The key differences between XRP and Ripple

Ripple and its token, XRP, have been tearing things up in the crypto world since 2012, setting itself apart from other cryptocurrencies thanks to its lightning fast transaction speeds. With that being said, newcomers to crypto can sometimes have a hard time distinguishing between a company and its coin. That’s where we come in! We’ll be exploring what exactly Ripple and XRP are, and their key differences.

What is Ripple?

Simply put, Ripple is the company behind XRP. RippleNet and the XRP Ledger were created by RippleLabs, which uses open-source technology to beat Bitcoin in speed, and banks and other financial institutions in fees. Having launched in 2012, Ripple soon exploded onto the crypto scene. It now has a current market cap of $12.55 billion as of 14 October 2019, that’s pretty impressive in such a competitive environment. 

While Ripple has its own currency (XRP – but more on that later), it also allows its users to create their own tokens via the XRP Ledger.

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What is XRP?

XRP is Ripple’s coin. Ripple has a definitive number of XRP in rotation – 100 billion tokens to be precise. These tokens are released by RippleLabs, which currently holds about 60 billion in escrow, 1 billion coins being released a month. XRP works because there is no mining involved, all tokens are premined, and therefore they can be traded with the lowest possible transaction costs.

XRP’s price is far lower than BTC or ETH when it comes to transaction fees, and is ideal for cross border transactions.

What Are The Key Differences Between XRP and Ripple?

So, what are some of the key differences between XRP and Ripple?

  • XRP is a coin while Ripple is a company.
  • While both XRP and RippleNet are owned by RippleLabs, they have two very different functions.
  • XRP is tradeable, Ripple is the company behind XRP. 

XRP vs Ripple: What’s the difference?

We hope this guide has helped you identify some of the key differences between Ripple and its token XRP. While both are owned by RippleLabs, they function in very different ways! Namely that XRP is the coin and Ripple is the company behind XRP. As the XRP price continues to climb, we’re sure that Ripple will expand its services too. With lightning fast transaction speeds and the backing of major financial institutions, the XRP coin is giving other cryptocurrencies a run for their money. Think you’re ready to start trading? Join the ranks here

Your capital is at risk.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.