How to do Ripple Trading: Guide for beginners
Ripple is faster and more efficient than other digital assets. It provides financial institutions with fast and reliable liquidity anytime required. With the RippleX platform, developers are using XRP in a variety of applications, from micropayments and e-commerce to peer-to-peer exchanges and services.
XRP is traded on more than one hundred markets and exchanges that have no affiliation with Ripple around the world.
See the Ripple price at the moment:
Ripple has become a hot topic recently as it turned into the number two top cryptos briefly last week. If it traded for roughly 0.20 USD the previous year, it is now worth over 0.71 USD per every single coin and continues to rise. The company’s name is Ripple, whereas XRP is the coin, although the majority of users call the coin XRP.
Ripple (XRP) differs from many other popular crypto coins in that it was created by a private commercial and profit-seeking company. The company aims to provide users with a hassle-free way to send money worldwide, and Ripple is that way. The company equally holds the biggest stake in ripple to date.
The issue previously is that Ripple isn’t the easiest cryptocurrency to purchase. However, the situation has got better now. It regularly requires a few extra steps compared to investing in Litecoin or Ethereum. But in this article, we will show you all you need to know and what to do.
The first thing you need to do if you want to invest in ripple is to open an account. We will provide you with all the details in the latter part of this article.
What is Ripple? – The cryptocurrency explained
Ripple or XRP is a cryptocurrency and platform. However, technically, Ripple is the company’s name and network, whereas, XRP is the crypto coin. The Ripple platform is an open-source protocol designed for fast and cheap digital trading. Ripple has become famous for itself, and some financial institutions and analysts predict that the future of the network will be bright. This network is expected to increase global currency liquidity, enabling money transfers worldwide at higher speed and lower transaction fees.
Ripple was primarily a payment management platform that allowed you to conduct global transactions in XRP currency. Launched in 2012, this global payment network continues to grow as businesses embrace it and currency speculators show interest in Ripple. Although Ripple makes use of a blockchain ledger that looks like Bitcoin and other crypto coins like Ethereum, there are also technical differences that make claims of guaranteeing easier transaction management, and significantly safer and faster transaction processes.
How is Ripple different from other cryptocurrencies?
Ripple differs from its main competitor’s Bitcoin and Litecoin in that it is made by a private commercial company. At the time of creation, 100 billion XRP was released into the market, of which 20 billion were owned by the creators and the rest were donated to Ripple Labs. Since then, Ripple Labs has placed XRP 55 billion in escrow accounts to ensure consumer stability in the market.
Ripple has been dubbed the “Bitcoin Killer” since at least 2014, but recently it has gained substantial support and momentum among cryptocurrency enthusiasts.
Ripple prices, like other currencies, have soared recently, but they are still very cheap.
How to invest in Ripple – Trading tutorial
Beginning from 2020, you can open an Etoro account and purchase Ripple XRP on the platform.
Just like we stated earlier in the article, trading Ripple is not easy. You need to go through a few steps from investing in the base coin, then transferring the account, and then investing in Ripple (because it’s a replacement coin).
That said, here are the steps you need to take to invest in XRP.
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1. Open an account
Before opening your first CFD trading or exchange site, you need a provider account. You can create a trading account in minutes and you don’t need to deposit any money until you decide on your first trade.
If you’re guessing instead of buying Ripple price movements, you don’t need an exchange account or special software to get started. We recommend to use Etoro for buying cryptos:
(Risk Warning: 71% of retail accounts lose money)
2. Etoro account creation
The first thing you need to do is create an Etoro account. Etoro is a very popular choice because it has some of the most popular currencies that you can buy on your app or website. The minimum deposit is only $ 200 for the start. You can also try a free demo version.
One of them is XRP (Ripple), which can easily be purchased in the app via 2 clicks. You can also transfer USD easily and vice versa.
3. Develop a trading plan
Comprehensive trading plans can be useful as you start to understand the market and help you to maximize profits and minimize losses. Each trading system is unique, but you can consider:
- What you want to achieve with a deal-including daily, weekly or monthly goals
- Whether you want to trade only on Ripple or include additional markets like bitcoin, fiat, or stock indices
- The degree to which you are ready to conduct each transaction. This way, you can choose where to place the stop loss.
- Risk reward ratio-or potential reward needed to justify the risk.
