What is Ripple (XRP)?
XRP is the digital asset that provides source liquidity to payment providers, market makers, and banks. The XRP ledger is an open-source product created by Ripple.
Ripple is a privately held company that aims to create and enable a global network of financial institutions and banks. It does so by using the RippleNet blockchain software to lower the cost of international payments. Ripple calls the global network using this software the “Internet of Value.”
Learn more about XRP: https://www.ripple.com/xrp/
We will go thru the steps on how to create and activate your XRP Wallet. Let’s begin.
How to Create and Activate your XRP Wallet
Step 1- Create a Multi-Coin Wallet
Always download the most recent version of Trust Wallet for your Android or iOS device. For a quick refresher on how to create a Multi-Coin Wallet, please go here:
Step 2 - Adding Ripple (XRP)
To add Ripple (XRP) on your wallet, Tap the "+" sign and search for XRP, then tap “+” beside the one that says XRP XRP.
There are two(2) types of XRP that you can have on your wallet.
- The native XRP
- The XRP-Pegged (XRP BEP2) token.
Why is there a XRP-Pegged token? You can read more about it here:
Step 3 - Minimum Reserve Requirement?
To submit transactions, an address must hold a minimum amount of XRP in the shared global ledger. You cannot send this XRP to other addresses. To fund a new address, you must send enough XRP to meet the reserve requirement.
The current minimum reserve requirement is 20 XRP .
To learn more about this Reserve Requirement, you can check the technical document that explains it further: https://xrpl.org/reserves.html
Step 4 - Funding your XRP Wallet
There are two (2) ways to fund your wallet.
- Buy from Exchanges and withdraw them to your wallet. Tap on Receive to get your XRP Address.
- Tap on Buy on your XRP Wallet to purchase XRP directly with your credit-card.
What is a Destination Tag?
Destination tags indicate the beneficiary or destination for a payment. For example, a payment to an exchange or gateway address can use a destination tag to indicate which customer to credit for the amount of the payment in that business’s own systems.
When to use a Destination Tag?
Yes - Sending to an Exchange
No - Sending to a Decentralized wallet like Trust Wallet
Step 5 - Confirming the XRP Transaction
Ripple (XRP) transactions are well-known for its fast and instant transfers. Your XRP balance will immediately show up on your wallet.
Balance will always be 20 XRP lower. This is due to the minimum reserve requirement.