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Ledger Wallet Ripple: How To Store Ripple (XRP) On The Ledger Nano S (2020)
In this article, I am going to explain how to store Ripple (XRP) on the Ledger Nano S in the Ledger Wallet Ripple. Most people I speak with talk about whether or not XRP is safe to leave on exchanges for storage. The simple answer is no. Under no circumstances is it safe or even a slightly good idea to leave ANY coins your have on an exchange. “Not your keys, not your crypto” is a statement you’ll hear repeated throughout the crypto ecosystem. If you are unsure about the safest ways to store and secure your cryptocurrency private keys, then grab my free e-book that gives you some in depth resources on how to manage your crypto safely. I also wrote a comparison review of the major differences of hot vs cold wallets, in case you are unsure.
Now, as Ripple is a top 3 market cap coin, it is imperative to know how to properly store it on a hardware wallet, and the one wallet that can easily store this right now is the Ledger Nano S. You can also store it on the newly released successor to this wallet known as the Ledger Nano X, if you want a larger storage capacity and a wallet that is wirelessly capable. Let’s get to it below!
WHAT IS RIPPLE (XRP)?
Ripple is both a platform and a currency. Let me explain. Ripple itself is platform and open source protocol which is designed for quick and cheap transactions. This was “invested” as a resource for efficient, cross-border payments that is intended to be used by big banks. The Ripple platform is very very cheap and efficient and unlike bitcoin, it is designed as a payment machine and nothing more.
XRP (the token that is represented on the ripple platform) is designed to transfer value across the Ripple platform. The intention behind this is to be able to transfer value from either cryptocurrency or fiat from peer to peer in the fastest way possible. That is it’s only function.
The other noteworthy aspect of this is, there is a predetermined amount and it is not mined or staked, like it is on POW and POS networks. In fact, there is no blockchain for this token at all. This has been the source of a lot of criticism in the ecosystem that this is not really a “crypto” currency, but rather, just a digital version of fiat.
HOW DO I BUY RIPPLE (XRP)?
You can buy ripple directly at many OTC exchanges, or other trading exchanges like Coinbase or Binance. When using Coinbase, you can link up your bank account and/or major debit card to process the transaction and if you’re not verified, it can take up to 7-10 business days to process.
If you plan on buying XRP with a credit card directly, you can use either Paxful or Changelly and use this as an OTC exchange to buy it directly (although paying with credit card will incur some extra fees). You can also go through a 2-step process and buy bitcoin with a credit card on Coinmama, and then use one of the above exchanges to swap it.
LEDGER WALLET RIPPLE: HOW DO I MOVE RIPPLE TO THE LEDGER NANO S?
- Open up Ledger Live, and make sure it’s software version is up to date.
- Head over to the Manager section on the left side bar, and search on “XRP”, then click on Install.To create an XRP wallet on your Ledger device, we first need to create an “account” for you to be able to have access to your wallet’s XRP address.
- Click on the rounded + symbol on the left portion of the Ledger Live app to add an account.
- Type in “xrp” on the search bar to easily find XRP on the list, then click on “Continue“.
- Open the XRP app on your Ledger device, then click on “Continue“.
- Wait for Ledger Live to synchronize.
- Choose a name for your wallet. For this example, we’re just going to name our wallet “My XRP Wallet“.
- Tick the blue checkbox , then click on “Add account“.
- Account successfully added!Click on “Add more” if you want to create more XRP wallets, or if you want to head over to moving your funds to your XRP wallet, just click on the small x on the top right corner of this popup.
- Your XRP wallet is now ready. Simply click on the XRP wallet you made on the “Accounts” section on the left, then click on the blue “Receive” button.
- Click on “Continue“.
- Click on “Verify“.
- For security purposes, check if the same wallet address is being shown on the Ledger Live app, and the address shown on your physical Ledger device.If everything’s fine, you can now copy the wallet address shown on Ledger Live, and you can now use that address to move your funds from other XRP wallets, or from the exchange you’re using.
- Click on the rounded + symbol on the left portion of the Ledger Live app to add an account.
WHAT ABOUT THE NEW LEDGER NANO X?
The Ledger Nano X has the same process as above for adding it to your hardware wallet using Ledger Live, the only difference is it is primarily done via the mobile app. You can still plug this device in and manage this the same way as the Ledger Nano S, however, it is able to connect to the app and manage this wirelessly, which is the major advantage.
