Guide for buying and storing Ripple (XRP)

Knowledgebase Forum - May 14th 2017

  1. evo

    evo Admin

    Joined:
    Apr 2017
    From:
    Seattle
    Crypto:
    BTC/ETH/XRP
    This is a how to guide for buying and storing Ripple (XRP). I'm writing this guide for those who are very new to cryptocurrency, and I will take the time to expand on each step that is happening throughout the process.

    If you have any questions about any of the steps, terms, or process, please post up a response in this thread and I'll respond as I read them. And for general questions about anything related to cryptocurrency, please post those questions in the dedicated Cryptocurrency section of the forum.

    Setup 2 Factor Authentication with Authy

    As you're creating these accounts, you're also going to want to setup 2 Factor Authentication, which means after you login with your username and password to a site, an annoying third step will require you to provide a unique code, which will be generated from your 2 Factor Authentication app.

    Regarding 2 Factor Authentication, I recommend using an app instead of an SMS message being sent to your phone because in the event you ever lose your phone, your 2 step verification code generator will be recoverable.

    I recommend Authy, which is a free download for iPhone and Android. When using the Authy app, you don't need phone reception or Internet access on the device to generate codes - it all happens offline.

    Step 1 - Buy Bitcoin on Coinbase

    The first step is you need to convert your fiat money to digital cryptocurrency. This means you're going to take money from your bank account and use it to purchase Bitcoin. While there are other cryptocurrencies you can purchase, we are going to proceed with Bitcoin because it will be the easiest cryptocurrency requiring the least amount of steps to convert to Ripple.

    1.1 - Create a Coinbase Account

    The first thing you should do is create an account on Coinbase, which is one of the easiest, safest ways to buy Bitcoin. They are a legitimate company and are US based.

    Here's a referral link - Coinbase

    When signing up for these cryptocurrency financial services, it's very important to use a unique, strong password. Make sure you've stored this password in a safe place, and under no circumstance, share your password with anyone. Giving access to these accounts is essentially giving access to one of your financial accounts. It's your responsibility to protect and safeguard your login credentials.

    Just like signing up for any bank account, Coinbase will ask for your name, address, contact information, and will require you to verify your identity with your Driver's License, SSN, birthday, etc.

    1.2 - Funding your Coinbase

    After your profile has been created, the next step is adding a funding source, which can be any bank account or credit card. I strongly recommend only using your bank account because the fees to convert your fiat to Bitcoin will be the cheapest.

    When setting up your bank account, Coinbase may verify your account by making 2 very small transactions and ask you to verify those transactions. Most banks show pending transactions, so depending on your bank, login to your online banking and those 2 small transactions most likely will show up in your 'Pending Transactions' and you can immediately get verified with Coinbase.

    1.3 - Buying Bitcoin on Coinbase

    Once your funding source has been setup, you're ready to buy some Bitcoin. Go to the Buy/Sell section, and here you can choose your cryptocurrency, funding source, and amount to purchase. You are not required to buy Bitcoin in whole numbers - you can choose a quantity with up to 8 decimal points. Coinbase only requires the transaction size to be a minimum of $1.00 USD. Coinbase will charge a small fee to convert your fiat to Bitcoin, which is based on your transaction amount.

    The only frustration you're going to encounter is a mandatory 7-day holding period for any Bitcoin you buy, meaning you're going to be required to wait 7 full days until your Bitcoin is available. The price of Bitcoin will fluctuate, but when you buy Bitcoin, you're locking in that price at the time you execute your transaction to buy. Regardless of Bitcoin's price increasing or decreasing during that 7-day waiting period, your price will not change for that individual transaction because you've already locked it in. This waiting period cannot be overridden, so keep this in mind when you're thinking about making future transactions and will need to buy more Bitcoin in the future.

    It's worth noting to take a look at your Coinbase Verification and Limits page because this is something that will change over time. As you make more transactions and your account ages, your limits and verifications will increase, and then you can progressively buy more. If you keep maxing out your weekly limits or are a high net worth individual, you can always manually apply for higher limits.

