How To Make (Or Lose) Money With Ripple (XRP)
The Ripple cryptocurrency launched in 2012, and in the 9 years it has been around, its coin prices have appreciated by more than 17,900%. It has maintained a net positive return on investment, and its ridged price chart is evidence enough of the frequent volatilities the Ripple coin has endured. As its value rose over the years, so did its popularity among crypto enthusiasts who adopted it en-mass both as a store of value and as an investment product.
If you have been following crypto news for a while, you then might have come across tales of Ripple investors that made a fortune interacting with the digital asset and others who lost significant sums of money investing in Ripple.
But how exactly did one group make a fortune while the rest tanked their investment portfolio, yet they all invested in the same digital asset?
We examined both cases and have discovered the different ways through which you can make money with Ripple and the many ways through which you can lose your investment portfolio when investing in Ripple.
Ways to Make Money With Ripple (XRP)
Before looking at the different ways to make money with Ripple, we need to appreciate that the cryptocurrency was not designed to be an investment product. Rather, it is supposed to serve as a medium of exchange and a system that replaces swift in facilitating the cross-border transfer of cash. Nevertheless, it has primarily been adopted as a speculative investment product. Here are the three different ways in which you can make money with Ripple.
- Ripple faucets
Ripple has one of the most volatile price actions. Its value is determined by a myriad of highly variable factors like trader sentiments, government interference and the overall performance of the crypto market. These have ensured that Ripple prices are constantly changing. Crypto traders have nevertheless found a way of leveraging this volatile XRP coin price action and growing their investments by actively betting on its price direction.
In most cases, Ripple trading involves going long or going short on a Ripple position and closing that trade as soon as you make a profit and immediately before the trend turns. There are massive gains, and a lot of active traders have accumulated wealth through bitcoin trading. For instance, if an XRP trader only managed to grow their portfolio by 1% daily, this pool would have bulged by 365% by the end of the year.
Don't Miss: Ripple Price Predictions
Investing in Ripple (XRP) is the relatively easier and more conservative way of making money with Ripple. It involves buying XRP coins and holding on to them for a long, expecting that their value eventually grows and hits unprecedented levels. To be a Ripple investor, however, you first need to believe in its sustainability and mission. You also need to convince yourself that Ripple coin prices will continue rising in the foreseeable future.
To explain how you can make money investing in Ripple, we look at how much you would have made today if you invested when the coin launched in 2012. Going by the fact that Ripple’s value has appreciated by more than 17,900% in the last 9 years, you could be $179,000 richer today if you bought XRP coins worth $1000 in 2012.
Ripple faucets present you with the easiest way of earning free Ripple coins. Like all other faucets, you will be required to complete different micro tasks like participating in surveys, completing puzzles, watching video ads, and playing online games. For each completed task, you will be rewarded with a few XRP coins - implying that the more tasks you complete, the higher the reward. These can then be traded in the open market or held on as a long-term investment.
Note that unlike such other cryptocurrencies as Bitcoin and Ethereum that allow individuals to mine coins through transaction confirmation and verification on the different blockchains, Ripple coins cannot be mined.
Ways to Lose Money with Ripple (XRP)
We are confident that if you are to keep your Ripple investment safe, you need to learn the different ways in which you can lose it. Only then can you learn how to avoid them. Here are four of the most common ways to lose Ripple coins.
Trading is a double-edged sword. Just as it is easy to make money trading XRP coins, it is equally easy to lose it all. We have already mentioned above that trading cryptocurrencies like Ripple involves predicting the coin’s next course of action and betting on this conviction.
For instance, if you expect XRP coin prices will increase, you buy as much as you can at the current low price with the hope of selling them once the coin price peaks. What happens then if the market defies your analysis and the XRP coin prices drastically? You end up losing money, especially if you do not close the trade on time.
To guard against these, inexperienced traders are advised to start small, engage all the risk management tools provided by the trading platform, and, where possible, seek the assistance of an expert Ripple trader.
Hacking presents the biggest and most lethal threat to any crypto investment, including Ripple. for the last few years, incidences of cryptocurrency crime led by hacking have been on the rise, targeting both individual investors and crypto trading platforms.
But there are a few things that you can do to get your repo investment against hackers. For starters, you could ensure that you only register with reputable crypto exchanges with a proven track record of protecting investor funds. Secondly, you could invest in a hardware wallet that stores your crypto assets in an offline and highly secure environment. Lastly, you could commit to using unique and strong passwords for both your crypto wallets and crypto exchange accounts.
As Ripple’s popularity and price grew over the years, so did its appeal to crypto criminals. In the past few years, different security monitoring agencies like the federal trade commission have reported a steady rise in crypto-related scams, most of which are geared towards such popular currencies as Ripple and Bitcoin. Some of the most popular include phishing attacks, malware injection, ransomware, and crypto Ponzi/pyramid schemes.
To protect yourself against crypto scams, you need to avoid clicking on suspicious unsolicited links. You also need to avoid investment programs and websites that promise above-market-rate returns on your XRP investment while being shady on how such returns are realized.
Forgotten password/seed phrase
Crypto experts argue that millions of dollars worth of such crypto-assets as Ripple have been lost to irrecoverable wallets due to forgotten passwords and recovery seed phrases. You can avoid being part of this gloom statistic and protect your Ripple investment by using unique but memorable passwords for your trading accounts and by keeping the recovery seed for your crypto wallets in a safe but accessible place.
Read Also: 5 Reasons Why Ripple Could Double Your Money
Ripple has proven to be a highly lucrative crypto investment. The last thing you want then is losing not just the interest you have made from investing and trading XRP coins but also the seed capital to hackers, forgotten passwords, and crypto frauds. Practice rigorously and only start trading the highly risky crypto asset after perfecting a trading strategy. Further, research on and embrace all the security measures that can keep both your crypto wallet and crypto exchange account safe from hackers and familiarize yourself with the trending crypto scams in order to avoid them.
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Virtual currencies are highly volatile. Your capital is at risk.