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What Are The Benefits of Ripple Trading?

7 Min Read
Last Updated March 27th 2021

Ripple trading enables traders to speculate on whether the price of Ripple will rise or fall in value, without the need of taking ownership of the XRP.

Ripple is a digital currency (Ripple XRP) which is also known as a platform used for transferring cryptocurrencies in a peer-to-peer manner (RippleNet). It is an open-source platform, with the main focus on its design primarily being geared towards being a reliable, cheap and fast transaction method.

The platform can handle and exchange any type of currency, being it fiat currency, or any other cryptocurrency. Below we have summarized some of the benefits of trading Ripple.

Why Trade Ripple?

Ripple software is often used by banks and traders for the process of exchanging assets. At this particular time, this is made possible by using a system called Swift, which works by relying on bank accounts which are totally separate throughout the countries that the bank operates in. Trading Ripple XRP involves speculating on its price without taking ownership of XRP.

To be sure that your interest will meet the best info possible, we will carefully explain to you the benefits of trading Ripple.

Some of the Benefits of Trading Ripple are:

1. The ability to short

2. Efficient use of capital 

3. No exchange account or wallet needed 

4. Trade with an established provider

5. Real-World applications

6. 24-hour market trading

 

1. The ability to short (sell)

CFD trading and spread betting are two common elements that make it possible to trade on both rising and falling prices, a feature aimed at professional traders only. In order to be able to sell (go short) a cryptocurrency the task of owning it isn’t needed, this allows for more freedom as it is still a feature that is not made possible on cryptocurrency exchanges. 

2. Efficient use of capital

Leveraged trading, simply explaining means that to be able to open a position, you are only required to deposit a percentage of the full value of a specific trade. This is not possible with cryptocurrency exchanges as you are still required to deposit the full value of a trade. Just make sure you remember that your leverage ratio magnifies both profits and losses, and you could end up losing more than the amount you deposit to open a position.

3. No exchange account or wallet needed 

When trading on Ripple CFDs, you won’t have to deal with a cryptocurrency exchange directly. Instead, prices are sourced from various exchanges on your behalf and then are offered to you with the best available price.

This ultimately means that you won’t be waiting for any approval from the exchange, the security of your wallet won’t be a concern to you and you won’t have to pay any fees if you’ll be withdrawing funds later on. In other words, if you want to buy XRP and own it over the long term, then you will need an exchange account.

4. Trade with an established provider

Ripple makes it possible for you to trade with regulated providers. These providers work hard and are dedicated to offering their clients award-winning customer service and support whenever they may need it during the hours when the market is open. eToro, for example, is one of the most prominent platforms where you can trade Ripple.

5. Real-World applications

The Ripple payment system is supported by banks and organizations as a virtual currency. Ripple allows the easy facilitation of cross-border payments as it is a consortium of more than 200 financial institutions based in more than 40 countries. Ripple is ahead of many competitors in this case, as it has seen enormous growth among financial institutions. This could only be a positive factor when it comes to trading Ripple as it has a more credible authority.

6. 24-hour market trading

The crypto market, including Ripple XRP, is open 24 hours. Therefore you can trade at any time of the day or on weekends. You can trade full time or you can do it part-time if you have another full-time job. We should consider ourselves lucky that we are able to take advantage of all the opportunities that occur with a market that never closes. 

Should I Buy or Trade Ripple?

When considering to buy or trade Ripple, there are a number of benefits that you should consider and especially your individual situational need may determine whether you need to trade or sell. If you want to know more about Ripple, take a look at this beginners guide to Ripple

You might be interested in buying Ripple if...

  • You want to take full ownership of the Ripple amount you buy.
  • You don’t mind paying the full value of the asset upfront.
  • You don't mind waiting for an exchange account before you can buy or sell.
  • You want to be a Ripple HODLer.
  • You’re happy to pay capital gains tax on any profits.

You might be interested in trading Ripple if ...

  • You’re looking to deposit a percentage of the full value of a trade-in order to open a position.
  • You want to speculate on the price of XRP without owning the digital asset.
  • You want to start trading XRP right away.
  • You want low fees as Ripple charges no fees if you want to withdraw funds later.
  • You want to take advantage of the tax benefits of spread betting or CFD trading.

 

Start Trading Ripple With eToro

eToro is one of the most prominent trading platforms worldwide. As a social trading platform, it takes pride in its security that it offers. You can start your crypto trading journey on eToro as it supports cryptocurrencies except for other traditional assets.

eToro – The Best Cryptocurrency Platform To Trade Ripple XRP

eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

Key Points

  • Ripple is a digital currency (Ripple XRP) which is also known as a platform used for transferring cryptocurrencies in a peer-to-peer manner (RippleNet). 
  • Ripple is an open-source platform, with the main focus on its design primarily being geared towards being a reliable, cheap and fast transaction method. 
  • Ripple can handle and exchange any type of currency, being it fiat currency (sterling etc.) or any cryptocurrency.
  • Ripple possesses several advantages over traditional financial assets.
  • CFD trading and spread betting are two common elements that make it possible to trade on both rising and falling prices, a feature aimed at professional clients only.
  • Leveraged trading means that in order to be able to open a position, you are only required to deposit a percentage of the full value of a specific trade.
  • When trading on Ripple CFDs, you won’t have to deal with a cryptocurrency exchange directly. Instead, prices are sourced from various exchanges on your behalf and then are offered to you with the best available price.
  • Ripple makes it possible for you to trade with regulated providers. These providers are dedicated to offering their clients award-winning customer service and support.
  • As most people still have a relatively vague understanding of cryptocurrencies and their volatility, extra steps need to be taken to make sure that they’re properly informed before making any serious investment.
  • Ripple software is often used by banks and traders for the process of exchanging assets.
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