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Gone are the days when traders only considered Bitcoin as the sole trading cryptocurrency. Today we are surrounded by thousands of cryptocurrencies that can be traded, and Ripple trading is one of the few favorites with the traders.
Since scam is almost a synonym for crypto trading, with many falling victim to scams, people are skeptical about where to trade Ripple, buy Ripple online, and find ripple coin trading platforms.
Almost every other person is mentioning Ripple, the question is why? Why is this cryptocurrency so unique? If you have these questions on your mind, this article is just for you.
What is Ripple?
Ripple is a piece of technology that serves as both a cryptocurrency and a digital payment network. It was developed by Chris Larsen and Jeb McCaleb and was initially made public in 2021. Ripple was designed to satisfy payment asset exchange and remittance systems, much like the SWIFT system, which banks and financial intermediaries utilize when transacting across currencies. Denoted as XRP, Ripple serves as the network facilitating exchange for various fiat currencies and cryptocurrencies between the two trading parties.
When users make a transaction using this network, the network charges a small amount of Ripple tokens as transaction fees. A minimal amount of fees charged for a transaction can be as little as 0.00001 XRP compared to huge fees levied by banks while completing cross-border payments.
How to Trade Ripple CFDs in 5 Easy Steps:
To trade your first Ripple CFDs, you need to open up an account with a ripple trade platform like Blockchain Tradein, a registered and regulated broker.
- Open an account to get started with ripple crypto trading.
- Deposit some money into your account.
- Decide how many XRP tokens you are willing to trade.
- Open up a long position (buy XRP) and then go short when you notice favorable conditions (sell XRP).
- Confirm the trade order.
Key Factors Affecting the XRP Price
- Bitcoin Influence:
Bitcoin is the number one cryptocurrency with a large crypto community and user base. As Bitcoin dominates the rest of the cryptocurrency, any price fluctuation affects the price of the entire crypto market. For example, at the time of writing this article, the price of a single Bitcoin is approximately $23,000, and the price of the second most ranked Ethereum with regards to market capitalization is roughly trending at $1,500.
As you can see, any slight or significant fluctuation in the price trend of Bitcoin amplifies the rest of the cryptocurrency market.
News from one end of the globe can spread to another part of the globe within seconds. Information that generally affects the stock market is entirely different from what affects the crypto market. Any news regarding the development of Ripple or any celebrity endorsement or opinion causes fluctuation in the crypto market. Thus regardless of whether you are a rookie or a seasoned crypto trader, you need to be updated with news regarding cryptocurrency.
- Government Intervention:
Although governments worldwide allow cryptocurrencies, they do not recognize them as legal tender. As decentralized financial tools, cryptocurrencies allow unlimited storage of money while avoiding taxes. This is the most appealing factor for any cryptocurrency.
When countries like Russia and China banned all crypto activities, the cryptocurrency market felt the brunt.
However, there was a wave of optimism within the cryptocurrency market when the President of El Salvador announced the creation of “Bitcoin City” as he approved Bitcoin as a legal tender.
- Whale Activity:
Many traders hold on to the cryptocurrency for a long time before selling them off for a profit. These traders are known as whales. These big shot billionaires hold on to the XRP until a favorable time comes for them to sell; since they hold anything between 1 million to 10 million tokens, as they trade in the market, they create upheaval; thus, the price of XRP surges.
- Adoption rate:
For Ripple’s On-Demand Liquidity (ODL) service, XRP is intended to serve as an auxiliary asset.ODL makes it possible for financial institutions and payment providers to conduct international payments significantly more quickly than they would otherwise. As a result, institutional over-the-counter (OTC) XRP sales increased 1700% from Q1 2020 to Q2 2020. Businesses purchased additional Ripple to handle their cross-border financial operations. Thus further cementing that XRP is being accepted as it fulfills its intended primary role.
At the time of writing this article, there are roughly 45 billion XRP in circulation. The total supply of XRP is 100 billion. The price also fluctuates as the total circulating supply of XRP decreases.
- Demand and Supply:
Since Ripple trading is like any other cryptocurrency, it follows basic economic rules. When the demand for XRP increases, the price increases, and vice versa.
Why Trade Crypto CFDs With Blockchain Tradein?
If you are wondering where to trade Ripple, we have listed the following reasons why you should consider trading crypto CFDs with blockchain.
- We are a registered and regulated brokerage firm, and we guarantee to protect your separately maintained funds.
- We conduct straightforward trade and believe in complete honesty. Thus we do not indulge nor engage in underhanding. Therefore we do not levy any hidden fees.
- Blockchain Tradein is amongst few brokers that never sleep, just like the cryptocurrency market.
- We offer you leverage to participate and trade in the cryptocurrency market with a small amount of capital.