CONCLUSION
Bottom line, if you’re in the market to acquire this coin, you will absolutely need to store it on a Ledger device. Keeping all your private keys (of any coin) on a trusted hardware wallet is imperative. Period. I will say that with the Ledger Nano S specifically, is the cheapest and is the best entry level hardware wallet if you want to store ripple at only $59. The one caveat is that you can only store 3 or 4 different coins on the app at once, that’s it. If you plan to grow your portfolio, you may want to spring for the extra money and go for the Ledger Nano X, which can hold up to 100 coins or “apps” at once. I will leave the full review of the Ledger Nano S here.
What do you think? Is there a better offline wallet to store your XRP? Let me know in the comments below!
Cheers,
The Crypto Renegade
NOTE: This post may contain affiliate links. This adds no cost to you but it helps me focus on giving as much value as possible in every single post by being compensated for recommending products that help people succeed.
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What are STO’s? [Security Token Offerings] (Beginner’s Guide)
What are STO’s? The massive rise of ICOs throughout 2017 and early 2018 was unprecedented and brought about an entirely new method for raising enormous sums of funding in mere minutes. However, the sheer volume of ICOs that turned out to be scams, didn’t deliver on their promises, or ran out of funding before releasing a product led to the precipitous decline of the ICO in the latter half of 2018.
The power of blockchain-based tokens to create more flexible financial assets and instruments did not dissipate though. Decentralized finance (DeFi) is on the rise, with financial instruments from collateralized debt platforms to decentralized prediction markets materializing left and right.
One of the primary focuses of a DeFi landscape is the transition of conventional financial securities into digital tokens on a blockchain.
Commonly referred to as ‘security tokens,’ these assets are securities representing equity or debt with a digital wrapper around them — designed to provide a suite of advantages and flexibility to the assets.
Following in the footsteps of the ICO, the ‘Security Token Offering’ (STO) has garnered widespread attention as an ecosystem of investors, service providers, exchanges, and more jostle for position in a blossoming market. Security tokens have some intriguing prospects, and the STO presents a valuable tool for companies to issue digital assets on the blockchain.
WHAT IS A SECURITY?
A traditional financial security is a fungible instrument that holds value and can represent either debt or equity.
Securities as equity can represent ownership in a company (stock), where owners can profit from capital gains on the asset or even receive dividends payments in specific cases. Equity security holders can either be in public or private companies, and owners are usually entitled to some form of ownership in the company.
Securities representing debt is a representation of borrowed money, which must be paid back and is subject to various loan conditions. There are numerous types of debt securities including:
- Government bonds
- Collateralized Debt Obligations (CDOs)
- Collateralized Mortgage Obligations (CMOs)
- Corporate Bonds
- Certificate of Deposits
Debt security holders are typically authorized to receive interest payments on the principal loan amount, and they can be backed by several means — including collateralized and non-collateralized.
Securities play a significant role in finance and are more relevant to STOs in their ability to be leveraged for raising funding. Companies can raise enormous sums via Initial Public Offerings (IPOs) of equity when they go public, and governments can even issue municipal bonds to raise funds.
Public securities are traded on major stock exchanges and can be transferred between investors on secondary markets as assets.
SECURITY TOKENS AND SECURITY TOKEN OFFERINGS (STO’S)
Common misconceptions around security tokens are that they are different from securities. Although they exist on a blockchain, they are ostensibly securities, subject to the same regulations and case law precedence as traditional securities.
However, security tokens offer some unique advantages — particularly in improving secondary market liquidity, reduced compliance costs, automating trade restrictions, providing fractional ownership, and enabling asset interoperability.
STOs have opened an opportunity for businesses to raise funds by issuing digital security tokens to investors in a regulatory-compliant manner. The advantages exist for both the investor and the issuer, while also providing much better assurances against fraud compared to an ICO. Issuers can come from a variety of areas, including commercial real estate, venture capital firms, and small and medium enterprises (SMEs).
There is discussion around the semantics of what constitutes a ‘security token’ or a ‘tokenized security,’ but for all intents and purposes, STOs in this context focus on the launching of new security tokens and not tokenizing existing financial assets.
