XRP (XRP)

XRP: what it is and what it's for

XRP is the digital token native to the XRP Ledger, a public blockchain that's been running since 2012. The ledger itself was created by Jed McCaleb, David Schwartz and Arthur Britto. Ripple, a payments company, later developed products on top of this technology. People often use "Ripple" to mean the coin, but technically, Ripple is the company and the XRP Ledger is the open-source network managed by independent validators around the world.

This ledger was built to send value between currencies at speed and for less. For instance, if a payment processor needs to move dollars to another country, it might swap those dollars for XRP, move XRP quickly over the ledger, and turn it into pesos or euros at the destination, avoiding the need to keep cash in foreign accounts. In reality, most individuals who own XRP use it for trading, transferring between exchanges or holding long-term. If you're familiar with Bitcoin, XRP is often looked at as a coin focused on transaction speed rather than being a store of value like "digital gold."

How transactions work on the XRP Ledger

XRP doesn't use mining. Instead of miners racing to solve puzzles, the network relies on validators who coordinate to agree which transactions to process, usually reaching finality within a few seconds. That's a very different process from Bitcoin’s proof of work model (see proof of work versus proof of stake for more on that distinction).

There’s another point to note: all 100 billion XRP were created at the very start, none are mined or issued over time. Each time someone sends a payment, a small fee is permanently destroyed, or “burned,” so the total supply can only decrease (though at a slow rate). Ripple held onto a significant share of the supply initially, some of which remains in escrow and is released gradually on a public timeline, something traders like to monitor.

You'll need to know two details. First, the XRP Ledger includes a built-in decentralized exchange. Second, every XRP account requires a minimum reserve to stay functional, so you'll need to fund a new wallet with a small amount of XRP before you can use it.

Factors behind the XRP price

You'll find the live price of XRP above in your selected currency. Over the last 30 days, the price changed by -16.79% and for the past year it moved -51.37%. In the last 12 months, it has traded between 0.9927 USD and 2.55 USD. This kind of gap gives you an idea of how much the price can move.

XRP usually responds to the overall mood of the crypto market, a major swing in Bitcoin often triggers reactions in XRP as well. But there are influences unique to XRP. Legal decisions and regulatory updates, especially those from the US, can push the price up or down quickly. Announcements about financial firms (such as banks) putting the ledger to use, exchange listings, or large moves by major holders might spark sudden price shifts too.

None of these factors makes XRP’s next move certain. The prices you see here use the approach set out on our How we compare page. But charts only show what’s happened already, not what will come next.

How to buy XRP and what you actually pay

If you want to buy XRP, the process follows four steps: sign up with an exchange, go through their verification, add funds by card or bank, then place your XRP order. Not every exchange can offer XRP everywhere, so you’ll want to make sure your local pair is available before moving forward.

You'll often want to compare Kraken, Coinbase and Bitvavo. For a direct comparison, our Kraken vs Coinbase page is useful. When making your first purchase, check the all-in cost, this breaks down into four parts: trading fees, the gap between buy and sell prices (the spread), any charge for adding funds, and the withdrawal fee if you want to move XRP out.

It’s easy to miss the impact of spreads. Many platforms have a “buy” button that adds a broad spread beyond what's shown in the order book, so even if the fee seems modest, the actual price per coin can be higher. Placing a limit order through the main exchange screen usually comes out cheaper. Fee structures often reward orders that provide liquidity, a topic explored in our maker versus taker fees guide. To see the spread’s effect, check our article on the buy and sell spread. On a small buy, it might only cost you pennies, but that adds up fast on larger trades.

Where to store your XRP: exchange vs your own wallet

Once you finish a purchase, your XRP usually sits in the exchange's account. This is convenient if you plan on trading more, but remember, the exchange controls your private keys, so your coins depend on their security and reliability. If you’d like details on the pros and cons, our comparison of custodial and non-custodial wallets offers more context. A lot of users keep a small balance on exchange for regular trades, and hold the bulk in a wallet they manage directly.

If you decide to move your XRP, make sure you record your wallet’s recovery phrase on paper and store it in a safe, offline spot. Anyone with that phrase can access your coins, and it can’t be reset if lost. Larger amounts are best kept on a hardware wallet. And don’t forget, your first transfer needs to be high enough to activate your new XRP wallet because of that minimum reserve requirement.

XRP does have a detail that trips people up: exchanges may share one deposit address for many users and identify clients with a destination tag. If you leave off the tag when sending to an exchange, your funds could end up delayed, or lost entirely. See our guide to memos and destination tags for how to handle this before your first transfer in. For moving coins back out, see how to withdraw from an exchange to your wallet.

XRP: risks and tax points

The main risk with XRP is price swings. The coin can lose much of its value within weeks. Don’t put in funds you’ll need soon. Fraud is the other major issue. Scams using crypto celebrities' names, or phishing messages asking to “verify” your wallet, often target XRP because its user base is active and highly visible.

Tax regulations are different in every country, but in many places, selling XRP for cash, swapping it for another coin or spending it will be a taxable event, where you’ll need to calculate any profit or loss from your original purchase price. So keep careful records of each buy, sale and fee, plus the dates. If you’re deciding on tax treatment, see our articles on crypto taxable events and cost basis. Of course, a local tax expert will know exactly what rules apply for you.