Ripple has made it mandatory to maintain a minimum balance of 20 XRP. In other words, users must deposit and maintain a 20 XRP balance to gain access to the Ripple ledger. Some other cryptocurrencies like Stellar (XLM), for example, require to maintain a minimum balance too. The concept of a minimum balance is not new to the financial sphere, as traditional banks also require their clients to maintain a minimum in their bank accounts. While this requirement may seem confusing, this article will shed some light on the topic.
Why Has Ripple Enforced the Requirement of Maintaining 20 XRP?
There is a good reason for the minimum balance requirement, as it prevents hackers and other people with dubious intentions from creating fake accounts on the Ripple network. The lack of sham accounts keeps the network spam-free. It prevents the blockchain network from being overloaded, ensuring the inclusion of only genuine wallets. While the rule that users cannot withdraw the last 20 XRP tokens from their account remains in force today, it may change in the future at the behest of Ripple’s management. This is one of the benefits of a network controlled by a private organization — it can adapt certain features of its technology as the needs of the market evolve.
How to Activate a Ripple Account?
The process for activating and using a new address is quite straightforward on the Ripple network. Initially, a user must transfer 20 tokens to their new XRP wallet address to activate it. As soon as there are at least 20 tokens to their newly created address, their account will be automatically activated – it’s that simple.
You can purchase XRP from many crypto platforms. However, we suggest that you opt for a decentralized exchange like ChangeNOW. ChangeNOW’s exchange platform doesn’t require users to sign up or provide any other personal information. In addition, the platform does not control your funds at any point during a transaction.
Features of Account Activation
A user can spend their tokens in the same way that they use other cryptocurrencies such as Ethereum, Litecoin, and others. Transactions with XRP are currently available on 1000+ services and products, almost 50% of which are merchants. However, an XRP wallet user will need a distinct application or a payment card to convert their tokens into fiat currency. Several cards support XRP, such as Revolut and Uphold. XRP, such as Revolut and Uphold.
After a user funds their new wallet with a minimum of 20 tokens, they will be able to send and receive tokens directly from their wallets. But they must always remember to maintain a minimum balance of 20 XRPs to keep their wallet active.