    [​IMG]
    On your Coinbase Accounts page, you will see a list of your Accounts, also known as Wallets. When it comes to cryptocurrency, your wallet is your individual holding account for a particular type of cryptocurrency. Wallets are unique to you, and wallets are unique to the cryptocurrency they've been assigned to. Bitcoin wallets can only store Bitcoin, Ether wallets can only store Ether, Litecoin wallets can only store Litecoin, etc.

    After your funds have cleared, Coinbase will credit your wallet with the amount of Bitcoin you purchased. And you're now the owner of that Bitcoin, and it's being store in your Coinbase wallet.

    Step 2 - Buy Ripple on Poloniex

    2.1 - Create a Poloniex Account

    Poloniex is a US based cryptocurrency exchange, allowing anyone to actively trade cryptocurrencies in real time. Signing up on Poloniex is very straightforward. All you need is an email address and you're essentially ready to start trading.

    You can send as much money as you want into Poloniex, you can store as much money as you want in Poloniex, but you're limited to a daily withdrawal limits. Everyone starts out with Level 1 Verification, but you're required to provide more information to increase your withdrawal limits.

    [​IMG]
    After your account is setup, I also recommend you setup 2 Factor Authentication and Enable Withdrawal Verification Emails. This will expedite your withdrawals, because Poloniex will require both. If you do not have 2 Factor Authentication setup, your withdrawal transaction will go under review and will require a support ticket to verify your identity. You can avoid all of this by setting up 2 Factor Authentication and Email Verification, and your withdrawals will be extremely fast.

    2.1 - Funding your Poloniex

    With your profile setup, now it's time to fund your account. Poloniex is an exchange that only deals with cryptocurrency, meaning you cannot send fiat money. It's time to send some Bitcoin from your Coinbase (hosted wallet) to your Poloniex (exchange wallet).

    Sending cryptocurrency funds from one wallet to another wallet is super easy, however there is absolutely zero room for error. I cannot stress this enough. From one account, you're sending funds or making a withdrawal. From the other account, you're receiving funds or making a deposit. Those accounts are identified by unique wallet addresses, which is a long series of alpha-numeric characters. Your wallet address must be 100% correct, otherwise you've lost the funds you're trying to send.

    Of equal importance, make sure the wallets you're sending/receiving funds are both associated with the same cryptocurrency. Again, there is no room for error here. You can only send Bitcoin to a Bitcoin wallet, Ether can only be sent to an Ether wallet, Litecoin can only be sent to a Litecoin wallet, etc.

    If you prefer, feel free to send a small amount at first to see the transaction go through successfully, and follow it with a larger amount once you feel comfortable. There is a very small fee charged every time you send funds from Coinbase to Poloniex, but it's incredibly small.

    To receive Bitcoin to your Poloniex account, you're going to need the wallet address to send it to. Go to your Deposits & Withdrawals page, where you'll find a list of all your wallets. Each wallet is unique to your account and assigned to a specific cryptocurrency. To receive Bitcoin, go to your BTC (Bitcoin) wallet and click Deposit, and here you'll find your Bitcoin Deposit Address. This is the account number that will receive the Bitcoin.

    [​IMG]
    To send to this address, go to your Coinbase account to send the Bitcoin over. When logged into Coinbase, go to the Send/Request page, and this is where you send your Bitcoin. For the Recipient field, enter your Poloniex Bitcoin wallet address. For the amount, choose how much Bitcoin you want to send from your Coinbase wallet to your Poloniex wallet. Verify the Poloniex wallet address is 100% correct, and click Send. Coinbase will probably ask you for your 2 Factor Authentication to verify the Send Funds request.

    It could take a few minutes to a few hours for your transfer to show up in Poloniex. At any time, you can go into your Coinbase dashboard and see if the transaction is pending or completed. And on Poloniex, going to your Deposits History page will show your deposit history.

    2.3 - Buying Ripple on Poloniex

    Now that you're Poloniex account has been funded with Bitcoin, it's time to trade your Bitcoin for Ripple. Bitcoin has a ticker symbol of BTC, and Ripple has a ticker symbol of XRP, which means we want to trade on the BTC/XRP market. In the Markets section, you'll see 4 tabs. Choose the BTC tab on the far left, scroll down within the section and click on the XRP line. You should now be on the XRP/BTC page.

