Trading and acquisition of Ripple has been going on since the dawn of the cryptocurrency era. While it cannot compete against the rising star that is Bitcoin in terms of market value, investors buy XRP for day trading use as well.
It may be priced under a dollar today, but that doesn’t mean that its value will stay low. Like any other cryptocurrency, Ripple still has a chance to shine, and for good reason.
But First, The Basics
Ripple, as the network is using XRP, is sometimes also called Ripple coin. It is a system that was created by Chris Larsen and Jed McCaleb back in 2012. It is a cryptocurrency that is already being mined and is ranked third to Bitcoin and Ethereum. It is originally a payment system that features faster transactions with meager fees.
Why Invest In Ripple?
Ripple or XRP is under the control of a company and is supported by several well-established banks. There are also a few cryptocurrency platforms that allow exchanges of Ripple. You can see this guide will walk you through how to buy Ripple (XRP). The massive support for Ripple is all due to its strong team. Moreover, it is already in use as a financial product.
XRP is experiencing activity through circulation as a payment method, which is also why it is unlikely to go away. At the moment, it is the most definite form of cryptocurrency because of market capitalization.
How To Start Trading XRP
Like any other cryptocurrency, you can buy a certain amount and use it for day trading. Here is a step-by-step guide on how to go about it.
1. Pick A Reputable Ripple Exchange
There are many reputable exchange platforms where you can buy cryptocurrency. It is essential to settle on a platform for cryptocurrency to make sure you are dealing with a legitimate business. Online advertisements do not guarantee that any seller would not scam you out of your hard-earned money. Established cryptocurrency platforms, however, have accurate and fair pricing on any crypto you need, including Ripple or XRP. You will also need to look up which exchanges are available in your country.
2. Create An Account
Once you’ve decided on the platform, it is time to register for an account. You are only required to fill up a simple form with your name, address, and contact details. You will also need to connect funding methods.
Some exchange platforms will only require cryptocurrency, and some will also offer the option to purchase XRP via fiat cash. For those that only provide cryptocurrency to cryptocurrency transactions, you ought to have Bitcoin and Ethereum.
3. Select Method To Earn Profit
There are two ways to profit from the XRP you just bought:
Wait For It To Rise In Value.
After buying Ripple coin, you can choose to keep it within your exchange account until the value rises. You can also select to sell the cryptocurrency back. This option serves those who are new to cryptocurrency investing. A strict security feature protects the program from hacking and attacks, so it is safe.
Trade By CFD.
If you’d rather have more control over gaining profit, trading would be a better option for you. CFD means contracts for difference, and this option requires no cryptocurrency wallet. This type of trading relies on price speculations, where you, as the client, must decide if the price will rise or fall. It was created for the short-term only, and for veterans who want to move within the volatile market. It is the riskier option, especially if the trader doesn’t understand it well.
Trading Ripple Successfully
Trading takes a certain amount of skill, and you need to take advantage of the tools available to help you profit.
Taking into account the status of Ripple coin in the cryptocurrency market will help you understand the measures you should take. Ripple prices are susceptible to changes that depend on announcements. Practically anything involving XRP, such as adaptation by banks, will undoubtedly raise the market value. Be sure to always seek credible cryptocurrency news sources for accurate information.
Create A Strategy
All traders of various calibers have some plans and strategies to give them an edge. When you have information on the status of Ripple, you may use that as well as the market history to your advantage. Trading is still risky, and you are more susceptible to price changes.
Ripple is a volatile cryptocurrency that experiences fluctuations. Even as a cryptocurrency receiving support from a specialized team, both profits and losses are highly likely. Trading is not for the weak, so if you are not experienced, it is better to learn first. Ripple does not cost as much as Bitcoin but still has the potential to rise in value in the future. So for those hoarding this cryptocurrency, know that there is still hope for you to gain a profit.