency portfolio.
