Ripple IRAs, An Alternative Retirement Investment

When most investors hear “cryptocurrencies,” they think “Bitcoin.” But, there are other digital currencies, each with its own token, exchange method and support technology.

Ripple IRAs are self-directed individual retirement accounts that use the Ripple digital currency. With this account, you can purchase an asset other than the stocks, bonds and mutual funds, which are the options normally offered in a conventional IRA.  You can purchase XRP for your BitIRA tax-advantaged retirement account.  Request a free info kit to learn more about long-term investing with XRP and other cryptocurrencies.

What Is Ripple and XRP?

Ripple is the umbrella term that people (sometimes incorrectly) use to describe a payment method, a technology and a digital currency. Using the same word to describe a variety of concepts can certainly get confusing, so let’s take a look at some specific definitions:

  • Ripple is a payment network that uses a digital currency to send money around the world. The network is designed to speed up money transfer and cut the costs of financial transactions. This totally electronic transfer uses a public database that enables users to make payments and exchanges with a specified process.
  • Ripple is also a company, which builds and promotes products based on Ripple’s technology. (Ripple Labs, Inc.)
  • Ripple’s technology enables transactions on the Ripple network. The technology includes distributed open source software, a ledger and a cryptocurrency.
  • XRP is a cryptocurrency. Also known as the Ripple coin or token, XRP is used for payment, remittance and currency exchange in the Ripple network.  Ripple and XRP may be used interchangeably when referring to the token (though XRP is the correct term).

Different than Bitcoin

All of these positive innovations may induce investors to buy and hold XRP as a long-term asset in their IRA accounts. Though Ripple IRAs are currently not available at BitIRA, they may be offered in the future.

  • They have different users and uses.
    Bitcoin is used by individuals and organizations as virtual currency. Ripple is used to transfer and exchange currencies by banks and other financial institutions.
  • They have different ways of exchanging currency.
    Unlike Bitcoin, the Ripple currency exchange network completes exchanges without a third party. Fewer parties translate into simpler, faster, and cheaper transactions.
  • They use different methods to complete and validate transactions.
    Ripple completes these tasks more quickly than Bitcoin—to the tune of four seconds versus five minutes.
  • Ripples software supports automated scripts.
    Ripple’s software can set up complex transaction scenarios and process them automatically. This approach eliminates delays of running the transfers manually. The result: faster, lower cost-transactions for Ripple customers.

There are many differences between Bitcoin and XRP. But, if you are comparing XRP and Bitcoin investments, you need to know that:

Don’t wait for the future – create your digital IRA today

With BitIRA, you can invest for your retirement through tax-advantaged retirement accounts funded with cryptocurrency, including XRP.  If you’re a fan of Ripple or want to jump on the XRP train as it’s leaving the station, get started with a BitIRA cryptocurrency retirement account today.

BitIRA can diversify your retirement portfolio with XRP as well as other other crypto tokens, including Bitcoin, Ethereum and Litecoin. You can request a free cryptocurrency IRA info kit here. If you have questions about investing in cryptocurrencies for your retirement or qualifying for IRA-based tax deferrals, contact us today at (800) 299-1567 to get started.