You may also consider using a trading strategy at this stage. For example, daily trading involves using short-term price movements and closing all positions at the end of the trading day. Meanwhile, swing traders try to start trading when a trend is formed and start trading as soon as the movement is over.
4. Perform your research
You’ve learned how Ripple works and the factors that affect price movement, but before you start your first trade, you should keep up to date with the latest developments related to XRP.
At this point, you may want to consider using technical analysis to determine when to start trading. Take a look at the XRP chart to see data on past price movements and identify trends that can give you an idea of where to go next.
5. Start trading by placing your first trade
It’s time to open your first job. If you have bitcoin in your account, you can buy XRP. If you are using a Coinbase account, click on Ripple (XRP) and start trading. Upon completion of the transaction, it will appear in your Coinbase account. With everything in your Etoro account, you can easily track and track cryptocurrencies.
You can transact with web platforms or mobile applications. Enter the size of your position on the trading ticket. This determines the total profit or loss. You can also add a stop closing your website if the market moves towards you by a certain amount.
If you expect Ripple’s value to increase, click Buy to start trading. If you think it will collapse, click Sell.
To close the site, simply cancel the original transaction. So if you bought to open, you are selling to open. If you sell it to open, you will buy it.
Why you should buy Ripple?
Ripple was originally founded in 2012 under a different name but was renamed Ripple Labs in 2015. Bills soon gained popularity on the stock exchange due to claims that there are little transfer time and low fees. Ripple, an alternative to Bitcoin, Ethereum, and Litecoin, differs from most cryptocurrencies in that it actually uses connections with banks and companies. According to the website, Ripple is currently used by companies such as American Express (AXP), Standard Chartered (STAN), and more.
Ripple provides connectivity to payment networks, instant payments on-demand, real-time fund tracking, and low transaction and liquidity costs”. It is very attractive.
And if you need this cryptocurrency as quickly as possible, then Ripple’s payout time is 4 seconds (this compares to an average of 1 hour for Bitcoin or more than 2 minutes typical for Ethereum).
Where can I buy Ripple?
The first important step to buying Ripple is, knowing where to buy Ripple. Unfortunately, not all cryptocurrency exchanges have Ripple, but the list of recommended exchanges you can modify is impressive.
Cryptocurrency wallets are places to digitally store, send and receive cryptocurrencies using special keys. Cryptocurrency wallets can be physical or online and often provide exchange services and storage. Some Ripple wallets contain Ledger Nano S. This is an attractive option for many when considering the physical shape (the shape of a USB stick). Another popular choice is the Toast Wallet, a free online wallet that supports XRP.
It is an open-source wallet that supports Windows, Android, and iOS. Abra Wallet is another online wallet option that offers wallet and swap services. However, the reliability is somewhat questionable, so you need to choose the wallet you need.
For example, see the mobile wallet for Ripple:
Etoro also offers a wallet and exchange as a mobile app. You can get even access to your computer to it.
Ripple and crypto exchanges
Essentially, cryptocurrency exchanges are places where people can send and exchange various types of currencies (cryptocurrency or dollars). This can usually be done by converting currencies like US dollars or euros to cryptocurrencies like Bitcoin or Ripple, and vice versa. Ripple uses and recommends several exchanges. Some of the most recommended include Binance and Bitsane, but the Ripple website also recommends Etoro, Bitstamp, Kraken, and more.
Some of these exchanges are unable to convert USD to XRP (Ripple tokens), but some can. Before deciding which option to use, find out which option is best for you, whether you want to transfer directly from USD or use another method such as transferring from another cryptocurrency (e.g. bitcoin). Or Ethereum)) and XRP.
How to buy ripples in dollars
You can purchase ripple straight with cash on Etoro. This can be USD, EUR, or other fat currencies through your bank, PayPal, e-wallet, or credit card. Start by creating an account on Etoro and key in the requisite data. Your username and password will be provided in the email.
Sign in to your account using the specified username and password. After that, change your password instantly upon request. You can equally allow two-factor authentication.
Next, enter the information requested here to verify your account. You can upload documents that meet the requirements. Click Submit Confirmation Request.
Once selected, navigate to your account and click the “Deposit” button to choose the bank transfer method you plan to use on the left. Choose “International bank transfer” and enter all the required information. Next, use your Bitstamp bank details to transfer money from your bank account to Etoro.
