How to Buy Ripple Stock
Excited about owning a part of Ripple? You have two options: buy XRP or buy Ripple stock on secondary markets. Read on to find out more.
 |
In January 2022, Ripple's valuation exceeded $15 billion following its repurchase of shares from the investors who had backed its $200 million Series C funding round in December 2019.
They're also very determined to fight the ongoing lawsuit with the SEC all the way through.
Unsurprisingly, investors are getting curious about Ripple and are considering investing in the company's stock. If you're looking to do the same, there are a few things you need to know.
No, Ripple is not a public company yet. But CEO Brad Garlinghouse said in 2022 that the company would consider going public once its lawsuit with the Securities and Exchange Commission is resolved.[1]
Can You Buy Ripple Stock?
No. Ripple remains a private company and is not yet available for purchase on the stock exchange. It's currently funded through funding rounds by several investment groups and hedge funds.
Ripple's major investors include Pantera Capital, Seagate Technology, Blockchain Capital, Siam Commercial Bank, and Westpac Banking Corporation. As a result, these likely have a stake in the company's ownership.
However, if you're an accredited investor, you have a chance to invest in it too. Here's how you can get your hands on Ripple stock before the IPO.
Accredited investors are individuals classified by the SEC as qualified to invest in complex or sophisticated types of securities.
Requirements include having an average yearly income of over $200k ($300K with a spouse) for the past two years and expecting the same for the current year OR having a net worth of over $1 million, excluding primary residence[2]
How to Buy Ripple Before the IPO Date
Many private companies offer their employees company shares or stocks as payment or reward. They also sometimes allow investors to sell their shares on secondary platforms.
However, there hasn't been any news or public announcements about Ripple doing this yet. But you can always keep an eye on different platforms in case shares become available.
If you're an accredited investor, here are a few steps you can take to access these secondary platforms:
- Sign up online with your chosen platform (Example: Equitybee)
- Undergo verification of your accreditation
- Once verified, you can browse available offerings
- Fund your account and buy shares
Invest in High-Growth Startups
Equitybee gives accredited investors access to high-growth, VC-backed startups. By funding employee stock options, accredited investors can gain investment exposure to private companies at past valuations. In exchange for funding the options, you will receive a percentage of future proceeds from any successful liquidity events. Subject to availability. Investments involve risk; Equitybee Securities, member FINRA
Remember that requirements may differ among platforms. The minimum investment is also pretty high (for example, Equitybee requires a $10,000 minimum).[3]
No, Ripple Labs and XRP are not the same. Ripple (previously known as Ripple Labs) is the company, and XRP is a cryptocurrency issued by Ripple.
Can you buy Ripple on Coinbase?
No, you can't buy Ripple stock on Coinbase because Ripple is a private company and its shares aren't publicly traded. However, you can buy the Ripple's cryptocurrency (XRP) on Coinbase. Here's how to do it:
- Create a Coinbase account
- Verify your account by providing your personal information and linking a payment method
- Deposit funds into your Coinbase account via bank transfer, debit card, or credit card
- Go to the Buy/Sell page and select XRP
- Enter the amount of XRP you want to buy and click the Buy button
Once you've bought your XRP, it'll be deposited into your Coinbase wallet. From there, you can view, send, or receive XRP.
How to Invest in Ripple's IPO
Various brokerage accounts like Robinhood offer access to IPOs. However, it's worth noting that not all IPOs are available through these brokers. So it's important to stay informed about whether your broker or the company will host Ripple's IPO.
Here's how you can buy Ripple stock once it goes public:
- Open or log in to your brokerage account
- Look for Ripple
- Decide how many shares you want to buy
- Make your purchase by placing an order
You need to be an accredited investor to invest in Ripple's IPO. Once Ripple goes public, you can buy shares on stock exchanges like the NYSE or NASDAQ, or through a broker.
Please note that this is just a general overview, and you should always consult with a financial advisor before making any investment decisions.
Deposit $100 and Get $10 from eToro USA LLC
- Sign up for an eToro account
- Deposit $100
M1 Investment Account - Up to $500 Bonus
Open a new M1 investment account. Deposit $10,000 or more into the account within 14 calendar days of account opening. Promotional credit will depend on the deposited value made into the account.
| Deposited Value | Promotional Credit |
|---|---|
| $10,000 - $29,999.99 | $75 |
| $30,000 - $49,999.99 | $150 |
| $50,000 - $99,999.99 | $250 |
| $100,000+ | $500 |
This offer is only for customers who have never registered for an M1 user account.