- Our trading platform offers risk management features like “Stop-Loss” and “Take-Profit,” thus allowing you to maximize your profit margin and lower your loss.
- We are known to allow trading in crypto-to-crypto and crypto-to-Fiat currencies like USD, EUR, JPY, etc.
- We have a dedicated client service facility that is just a click away regardless of your time zone.
Blockchain Tradein offers the best platform to buy Ripple and Ripple trading platforms.
What are the advantages of Trading Ripple with Blockchain Tradein?
- We offer competitive leverages that will rival most of the brokers.
- We allow you to trade Ripple for as low as $100.
- Since Ripple is volatile, you get ample opportunities to profit substantially with ripple cryptocurrency trading.
- We avoid levying hidden charges on our clients.
- Since you will be trading ripple coin on the price of Ripple rather than owning the underlying asset, you will not require any digital wallet.
- We offer a single platform for you to trade both Forex and crypto.
- We have a user-friendly trading platform. Thus your trading experience will be quite enjoyable.
What are the Differences Between Ripple and Bitcoin?
There are several similarities between Ripple and Bitcoin;
- Both are open source cryptocurrencies, i.e., they are not controlled by a single company or person.
- When transactions are carried out, the user’s identity is kept anonymous and is free over the internet.
- Both are decentralized financial currencies. Thus they do not require bank or government intervention while carrying out borderless transactions.
As there are similarities, there are also differences between Ripple and Bitcoin;
- Compared to Bitcoin, Ripple carries out transactions effectively and efficiently.
- Ripple is held by a private corporation and has a secure internal ledger, whereas a community owns Bitcoin.
- The total capitalization of Bitcoin is roughly $450 billion, while that of Ripple is $18 billion.
One of the key distinctions is that while Ripple can act like a cryptocurrency and can also be used to settle transactions or gas fees, Bitcoin is a cryptocurrency that can be traded and paid for.
How does Ripple margin trading work?
In contrast to the equities markets, where the broker provides margin loans, cryptocurrency exchanges allow traders to earn interest on their holdings by lending assets to other exchange members. When buyers place an order and specify the maximum interest rate they are willing to pay, and simultaneously sellers agree to those terms and conditions, the transaction takes place.
Some lenders define the amount of their Ripple and are ready to lend them to other borrowers. They define not only the amount but also the duration of lending and margin lend orders. Once the lenders have specified their conditions, the system tries to match the margin lend orders.
Once a match is found, the system allows the borrower to borrow Ripples from the lender, thereby executing the order.
However, margin order matching would be carried out once a day. For example, if all the borrowers have placed an order to borrow Ripple, then the system will try to match all the lenders who have specified their conditions for lending Ripple. The orders are carried out on the same day, and customers can check their account section to see the status.
Risks connected with margin lending:
The system is designed so that the underlying risk for the lenders is relatively low. You can rely on getting your loaned valuables back at all times. Although the borrower matching your order might face a loss, you can still get the lent assets.
- Traders have an option of depositing more money to recover their position if they happen to make a loss.
- If the value of the trader’s account drops below a minimal maintenance threshold, all of the trader’s order positions must be liquidated, and the money will be refunded.
Returning the money before the agreed-upon loan period:
Before the time allotted, you can return the money. But as was stated at the time of lending, the total amount borrowed plus any associated interest would be due immediately.
Assume you borrowed 100 XRP at, let’s say, a price of USD 50. Now imagine that the markets rose and you were able to sell them at a profit of USD 60. Of course, you might want to pay back the entire loan amount in this situation. However, you might not want to make additional investments if the market is unclear because you have already booked your earnings.
The benefits of Ripple trading with leverage:
Many traders find it challenging to enter a position in a market when they have already committed their significant portion of wealth to the cryptocurrency market. Since the cryptocurrency market is volatile, it presents many opportunities for the trader to exploit it. However, the problem of requisite funds is always challenging. Traders can reap benefits by using leverages.
Minimum capital required:
There are other options for the traders in the form of leverage. This tool requires minimum capital to enter a position while taking advantage of Ripple’s risk exposure.
Maximizing profit potentials:
While regular trading involves a 1:1 ratio and requires huge capital, with leverages, you can enter a position with minimum capital and maximize your profits 2X, 3X, or even 100X, depending upon your trading platform provider.
Ease of entering the market:
You do not have to go through your financial holding or account to check for sufficient funds needed to enter a position to exploit the market, with little money, you can still do all these things when using leverage.
Diversifying portfolio further:
Traders can open multiple positions with little capital without the fear of compromising position size, thus allowing them to diversify and hedge risk by avoiding investing all the money in a single cryptocurrency. Thus you can open new positions with different cryptocurrencies along with Ripple.