After funds have been successfully transferred to Etoro, click on the market you want to swap (click on the XRP/USD market to buy Ripple in cash). Then go to Buy/Sell and click Buy XRP in Direct (Simple) Section Orders.
Key in the amount to purchase in the tab “I want to spend” and hit on the “Buy Ripple button”. XRP will be integrated into the full balance of your Etoro account.
How to buy Ripple on Binance
Many crypto exchanges are available where you can purchase Ripple. First, let’s take the Binance Exchange, for instance. Similar to many exchanges, you cannot purchase XRP directly on Binance in USD, so you must first purchase another currency such as Bitcoin or Ethereum and transfer it to Binance. You can buy Ripple directly from Coinbase.
To purchase XRP on Binance, you ought to:
Sign up for an account on Binance’s website. This includes creating a password and entering an email. First, you need to transfer bitcoins (or other cryptocurrencies like Ethereum or Litcoins) to your Binance account. Just scroll down the “Fund” button at the top of the screen and click on the Withdraw deposit button.
Click on the crypto coin you want to exchange, for instance, Bitcoin (BTC), and click the “Deposit” button. Copy the specified BTC address. After that, sign in to the exchange you used to purchase bitcoins such as Coinbase and go to “Account” (which we use in this example). You can buy Bitcoins on Coinbase with a connected bank account or bank card. It’s very simple.
Navigate to your BTC wallet on the left side of the page and hit on the Send BTC tab. It is normally a minimal fee. Paste the bitcoin address you utilized on Binance into the receiver’s box and enter the amount you want to transfer. After doing that, you can log back into Binance and click on “Withdrawal” under “Funds” and check your “Total Balance”. You ought to see the bitcoins you sent.
Click on the number of bitcoins you want to transfer to Ripple (The options you have include 25%, 50%, 75%, or 100% of BTC). Select the amount you want to purchase and click on the Buy XRP button.
The transfer is speedy. Therefore, try to double-check your funds after buying Ripple. You will find XRP below your total balance.
The next way to buy Ripple is through Bitstamp. It can be utilized to make the transfer of dollars to XRP via Bitstamp. Nonetheless, there are a lot of exchanges you can utilize.
How to buy XRP on Bitstamp
Bitstamp offers trading pairs for XRP/EUR, XRP/USD, and XRP/BTC. To purchase ripple on the exchange, you must primarily sign up for an account with Bitstamp and verify it. Navigate to the Bitstamp website, sign up for an account, and follow the prompts to verify your registered email address. As soon as your account is up and running, sign in, and follow the additional instructions to confirm and secure your account.
Then you need to make a deposit on the main account page with the use of the “Deposit” tab. As soon as money is deposited into your Bitstamp account, you will receive a message from the crypto exchange. You can then buy ripple on Bitstamp by choosing the right market for your crypto coin and placing your order on your default account.
How to buy XRP on Kraken
The next crypto exchange that allows you to purchase ripple is Kraken. To buy or sell ripple, go to the Kraken page and create an account. Log in and follow the login instructions. Then deposit money into your account. To buy XRP on Kraken, you must first purchase XBT. Place an order to buy XBT; then place a new order with the XRP/XBT currency pair. This allows you to finish up the XRP transaction.
How to buy Ripple on GateHub
Similar to other crypto exchanges in this article, to purchase ripple through GateHub, you must first visit the GateHub website and register for an account. Save the recovery key and follow the instructions to verify your account via email verification. After that, log in and be prepared to verify your identity before completing the transaction. Then you need to connect the portal to make a fund deposit. When you deposit money, you can purchase XRP on the crypto exchange. A few more exchanges where you can buy ripple include CoinOne, Bitso, Coincheck, Korbit, Bitbank, Qryptos, BTCXIndia, or Bitsane.
Conclusion on Ripple trading for beginners
As with all currencies, there is a high level of risk if you want to invest in Ripple. Nonetheless, because of the low price, there is a possibility of high returns with low barriers to entry.
However, for those who don’t love the concept of a digital wallet or who want to avoid following the steps, there is still no ETFs tracking Ripple. Nonetheless, GBTC is an ETF that tracks Bitcoin and you have the option for investing directly in GBTC and Ripple. Ripple can easily rise to a similar level as Bitcoin and you’ll have a lot to be thankful for for many years to come.