How to trade Ripple (XRP)

Today, in this article, we will talk about the changes in the price of XRP that have been occurring for years. Moreover, we will try to find the pros and cons of buying and selling XRP as well as discuss trading platforms for this asset.

So, let’s start.

Overview

Ripple is a payment system that is based on a private, centralized and authorized blockchain with its Ripple token.

Being one of the oldest payment crypto networks, it was created in 2004 when a programmer Ryan Fugger decided to develop a decentralized system that would enable individuals and communities to have their own money. However, in 2012 Ryan Fugger passed the reins to Jeddah McCaleb, who later left Ripple and a year later established Stellar (XLM).

In 2012 the Ripple distributed ledger was released and showed a record low of $0.002802 USD in July 2014. The record-high price was observed in January. 4, 2018, when the price of assets rose to $ 3.84.

These days, Ripple belongs to the Ripple Labs company. In March 2018 a Ripple-powered mobile app was established by Japanese Bank Consortium.

Later, a mobile app built on the Ripple distributed ledger was launched by Banking Group Santander to enable the customers transfer money abroad.

Now, Ripple is very tempting to investors because of such structures as Interbank, MoneyGram, American Express that participate in the network. So, at the moment it is in the list of top three projects with the highest trading volume on the crypto market.

Pros and cons of trading Ripple (XRP)

Pros

Volatility

According to the company’s financial report, XRP’s volatility over the Q3 2019 was 3.6%. This indicator is lower than that of other top digital assets, as BTC’s volatility of daily returns through Q3 was 3.9% and ETH’s was 4.3%.

Listed on 140 cryptocurrency exchanges

Currently, the coin is listed on many trading platforms; for instance, it tops CEX.io, which is a platform that enables investors to purchase cryptocurrency directly.

This implies that the barrier to entry is reduced.

Cons

The company has control over the financial condition of XRP

This is the quote from the report cited above. “In fact, in the middle of the third quarter, we decided to completely suspend software sales and focus our OTC sales on several strategic partners that create XRP utility and liquidity in regions that are strategically important to our growing global business, including EMEA and Asia.”

The overall XRP sales in the third quarter of 2019 were $66.24 million compared to $251.51 million in the previous quarter.

XRP’s legal status

Many cryptocurrencies claim that their asset is not a security, so Ripple is also making efforts to throw this case out of the US district court. In September 2019, Bradley Comstock was elected lead plaintiff to prove that the company purchased a supposedly unregistered security to retail investors.

If the court determines that the asset is a security, then all other ranges of market regulation can be applied to the assets of traders.

Ripple (XRP) trading platforms

If you want to trade Ripple (XRP), then, first, you need to choose the exchange presented on the company's website and purchase the asset either for another cryptocurrency or for fiat money.
You can trade Ripple (XRP) on UPbit, Huobi, Bittrix and other popular crypto platforms, where you will need to create an account, pass verification and deposit your funds.

Ripple (XRP) margin trading

In general, there is a whole range of options to trade XRP on margin. You can trade XRP with leverage on top of Binance, Kraken, Delta, Polonius, and BitMEX.

Margin pairs on Binance are XRP/BTC, XRP/USDT, ARP/ETH, and your leverage depends on your balance as well as your level, which is automatically determined by the exchange.

With Kraken, these pairs are XRP/BTC, XRP/USD, XRP/EURO, and you can leverage up to 5X.

Besides, you can visit Huobi Global and trade XRP for US dollars with the 5x leverage.

In short, the leverage may differ with each new exchange.

To sum up

Over the years, the price of the XRP token has shifted significantly from an all-time low of $0.002802 USD to a high of $3.84 USD. The asset has advantages such as low volatility and the ability to trade it on various exchanges, which decreases the entry barrier for traders.

However, Ripple Labs monitors the coin and can influence its price. Also, it is unclear how to register an asset on your tax form due to some regulatory issues.

Being one of the most famous cryptocurrencies on the market, Ripple (XRP) is available for trading on top of the most famous platforms such as Bittrex, Huobi and many others.

A suitable margin trading feature for professional traders can also be used with Ripple (XRP). If you are serious about this, go with Binance, Kraken or BitMEX.