Risk of leverages:
Although the prospect of amplifying your profits using leverages cannot be denied, the risk of losing money remains. If the price prediction of Ripple does not go as per your research and you are using leverage, say by 5X, then you will incur a loss that will be magnified by 5X
Is Ripple A Legit Cryptocurrency?
Ripple isn’t considered a coin or a cryptocurrency by the conventional definition. As a result, Ripple uses XRP as an investment asset in favor of focusing on securing the blockchain. As a result, the coin’s value, the network’s speed, and applicability are all given equal weight in bitcoin and other analogous cryptocurrencies. The main beneficiaries of this are Ripple’s institutional clients, notably Santander Bank and American Express. To do this, the Ripple Foundation developed XRP and then modified each element of a conventional coin to the point where it was nearly unrecognizably different.
The case against Ripple trading is considered one of the SEC’s essential enforcement actions. In recent litigation, the blockchain company defeated the plaintiff with a sizable victory, but there are still plenty of issues to be handled.
For recordings on XRP sales and marketing, Ripple has been asked to provide them. Since the investment contract was promoted as a digital asset, it probably supports the SEC’s conclusion.
Despite it, the business has kept expanding its product line. For instance, a new Ripple Liquidity Hub will be introduced to give businesses access to the most popular cryptocurrencies, including BTC, ETH, LTC, ETC, BCH, and XRP.
Market participants and legal professionals alike closely follow the SEC v. Ripple case because it has the potential to drastically impact future US regulatory policy and have a cascading effect on legislation in other nations.
What is ripple trading at right now?
At the time of writing this article, Ripple is trending around USD 0.33.
Tips to trade Ripple
Trading Ripple is not all that complicated; all you have to do is be alert regarding the latest developments in cryptocurrency and try to interpret to your best understanding.
Below are a few factors you need to watch as a trader while carrying out a successful trade.
Factors affecting Ripple’s trading price:
Like any cryptocurrency, Ripple is sensitive to social media news. Keep yourself well informed with the latest developments and experts’ views on the potential of cryptocurrencies and the way they will shape our world in the future. Any celebrity tweet or comment regarding a cryptocurrency should also be considered when the price in the crypto market fluctuates.
Like any other cryptocurrency, Ripple follows the basic rules of economy and the effects of demand and supply. When the demand for Ripple increases, so does its price. And when it falls, so does its price.
There are various styles you can adopt while trading Ripple. Please choose the one which suits you and work on it. You can employ multiple techniques to increase your profitability. For example, use scalping during day trading and plan for the long term based on your research, narrowing down specific cryptocurrencies that might appreciate their future value.
Before you can execute your trading style, it is equally crucial that you outline your trading strategy. This includes understanding the latest news on social media about cryptocurrency.
By closely following these latest developments, ensure you maximize your profits and minimize losses. This will help you better understand when to enter and exit a position.
Deciding a position:
Depending upon the environment surrounding the cryptocurrency and the mood of the price trend, decide if you wish to “go long” (buy) or “go short” (sell)
Using Stop-Loss and Take-Profit Features:
Using features like Stop-loss allows you to avoid unnecessary losses you might incur if the market continues its decline. On the contrary, Take-profit enables you to make a profit before the price of the trend reverses and continues its decline. While setting up these features, be realistic.
Like any other cryptocurrency, Ripple is volatile and has inherent risk. Since the price fluctuation is erratic, the chances of you making a loss remains. Ripple is also a relatively new entrant (from 2012). Thus it is impossible to predict how it might react in the near future.
Ripple uses decentralized finance or the DeFi network. Thus its transaction is unregulated by any central authority like the government or the Federal reserves. So if anyone loses their fortune in a scam or fraudulent activity, it is very challenging to recover them.
In addition, even though people worldwide have adopted cryptocurrencies, their home nations still do not recognize them. Some countries have outright outlawed crypto-related activities.
The Common Uses of Ripple
Ripple is frequently used for currency conversions of non-tradable currencies because of its quick transaction speeds. For instance, the Brazilian Real cannot be directly exchanged for the US dollar, the euro, or the pound because of factors like inflation. Therefore, the Brazilian Real is among the numerous world currencies regarded as “soft” or non-convertible.
The cryptocurrency Ripple (XRP), which allows for the conversion of various soft currencies, eliminates the need to wait for the customary bank transaction delays, which typically last a few days.
Ripple’s processing charge, which is a mere $0.00001, not only makes transactions speedier but also far more affordable. Moreover, by employing Ripple to trade forwards and backward using soft and flat currencies, traders on Blockchain Tradein frequently make significant profits.
Comparable to trading stocks on the stock market, buying and selling ripple currency generates profits.
We are a reputable wealth development business with a belief that everyone has the right to better their financial circumstances. Investing in the crypto market is the most straightforward strategy to increase your income.
We have clients worldwide, and our clients connect to and update their portfolios on dependable servers that adhere to the security standards established by the regulatory bodies. As a result, a data breach is highly improbable because we respect our customers’ right to privacy.
