Ripple vs Stellar

Ripple (XRP) vs Stellar Lumens (XLM)

Considerations when deciding between Ripple and Stellar

Ripple was created in an attempt to solve international payments and to bring lower costs and faster transfers. Then Stellar was created in an attempt to solve Ripple.

Find out what the difference is, how they work and what to consider before buying one – or both.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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Ripple vs Stellar: How they work

Stellar was initially based on Ripple's system and had the aim of redesigning the global economy for more inclusiveness. But citing the complexity of the system, Stellar later redesigned itself with a brand new system of its own.

Both facilitate international payments but do so in very different ways.

How Ripple works

Banks and multinational corporations use Ripple to make international payments. This is done by transferring the XRP token through the Ripple network. The end result is liquidity on demand.

How Stellar works

Stellar lets individuals trade money directly with each other, using Lumens (XLM) as a medium and “anchors” to handle the fiat currency aspects.

For example

Let’s say Jim wants to send money from an Australian bank account to a German bank account, converting it to euros along the way. He wants to do it at the best rates possible.

With traditional money transfers

The money will be bumped between several banks on the way. It will frequently be converted from AUD to USD to EUR on the way. The entire process takes three to five days, incurs fees from each bank on the way and loses Jim money on all the exchange rates.

With Ripple

Jim could buy Ripple himself and send it to a wallet address overseas, but he doesn’t want to. Fortunately, his bank uses Ripple.

He makes a money transfer as usual. His bank sends Ripple directly to the bank of the recipient account. The payment is made at whatever exchange rates and fees the bank chooses to charge for this service.

If Jim is lucky, it has passed some of the savings onto him.

With Stellar

Jim signs onto the Stellar platform and sends money through it. It makes the transfer automatically.

First, it converts the AUD to euros, then it uses an anchor to transfer the euros to the recipient account.

An anchor is a Stellar partner that’s entrusted with actually transferring the funds. These are usually money transfer companies. Jim can choose his own anchor and shop around for the one he wants.

There are a few different ways Jim’s AUD might be converted into euros.

  • Peer to peer: It looks for people who want to trade euros for AUD and picks the best prices.
  • Via XLM: Lumens (XLM) are used to fill the gaps or make up the entire transfer if needed. For example, the Stellar platform might sell Lumens for euros through an existing order on the official Stellar exchange.
  • Chain of conversions: The platform can automatically perform a chain of conversions, such as AUD > NZD > CNY > USD > EUR if that’s what it takes.

Between these options, which are carried out automatically, and with XLM to fill in the gaps and grease the wheels, people can make efficient peer-to-peer money transfers or simply convert currency for their own purposes.

