XRP is one of the longest-running crypto assets and the native token of the XRP Ledger (XRPL). If you hold XRP, you might be wondering what you can actually do with it besides watching the price. This guide explains the most common options so you can decide which, if any, fit your goals.
Option 1: Hold
The simplest approach is to keep your XRP in a secure wallet.
- Self-custody wallets give you full control. Back up your recovery phrase offline and never share it.
- XRPL accounts must keep a minimum reserve of XRP, which can't be spent while the account is active.
- Holding means you're fully exposed to XRP's price movements, in both directions.
Option 2: Trade or Swap
You can swap XRP for other crypto assets when you want to change your exposure. Before you swap:
- Compare the quoted rate with the wider market
- Check fees and slippage, especially for large amounts
- Confirm the network, address and any required destination tag
AviorSwap currently runs an improved-rate promotion on XRP. If you plan to swap XRP, check the live rate and terms on the site before trading.
Option 3: Rebalance Into Stablecoins
Many holders move part of their XRP into stablecoins such as USDT or USDC to lock in gains or lower volatility. This doesn't have to be all-or-nothing. Some users rebalance on a schedule or when their allocation drifts from a target. Keep in mind that stablecoins have their own risks, including issuer, reserve and depeg risk.
Option 4: Use the XRP Ledger's DEX and AMM
The XRPL has a decentralized exchange built into the protocol, where users can place offers to trade XRP against tokens issued on the ledger. The XRPL also supports automated market maker (AMM) pools, where you can provide liquidity to a pair and earn a share of trading fees.
Things to understand before providing liquidity:
- Impermanent loss: if the prices of the two assets diverge, you may end up worse off than if you'd simply held them.
- Issuer risk: tokens issued on the XRPL depend on the trustworthiness of their issuers.
- Trust lines: holding issued tokens requires setting up trust lines, which also affect your account reserve.
Option 5: Staking-Like and Yield Options
It's important to be clear about this: XRP doesn't have native proof-of-stake staking. The XRP Ledger uses a consensus protocol run by validators, and holders don't earn protocol rewards for locking XRP. Any "XRP staking" or yield you see is offered by a third-party product, with that provider's own terms and risks.
On AviorSwap, Launchpool is available as a VIP service, with higher staking limits and APYs of up to 25%. Check the current terms, eligible assets and conditions on the site, as these may change. New users can also explore VIP services through the 3 Days Demo VIP.
Before using any yield product, ask:
- Where does the yield come from?
- Who controls the funds, and can you withdraw at any time?
- What happens to your assets if the provider runs into trouble?
Key Risks to Consider
- Price volatility: XRP can move sharply in short periods.
- Operational mistakes: wrong networks or missing destination tags can lead to lost funds.
- Smart contract and platform risk with third-party products.
- Liquidity risk in smaller pools or tokens.
- Scams: be wary of "giveaways" or offers promising guaranteed returns.
Choosing Your Approach
There's no single right answer. A long-term holder might combine secure self-custody with occasional rebalancing. An active user might swap more often or explore XRPL liquidity pools. Whatever you choose, understand the costs and risks first and only commit what you can afford to lose.