We guarantee that clients in every time zone can contact us and receive assistance for their problems because of our devoted customer care.
Why choose us?
- Our team of committed wealth managers is prepared to manage your portfolio and execute trades on your behalf to build up your wealth.
- In regular interactions with our specialists, our wealth managers offer their trading advice and support the creation of in-depth publications for your benefit.
- No trade will be carried out without your knowledge and consent because we guarantee transparency in trading and do away with under-handling.
- Your trading experience will be enjoyable, thanks to our user-friendly trading platform.
- You can reach our committed customer support team anytime you need them by pressing a button.
Frequently Asked Questions
Ripple is a piece of technology that serves as both a cryptocurrency and a digital payment network.
Ripple trading is simply buying ripple on an exchange, the price of one XRP token is typically quoted against the US dollar (USD). simply put, you sell USD to buy ripple. You can sell for a profit if the price of ripple rises.
You can trade ripple with CMC markets via a spread bet or CFD account. Meaning, you can speculate on its price movements without owning the underlying cryptocurrency. It is opening a position which will increase or decrease in value based on ripple’s price movement against the dollar.
With gains of only 24 percent as of October, the Ripple cryptocurrency appeared to be a bust for 2020 compared to competitors’ cryptocurrencies, which witnessed 100% or more increases during the same period. That changed in November 2020, when Ripple increased by roughly 300 percent. The gains since then have partially disappeared because they were primarily the result of a free coin airdrop to Ripple holders at the time. This has traders speculating as to whether Ripple can reach those November highs. Banks’ adoption will ultimately determine whether the coin can move higher. Even if that is gradually taking place, it has not yet been nearly enough for Ripple to become widely used or in great demand.
Generally speaking, most cryptocurrencies show a high level of volatility and are appropriate for short-term trading. Of course, Ripple is an exception, but we don’t think it’s the most significant cryptocurrency for trading. Even so, there are instances when it may be better than others, such as when it gets overbought (as in November 2020) or oversold (as in March 2020). In conclusion, there will always be opportunities to trade cryptocurrencies like Ripple, but you must watch the coin to recognize when those opportunities are developing.
Ripple traders can employ various trading techniques to profit from price changes in the coin. However, regardless of the technique employed, we think all trading methods should focus on using CFDs rather than actually purchasing the Ripple cryptocurrency through an exchange. This is because owning a cryptocurrency and transferring it from one wallet to another or exchanging it for fiat currency involves many dangers and complicated actions. By doing away with this, trading CFDs enables the trader to concentrate on the price movement and turn a profit.
It is also highly beneficial to invest in XRP since, in addition to being a wise choice in the cryptocurrency market due to its unique features, the price of the coin is currently on the lower side. It is still possible for it to climb and re-cross the $1 threshold. XRP’s low denomination and current value makes it worthwhile to trade.
Ripple’s ticker symbol is XRP.
Only with the help of wallets can you send and receive Ripple. You may sign transactions and gain access to your money using both your private and public keys through a Ripple wallet.
No, all transactions involving Ripple on the Blockchain Tradein platform are legitimate, legal, and subject to regulatory oversight from several financial regulators. As a result, Blockchain Tradein is a licensed broker that has satisfied several legal requirements.
No. This is so that Ripple losses can be automatically absorbed by Blockchain Tradein’s platform’s Negative Balance Protection, which automatically resets the negative amount of your equity to zero.
Please be aware that if you utilized all of your cash or paid overnight costs, you risk losing the money you used to trade XRP. However, you won’t have a negative balance on your account because of Blockchain Tradein’s Negative Balance Protection policy.
On the Blockchain Tradein platform, trading for cryptocurrencies like Ripple takes place 24 hours a day, seven days a week, unlike trading for stocks, commodities, indices, ETFs, and currencies.
Two methods to store ripples; either by withdrawing all your Ripple from your account and storing it on personalized “digital wallets,” or you storing them on your trading platform. Many traders opt for storing their Ripples on the trading platform as it protects against theft and device loss for most digital wallets. In addition, online trading is facilitated by keeping Ripple on platforms.
In contrast to the likelihood of losing your Ripples on a hardware device, storing them on an internet platform is similarly vulnerable. There is the possibility of cyber-attacks to consider and it can be challenging to recover from.
There are undoubtedly several benefits to using Ripple over other cryptocurrencies. First off, Ripple has a lot of room for expansion because is already being utilized as intended by large financial institutions. Ripple is a great coin to invest in because its price often increases.
No. The total worth of Ripple at the time of writing is roughly $33 billion.
Yes, you can trade Ripple with leverage.
Do you want to begin trading or exploring a career with Ripple? Call Blockchain Tradein and simplify your investment journey further.