Exchanging Ripple (XRP) for Bitcoin
Ripple to Bitcoin exchange options
While for Ripple, it is possible to find only one direction in the BestChange exchange table, for Bitcoin, there is an option to send and receive in 4 different networks, namely:
- Bitcoin's main network;
- Lightning Network (LN);
- Ethereum (ERC-20 wrapped token Wrapped BTC or WBTC);
- BNB Smart Chain or BSC (BEP-20 wrapped BTCB token);
Each network has its characteristics. In the leading network, Bitcoin is used for transfers and payment of network fees. However, Bitcoin is one of the most expensive networks in terms of fees, so the core network is best used for storing or transferring large sums of money.
The LN allows for almost instantaneous and free transactions, making it suitable for transfers of small amounts and often used for Bitcoin payments.
In the Ethereum and BSC networks, bitcoin exists as a wrapped token that is only linked to the exchange rate of the original BTC cryptocurrency and is not used to pay fees. However, wrapped Bitcoin tokens are suitable for many transactions on the DeFi market, so their owners can leverage the assets to generate additional income, which is not available on the Bitcoin blockchain itself.
The procedure for exchanging Ripple for Bitcoin is as follows
1. Selecting a suitable exchanger
On the left side of the BestChange exchange table, you must choose the asset the user wants to sell (XRP) to select an exchanger.
Then, on the right side, you must select the asset to receive depending on the user's required blockchain network (Bitcoin, LN, Ethereum, or BNB Smart Chain). If the user has selected the direction of exchange, the BestChange website will display the entire list of relevant exchange services currently available.
The user must select the exchange platform that fits his/her criteria and go to its website to complete the application.
2. Application for exchange
The second stage is the formation of the application. The site of the exchange platform will display the application form, which must be filled out to start the transaction. In the application form, the user must enter the desired exchange amount and bitcoin address to receive the cryptocurrency and e-mail (it will receive a check on a successful transaction).
The Bitcoin wallet address must be specified according to the chosen exchange option. In the Ethereum and BNB Chain networks, the addresses will be the same, but in the original Bitcoin blockchain, there are four different types of BTC addresses:
- Legacy (P2PKH) — obsolete Bitcoin addresses, which are now infrequently used because transfers through them have the highest fees and faster transaction processing speeds;
- Script or SegWit (P2SH) — an improved format of Legacy addresses. SegWit addresses start with the number "3"; they are good because they allow to save on commissions;
- Native SegWit or Bech32 (P2WPKH) is another new type of Bitcoin address that reduces costs and increases transaction processing speed. Native SegWit addresses begin with the characters "bc1q";
- Taproot (P2TR) is the newest Bitcoin address type, and it allows for increased transaction privacy. Taproot addresses start with the character "bc1p."
It is worth noting that the user can specify any of these addresses, but some exchangers have not yet sent Bitcoin cryptocurrency to Taproot addresses. Therefore, it is preferable to use SegWit and Native SegWit type addresses.
After submitting the exchange request form, you should wait for the exchanger to confirm it.
3. Sending XRP
After the exchanger accepts the application, the user will be sent a wallet address for Ripple transfer. The customer must transfer the required amount of XRP cryptocurrency specified in the details provided by the exchanger and confirm the sending of the cryptocurrency (if it does not happen automatically).
The exchanger needs to confirm the user's acceptance of Ripple cryptocurrency. The transactions themselves are confirmed quite quickly, but the processing time will depend on the specific exchanger and its mode of operation: manual, automatic, or semi-automatic.
4. Receiving BTC
After the required amount of Ripple cryptocurrency is received by the exchanger's wallet, the platform will transfer bitcoins to the user's wallet address. Transactions are fast on the Lightning Network, Ethereum, and BNB Chain. The Ethereum blockchain may experience some delays when there is a heavy load on the network.
On the main Bitcoin network, transactions are confirmed within 30 minutes and sometimes up to two hours. This may depend on the size of the commission set by the exchanger. By the way, some exchangers allow users to choose their commission for sending cryptocurrency in Bitcoin and Ethereum blockchains.
