Products

Token Management

description: Manage trust lines and issued tokens in DropFi extension

Token Management

🪙 Understanding Tokens on XRPL

What are Issued Tokens?

  • Digital assets created by issuers
  • Represent anything: fiat, commodities, points
  • Require trust lines to hold
  • Each trust line needs 2 XRP reserve

📋 Viewing Your Tokens

Tokens Tab Overview

Token Information

Each token shows:

  • Currency Code: USD, EUR, BTC, etc.
  • Issuer: Shortened issuer address
  • Balance: Your current holdings
  • Value: Estimated USD value

🤝 Trust Lines

What is a Trust Line?

  • Permission to hold an issued token
  • Sets maximum amount you'll accept
  • Costs 2 XRP reserve (refundable)
  • Required before receiving tokens

Adding a Trust Line

  1. Navigate to Settings → Advanced → Trust Lines
  2. Click "Add Trust Line"
  3. Enter Details:
    text
    Currency Code: [USD]
Issuer Address: [rBitst4mp...]
Limit (Optional): [10000]
  4. Review Warning about issuer verification
  5. Confirm with password

Trust Line Interface

✅ Verified Issuers

Issuer Address Currencies
Bitstamp rBitst... USD, EUR
GateHub rGate... USD, EUR, BTC, ETH
Sologenic rSolo... Various stocks

Verifying an Issuer

Before trusting:

  1. Check official website for correct address
  2. Verify on explorers like Bithomp
  3. Look for community verification
  4. Start with small limits to test

🔄 Managing Trust Lines

View Active Trust Lines

Settings → Advanced → Trust Lines shows:

  • All active trust lines
  • Current balance vs limit
  • Rippling status
  • Option to modify/remove

Modifying Trust Lines

  1. Click trust line to edit
  2. Options:
    • Increase limit: Accept more tokens
    • Decrease limit: Reduce exposure
    • Enable/disable rippling: Advanced feature

Removing Trust Lines

Requirements:

  1. Zero balance: Send tokens back to issuer
  2. Set limit to 0: Via trust line settings
  3. Confirm removal: Frees up 2 XRP reserve

💱 Token Transactions

Sending Tokens

  1. Select token from Tokens tab
  2. Click Send
  3. Enter recipient address
  4. Specify amount in token units
  5. Confirm with password

Receiving Tokens

Requirements:

  • Trust line to issuer established
  • Share your XRP address (same for all tokens)
  • No special receiving address needed

Token-Specific Features

Some tokens have:

  • Transfer fees: Set by issuer
  • Freeze capability: Issuer can freeze
  • Supply limits: Maximum circulation
  • Special properties: Like non-transferable

📊 Token Portfolio

Portfolio Overview

View total holdings:

  • XRP value
  • Token values
  • Total portfolio worth
  • 24h changes

Hiding Zero Balances

Settings → Display → Hide zero balances

  • Cleaner interface
  • Focus on active holdings
  • Still accessible via trust lines

⚠️ Token Risks

Understand the Risks

  1. Counterparty Risk: Issuer could default
  2. Freeze Risk: Some issuers can freeze tokens
  3. Value Risk: Token value can fluctuate
  4. Liquidity Risk: May be hard to sell

Best Practices

  • ✅ Only trust reputable issuers
  • ✅ Diversify holdings
  • ✅ Monitor issuer communications
  • ✅ Keep most value in XRP
  • ❌ Don't trust unknown issuers
  • ❌ Don't set unlimited trust lines

🛠️ Advanced Features

Rippling

Allow tokens to flow through your account:

  • Enables path payments
  • Can earn small fees
  • Advanced users only
  • Disabled by default

Currency Codes

Standard codes:

  • 3 letters: USD, EUR, BTC
  • 40 hex chars: Custom tokens
  • Case sensitive: USD ≠ usd

Quality Settings

For tokens with different rates:

  • In/Out quality
  • Affects exchange rates
  • Set by advanced traders

💡 Tips & Tricks

Organization

  1. Name your tokens: Add notes in contacts
  2. Track issuers: Save issuer addresses
  3. Regular cleanup: Remove unused trust lines
  4. Monitor limits: Adjust as needed

Safety

  1. Research first: Never trust blindly
  2. Start small: Test with small amounts
  3. Official sources: Get addresses from issuer sites
  4. Community verify: Check forums/Discord

Optimization

  1. Minimize trust lines: Each costs 2 XRP
  2. Use path payments: For token swaps
  3. Monitor fees: Some tokens have high fees
  4. Regular review: Remove inactive lines

💰 Pro Tip: XRP is the only asset on XRPL without counterparty risk. Tokens are IOUs that depend on their issuers. Always research before trusting!