In recent years, cryptocurrencies have become immensely popular. Initially, the wild speculations and forecasts for cryptocurrencies discouraged many people from investing in them. However, the 2017 bullish trends in the cryptocurrency market convinced many people about the benefits of investing in these currencies. 

Moreover, 2020 and 2021 saw yet another spike in cryptocurrency prices. As a result, people have become intensely interested in these highly volatile currencies.

With the rising interest of the people, the number of hackers and scammers is also going up. Since cryptocurrency is a purely digital asset, it is easy to hack into the system and mishandle it. Furthermore, most newbies have trouble operating their crypto wallets, so it is easy for hackers to do their tasks. 

Although cryptocurrencies are incredibly safe to use because it is difficult to hack them, it is not impossible to do so. A minor slip on the part of the cryptocurrency holder is enough to help the hackers.

Ripple, being a cryptocurrency, needs to be stored in a crypto wallet. It is similar to a physical wallet and can be stored digitally, like in phones and laptops, or even physically, like hardware wallets. 

1

What Is a Ripple Wallet and How to Set It Up?

A Ripple Wallet is a cryptocurrency wallet that allows you to store XRP. You can also receive or send your cryptocurrency via your wallet address. The function is very similar to a physical wallet.

Cryptocurrencies use blockchain technology, which means the transaction and balance details are stored in blocks. Crypto wallets provide you with the addresses for these blocks (in cryptographic data form). You can transfer your funds to other wallet addresses, thus successfully conducting cryptocurrency transactions.

To set up your Ripple wallet, follow these steps:

  1. Decide on the type of crypto wallet to store your XRP cryptocurrency. The different types of wallets are discussed below to help you decide.
  2. Once you have decided, buy (physical wallets) or download (mobile wallet or desktop wallets) the wallet of your choice.
  3. Set up your wallet by following the instructions. Set up your account and security features like pin code and password.
  4. Deposit or trade XRP directly into your wallet.
2

The Difference Between Hot and Cold Wallets

When deciding among crypto wallets, you might have come across the terms “hot” and “cold” wallets. Let us understand what these terms mean.

Hot wallet

Hot wallets are crypto wallets connected to the internet. So mobile wallets, desktop wallets, web-based wallets are all hot wallets. Since these are connected to the internet, they are prone to online hacking. But hot wallets are easy to use.

You can use hot wallets to conduct transactions using various cryptocurrencies, in this case, XRP. It is impossible to perform crypto transactions without a hot wallet. So, to protect your cryptocurrency from hackers, you should not keep large amounts of XRP in your hot wallet at a given time.

Cold wallet

Cold wallets are not connected to the internet. It is a highly secure wallet since it is impossible to hack into. But the lack of internet connectivity makes it very difficult to conduct transactions.

To use your XRP, you need to connect your cold wallet to a desktop or laptop and transfer your funds to a hot wallet. So, while cold wallets are undoubtedly safe (it is difficult to hack into them even when they are plugged into a device), they are inconvenient.

3

Different Types of Ripple Wallets Available

When choosing a wallet for Ripple, there is a long list of options to pick from. Listed below are the different types of wallets available:

Digital wallet

Digital wallets come in the form of an app or software and can be downloaded on your devices, like mobiles, PCs or laptops. These wallets allow you to trade, receive and send your cryptocurrency, which functions similarly to a bank account.

Some popular digital Ripple wallets include Abbra wallet, Trust wallet, Binance, CoinBase, etc.

Hardware wallet

These are physical wallets for storing your cryptocurrency and are built like USB devices. You can plug in these wallets to your devices and conduct transactions using your Ripple balance.

In addition, these wallets reduce the risk of hacking as they are not connected to the internet all the time. Popular Ripple hardware wallets include the Ledger Nano series.

Paper wallet

This is the simplest and cheapest type of Ripple wallet. You write down the keys to your XRP manually on a piece of paper and keep it in a safe place to avoid any unwanted mishaps. You could also use a private key generator to get a private key.

Many open-source programs allow you to print your paper wallet. These wallets usually have a QR code, a private key and a public key. While this does keep your cryptocurrency safe from hacking, it is wildly inconvenient because conducting transactions becomes a hassle.

4

What's the Best Wallet for Safe Storage?

There is no ‘best wallet’ when storing your XRP. You can use any wallet of your choice. However, to ensure the safety of your currency, you should adopt some safety practices like using a secure network for conducting transactions. Change your password frequently, and do not share your wallet details with others. 

FAQ

What are Ripple wallets?

Ripple wallets are cryptocurrency wallets where you can store your Ripple coins for further use. You can also use your Ripple wallet to conduct XRP transactions.

What are the various types of Ripple wallets?

There is a wide range of Ripple Wallets that you can use, like digital wallets, offline wallets, paper wallets or hardware wallets.

Are cold wallets better than hot wallets?

Cold wallets are not connected to the internet and are impossible to hack into. But security reasons aside, it is very inconvenient to use. 

How to set up a Ripple wallet?

Once you have selected the Ripple wallet of your choice, you have to set up your account and furnish the security details to finish setting up your wallet.

What are hardware wallets?

Hardware wallets are physical cryptocurrency wallets. They resemble USB devices, where your blockchain addresses are saved.

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