One of the most straightforward and beneficial applications of an STO is with an SME looking to raise funding when they cannot tap into commercial banking services. Parallel with the rise of other DeFi services, SMEs can access open financial services — issuing security tokens for investors to obtain on the blockchain. This has important consequences for lowering barriers to access for retail investors and concurrently providing powerful financial services to SMEs in local and regional areas where they have historically been limited in their financial capacities.
Additionally, SMEs issuing security tokens offer an excellent example for highlighting the multiple participants required in the security token ecosystem.
WHO PARTICIPATES IN THE SECURITY TOKEN ECOSYSTEM?
If an SME (i.e., Company A) wishes to issue security tokens representing equity in their company, they can do so with the help of multiple market participants including:
- Issuance Platforms
- Exchanges
- Custodians
- Broker-Dealers
- Legal/Compliance
Company A can formally issue their security token to investors via an issuance platform. Well-known issuance platforms include Polymath and Harbor, which are integrated with service providers like custodians, broker-dealers, and legal/compliance entities to facilitate a secure and regulatory-compliant process.
Developers for issuance platforms also work on standardized token interfaces (i.e., ST-20 for Polymath and R-Token for Harbor) that hard-code regulatory parameters into token contracts such as explicit trading restrictions. Standardized token interfaces for security tokens also enable interoperability of assets, which has positive downstream effects in secondary market liquidity and reduced friction in token trading.
Custodians are popular for storing digital tokens in secure cold-storage –, particularly with institutions. BitGo is one of the most established digital asset custodians, and custodians often partner with exchanges or issuance platforms.
Exchanges exist for investors to trade security tokens, enabling better access to capital, enhanced secondary liquidity, and democratized investor access to securities. tZero is a high-profile exchange that recently went live, backed by Overstock. Company A’s security tokens can trade on exchanges like tZero where investors undergo KYC/AML verification. Some exchanges can even operate as issuance platforms as well.
As an SME, Company A’s security tokens can be offered to retail investors who are largely precluded from SME investment opportunities due to various barriers of entry. However, democratizing such access to security tokens can help SMEs raise funding from local communities, providing a compelling boon for small enterprises and assisting in the growth of local businesses.
Open financial frameworks like Mt. Pelerin even seek to provide SME marketplaces for entities like Company A to tap into broad, open financial services on the blockchain.
Other applications of security tokens — which are already underway today — include commercial real estate investments funds (i.e., REITs) that reduce high investment minimums and even enable concepts like fractionalized ownership to emerge. Harbor has already hosted an STO for a South Carolina residential building with a significantly reduced investment minimum compared to typical rates.
STOS VS ICOS
Overall, STOs eliminate instances of fraud with ICOs and offer legitimate securities to a wider range of investors with better efficiency, interoperability, and liquidity than conventional securities. STOs are backed by actual assets while ICOs were primarily predicated on ‘utility tokens,’ with no underlying collateral and were not protected by securities law.
STOs also offer advantages over IPOs. They are cheaper and can encompass a much broader range of assets — such as fractionalized ownership in high-value art pieces or investment funds. Banking and brokerage fees are also drastically reduced via automation with launching an STO compared to an IPO.
It is important to note that although STOs fall under securities laws in the U.S., there are legal nuances to the launching of security tokens as they are based on a novel technology. Several countries outside the U.S. have also already banned STOs — including China and South Korea.
In the U.S., investors are pumping vast sums of money into the security token landscape as the role for participants in the young ecosystem continues to actualize. Evaluating which markets emerge as the most popular in the early stages of security tokens should reveal which sectors STOs afford the best advantages. Both SMEs and REITs are clearcut applications of STOs, but there are numerous other opportunities available for the issuance of security tokens that are practical, cheaper, and regulatory compliant.
WHAT ARE STO’s – CONCLUSION
ICOs were a novel concept, fueling crazy speculation of altcoins during their prominence at the end of 2017, but the industry has become more discerning since then. As ICOs have faltered, security tokens have emerged as a prudent use case of blockchain technology at the convergence of conventional financial instruments and digital assets.
DeFi is on the rise, and security tokens are poised to play an integral part in the broader transition to an open financial system.
What do you think of STO’s? Do you think they are here to stay? Let me know in the comments!
Cheers,
The Crypto Renegade
NOTE: This post may contain affiliate links. This adds no cost to you but it helps me focus on giving as much value as possible in every single post by being compensated for recommending products that help people succeed.
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