Buying Ripple with Coinbase: a Step-By-Step Guide

Published: April 17, 2024 | Last Updated: April 19, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this guide, I will walk you through all you need to know about buying Ripple on Coinbase.

I’ve been using Coinbase since 2017 and I know my way around the app. The user interface is pretty easy to use. In this tutorial, I will show you exactly what you need to do to buy XRP. 

buying ripple with coinbase

Is XRP available on Coinbase? 

Yes, Coinbase relisted Ripple’s XRP token on July 13,  2023, after a federal judge rejected the U.S. securities exchange commission’s lawsuit against Ripple. Previously Coinbase has delisted XRP in January 2021. 

How to buy Ripple on Coinbase

Step 1: Register for a Coinbase account

To sign up with Coinbase and trade cryptocurrencies you will need to verify your ID. This should take a few minutes though on rare occasions it can take up to 24hrs. 

Step 2: Fund your account with fiat currency

You can deposit funds to your Coinbase account by making a bank transfer. If you are based in the US using ACH is the fastest and cheapest way. Alternatively you can use a debit card or credit card but this is more expensive as Coinbase charges 2.99% for this. 

Step 3. Buy Ripple

To buy the XRP token select the buy button and search for XRP in the dropdown. Tap the result to open up with XRP trading tab. Enter the amount of XRP you wan to buy in USD, Euros etc. if you want you can switch to enter the amount of XRP tokens you want rather than the fiat amount. Once you have selected the amount select the order type

Step 4. order type

If you are using Coinbase when you hit buy it will execute a market order. This means you will buy Ripple at whatever the prevailing price on the market is at that point in time.

However, if you are using Coinbase Pro you  can select the order type.

I would recommend you just use a market order on Coinbase Pro because the fees are much lower.

However, you can set more advanced orders such as a limit order. A limit order won’t execute unless XRP’s price hits a limit price that you specify.

For example, say the price of XRP is $0.5 but you only want to buy it if it’s below $0.4. In this case you would set a limit order with a limit price of $0.4. The order will execute only if the price of XRP drops to $0.4 or below. Sometimes you might end up with a partially filled order if the price moves back up

Step 5. Finalize order

Click on the preview button to check the order details and fees.

Next, click on confirm for the order to go through

Step 6. Check your assets

After buying Ripple you will see the amount of XRP you have under the portfolio tab. 

That’s it you are the proud owner of some XRP

How to store XRP after buying it

If you have purchased a sizeable amount of XRP you should take the following actions to secure it

1. Coinbase Vaults

A coinbase vault is a cold storage solution with a time delay. This means that your XRP gets sent to a crypto address that is not connected to the internet.

This makes it very hard to hack. Moreover the time delay of 48 hours ensures that, should your account be compromised and someone tries to send your Rupple elsewhere, you will get notified and will be able to take action.

Finally, Vault transactions require confirmation from two separate email addresses and you can add additional signatories if you like. See Coinbase Wallet vs Vault and 

2. Use a hardware wallet

Some people don’t feel comfortable leaving their crypto assets in the hands of cryptocurrency exchanges. They would rather have control of the private keys to their crypto address themselves. If that is you then consider using a cold storage device such as a Ledger or Trezor wallet

3. Mobile wallets

If you don’t have a hardware wallet and don’t want to pay for one you can always download a hot wallet. These are considered slightly less secure because they are online and they do tend to get hacked from time to time.

However, if you take care of your password and seed phrase and don’t store it online you reduce the chances of getting hacked and can manage your XRP on the go. The benefit of using a wallet if that you don’t have to share any personal information such as an email address or name. Check out Atomic wallet and Exodus

How to use XRP

The best thing about Ripple is that fees for XRP transactions are close to zero.

For example, say you want to buy a coin that is only available on another crypto exchange. All you need to do is send your XRP to that exchange and then convert it to USDT. From there you can trade the USDT to the coin you want to buy. 

Alternatives to buying Ripple with Coinbase

XRP is available on different exchanges. Here is a list:

  • A good alternative to Coinbase is Kraken. Kraken is renowned for its security and has never been hacked to date. 
  • Binance is also a great option but you cannot onboard with US dollars if you are based in the United States. The benefit of using Binance is that its one of the largest exchanges, it has an insurance fund and has a wider range of coins to choose from.
  • OKX
  • Bybit
  • Upbit
  • HTX
  • KuCoin: best platform for if you want a variety of low caps to choose from.
  • Gate.io
  • DeFi platforms such as Uniswap. These are a popular option but keep in mind that when you are trading XPP you are trading the wrapped version of the token.

Coinbase wallet does not support XRP

People often get confused about the difference between Coinbase and Coinbase Wallet.

Coinbase is a crypto exchange where you can buy and trade crypto coins and tokens.

When you store your coins on Coinbase they have custody of your crypto.

If Coinbase goes bankrupt you can wave goodbye to your crypto. Coinbase Wallet on the other hand is a crypto wallet that is developed by Coinbase but it does not take custody of your crypto. Instead you are responsible for managing your private keys and if you lose them there is no support team that can help you recover them.

As of February 2023, Coinbase Wallet does not support storing Ripple. See Does Coinbase Wallet Support XMR for more.

FAQs

What is the best way to buy Ripple?

The easiest way to buy XRP by Ripple Labs is on a centralized cryptocurrency exchange. After going through ID verification you can deposit funds from your bank account and buy the coin.

What happens to my XRP on Coinbase?

You can store XRP on Coinbase with no issues. For added security, you can place XRP in Coinbase’s cold storage vaults for free. However, XRP is no-longer compatible with the Coinbase Wallet which is a separate application for the exchange. 

Can Ripple make you a millionaire?

It depends on how much you invest. Ripple has a market capitalization of 27 Billion. Say you invested $1000 into XRP. For you to become a millionaire the market cap of XRP would have to grow by 1000 times. This means it would reach 27 trillion. For context, the GDP of China in 2024 is projected to be $18 trillion. 

Is my XRP safe in Coinbase?

Coinbase is a publicly listed company with a solid reputation for security. There isn’t a single solution that can guarantee 100% safety in crypto but as far as exchanges go Coinbase is a safe bet

Is buying XRP the same as Ripple?

XRP is the native coin of the XRP Ledger are blockchain developed by Ripple labs. The terms XRP and Ripple are often used interchangeably though it is technically more correct to refer to the token as XRP.

Will Coinbase allow XRP again?

As of July 2023, Coinbase allows users to trade XRP after the SEC lawsuit failed.

Up Next

How to Mine XRP: Why Ripple Mining Is Not Possible

how to mine XRP

Mining XRP is not possible because the XRP Ledger is not a proof of work blockchain like Bitcoin is. It’s also not a proof of stake network either so you can’t stake your XRP with an XRP validator. While XRP Ledger does use validators for its consensus mechanism these validators do not receive any monetary rewards for their validation efforts. That sounds weird but I will explain what their incentives are further down. In this post, I will walk you through how the XRP ledger validates transactions and why ripple XRP mining is not an option

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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