There are different solutions to store your Ripple (XRP) cryptocurrencies if you are a holder, trader or investor. In this article, we will share with you which is the best Ripple wallet, how to use it and how it can be very useful to store your XRP coins.
The best Ripple wallet would be the one that would offer the maximum necessary security for you to handle the XRP you own. In the next sections, we will cover the pros and cons of the different kinds of wallets that XRP holders and users can manage and use to store their funds.
What is Ripple (XRP) and Why do We Need a Wallet?
The XRP cryptocurrency is one of the most popular digital assets in the market. It is currently the third-largest after Bitcoin (BTC) and Ethereum (ETH) with a market capitalization of almost $10 billion. Currently, XRP has a price of $0.2153 per coin.
Ripple wants to offer financial institutions and large companies the possibility to perform cheap and fast cross-border payments. Sending funds from one country to another is not only expensive but it also takes long periods of time.
With the XRP virtual currency, banks and financial firms can source liquidity on demand through a wide range of services offered by Ripple. This helps improve remittances between payment corridors that are currently not very liquid and result in increased costs for firms and clients.
The XRP cryptocurrency can be sent and received in just a few seconds and for almost no fee. Additionally, Ripple and other firms are working so as to expand the different use cases related to this virtual currency and how it can be used to improve the banking sector.
If a bank located in Singapore wants to send funds to another institution located in India or Malaysia, it would have to use nostro and vostro accounts, which are very expensive to handle for companies. With Ripple and the XRP virtual currency, these costs and issues can easily be mitigated.
The bank would start the transfer buying XRP from a local liquidity provider, and it would automatically execute a transaction. The funds will be sent to an exchange in India or Malaysia, and the funds will automatically be converted to local currency in the destination. After it, the money will arrive to the users’ bank account.
Ledger: The Best Ripple Wallet
Many analysts and crypto enthusiasts consider that the most secure way to store your XRP is by using the Ledger wallet. This hardware and cold storage solution will provide endless security to investors in the cryptocurrency market.
While the XRP can be purchased at any exchange, the Ledger Nano S or the Ledger Nano X - the most popular Ledger products - will work as the best Ripple wallet to store your funds. The main benefit is related to its security features that this wallet has.
It is certainly impossible for a hacker to access your funds if you store them in the Ledger wallet. This is possible thanks to the fact that the private keys are stored in a very secure environment protected from viruses and attacks that come from the internet or infected devices.
If you want to handle these funds, Ledger has developed a user-friendly application for smartphones and also for desktop computers. This would be very useful if the user wants to manage his funds. Moreover, the investor will have the possibility to handle not only the XRP digital asset but also other cryptocurrencies.
The Ledger Nano X is much more advanced than the Ledger Nano S. While both of these wallets have a screen and physical buttons, the solutions provided by the X are better than those provided by the Ledger Nano S. With the Ledger Nano X the user can easily connect its wallet to the Ledger Live application using Bluetooth. This is something that the Ledger Nano S cannot do. If you want to connect the Ledger Nano S to your computer, you will need to use a USB cable.
Users that want to start using the Ledger wallet should know that it is necessary to pay for this product. While most of the crypto wallets in the market are paid, hardware wallets are paid. At the time of writing this article, it is possible to buy a Ledger Nano S for €59 or a Ledger Nano X for €119 on its official site. If you are buying a used hardware wallet, remember that it can be fake or it can simply have been compromised. Both wallets have a price of €149 if they are purchased together.
Although Ledger is known as the best Ripple wallet, it might not be the most comfortable one to use on a daily basis or to buy and sell things. Despite that, this remains the most popular, secure and recognized XRP wallet for users.
Using Rippe’s Official Paper Wallet
It is also possible to use Ripple’s official paper wallet in order to store your XRP funds. Although this cannot be considered the best Ripple wallet, it will be very useful for those that cannot afford to purchase a Ledger wallet and want to have their funds secured from hackers and stealers.
In order to get this wallet, you need to download it from the official website that would provide you with all the necessary information about it and how to deal with this wallet. Paper wallets were used in the past when hardware wallets were not so popular and when users were holding lower amounts of digital currencies.
Paper wallets would allow investors to store their funds for long periods of time without having to be worried about losing their funds to hackers. Despite being very useful, they have fewer functionalities compared to the Ledger wallet. At the same time, spending the funds may be somehow difficult because we are handling a piece of paper.
If you want to use your wallet to store your XRP cryptocurrencies, the best thing you can do is to use this or the Ledger wallet. Nonetheless, if you want to also spend some XRP from time to time, it would not be recommended to use a paper wallet.
Before starting to use Ripple’s XRP paper wallet to handle your funds, you must be sure that you are using the official wallet from the official site.
Hot vs Cold Ripple Wallets
Understanding the main difference between hot and cold wallets is a key thing for you to be investing in cryptocurrencies. Hot wallets are those that have direct contact with the internet. For example, a cryptocurrency exchange offering a wallet service is an example of a hot wallet.
A desktop wallet that you use with your computer, is also connected to the internet and it can be affected by hacks and attacks. Indeed, you should be very careful while handling large amounts of funds with your online wallets.
The best Ripple wallet should have improved security features that would help you handle your funds with ease and safely. Indeed, the wallet can easily be damaged and the private keys can get lost forever. That means that the funds would not be able to be recovered.
Although it seems cold wallets are better to store and hold Ripple, hot wallets are usually very user-friendly, portable and they can be integrated with a wide range of other platforms and websites.
Coinbase’s Hot Wallet to Store Ripple
Coinbase is one of the most popular cryptocurrency exchanges in the market and it offers wallet services to users. Individuals are not only able to handle digital assets, but they also have the chance of holding their funds for longer periods of time.
As mentioned before, this might not be the best Ripple wallet to use, considering that the exchange can get hacked at any moment. Moreover, the exchange could decide to freeze your funds and you would not be able to move them unless Coinbase decides to do so.
The platform doesn’t share with you your private keys. They are simply stored by the platform, meaning they will have full control of your digital assets.
One of the advantages of using Coinbase to store XRP is the fact that it is very useful if you are a trader or if you handle different virtual currencies in this platform. Nevertheless, this is not the best option if you think about security and financial independence.
This situation can be applied to all the other centralized exchanges in the market. These are centralized organizations that hold the funds on your behalf.
In the article, we covered which is the best Ripple wallet for users to handle their coins and funds. Both the Ledger Nano S and the Ledger Nano X are very good solutions for individuals that want to manage their XRP cryptocurrencies. Some of the other wallets covered in this piece were the hot wallets provided by exchanges and other platforms, and the official Ripple’s XRP paper wallet.