How to Indirectly Invest in Ripple
The most common way to indirectly invest in Ripple is to purchase its cryptocurrency, XRP.
Unlike stock exchange trading, cryptocurrency trading operates differently. However, you can use trusted brokerage accounts like Robinhood to trade cryptocurrencies without paying any commissions.
Here are the steps to buy Ripple or XRP:
- Create an account
- Fund your account
- Find Ripple or XRP
- Place an order
Remember to conduct your research and understand the risks associated with cryptocurrency investing before making any decisions.
- Cryptocurrency trading happens on decentralized platforms. The government does not regulate it, which means it's open 24/7.
- Cryptocurrency trading is more volatile, meaning prices can go up and down quickly.
- Cryptocurrency trading is easier to start, but it's also less regulated.
Why Invest in Ripple?
Are you considering investing in Ripple? There are a few potential benefits that may help you decide:
- Expanding network and partnerships
Ripple partnered with major players like American Express and over 50 other financial institutions. And just recently, they got to transact in Singapore's treasury bank.This is a big deal because it shows that Ripple is gaining traction and trust from established financial institutions. This could pave the way for wider adoption of Ripple's technology and create opportunities for further growth.
- Ripple's XRP cryptocurrency
Ripple's crypto, XRP, is used to make payments on its global network. Investing in Ripple could give you a piece of the pie if XRP takes off, as its value could go up with more people using it. - SEC Lawsuit vs Ripple
In December 2020, the SEC accused Ripple of selling XRP in an unregistered security offering.[4] A judge decided that Ripple selling XRP on public exchanges was okay, but selling it directly to wealthy investors was not.The trial is still going on, but the crypto market liked the judge's decision, and XRP's price went up by about 75% on July 13, 2023.
All investments carry risks, and you should carefully consider your risk tolerance before investing in either XRP or Ripple stock. You should also research other factors, such as valuation, before making an investment decision.
What is Ripple's Valuation?
Ripple has raised $293.91 million from investors over 14 rounds of funding. The most recent funding round was in January 2023, when Ripple raised $10,000 from Tokentus. In January 2022, Ripple was valued at $15 billion.
This shows that Ripple has received a lot of money from investors. But it's not getting as much money now as it did in the past. This could be because of the lawsuit with the SEC or because the XRP price has been the same for a while.
If you're still unsure about Ripple stock, you can also explore alternative options.
What are the Alternatives to Ripple Stock?
Ripple faces competition from various companies and projects in the financial technology and blockchain industry. Here are a few notable competitors:
- SWIFT (Society for Worldwide Interbank Financial Telecommunication)
SWIFT, as a well-established messaging network, has a wide network of participating banks and financial institutions globally. - Stellar (XLM)
Stellar is a platform based on blockchain technology that prioritizes swift and affordable cross-border transactions. It focuses on inclusivity and aims to serve the unbanked population, providing financial access to individuals in underserved regions. - JPMorgan Chase (JPM Coin)
JPM Coin benefits from JPMorgan Chase's reputation as a trusted banking institution, offering a digital currency solution directly to institutional clients. - Visa (Visa B2B Connect)
Visa, a worldwide payment technology firm, has launched Visa B2B Connect, a platform that uses blockchain technology to facilitate secure and transparent cross-border transactions. The goal is to simplify global payments for businesses, which could potentially challenge Ripple's offerings.
Bottom Line
Ripple is still a privately owned company and only accredited investors from large financing firms and hedge funds are eligible to purchase Ripple stock.
It's important to note that Ripple is the company behind creating XRP cryptocurrency. However, it should be noted that these two are distinct.
One way to invest in a company before its IPO is through the secondary market, or you can indirectly invest by purchasing XRP coins. However, it may be wise to wait for the company's IPO to be held on brokerage platforms to make the best investment decision.
No matter your choice, it's important to conduct thorough research and seek expert advice if necessary.
References
- ^ CNBC. Crypto firm Ripple will explore IPO after SEC lawsuit ends, CEO says, Retrieved 09/26/2023
- ^ U.S. Securities and Exchange Commission. Accredited Investor, Retrieved 09/25/2023
- ^ Equitybee. The investment process, Retrieved 10/27/2023
- ^ U.S. Securities and Exchange Commission. SEC Charges Ripple and Two Executives with Conducting $1.3 Billion Unregistered Securities Offering, Retrieved 10/27/2023
Write to Miel Ysabel at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
|
|
|
