Bitcoin is far from the only cryptocurrency available on the market—alternatives like Ripple have popped up and begun to take market share from powerhouses like Bitcoin and Litecoin.
Unfortunately, Ripple is not as easy to invest in compared to more popular types of cryptocurrency, but creative internet entrepreneurs have devised clever workarounds to make Ripple an option for Coinbase users.
What is Ripple?
Ripple differs from Bitcoin because it values a more mainstream functionality. Unlike Bitcoin, which values anonymity and decentralization, Ripple has ties to banks and financial institutions.
It was Invented in 2012 as a way for banks and forex investors to quickly transfer money across international lines, the cryptocurrency has quickly risen in value. At the time of this writing, Ripple was valued by CoinMarketCap as the third most valuable crypto on the market. With a price of just over 50 cents a coin, Ripple is a great choice if you’re a novice investor looking to get the most bang for your buck.
Step 1: Create an account with Binance
Binance is a cryptocurrency transfer service that allows users to exchange one coin for another—think of it as an online currency exchange system like the kind you might see at the airport of a foreign country.
Coinbase does not currently support the direct purchase of Ripple, so you’ll need to import another currency into Binance before conversion. Opening an account with Binance is simple; just click the “Register” button as indicated below and follow the steps indicated by Binance’s system to enter your personal information.
Step 2: Invest in a transfer currency using Coinbase
Once you have your Binance account, you’ll have to set up a Coinbase account. Unfortunately, Coinbase only allows users to invest and store three types of cryptocurrencies: Bitcoin, Ethereum, and Litecoin.
You’ll need to use Coinbase to purchase one of these three currencies, transfer them to Binance to convert into Ripple, and store your Ripple in a desktop wallet. After you’ve created an account with Coinbase, transfer your held currency into Bitcoin, Ethereum, or Litecoin.
Because you won’t be holding your Coinbase “Transfer” currency for long, it doesn’t make a huge difference which of the three currencies you purchase. However, it may be best to use Ethereum, as this currency typically takes less time to transfer into Binance, thanks to a lower level of popularity. Need help making your first purchase with Coinbase?
Check out the tutorial below for a step-by-step guide.
Step 3: Transfer your held currency into Binance
Next, return to your Binance account and import the currency you’ve purchased through Coinbase. On the top of the screen under the “funds” tab, click on the button labeled “deposits and withdrawals.”
Scroll through Binance’s massive list of cryptocurrency options until you find the transfer currency you purchased in Step 2. Click on the currency symbol and make sure “Deposit” is selected.
Copy the address indicated, return to your Coinbase account, and initiate a transfer by clicking on the icon that looks like a paper airplane. Paste your Binance address into the transfer destination and send the currency you’ve purchased in Step Two to your Binance account. This transfer is not instantaneous, and can take anywhere from a few minutes to a few hours to complete depending on server traffic—so don’t panic if an hour later, your funds still have not made it to your Binance account.
Step 4: Convert your transfer currency into Ripple
Once your transfer crypto has made it to your Binance account, it’s very simple to convert it into Ripple. Return to the homepage of Binance and search for Ripple (abbreviated “XRP”) using the search tool on the top right side of the page. Binance will then show you a real-time conversion rate of the currency you’ve transferred in from Coinbase to Ripple.
On the bottom of the page, click on the tab that says “Market—” this means that you’ll be buying Ripple at the current market price. Under the section titled “Buy XRP,” you can choose which percentage (from 25 percent to 100 percent) of your held currency you’d like to convert into Ripple. Click on “Buy XRP,” and your purchase will be completed instantly. You can click on the tab titled “deposits withdrawals” to view your Ripple in your Binance wallet.
Step 5: Choose where to store your Ripple
Though you may choose to hold your Ripple inside of your Binance wallet, most investors choose to download a desktop wallet to transfer their cryptocurrencies for safe keeping.
Some users go a step further and purchase an offline hardware-based wallet, like the Ledger Nano S, to store their Ripple. Your level of technical understanding and risk tolerance will determine the best type of wallet for you. You can also take a look at our picks for the Best Cryptocurrecy Wallets
Purchasing a new cryptocurrency can be exciting, but it’s easy to get lost in the many terms and confusing processes, especially if you are used to buying and selling cryptocurrencies entirely through Coinbase.
Though Coinbase does not currently support the direct purchase of Ripple, the service continues to expand its processes beyond the “big three” names in cryptocurrencies. In the future, it may be possible to use your banking information to buy Ripple directly—but for now, Binance offers users a low-fee, intuitive way to get their hands on the investments they need.
If you’re a beginning trader, you can also use Binance as an educational tool and learn more about Bitcoin alternatives by watching the platform’s live value charts. Check out Benzinga’s list of the best cryptocurrencies to invest in today, our beginner’s crash course in cryptocurrency mining and the best Coinbase alternatives.