Where to buy XRP and XLM

Name Product Deposit methods Fiat Currencies Available Cryptocurrencies
Cash, BPAY, POLi, Cryptocurrency
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 60+ more
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.
Credit card, Debit card, SWIFT, SEPA, Cryptocurrency
USD, EUR, RUB, GBP
BTC, DASH, ETH, XRP, ZEC
Use your USD, EUR or RUB to buy and sell cryptocurrency at competitive exchange rates and with high maximums for verified accounts.
Bank transfer, POLi, Cash deposit* *Westpac Bank branches only
AUD, GBP, USD
BTC, BCH, ETH, LTC, XRP, NEO
HiveEx.com is a global over-the-counter (OTC) cryptocurrency brokerage specialising in high-volume trades of $10,000+.
Hive Empire Trading Pty Ltd is a related party of Hive Empire, which owns finder.com.au.
Cash, Electronic Funds Transfer, POLi
AUD
BTC, BCH, ETH, ETC, LTC, DASH, XMR, XRP, ANT, REP, BNT, BAT, BTS, BLK, CVC, CLAM, DCR, DGB, DGD, DOGE & 35+ more
Buy a variety of cryptocurrencies through an Australian exchange platform through POLi, Cash or Electronic Funds Transfer.
Cryptocurrency, Wire Transfer
New account holders must now deposit fiat/crypto equivalent to US$10,000 to trade.
USD, EUR
BTC, BCH, BTG, TRX, GNT, AVT, DASH, DATA, EDO, EOS, ETC, ETH, ETP, LTC, MIOTA, NEO, OMG, QTUM, SAN, USDT, XMR, XRP, ZEC, BAT, ZRX, FUN, MANA, SPANK, TNB, RLC, RCN, REP, ELF, AID, SNGLS, SNT, QASH, YOYO, MITH
Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.
Cryptocurrency, Bank transfer
JPY, USD, SGD, AUD, EUR, CNY, PHP, HKD, INR
BTC, ETH, QASH, XRP, BCH, NEO, UBTC, RKT, QTUM, BCH, DASH
A global exchange which offers users both cryptocurrency and fiat currency deposit options.
Cryptocurrency
-
BTC, BCH, DRG, UKG, ENJ, TRX, LDC, MGO, AMLT, EZT, LALA, IPSX, FLIXX, STU, 1WO, TPAY, ETH, WIN, LTC, SPHTX, RKT, UBTC, ETN, ECH, QASH, NEO, HAV, XRP, ETC, STAC, FLUZ, VZT, XEM, XLM, VET, BMC, ONG, FDX, XMR, DENT, MCO, IND, GAT, ZEC, CAN, STX, QTUM, OAX, IXT, STORJ, MTN, REP, FCT, DASH
Owned by the team behind QUOINEX, QRYPTOS is a global crypto-to-crypto platform which supports over 50 cryptocurrencies and offers negative trading maker fees to generate liquidity.
Credit card, Debit card, Cryptocurrency, Perfect Money, SEPA, Wire Transfer, Payza, CryptoCapital, Money Polo, Payeer, Giropay, Yandex Money & more
USD, EUR, RUB, PLN, UAH
BTC, BCH, ETH, ETC, XRP, KICK, DASH, WAVES, ZEC, XMR, LTC, DOGE, USDT
A UK-based cryptocurrency platform that provides buyers with a wide variety of payment options.
Credit card, Debit card
USD, EUR
BTC, BCH, ETH, XMR, ZEC, DASH, XRP, ETC, LTC, DOGE, XLM,1ST, ADX, AMP, ANT, BAT, BCN, BNT, BTG, CFI, CVC & 70+ more
Access competitive crypto-to-crypto exchange rates for more than 35 cryptocurrencies on this global exchange.
Wire Transfer, Cryptocurrency, Express Polish Post Office 24/7, Express ?abka Market, Express DotPay
USD, EUR, PLN
BTC, BCC, BTG, LTC, ETH, LSK, GAME, DASH, KZC, XRP, XIN
This Polish-based exchange offers a variety of accessible payment methods, including Express Polish Post Office 24/7 service and Express DotPay.
Electronic Funds Transfer, SEPA, Wire Transfer *payment methods vary per country
USD, EUR, GBP, JPY, CAD
BTC, BCH, ETH, ETC, XMR, DASH, LTC, XRP, XLM, REP, ICN, MLN, ZEC, USDT, GNO, EOS
Exchange multiple cryptocurrencies through a range of payment methods, including Electronic Funds Transfer, SEPA or Wire Transfer.
Cryptocurrency
-
BTC, ETH, XVG, SC, XRP, DOGE, STRAT, XMR, ADA, OMG, ETC, BCC, XLM, DGB, UKG, QTUM, ZCL, RDD, LTC, NEO & 120+ more
Buy from one of the largest crypto to crypto exchanges with a selection of over 190+ cryptocurrencies.
Cryptocurrency
-
BTC, ETH, XRP, DOGE, XLM, ETC, STRAT, LTC, SC, DGB, BCH, LSK, XMR & 50 more
Trade various coins through a global crypto to crypto exchange based in the US.
Debit card, Credit card, Cryptocurrency, SEPA, Wire transfer, AstroPay
USD, EUR
BTC, BCH, LTC, ETH, XRP
A global cryptocurrency exchange that facilitates crypto to fiat transactions, where you can use EUR or USD to buy bitcoin and popular altcoins.
Bank transfer, BPAY, POLi
AUD
BTC, BCH, ETH, ETC, LTC, XRP
Browse the various coin offerings of this Australian based exchange, where coins can be purchased through AUD, LTC and BTC currencies.
Cryptocurrency
-
BTC, BCH, BTG, ETH, ETC, FUN, 1ST, ANT, BAT, BNT, BLK, CVC, CLAM, DASH, DCR, DGB, DNT, DOGE, EDG, EOS, FCT, GAME & 25+ more
A global exchange where no account is needed to begin trading cryptocurrency to cryptocurrency.

