As an online privacy expert helping individuals securely invest in crypto, I often get asked if it‘s possible to purchase XRP tokens on Coinbase.
The short answer is no – Coinbase delisted XRP in January 2021 due to an ongoing lawsuit alleging it‘s an unregistered security. But should that deter you from investing in the world‘s 7th largest cryptocurrency with over $17 billion in market capitalization?
In this detailed guide, I‘ll walk you through everything you need to know about buying XRP in 2024 – from understanding what gives the token value to step-by-step instructions for purchasing it on other popular exchanges.
What Gives XRP Value?
Before deciding whether to buy, it helps to understand the purpose and vision behind Ripple (the company that created XRP).
The goal of Ripple is to enable fast, affordable, and more reliable cross-border payments between financial institutions.
For example, when you need to send money abroad through traditional channels like Western Union, it can take days for the payment to process and the fees are very high.
Ripple aims to disrupt that through its global network of over 300 partner financial institutions leveraging blockchain technology and its native XRP token.
Some key stats on RippleNet adoption:
- Over $10 billion worth of transactions in 2021
- Transaction volume up 24x since 2020
- Partners include major remittance providers like MoneyGram
Banks and payment providers use Ripple‘s On-Demand Liquidity (ODL) service to route cross-border payments. This is where XRP comes in.
ODL utilizes XRP as a "bridge" between currencies – greatly speeding up settlement times while eliminating the need for pre-funding destination accounts with foreign currency.
Instead, the destination account can be funded directly with XRP. This provides meaningful efficiencies over traditional correspondence banking.
The more ODL adoption grows, the more demand there is for moving money through XRP tokens – giving it fundamental value.
The SEC Lawsuit and Delisting from Coinbase
Ripple and XRP looked to be gaining momentum, with the price of XRP climbing as high as $3.65 in January 2018.
But legal uncertainty around the cryptocurrency‘s regulatory status has put a damper on that.
In December 2020, the SEC filed a lawsuit alleging Ripple conducted an unlawful $1.3 billion unregistered securities offering when it sold XRP to investors to raise money.
This court case is still ongoing as of early 2023, but the initial complaint was enough to prompt Coinbase to announce they will suspend all XRP trading activity until further clarity is provided.
While Ripple maintains XRP is a currency rather than a security, the threat of harsh penalties from the SEC should they lose has deterred most major US-based exchanges from listing it.
For US investors, this kills off the option of conveniently buying XRP on Coinbase – at least for now.
So is there still potential in Ripple‘s vision and an opportunity to profit from the XRP token? Let‘s take a look.
Analyzing XRP as an Investment in 2024
Despite the SEC setback, there remain reasons for long-term optimism around Ripple and XRP price appreciation:
- RippleNet growth continues with transaction volume hitting new highs
- Major partners utilizing ODL and XRP for settlement
- Recent court rulings viewed as favorable for Ripple
- XRP rebounded 171% in 2021 after initial crash
However, downside risks to consider include:
- Very real possibility of losing the SEC lawsuit
- Major US exchanges hesitant to relist without regulatory clarity
- Competition from other crypto cross-border payment projects
Analyzing fundamentals and sentiment, some market researchers still project substantial upside for XRP.
For example, WalletInvestor predicts XRP could reach $2-3 by 2025, a 10x gain from today‘s ~$0.40 price. However, keep in mind these are just projections.
Ultimately there is elevated risk investing given the active SEC case and recent history of volatility.
As with any cryptocurrency, you shouldn‘t invest more than you can afford to lose. But for investors comfortable with the risks, XRP remains intriguing as both a speculative and long-term play on faster global payments.
Which brings us to the big question…
Where Can You Buy XRP Tokens in 2024?
With Coinbase out of the picture for US citizens, you may be wondering where to buy XRP.
The good news is that many leading crypto exchanges not based in the US still offer XRP trading. Here are two solid options to conveniently convert USD into XRP tokens:
1. Binance
As the top crypto exchange worldwide in trading volume, Binance provides access to a deep liquidity pool of XRP tokens.
To buy XRP on Binance:
- Register for an account and complete KYC verification
- Deposit USD via bank account, wire transfer or other cryptos
- Use your balance to trade USD for XRP tokens directly on the platform
- Withdraw to an external wallet or keep them within your Binance account
The benefit of Binance is advanced security features and lower fees than many other exchanges. Just be aware that as an offshore company, they operate outside of US regulations.
2. Crypto.com
For another compliant option, Crypto.com allows US citizens to buy and sell XRP with USD as well.
Follow similar steps as above to:
- Set up your account
- Complete identity verification
- Fund your balance with USD
- Exchange the balance for XRP at the current market rate
While not quite as liquid as Binance, Crypto.com also stores 95% of digital assets in cold storage and meets security standards for US-based platforms.
Will Coinbase Ever Relist XRP?
The big question many want to know – will XRP trading ever resume on Coinbase?
The answer depends heavily on what happens with the SEC lawsuit. If Ripple reaches a settlement or wins the legal dispute, greater regulatory clarity could prompt Coinbase to relist XRP for US customers.
Recent court rulings have gone in Ripple‘s favor. But there are still issues to resolve and no guarantees.
Don‘t bet on being able to conveniently trade XRP on Coinbase again soon. Regulatory uncertainty may persist for years depending what happens behind the scenes with the SEC.
Yet with platforms like Binance and Crypto.com providing liquid markets for XRP globally, US investors still have options for tapping into its cross-border payments use case.
As blockchain technology makes sending money across borders faster and cheaper, I expect related projects like Ripple to continue gaining real world traction. The key question is whether XRP will benefit as the top liquidity provider if RippleNet sees widespread adoption among financial institutions over the coming years.
Despite the lawsuit, I still consider XRP one of the more compelling altcoins to gain exposure to in 2024. Just be prepared for ongoing volatility and make sure any investment aligns with your risk tolerance.
I hope this guide gives you a balanced perspective on the XRP investment thesis and current options for gaining exposure! Let me know if you have any other questions.