Cryptocurrency networks have one thing in common; they all operate in independent closed-off networks. This means that members of any network have no interaction with other systems. Although it is the central idea behind the Blockchain, it is also one of the factors curtailing the growth of the digital asset industry in spite of there being over 2,000 cryptocurrencies.
Fortunately, thanks to Ripple, this is bound to change as the company behind it have created a lightning-fast payment processor, harnessing the power of blockchain technology to interact with all existing financial systems.
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eToro is the leading CFD provider when it comes to cryptocurrencies and buying Ripple. They were one of the first to launch Ripple on their trading platform and continue to be a market leader in the cryptocurrency space. If you’re looking to buy Ripple, then look no further than eToro, see below our 3 step process to getting started!
eToro is free to sign up and has a demo account that you can use to practice before buying Ripple for real. To sign up, click the button below and fill out the form; name, email, phone and then you’ll need to create a password. Next you’ll be required to verify your account by clicking the link in your confirmation email.
Once you’re account is verified, you’ll need to deposit funds into your account to make it live. We recommend starting with the minimum of $250, start small to get used to it and then begin to add more over time. Choose your payment method, eToro offers several options, pick your favoured and then fill out your details and click submit.
Once you have funded your account, it’s time to buy Ripple. eToros platform is easy to use, to find Ripple, click ‘Trade Markets’ on the left, then you’ll see ‘Crypto’ at the top. Once in this section, you will see eToros full list of cryptocurrencies. Hit Ripple and then ‘Trade’. A ticket will open, manage your risk and then ‘Open Trade’.
Essentially, Ripple is both a blockchain platform and a cryptocurrency (XRP) owned by Ripple Labs Inc.
The goal of the platform is to do to money what the internet did to information sharing. Currently, cryptocurrency networks operate within closed systems. Banking institutions also impede the transfer of funds through lengthy processing procedures and transaction fees.
Ripple aims at providing a platform where a user can interact with all the other existing systems but using the new technology of blockchain to do so. Allowing users to utilise different payment systems will remove the centralised control of money from the grips of large companies and give people more freedom of choice.
To achieve this goal, Ripple has developed a network of institutional payment providers like banks and businesses that provide money service solutions. The aim is to create a global, frictionless money transfer which works together with our existing financial systems.
Ripple’s currency (known as XRP or simply, Ripple) is more of a mediator currency than an outright cryptocurrency itself. It can be whatever the user wants, almost like a wildcard in card games. Consequently, crypto-to-crypto or fiat-to-crypto exchanges cost less on the Ripple network and take a much shorter time to process.
Ripple Protocol Consensus Algorithm (RPCA) is the network’s way of processing transactions. Ripple does not have a normal blockchain. Therefore, it has developed its own patented technology to verify transactions. RPCA requires that all the nodes involved in a transaction agree for a transaction to go through, rather than linking all of the transaction blocks together, as per a traditional blockchain.
This depends. You actually aren’t able to invest into the Ripple protocol itself, but instead can only invest in the currency XRP. Despite the confusing difference, it is acceptable to use the two terms interchangeably. While XRP, like all other cryptocurrencies, does not guarantee a 100% success, it is still a very good prospect to consider due to the way Ripple Labs are pushing their new technology.
Most people view the Ripple protocol as the next internet solution for payments as a whole. As the pressure on faster and cheaper transactions increases, banks will have to adopt a solution such as Ripple’s in order to evolve. This level of adoption will significantly increase the market value of XRP.
Besides, there is no more mining of XRP tokens as all the required 100 billion coins already exist. It eliminates the fear of inflation, which is a possibility in other cryptocurrencies such as Ethereum that have no limit on mining. But, as XRP is governed by Ripple Labs, they could dilute the price of the coin in the future by releasing more coins. This shouldn’t ever be the case, but it is a possibility.
Like all digital assets, Ripple too has its share of limitations alongside the benefits. Here are highlights of some of the pros and cons of this game-changing platform and currency;
Ripple is easy to buy, thanks to it being among the leading cryptocurrencies in the world. You can buy it using fiat currencies, in exchange for cryptocurrencies or through Contracts for Difference (CFDs).
There are always factors to consider when planning to invest into the world of cryptocurrencies. One of these key factors is which country (or even state) that you’re purchasing from – as not all countries or areas allow the buying and selling of any cryptocurrencies.
Banks are also another key factor restricting any sort of fiat to cryptocurrency transaction. In certain banks, it is against their policy to send money to a crypto exchange. You have to figure out another way of paying for your coins. Also, certain nations have banned sending money to accounts in countries that they consider a threat to their national security or sovereignty.
In fact, some exchanges and trading platforms will only accept individuals from a certain jurisdiction. Alongside this, even if you’re accepted, sometimes the language you speak makes it difficult to navigate across the cryptocurrency world. English is normally always an option, but if it’s not your native tongue, then there are many platforms out there that don’t cater to you.
