How to Store Ripple with Toast Wallet
Ripple has quickly become one of the most popular cryptocurrencies on the market. Ripple was created to help banks exchange currencies and remit payments almost instantaneously and for very small fees. Compared to today’s traditional banking system in which a wire transfer can take days to go through and has a high cost, Ripple is light years ahead.
One of the questions we’re often asked is how do we safetly store Ripple online? While we believe the best Ripple wallet is always a hardware wallet, there a few software wallets we use as well.
Currently the only way to buy Ripple is through trading on an exchange. The problem with exchanges is they’re not the best place to store your coins over the long term. Exchanges can be hacked or simply shutdown leading to a loss of your coins. So the best way to keep your Ripple safe is to store it in your own private wallet.
In this guide, we will show you step by step instructions how to store your XRP using a well known and popular wallet called Toast.
What is a cryptocurrency wallet?
A cryptocurrency wallet is a tool that stores your private keys that allow you to access your wallet on the blockchain. They also act as a personal ledger of all transactions made from that wallet.
It is important to note that a cryptocurrency wallet does not actually store coins or currency. Your coins are always stored on the blockchain. Your wallet is basically the key to accessing those coins. So if you lose your wallet, you can still access those coins as long as you have a recovery pass phrase or your private key.
There are several wallet types. Before knowing which wallet to use, you should know what the difference is between them:
- Software wallet: A software wallet is typically a “hot wallet,” meaning it is installed on a device that is always connected to the internet. Software wallets are fairly easy to setup and can be installed on your computer or mobile phone. While great for beginners, software wallets are not the safest option for storage.
- Hardware wallet: A hardware wallet is a physical device on which you store your private keys to access the blockchain. Hardware wallets are typically “cold wallets” since they are offline, meaning they can be disconnected from the internet.A hardware wallet doesn’t have to be an electronic device. By writing down your private key onto a piece of paper, you’ve basically created a form of hardware wallet called a “paper wallet.”
- Paper wallet: A paper wallet is one of the cheapest and easiest ways to store a private key. To create a paper wallet, you simply need to print out the private key and wallet address onto a piece of paper and put it in a safe place. That’s it! Some people even go as far as etching their key into a piece of metal to protect it from accidental destruction.
Toast is considered a software wallet since it runs on a desktop or mobile device and is always connected to the internet. It is open source, free to use and one of the most popular wallets for storing Ripple.
Toast’s motto is they wanted to build a wallet that was “simple enough for your grandma but safe enough for a Swiss banker.” Toast is well respected in the crypto community and we really like what they offer. It’s simple to use and as secure as a software wallet can be.
In this step by step tutorial, we will show you how to use Toast to create a Ripple desktop wallet.
How to Store Ripple with Toast Wallet
Please follow our step by step visual guide. If you have questions, leave them in the comments below and we’ll do our best to answer them.
1) Select a software wallet to use
We recommend Toast Wallet. It is an open source wallet specifically for storing Ripple (XRP). It is available for both mobile devices, tablets and computers.
2) Download the Toast Wallet software
We’ll use the windows desktop application for this tutorial.
3) Install the wallet application
Install is very easy. Just press the “Install” button!
4) Select “Create a New Wallet”
You can also restore an existing wallet if you’ve already gone through this process.
5) Set a PIN code and save it in a safe place
You will be asked to re-confirm it.
6) Set a passphrase and save it in a safe place
The passphrase is used to encrypt your wallet, so make it a strong phrase. The longer and more random the characters the better.
7) Write down your recovery phrase and save it in a safe place
This is important to save. If you forger your passphrase, you can use the recovery phrase to access your XRP. If you’ve made a backup of you wallet, you will need this recover phrase as well.
8) Finish Setup
You’re wallet is now setup and ready for you to create or import your Ripple addresses.
9) Add an account to your wallet
Start by pressing the round plus icon at the top of the screen.
You can create a new address, add an existing address or get a vanity address. For this tutorial, we will generate a new address to use.
10) Setup a new account address
Enter an account nickname and your passphrase you created during the wallet setup and press “Import this Address”.
You should get a “Ripple address added successfully” message.
11) Create a backup of your wallet once you’ve created a new account address
This is important. You should create a backup anytime you make changes to your wallet (adding a new account, change the passphrase or PIN code).
The backup is just text you should copy and save in a safe place (typically away from your passphrase and recovery phrase).
12) That’s it! Click on the home button in the bottom left corner and select the account you just created.
You’ll notice that it says “not activated”. You need to send 20 or more XRP to activate the wallet. Anything less and the transaction will fail.
13) Send XRP to your wallet using the account address you created
Copy the account address and give it to the sender of the XRP coins.
14) Now you can send XRP to other addresses from your wallet.
Press the money symbol sign at the bottom of the application. From this screen you can send XRP to any address you enter.
15) You’re done!
You can now send and receive Ripple using your the Toast wallet. Remember, you do not have the Toast wallet open and running to receive Ripple, since it is being sent to your address on the blockchain.
The only time you need to use Toast is when you want to send Ripple. The Toast wallet let’s you access your coins on the blockchain. Think of it as a key to a safe.
If you prefer using a hardware wallet, check out our step by step guide on how to store Ripple on the Ledger Nano S.
If you would like to buy Ripple, check out our How to Buy Ripple page to find the best exchange for your needs.