Working with Ripple Currency XRP

In the previous chapter, we learned how Ripple works in theory. In this chapter, we will take a hands-on approach and learn to work with Ripple currency. You need to use a Ripple wallet to buy, hold, and transfer Ripples. There are different kinds of Ripple wallets, so you need to choose one that fits your requirements. In this chapter, you will learn to choose a wallet and use it to buy and transfer Ripples. We'll also go through security measures to keep your Ripples safe.

In this chapter, we will cover the following topics:

• Types of Ripple wallets
• Learning to choose your wallet
• Setting up a Ripple account
• Activating the Ripple account
• Making an international transfer
• Trading XRP
• Importing an existing wallet
• Setting up an offline wallet
• Protecting your Ripples

Types of wallets

Our physical wallets hold cash, identity cards, credit cards, and so on. Similarly, cryptocurrency wallets hold our public/private keys. They also help you check your account balance, see previous transactions, and assist you in sending and receiving money. You will need to select the wallet that best suits your needs.

If you have skipped the previous chapter, think of the public key as the username and the private key as a password.

Online wallets

A beginner will find online wallets easy to use. It's similar to using an online bank account. Here, you don't have access to your private key because it is maintained by the online wallet provider. Secret keys that are stored online are known as hot wallets...

Setting up a Ripple account

We'll be using Toast wallet (a desktop/mobile wallet) to set up our Ripple account. You can download the app on your desktop or mobile. You can choose any other wallet of your choice—the onboarding process won't be exactly the same, but similar.

The first time you open Toast wallet, you'll be shown the license agreement. Scroll down and you will see the Create a New Wallet button, as shown in the following screenshot on the left. Once you click on this button, you will be asked to set a six-digit pin, as in the following screenshot on the right. This is to prevent your wallet from unauthorized usage. Every time you open your wallet, you need to provide the six-digit pin to gain access to your wallet:

You will be then asked to set a passphrase, like in the following screenshot on the left. You need to provide the passphrase for...

Activating the Ripple account

The Ripple wallet you just set up is not ready to make transactions yet. To avoid spam, Ripple has made it necessary for all wallets to be funded with a fixed amount. Presently, this amount is 20 XRP. Hence, to activate your wallet, you need to send 20 XRP to your newly created Ripple account. Once your wallet has been funded with 20 XRP, it will be automatically activated.

There are multiple ways to buy XRP. For one, you can buy it from crypto exchanges such as Binance, CEX, and Bitfinex. However, most of these centralized exchanges require you to do KYC(Know Your Customer) verifications. Changelly (https://changelly.com/) allows you to buy XRP without verification, and their exchange process is seamless. Navigate to www.changelly.com and create an account there. Then, go back to the home screen.

If you have any other crypto assets such as Bitcoin...

Making an international transfer

In Ripple, there is no such thing as international transfers. Anyone can send money to anyone within seconds, irrespective of how far away they are. If you want to send money to your friend living in Israel, get their public address and destination tag (if their wallet has one).

Open Toast wallet , enter your pin, and tap on the $ button on the bottom of the screen. You will be asked to select the account from which you want to send Ripple. You need to provide your friend's public address in the to field. If they have a destination tag, please add it. You can select the currency you want to send, but you need to have enough in the respective currency. You can enter the amount and tap on pay. You will be asked to provide your passphrase. The transfer should happen in 4-10 seconds.

In the following screenshot, I'm sending 2 Ripples to a...

Trading XRP

In this section, we will look at how we can exchange XRP for other cryptocurrencies. You need an account in a crypto exchange to make a trade. You can use the exchange of your choice, but here we are going to use StellarX because it's a decentralized peer-peer exchange. Please go through the process of account creation in StellarX. You will also be creating a Stellar wallet in the process, so make sure you note your keys down.

Click on the Deposit button on the top right, as shown in following screenshot:

StellarX requires you to deposit more than 68 XRP.

Your XRP will be automatically converted into XLM (Stellar Lumens), as shown in the following screenshot:

You will be asked to confirm these details in the next screen. Once you've confirmed your details, you will be asked to deposit Ripple to a specified address, as in the following screenshot. You will...

Importing an existing wallet

There are a lot of ways to generate a Ripple account. Sometimes, it is difficult for you to manage them when they aren't in one place. In this section, we will look at how you can import an existing account into Toast wallet.

To import an existing wallet, follow these steps:

1. Open Toast wallet , enter your pin, and click on the + button. You will be navigated to another screen.
2. Click on Add Existing Address. Now, you will be asked to provide the secret key of your Ripple account.

3. Once you have entered the secret key, set a nickname to identify your account and provide your Toast wallet's passphrase.
4. Click on Import Account. Your account will be immediately imported to Toast wallet.

Setting up an offline wallet

An offline wallet can help you set up a Ripple account without storing any records digitally. Since the keys are generated offline, you can be assured that the generated keys don't leave your machine. Offline wallets can provide high security because no one can hack something that doesn't exist digitally. However, they are prone to physical theft. This section is only for your reference.

If you are happy with the desktop/mobile wallet you created earlier, you can skip this part.

Navigate to Exarpy, as shown in the following screenshot, to generate an offline wallet. It would be better to use private browsing mode, where plugins are generally disabled. This is to prevent browser plugins spying on you:

Click on Create your first wallet; you will be asked to go offline. If you are given additional recommendations, please follow them to make...

Protecting your Ripples

There have been a lot of incidents where cryptocurrencies were lost due to hacking and human error. In this section, we will look at how we can protect our Ripples.

Don't leave your Ripples on centralized exchanges

Leaving cryptocurrencies in centralized exchanges is a bad idea. Since they store these keys in a single database, when their database is compromised, our accounts can be hacked. In the past, bitcoins worth billions of dollars have been stolen from centralized exchanges. You can either use decentralized exchanges or withdraw your funds to your hardware/paper wallets. This process will be difficult for most traders, but it's a necessary precaution.

...

Summary

In this chapter, we've learned the answers to the following questions:

• What are the types of Ripple wallets?
• How do I choose my wallet?
• How can I set up a Ripple account?
• How can I activate my Ripple account?
• How can I make an international transfer?
• How can I trade XRP?
• How can I import an existing wallet?
• How can I set up an offline wallet?
• How can I protect my Ripples?

In the next chapter, we will learn about the application of Ripple. We'll learn how Ripple can make a huge impact on banks, businesses, payment gateways, and marketplaces.