Is There a Difference Between Buying and Trading Ripple?
Though commonly confused, the two are entirely different. Buying a cryptocurrency implies owning and keeping it for the long term. Trading, on the other hand, is using the cryptocurrencies as a tool to exploit the fluctuations in market prices. The trader’s mantra is, buy low sell high.
So is there a difference between buying and selling Ripple? Yes. If you consider Ripple as a very long-term investment, then you should buy, and keep the coins for the long run. The investor may once in a while sell part, not all, of the coins during the high prices to buy more when the price falls. However, the short term fluctuations are not an investor’s primary concern and it is inefficient to buy the coin (due to huge fiat currency fees).
Traders, on the other hand, are ever on the lookout for the short term fluctuations in Ripple prices. They buy when the price dips and sell when there is a marginal gain to capitalise on. If you choose to trade, you may purchase the coins on a broker platform, but you do not actually own them. Instead, you are trading on the market price, rather than being bogged down with the complex and technical operations with owning a cryptocurrency.
Simply put, the investor’s focus on keeping and collecting coins while the trader’s goal is solely on profit generation. The investor’s choice is rarely affected by temporary market changes. Nonetheless, whether you buy or trade on Ripple, you will be speculating either way.
In case you do not know the best option to start with, then try both. Keep it up for a while, and you will discover what you can handle; buy and hold, or trade. But remember, buying Ripple isn’t regulated by governing bodies, whereas, trading on a broker platform is. Bundle this with lighter fees, quicker transactions and a simplified buying/selling process – trading on a broker platform can really suit many people looking to get involved in the cryptocurrency market.
What are the Fees Involved in Buying Ripple?
Exchanges charge a fee on all the transactions you make on their platform. Therefore it is crucial that you study the fee system of any exchange or broker platform before opting for to buy Ripple on it. You should be careful and make sure not to fall for the ‘mob mentality’ and to choose the most popular because you haven’t done any further research. We’ve pulled together a small list of some of the fees that exist on both exchanges and broker platforms;
Brokers and exchange have different fees structures. Exchanges make money through fees on deposits, withdrawals, and transactions on the platform. Consequently, they have a limit on the maximum amount that can be involved in a single transaction.
Brokers, on the other hand, sell their cryptocurrencies on a fixed rate and have no cap on maximum trade amounts. As a result, if you wish to buy a large amount of Ripple, then a broker will be your best bet.
US dollars are the most popular fiat currency to use when buying ripple and other cryptocurrencies, nearly all exchanges that offer fiat transactions do accept USD as an option.
Likewise, brokers that you can buy ripple through also accept USD as their primary currency, making it very easy to buy using dollars. It also doesn’t matter where you are based because cryptocurrencies aren’t tied to any country or government, so as long as you have some dollars you will be able to buy ripple.
We’d always recommend you sticking to brokers due to the regulatory oversight they have, there is simply less risk attached to a broker than an exchange (however there is still risk associated to both given the volatility of the cryptocurrency market).
Our preferred providers to use when buying ripple with USD are:
If this article has given you the confidence to start investing in cryptocurrencies and you want to buy Ripple, click the button to get started.
Yes. Ripple is available on nearly every reputable exchange. The only limitation is the different methods of payment, and in some cases, the country supported.
Exchanges differ in many ways, and there is always one that stands out for every feature. There is no specific best, there is only the best for your current needs. Sometimes an exchange isn’t even the right option and you need another service like a broker, trading platform or even peer-to-peer purchase.
Mainly because it’s always good to diversify your investment portfolio. Having two or more investment vehicles will cushion you if Ripple is taking a hit from other competitors and market factors. Ideally, you want to spread your investments, and make sure you could profit on the growth of other technologies all whilst reducing losses if only one coin is failing.
Yes, however, there are usually still KYC processes to go through in order to buy on an exchange or broker platform. If you buy Ripple with another cryptocurrency, then transfer to an anonymous wallet, it’ll be much harder to trace the original transaction.
Trading on its value is by far the easiest way to buy Ripple. CFD platforms are quick, easy and offer many different payment methods. Purchasing the actual coin is complicated, slow and usually requires a lot of research to get done.
Usually the best way to sell your bought cryptocurrency is to return to wherever you purchased it and place it up for sale. Otherwise you’ll need to transfer it to another exchange. If you purchased via a trading platform, then it’s easy to sell by just using the broker that you signed up with. In fact, these CFDs are not transferable, so this will be your only option.
Yes. Firstly you’ll need to check the different exchanges that have Ripple on their listing for their maximum transaction volumes. If the amount is less than what you need, then you’ll need to find a different exchange. Otherwise, compare the transaction cost against a broker’s charges and settle for the lowest, most secure, and reliable option of the two. Broker platforms traditionally allow you to buy much more than exchanges, which usually have strict limits.