Not all cryptocurrencies and blockchains operate the same way. Each one has its own processes and requirements. If you’re just joining the digital economy and looking to diversify your assets, these requirements may surprise you. For example, some cryptocurrencies require a minimum balance in an account or wallet just to exist. This article explores these reserves for three popular cryptocurrencies: Ripple (XRP), Solana (SOL) and Stellar Lumens (XLM). 

 XRP 

The XRP ledger requires a minimum of one XRP to be held in reserve to keep a wallet address active on their blockchain. However, many cryptocurrency wallets and exchanges often require a larger amount to account for transaction fees. For example, the CoinFlip Wallet requires ten XRP to be held in reserve. Some wallets require as much as twenty XRP. Per the XRP Ledger website, this reserve can be adjusted at any time, though any changes must be approved by a consensus process called “Fee Voting.” The good news is that your XRP reserve is not dormant. You can use your reserves to pay transaction fees. However, once your reserve dips below the minimum, you will need to top off your account to make any further transactions. 

These reserve requirements were put in place by the parent company Ripple to protect the ledger from growing too fast due to potential spam or malicious usage. Their goal was to constrain the growth of the ledger to mirror improvements in technology so that current devices can always fit the space of the ledger in RAM. 

Unlike Solana, which allows you to spend your reserve to zero to close your account, XRP holds your reserve until you delete your account. Doing so involves a process, has very specific requirements, and includes a special transaction cost of 0.2 XRP.  

Learn more about XRP reserves here. 

 Solana

To keep your wallet’s data available on its blockchain, Solana requires a minimum deposit which they call “rent.” This rent is withheld in the normal balance of your wallet and is reclaimable when it’s closed. The amount of rent you need to have in reserve can vary depending on how much data is in your account. Once you’ve reached this minimum, your account is considered “rent exempt.” Many cryptocurrency wallets (including the CoinFlip Wallet) simplify this by setting a minimum amount of 0.005 SOL. This allows a buffer that ensures you have enough SOL to cover your “rent” as well as typical transaction fees. Any transaction on the Solana blockchain that attempts to reduce an account’s balance below its rent will fail, unless the balance is reduced to exactly zero. When your balance is reduced to exactly zero, this effectively closes your account.  

Learn more about Solana fees and “rent” here. 

 XLM

Stellar Lumens (XLM) also requires a minimum balance to maintain an active account. The minimum balance for XLM is calculated using the base reserve, which is currently 0.5 XLM. Active accounts must always have a minimum balance of two base reserves, which is currently one XLM. Validators on the Stellar blockchain can vote to change this base reserve, but it’s uncommon and is only likely to happen every few years.  

Learn more about XLM reserves here. 

 Conclusion

If you’re thinking about branching out into cryptocurrencies beyond Bitcoin, it’s important to be aware of how these assets may differ before taking the next step.  

Curious where to buy Solana, Ripple, and Stellar coins? All are available through CoinFlip Preferred. XRP and XLM can also be purchased through the CoinFlip ATMs at select locations.