Ripple has been one of the true success stories of the cryptocurrency industry, coming from being an obscure project launched in 2004 that eventually was moulded into what could easily become the backbone of global finance for the next 100 years.
As the value of XRP has grown, so has its exposure and adoption, and so have the ways of making money with Ripple.
How Does The XRP Ledger Work?
The XRP Ledger (XRPL) does not employ a proof-of-work (PoW) algorithm, as seen with Bitcoin’s blockchain, or a proof-of-stake (PoS) algorithm, as with the Ethereum 2.0 blockchain. Instead, the XRP Ledger relies on a setup called the XRP Ledger Consensus Protocol to validate account balances and perform transactions. Compared to other types of blockchain consensus, the XRP Ledger Consensus Protocol statedly boasts more efficiency.
The XRP Ledger is maintained by independent participants. For each transaction to be successful, there should be an agreement (consensus) among independent validators. Operating as a validator is an option for any entity. While PoW blockchains produce blocks — compartmentalized segments of the overall chain that each include certain information — the XRPL produces “ledgers.”
Every ledger holds information such as data tying it to the former ledger in the chain, account totals, and more. Transactions and network alterations must achieve agreement from a certain number of validators.
It takes between three to five seconds for the XRP Ledger to confirm each block (ledger) — completing transactions. This is comparatively much faster than Bitcoin’s 10-minute block time.
How does it reach a consensus if there is no mining?
XRPL uses a different set of rules called the Ripple Consensus Protocol Algorithm (RCPA). The RCPA defines how XRPL is managed by a network of independent Ripple validator nodes. Any Ripple transaction needs to be verified by at least 80% of the nodes on the network.
Anyone can become a validator. However, Ripple maintains a given set of validators that can be trusted. This trusted list of nodes is called the Unique Node List (UNL).
If Alice wants to send 1,000 Japanese Yen to her cousin Bob in India, Alice could send it to the participating financial institutions. The JPY will be converted to XRP and will be validated by the servers in the network. Bob could withdraw the money in Indian Rupee once validated. The remittance can be done within seconds.
How to Make Money With Ripple(XRP)?
HODLing
As with all cryptocurrencies, one of the most common investment tactics is buying and holding long-term, or HODLing, which has not only been the go-to choice for some newer traders but also gain its own cult status within the crypto sphere.
With XRP, investing and HODLing have been lucrative over time with the value of this crypto-asset increasing sharply.
Although long-term investments in Ripple can be very profitable, using one of the many trading strategies available for XRP can yield significantly more over the same period of time as investing.
Saying this, if you’re happy to buy XRP and ride out the ups and downs that will inevitably come, then this might be a good strategy for you.
Buying XRP Before the Next Bull Run
Cryptocurrency has continued to be led by Bitcoin, and Bitcoin itself has followed a 4-year cycle throughout its life that has meant that it and the crypto market as a whole have been on a rollercoaster ride for the past decade.
The last peak of the ride was in 2017 when Bitcoin reached a new all-time high of just shy of $20,000, and XRP reached an all-time high of $3.84.
If the pattern continues we are currently at a low point that will culminate with a new peak in December 2021.
This means that right now may be the best opportunity to generate wealth that will come for the next 6 years in the crypto industry.
Ripple Ad Viewing
Ripple Ad Viewing is as simple as it sounds — in return for watching ads, users are paid in XRP.
This is a simple yet effective way of earning XRP and doesn’t require the investment of money like trading, but only investing time.
Users can watch a large number of ads per day in order to increase the total amount that they earn, and there is also the ability to just watch a few ads and not have to invest as much time.
Ripple Faucets
XRP faucets are the same as other faucets except that all rewards are paid in XRP.
Faucets are basically platforms where users can come and complete simple quick tasks in order to receive a small amount of cryptocurrency.
Where each reward is only quite small, by completing a lot of different tasks the total amount earned can build up to being something quite significant.
Tasks can include things like sharing something on social media, clicking on links and creating a graphic or some kind of content.
XRPTipBot
Another way of generating income with XRP is using an XRPTipBot.
Users on Reddit, Discord and Twitter send each other tips in XRP, and these rewards can be generated for a range of reasons including posting quality content, providing handy advice and information, exposing a new platform to a greater audience, or just because they feel like it.
By using these platforms and finding people that are using the XRPTipBot, quality content can be created and shared with them with the hope of receiving a tip.
While this might not be as profitable as trading and investing, it’s a much more versatile way of earning XRP and requires no investment to begin.