    [​IMG]
    Now it's time to place your trade, where you will sell your BTC (Bitcoin) in exchange for XRP (Ripple). Scroll farther down the page, and you'll some buy/stop/sell modules. Within the Buy XRP module, you'll see how much BTC you have and the lowest asking price. If you click those numbers, they will auto populate the fields below. The Price field shows the price you're paying, the Amount field shows the amount you're receiving, and the Total field shows the total cost of the trade. Clicking Buy will place the trade. Poloniex will charge a small fee for the trade after it executes.

    [​IMG]
    Depending on the quantity of your trade request and what's available on the market will dictate the amount of time to complete your trade. Scrolling farther down the same page, you'll see a My Open Orders section, which shows your trades that have not completed. This is real time, so if part of your order is filled, it will continue to show the remaining order that is waiting to be filled. At any time, you can see all of your open, unfulfilled orders by going to the My Open Orders page.

    If the market is moving strongly in a particular direction while you're trying to make your trade, you can try to fill as much as you can, cancel the remaining order, and create a new order to trade with the current market demands. If you only want to buy at a certain price point, you can manually change the price field, how much you want to buy, and submit the order and let it wait as an open order until it gets filled if/when the market reaches that price marker.

    When you're in Poloniex, going to your Deposits and Withdrawals page will always show you a complete overview of your account balances. Checking the box 'Hide 0 Balances' will make it easier to see exactly what you have. Assuming your order was fulfilled, you should see your XRP (Ripple) position here.

    Step 3 - Store Ripple on Gatehub

    Generally speaking, hosted wallets should be for long term holding of your cryptocurrency, and exchanges should be for short term trading of your cryptocurrency. I do not recommend storing your long term positions on the Poloniex exchange. It's ok to hold funds in your exchange wallets because you can make immediate buy/sell trades in real time, but exchanges store your funds differently than a dedicated hosted wallet service and security should be a priority if you're not actively trading short term positions or swing trading on a regular basis.

    3.1 - Create a Gatehub Account

    There are different hosted wallet services. Coinbase is a hosted wallet, however they don't currently offer Ripple wallets. For a hosted Ripple wallet, Gatehub is currently the best option. They are European based and are connected/backed by Ripple.

    Go to Gatehub and sign up for an account. You're going to want to go through the verification process, where you provide your name, address, and verification documents. After you have submitted everything, the verification process can take a day or two for approval. Once you're fully approved, Gatehub should credit your Ripple wallet with 30 XRP. This is very important, because Ripple requires a one-time 30 XRP deposit within the wallet to activate the wallet address. If for some reason you've been verified and your Ripple wallet still shows a zero balance, contact Gatehub's support and they should credit your Ripple wallet with 30 XRP to activate the wallet address.

    3.2 - Transfer Ripple from Poloniex to Gatehub

    Once you're verified with Ripple, and your Ripple wallet is showing 30 XRP, you can send Ripple from your Poloniex wallet to your Gatehub wallet.

    To receive Ripple to your Gatehub account, you're going to need the wallet address to send it to. When you're logged into Gatehub, go to the Wallet page to see your Ripple wallet/balance. Click the Deposit/Receive button and a Deposit Funds module will be displayed. Choose the Ripple option on the far left, and here you'll find your Ripple wallet address. This is the account number that will receive the Ripple.

    [​IMG]
    To send to this address, go to your Poloniex account to send the Ripple over to Gatehub. Within Poloniex, go to the Deposits & Withdrawals page, where you'll see a list of your wallets and positions. To send Ripple, go to your XRP (Ripple) wallet and click Withdraw, which will expand allowing you to send Ripple. For the Address field, enter your Gatehub Ripple wallet address. For the amount, choose how much Ripple you want to send from your Poloniex wallet to your Gatehub wallet. Verify the Gatehub wallet address is 100% correct, and click Withdraw. Poloniex will ask for your 2 Factor Authentication and verify the withdrawal via email to complete the transaction. Poloniex will charge a very small fee to send the Ripple.

