Ripple wallet or XRP wallet is an app or a device, which purpose is to safely store users' XRP private and public keys. Private keys are needed to sign a transaction (sending your crypto assets from one wallet to another wallet or a platform), while public keys represent your wallet on the blockchain. In other words, a public key is your wallet address. So, in essence, an XRP wallet is a device or an app that allows you to send, receive and store XRP, by giving you access to private keys and public keys. This goes for any crypto wallet, as a matter of fact, not just Ripple wallets. There are many different types of XRP wallets, and each of them has its pros and cons. There are web wallets, desktop wallets, mobile wallets, hardware wallets, software wallets, and paper wallets, it makes your head spin!
The Atomic Wallet team is very happy to provide a software wallet with a smooth and secure way to manage, exchange, and buy XRP with your bank card.
Before diving into more details about the best Ripple wallets, let us first take a closer look at Ripple (XRP) itself and see what it's all about.
We bet you've heard about XRP, one of the major players in the cryptocurrency world. XRP is the world's 3rd largest crypto that fuels XRP Ledger's ecosystem.
Ripple is a disruptive payment system aiming to change the way we interact with money. XRP provides fast and secure transactions between peers. XRP becomes more and more popular among millions of users, from individuals to banks; it is one of the most appealing cryptocurrencies on the market. XRP has been recently rebranded as a platform standing separately from Ripple which now solely functions as a technology provider. All transactions in the XRP Ledger are powered by the XRP coin.
Originally called Ripplepay, XRP was created in 2004 by Ryan Fugger. The initial idea was to create an alternative distributed monetary system, enabling individuals and enterprises to create their own currencies. In turn, this concept gave birth to another principle: unlike Bitcoin, Ripple was designed as a payment system that doesn't rely on blockchain ledgers and centralized trading platforms.
Later, Fudger joined a team of professionals: Arthur Britto, David Schwartz, Jed McCaleb, and Chris Larsen. Together, the team decided to work on a new project and create the cryptocurrency 'XRP' to create a bridge between different types of currencies and make almost immediate transactions.
Since 2014, XRP focuses on the banking market and aims to disrupt the traditional payment system. The Ripple protocol was adopted by a range of financial institutions, including Fidor Bank, Cross River Bank, and Kansas-based CBW Bank. In 2018, the Earthport payment service started working in combination with Ripple, as well.
XRP is designed to be a mediator during the exchange processes in both cryptocurrencies and regular (fiat) money. For example, if you want to exchange EUR for USD, Ripple becomes both EUR and USD. On the Ledger, such a transaction costs $0.00001, and this amount is non-replenishable, i.e. with every single transaction made, the world loses $0.00001. For that reason, spamming becomes senseless. XRP is one of the fastest and more scalable blockchains on the market nowadays that may become a competitor to Visa or Mastercard in terms of the TPS (transactions per second).
XRP runs a consensus of network validator, which allows handling over 1,500 transactions per second. The consensus enables applications to get relevant information on the content state by sharing a worldwide ledger, which is generated several times per minute. Once accepted and validated, the content gets encrypted in a ledger and never changes. The whole sequence of validated ledgers is called ledger history.
Now that we've got that covered, let's talk about the different types of XRP wallets out there.
A hardware wallet is a physical device allowing you to store your crypto assets' private keys offline, separate from the gadget that is constantly online.
A hardware wallet (also known as a cold wallet) provides its users with an additional level of security when compared to other crypto wallets, because of its very nature. To sign XRP transactions and send funds to someone else's XRP wallet, you need to connect the hardware wallet to your device smartphone, or computer. Even when a hardware wallet is connected, your private keys are safe, since all the work is done solely inside the device. If a hardware wallet is stolen from its owner, thieves won’t be able to use it, since it’s reliably protected by a PIN code.
It may not be the most convenient solution for everyday usage since you need to connect it whenever the crypto assets should be sent. Moreover, if you care about your crypto and follow the simple rules of security, your funds will be safe even in a software wallet that doesn't provide the additional layer of protection that Ledger Nano and hardware wallets in general offer.
While there are many pros when it comes to the security of hardware wallets, it should be mentioned, that the devices themselves are not cheap. The price of Ledger Nano, for example, starts at $80 and may deter some users who are looking for a free Ripple wallet.
Keep in mind, that a device might also simply be lost, along with all of the funds. Since the keys are stored on the device, without them, there is no way to access your funds, unless you've made a backup of all your private keys.
Ledger Nano is considered to be the best hardware wallet with Trezor and KeepKey being other popular existing hardware solutions.
Overall, hardware wallets are considered the best option for storing XRP long-term. If you intend to use your XRP wallet every once in a while and don't have to send out your funds too often, this type of crypto wallet will definitely suit you.
Web wallets (or hot wallets) are another popular option for storing and managing XRP tokens. Web wallets are accessible as an extension for your browser, or via a separate website. In comparison to software wallets, you don't need to install any additional apps to get a functioning XRP wallet.
A web version of an XRP wallet is easy to use since they don't require you to download anything on your PC or mobile device, like other Ripple wallets.
This type of wallet works best for quick, regular transactions, and situations when you don't have time or a chance to use the hardware wallet.
A web wallet is considerably easier to hack since all of your data is stored on the side of the wallet itself or the browser. The only thing keeping your XRP wallet safe from theft is the strength of your XRP wallet password and/or two-factor authentication. Keep in mind, that some of the hot wallets are custodial wallets, meaning you don't even get direct access to your private keys. So in an event such as your XRP wallet getting hacked, your private keys may be stolen, at which point, even the password won't save you.
A desktop wallet is a type of software wallet that you, as the name suggests, download and install on your computer.
It strikes something of a balance between a hot and a cold wallet. Your sensitive data, especially private keys, are not stored on a server of a third party but instead stored directly on your device. So, technically, if your desktop is not connected to the Internet, it becomes a hardware wallet!
But of course, that's not how most of us use a desktop computer. Since your computer is constantly connected to the Internet (and a software wallet needs that connection to work), there is a risk of a virus or a targeted attack on your computer that may steal the data and, by extension, your funds.
Still, if your desktop remains offline and you only plug it in from time to time to send out your funds, it can be extremely safe.
As stated above, if your computer is online 24/7 it becomes much closer to a hot wallet, when it comes to safety. Also, it's not the most convenient option if you have to send out a crypto payment on the go, since the device is stationary (however, laptops still exist, but more on that later).
Also, keep in mind, that if your computer or a hard drive storing your keys dies, it is nigh impossible to recover your funds, unless you've made backups and stored them separately.