XRP Wallet: Everything to Know

By  Beluga Research September 21, 2023

Image for XRP Wallet: Everything to Know


  • An XRP wallet is a digital tool for securely storing and managing XRP, a cryptocurrency used on the Ripple network, enabling easy transactions
  • XRP, created by Ripple Labs, is a cryptocurrency that enables fast and low-cost cross-border transactions through the XRP Ledger
  • There are different types of XRP wallets, including software wallets, hardware wallets and web wallets, each with unique characteristics and security features
  • XRP wallets provide advantages like high-level security and easy accessibility but also face concerns such as dependency on Ripple and limited adoption


An XRP wallet is a digital tool for securely storing and managing XRP, a cryptocurrency used on the Ripple network, enabling easy transactions. XRP wallets are essential tools for anyone interested in using, trading or holding XRP. They come in various forms, and each type offers different levels of security and accessibility. XRP wallets enable users to send XRP to others by specifying the recipient's XRP address, view XRP balances and monitor transaction history. They may also support additional features, such as multi-signature functionality for added security or integration with decentralized exchange (DEX).

A Brief History

XRP, often referred to as "Ripple," was created in 2012 by Jed McCaleb and Chris Larsen. Initially, it was intended to serve as a digital asset within a system that aimed to enable fast and cost-effective cross-border payments. In 2013, McCaleb and Larsen co-founded Ripple Labs (now known as "Ripple") to further develop and promote the use of XRP and blockchain technology for global financial transactions.

Over the years, XRP and Ripple Labs have faced regulatory challenges, including legal actions by the U.S. Securities and Exchange Commission (U.S. SEC) in 2020, which alleged that XRP was an unregistered security. This legal dispute has had a significant impact on the development and use of XRP. Despite the legal challenges, Ripple Labs continues to work on blockchain-based solutions for the financial industry, while the status of XRP remains subject to regulatory decisions in different jurisdictions.

XRP Wallet: Everything to Know

XRP wallets come in different types, each with unique characteristics and security features:

  • Software Wallets . Available as desktop, mobile or web-based wallets, software wallets offer convenience and accessibility. However, they are more vulnerable to hacking and malware if security measures are neglected.
  • Hardware Wallets . These physical devices store cryptocurrencies offline, providing enhanced security by keeping private keys away from online threats. They are among the most secure options for storing XRP and other cryptocurrencies.
  • Paper Wallets . Paper wallets involve generating physical copies of the wallet's public and private keys on paper. They offer offline storage, reducing the risk of online attacks. However, caution is required to prevent damage, loss or theft.

When selecting an XRP wallet, users should prioritize the following factors:

  • Security . It is important for users to look for wallets with robust security features like strong encryption, two-factor authentication (2FA) and secure key storage.
  • Ease of Use . Users should also consider the user-friendliness of the wallet interface, ensuring that it caters to both beginners and experienced users.
  • Compatibility . Users should choose a wallet compatible with preferred devices and operating systems.
  • Reputation and Trustworthiness . It is also advisable for users to research the wallet provider's reputation and track record in the cryptocurrency community.
  • Additional Features . Some wallets offer built-in exchange services or integration with decentralized applications (dapps). Users should consider these features based on individual needs and preferences.

Getting Started

To begin with XRP, a user must first set up an XRP wallet. XRP wallets store tokens securely on the blockchain. There are different types of XRP wallets, each with distinct features and security levels.

One option is a software wallet, which can be installed on the user's computer or smartphone. Software wallets provide convenient access to XRP and come in desktop and mobile versions. Desktop wallets offer robust security, while mobile wallets are designed for on-the-go management.

Another type of wallet available is a hardware wallet, a physical device that resembles a USB drive. Hardware wallets provide an extra layer of security by keeping private keys offline, protecting user funds from online threats.

Web wallets, or "online wallets," are accessible through a web browser. They are often provided by exchanges or third-party service providers. However, while web wallets offer convenience, they are generally less secure than software or hardware wallets.

Unique Aspects

  • Minimum Balance. XRP wallets have unique aspects that differentiate them from wallets of other cryptocurrencies. One aspect is the requirement of a minimum balance of twenty XRP to activate and maintain the wallet. This prevents spam and ensures the integrity of the XRP ledger.
  • Destination Tag. XRP wallets support the creation of a "destination tag" when sending XRP. A destination tag is a unique identifier that ensures that XRP is correctly associated with a user's account on the recipient's platform. This is important for sending XRP to exchanges and prevents potential loss of funds.
  • Fresh Address Creation. XRP wallets also allow users to generate a new address for each transaction, enhancing privacy and security. Using a new address for each transaction makes it difficult to link multiple transactions to a single wallet address, minimizing the risk of transaction history analysis.


  • Security . XRP wallets provide high-level security by encrypting private keys, which are necessary for accessing and managing XRP funds. Keeping private keys offline or in a hardware wallet reduces the risk of hacking or phishing attacks.
  • Accessibility . XRP wallets offer easy access to funds anytime, anywhere. Whether the wallet is a software wallet on a computer or a mobile wallet on a smartphone, users can conveniently manage XRP holdings on the go.
  • Transaction Speed . As a digital asset, XRP is known for fast transaction speeds, and XRP wallets further enhance this advantage. With an XRP wallet, users can send and receive XRP tokens within seconds, enabling swift and efficient transactions.
  • Low Transaction Fees . XRP wallets have low transaction fees compared to traditional banking systems or some other cryptocurrencies. This cost-effectiveness makes XRP wallets attractive, especially for cross-border transfers.
  • Interoperability . XRP wallets can easily integrate with various cryptocurrency exchanges and platforms, allowing seamless transfers between XRP and other cryptocurrencies. This enhances the flexibility and versatility of XRP holdings for investment and trading opportunities.


  • Centralized Control . XRP is criticized for centralized control by Ripple, the company behind XRP's development, which raises concerns about Ripple's potential influence over the XRP network. While XRP wallets themselves do not contribute to this centralization, usage of these wallets supports the overall ecosystem.
  • Dependency on Ripple . XRP wallets rely on Ripple's infrastructure, so any issues or disruptions with Ripple's services can impact the functionality of XRP wallets. This introduces a level of reliance on Ripple's stability and availability, which may concern those seeking a more decentralized approach to cryptocurrency storage.
  • Regulatory Uncertainty . The regulatory landscape for cryptocurrencies, including XRP, remains uncertain in many jurisdictions. This lack of clarity poses potential risks and challenges for users of XRP wallets. Regulatory actions or restrictions on XRP could affect the accessibility and functionality of XRP wallets, creating uncertainty for users.
  • Limited Adoption . While XRP has gained traction in certain areas, adoption is not as widespread as some other cryptocurrencies. This limited adoption may affect the availability and acceptance of XRP wallets in various services and platforms. Users may find it challenging to locate merchants or exchanges that support XRP, restricting the usability of XRP holdings.
  • Perception and Reputation . XRP has faced criticism and skepticism within the cryptocurrency community, questioning the use case and relationship with traditional financial institutions. This perception and reputation may influence the acceptance and popularity of XRP wallets, potentially affecting long-term viability.