    [​IMG]
    You can see the status of your withdrawal by going to your Withdrawal History page. If you do not have 2 Factor Authentication and Email Verification enabled, Poloniex may review the withdrawal transaction and create a Poloniex support ticket to have you manually verify, therefore I recommend setting these things up so withdrawals from Poloniex complete within minutes.

    Keep in mind that Poloniex has daily withdrawal limits, based on your profile verification status. You can store more than your limits within your Poloniex account, but you're limited to daily withdrawals. If you purchased more Ripple than your daily withdrawal limit, you will need to login to Poloniex every day to continue withdrawing until you've transferred everything to your Gatehub wallet.

    When you login to your Gatehub wallet, you should see your Ripple deposit sent from your Poloniex wallet. Your Ripple is now being stored, safely and securely, within your Gatehub wallet.

    Questions

    For questions, comments, feedback, or general thoughts, post up a reply within this thread, and I'll respond as I read them.
     
    Last edited: May 15th 2017
    jjitalex likes this.
  2. omarluxe

    omarluxe

    Joined:
    May 2017
    From:
    belgium
    Thanks for the guide, very useful.
    Wouldn't be easier if you create a gatehub account then deposit fiat money via a bank or a credit card and purchase xrp? Or am I missing something? (BTW I'm a newbie)
    This is how I was planning to do it:
    Step 1: Create Gatehub account (it's still pending).
    Step 2: After verification deposit fiat money (EUR) into my Ripple wallet with my credit card.
    Step 3: Buy Ripple with euros.

    Kind regards,
    omarluxe
     
    evo likes this.
  3. evo

    evo Admin

    Joined:
    Apr 2017
    From:
    Seattle
    Crypto:
    BTC/ETH/XRP
    There are multiple ways to buy Ripple. And yes, you're right, funding your Gatehub account with fiat money to purchase XRP works too.

    Gatehub is European based, and funding from a US bank account would require an international wire transfer. For US residents who reside and bank within the US, I feel like having/using a Coinbase account is a better option to introduce them to buying and storing cryptocurrencies.

    It's also worth mentioning that Poloniex has significantly more volume than Gatehub, making it easier for large buy/sell orders to be fulfilled. And while this is subjective, I personally feel Poloniex has a much better user interface than Gatehub for making sense of trades, and executing buy/sell orders.

    Gatehub is much better than Poloniex for storing your Ripple, because Gatehub does not store Ripple the same way that Poloniex does.

    I didn't discuss this in the guide, to make this easy for new users, but the only thing better than Gatehub (hosted wallet) is Rippex (desktop wallet) for storing your Ripple. I'm working on a how to guide for using/storing your Ripple using Rippex.

    And the only thing better than a desktop wallet is a hardware wallet for cold storage. The only hardware wallet that will support Ripple is the Ledger Nano S hardware wallet, but the option has only been announced and is not currently available. Once support for Ripple has officially been added, I will make a how to guide for using/storing your Ripple on a hardware wallet.
     
    jjitalex likes this.
  4. Giant415

    Giant415

    Joined:
    May 2017
    From:
    Sf
    Great article.
    Couple question??

    1. What is a destination tag in poloniex to send xrp to gatehub?

    2. I sent 1xrp to gatehub from poloniex to try it out but i never received it. Is that because there is a min xrp amount you must send to open the account? Or is it because i left the destination tag empty?
     
    evo likes this.
  5. evo

    evo Admin

    Joined:
    Apr 2017
    From:
    Seattle
    Crypto:
    BTC/ETH/XRP
    On Poloniex, when withdrawing XRP, you can leave the 'Destination Tag' field empty. This is an optional use feature of Ripple, and will not affect your withdrawal/transfer of XRP.

    A Ripple wallet address does not become activated/valid until it's received a minimum of 20 XRP. Ripple requires this 20 XRP to reserve your wallet address, and this is a one time requirement.

    Because Poloniex stores your XRP differently, I recommend one of two options to activate your Ripple wallet on Poloniex:

    The best method would be to send a small amount of BTC to Poloniex, convert your BTC to XRP, and as long as you have a minimum of 20 XRP, your Poloniex XRP wallet address will be valid and activated. From this point forward, you can send as much XRP to this address, and it will be credited appropriately.