Compare up to 4 providers

Name Product Deposit methods Fiat Currencies Available Cryptocurrencies
Cash, BPAY, POLi, Cryptocurrency
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 60+ more
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.
Cryptocurrency
-
XLM, BTC, BCH, USDT, OMG, ZRX, KIN, MOBI & more
Stellarport taps into the Stellar Decentralised Exchange to provide buyers and sellers with access to XLM and various other cryptocurrencies.
Credit card, Debit card
USD, EUR, RUB
BTC, BTG, BURST, BYC, CANN, CFI, CLAM, CLOAK, CLUB, COVAL, CPC, CRB, CRW, CURE, CVC, DASH, DCR, DCT, DGB, DMD, DNT, DOGE, DOPE & 140+ more
Use your credit or debit card to buy bitcoin and other cryptocurrency without having to verify your identity.
Cryptocurrency
-
BTC, BCH, DRG, UKG, ENJ, TRX, LDC, MGO, AMLT, EZT, LALA, IPSX, FLIXX, STU, 1WO, TPAY, ETH, WIN, LTC, SPHTX, RKT, UBTC, ETN, ECH, QASH, NEO, HAV, XRP, ETC, STAC, FLUZ, VZT, XEM, XLM, VET, BMC, ONG, FDX, XMR, DENT, MCO, IND, GAT, ZEC, CAN, STX, QTUM, OAX, IXT, STORJ, MTN, REP, FCT, DASH
Owned by the team behind QUOINEX, QRYPTOS is a global crypto-to-crypto platform which supports over 50 cryptocurrencies and offers negative trading maker fees to generate liquidity.
Cryptocurrency, Wire Transfer
New account holders must now deposit fiat/crypto equivalent to US$10,000 to trade.
USD, EUR
BTC, BCH, BTG, TRX, GNT, AVT, DASH, DATA, EDO, EOS, ETC, ETH, ETP, LTC, MIOTA, NEO, OMG, QTUM, SAN, USDT, XMR, XRP, ZEC, BAT, ZRX, FUN, MANA, SPANK, TNB, RLC, RCN, REP, ELF, AID, SNGLS, SNT, QASH, YOYO, MITH
Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.
Credit card, Debit card
USD, EUR
BTC, BCH, ETH, XMR, ZEC, DASH, XRP, ETC, LTC, DOGE, XLM,1ST, ADX, AMP, ANT, BAT, BCN, BNT, BTG, CFI, CVC & 70+ more
Access competitive crypto-to-crypto exchange rates for more than 35 cryptocurrencies on this global exchange.
Electronic Funds Transfer, SEPA, Wire Transfer *payment methods vary per country
USD, EUR, GBP, JPY, CAD
BTC, BCH, ETH, ETC, XMR, DASH, LTC, XRP, XLM, REP, ICN, MLN, ZEC, USDT, GNO, EOS
Exchange multiple cryptocurrencies through a range of payment methods, including Electronic Funds Transfer, SEPA or Wire Transfer.
Cryptocurrency
-
BTC, ETH, XVG, SC, XRP, DOGE, STRAT, XMR, ADA, OMG, ETC, BCC, XLM, DGB, UKG, QTUM, ZCL, RDD, LTC, NEO & 120+ more
Buy from one of the largest crypto to crypto exchanges with a selection of over 190+ cryptocurrencies.
Cryptocurrency
-
BTC, ETH, XRP, DOGE, XLM, ETC, STRAT, LTC, SC, DGB, BCH, LSK, XMR & 50 more
Trade various coins through a global crypto to crypto exchange based in the US.

Compare up to 4 providers

Is Ripple or Stellar better?

Neither is inherently better or worse than the other and despite having the same functions, each was built for different purposes.

  • Ripple. Allows multinational companies and banks to quickly make cost-effective international transfers and currency conversions, plus access a range of extra features. Ripple is a privately owned blockchain company that provides its services to other companies.
  • Stellar. Allows individuals to make more cost-effective money transfers and currency transfers. Stellar itself is a nonprofit organisation with the goal of enabling a more inclusive global payment system.

Prices: Ripple vs Stellar Lumens

Ripple

1
0
Updated: 26 May 2018 12:15:32 UTC

Stellar

1
0
Updated: 26 May 2018 12:15:33 UTC

Which is the better holding?

When deciding which cryptocurrency to hold, you will need to take into account a number of considerations.

For example, both Ripple and Stellar saw dramatic price increases at the end of 2017, and their values have tended to mirror each other. This may suggest that many people are holding both rather than picking just one or the other.

Another consideration is the fact that Ripple has partnered with a lot of high-profile banks, including the Big Four in Australia, so there’s a lot of money behind it. It also offers a range of features that Stellar can’t match, including smart contract functionality.

On the other hand, you will also need to take into account the possibility of Stellar getting enough users and anchors that it could feasibly let people exchange currencies seamlessly and much cheaper than with Ripple.

Also, technology has increasingly moved towards decentralisation, and you will need to decide if Stellar is ahead of Ripple in that respect and if it matters.

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