    The least desirable method would be to send the first 20+ XRP from Gatehub to your Poloniex wallet address to have it activated. The problem here is you'll be required to open a Poloniex Support Ticket to have your account credited accordingly, and this will most likely take a few days, if not more given how overwhelmed their support channel is. These extra steps are because you're trying to send XRP to a wallet address that hasn't been activated, and you'll need some manual intervention. Support will set 20 XRP out of that deposit aside to reserve the address, and from that point forward, all XRP will show up when you send it there in the future. Given all the time this requires, this is why I recommend sending a small amount of BTC over from anywhere and converting/buying a minimum of 20 XRP for your Poloniex XRP wallet.

    Let me know if you have anymore questions, happy to help.
     
  6. Giant415

    Giant415

    Joined:
    May 2017
    From:
    Sf
    Thanks alot. I really appreciate the quick response.
     
    evo likes this.
  7. bigcountry415

    bigcountry415

    Joined:
    May 2017
    From:
    san francisco
    Awesome stuff! Now that I have successfully transferred my XRP to Gatehub from Polo. When the time is right, what do you recommend doing to cash out on your XRP's? Can I easily transfer my Gatehub wallet back to Polo then start the process in reverse until I cash out my BTC on Coinbase? Can you transfer Gatehub wallet to a USD bank account?

    Thanks for your time
     
    evo likes this.
  8. evo

    evo Admin

    Joined:
    Apr 2017
    From:
    Seattle
    Crypto:
    BTC/ETH/XRP
    Yes, you're correct. Reverse the steps, and use the same practice with sending from wallet to wallet:
    1. On Gatehub, send your XRP to your Poloniex wallet address. Your XRP wallet on Poloniex will stay activated because it was already reserved with the first 20 XRP you bought through it.
    2. On Poloniex, sell your XRP to BTC.
    3. On Poloniex, send your BTC to your Coinbase wallet address.
    4. On Coinbase, sell your BTC for USD, and choose withdrawal into your bank account.
    Yes, you could technically sell your XRP to BTC on Gatehub, but I recommend the extra step of sending it to Poloniex because Poloniex has significantly more volume, historically better prices on average compared to Gatehub, and while this is subjective, I personally feel the user interface for the Gatehub exchange XRP/BTC is horrible. The user experience on Poloniex has a better layout, is easier to discern, and provides a better transaction experience.

    Keep in mind that when the day comes to sell your XRP to BTC on Poloniex, you're still going to be limited to your daily withdrawal limits on Poloniex. If you haven't already, I strongly recommend you apply for Level 2 and Level 3 verification today, so it's one less thing to worry about when the time comes to sell your XRP. You don't want to have a significant position in Ripple, and then be bound by Level 1 on Poloniex where you can only withdraw $2,000 USD a day to your Coinbase.

    And yes, you could sell your crypto to USD within your Gatehub wallet, however Gatehub is a European based company and only connects with European banks. To get money in and out to US banks requires an international wire transfer. In my opinion, it's much easier to withdraw your USD through Coinbase and avoid having to deal with international wire transfers.

    Gatehub is the safest way to store Ripple for a hosted solution. Use it just for storing your Ripple, make your trades on Poloniex.

    If Coinbase adds Ripple to their digital currency wallet, I would move everything over to Coinbase, but that hasn't happened yet.

    And if you want more security for your Ripple, I recommend Rippex, which is the best solution for a desktop Ripple wallet.

    Hope that helps. If you need anything else, feel free to join the community, happy to have you here with us. Cheers!
     
    bigcountry415 likes this.
  9. omarluxe

    omarluxe

    Joined:
    May 2017
    From:
    belgium
    Hey, me again.
    I just bought some XRP's on Kraken.com and would like to store it in a gatehub Ripple wallet for a long period of time. 8 days ago I made an account on Gatehub (I've submitted all the required documents) and created 3 gateways ( XRP, EUR and USD) and it's still pending. I've already received 20 XRP from gatehub, and when I click on wallet< deposit/receive< RIPPLE I get the following message: "Use the following Ripple Address to deposit funds" and an Ripple adress/QR code. When I try the same steps but with EU BANK I get the message: "EUR Gateway is pending. You will be able to deposit once they approve you".
    When I click on Home, under My Gateways<Gatehub it says Pending... XRP, EU, USD. My wallet networth is 19,98 XRP (I don't know what happend with the 0,02 XRP).

    So my question to you is: Can I deposit all of my XRP from Kraken into Gatehub even if the gateways arent approved? Because I don't want to deposit my XRP in Gatehub and couple days later getting the message from Gatehub that I was not approved for some reason. What should I do? Deposit now or wait until the gateways are approved?

    Kind regards,
    Omarluxe

    PS: Thanks for answering my previous question, it was really useful for me.
     
  10. evo

    evo Admin

    Joined:
    Apr 2017
    From:
    Seattle
    Crypto:
    BTC/ETH/XRP
    Based on the factors you're describing:
    • Clicking Deposit Ripple shows your Ripple wallet address
    • Credited with the 20 XRP for wallet activation
    The verification is not mandatory if you're only storying crypto. The verification allows you to trade/exchange your crypto with fiat. This is true with both Gatehub and Coinbase.

    Yes, I would say you can safely proceed with sending your Ripple (XRP) fro Kraken to Gatehub.

    Click Wallet, Deposit/Receive, and for the Ripple will be your Ripple wallet address to send it over to.

    If you have any concerns, I would recommend sending a small amount from Kraken to Gatehub before sending the remaining balance. Send 20-50 XRP for your first transfer, to make sure it goes over successfully. And then you can safely send the rest of your XRP over after you've seen that small amount in Gatehub wallet.

    Hope that helps. Let me know how it goes, or if you have any other questions.

    If you need anything else, feel free to join the community, happy to have you here with us. Cheers!
     
  11. omarluxe

    omarluxe

    Joined:
    May 2017
    From:
    belgium
    hey,
    I am about to deposit the XRP into my Gatehub wallet, and after I click on Funding < withdraw < Ripple in kraken.com (Ripple XRP Withdrawal) I have to add a address. When I click Add Address I have to fill in the Description field (Unique description used to identify this address), Ripple Address (thats my gatehub ripple address, I figured that out) and the Destination Tag (Integer ID representing the recipient of the transaction).
    What is the Description and Destination Tag?

    Kind regards
    Omarluxe
     
  12. evo

    evo Admin

    Joined:
    Apr 2017
    From:
    Seattle
    Crypto:
    BTC/ETH/XRP
    For sending Ripple (XRP) from Kraken to Gatehub, you can leave the Description and Destination Tag field empty. This is an optional use feature of Ripple, and will not affect your withdrawal/transfer of XRP.

    The only thing that is important is the Ripple wallet address you're sending the XRP to, and the quantity/amount of XRP you're sending.
     
  13. solking

    solking

    Joined:
    Apr 2017
    From:
    California
    This is great info, thank you!
     
    evo likes this.
  14. NewToThis

    NewToThis

    Joined:
    Jun 2017
    From:
    US
    Awesome post, thanks for all the information! Quick question regarding Gatehub, are you familiar with whether BitStamp would be a suitable replacement for Gatehub in this situation since they take CC? I am new to this and wanted to know if there would be a way to bypass the the Coinbase stage, at least in the beginning, to avoid having to buy bitcoin and waiting 8 days, and CC seems quicker than a transfer to Gatehub initially.
     
  15. evo

    evo Admin

    Joined:
    Apr 2017
    From:
    Seattle
    Crypto:
    BTC/ETH/XRP
    Yes, you can use BitStamp for directly purchasing Ripple (XRP), but I would recommend moving your Ripple off BitStamp (exchange) and to Gatehub (hosted wallet) or Rippex (desktop wallet).

    I do not recommend storing your long term positions on the BitStamp exchange. Use BitStamp for buying BTC or XRP and then I would recommend immediately moving your crypto to a dedicated wallet.

    Let me know if you have anymore questions.
     

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