Pros of Ripple
- Faster processing times than Bitcoin
- Relatively low transaction costs when you trade XRP
- Used by many major global banking brands
- Excellent for sending and receiving money internationally
Cons of Ripple
- Less widespread than some other cryptocurrencies
History – Why XRP trading is big news
So why should you buy XRP in the first place? The cryptocurrency has grown to become one of the world’s most popular cryptos. While most people use Bitcoin, try Ethereum trading and buy and sell Tether, XRP is another excellent option. The Ripple network is actually run by a company called Ripple Labs. This US brand unveiled Ripple in 2012 as a financial settlement system and currency exchange.
The network enables people to trade a range of assets like fiat currencies, cryptocurrencies and commodities. But it’s the fact that Ripple released one of its own cryptocurrencies in the form of its XRP tokens that has made it a hit among crypto fans. This means that you don’t ‘buy Ripple’, but instead you can ‘buy XRP’.
Not that Ripple trading is solely the preserve of cryptocurrency enthusiasts. The security, speed and low cost of Ripple transactions have made it a major hit among major financial institutions. In little over five years after the launch of the Ripple network, over 100 international banks had embraced the technology.
As of January 2021, there were around 1.23 million transactions taking place on the Ripple network each day. These transactions will range for something as simple as somebody who wants to buy XRP, to a major bank sending a payment across borders.
Development – How the XRP price has risen
It’s important to note that trading the XRP cryptocurrency differs from some of its rivals like Bitcoin trading. This is because XRP trading doesn’t involve any kind of blockchain. Instead, it operates on the Ripple network that uses a special consensus mechanism to check and validate each transaction. This sees a number of servers on the network deciding by consensus whether an individual transaction is authentic.
The fact that these servers or nodes are uniquely distributed means that the Ripple network is decentralised. Many also insist that the Ripple offers a much quicker way to carry out transactions than rival cryptos.
Ripple trading is also highly reliable. While there have been scare stories about hackers stealing nearly $10 million in XRP tokens in 2019, this is due to the fact that there was a security breach at a particular cryptocurrency wallet service.
Statistics & Major Facts – How many people buy Ripple?
There are some more interesting facts about how Ripple works that might come as a surprise to anybody with any experience of Bitcoin Cash trading. This is because Ripple made the decision to release 100 billion XRP coins that had already been mined. As a result, people won’t mine cryptos like they might with Bitcoin.
Instead of this, Ripple will release anywhere up to one billion of its pre-mined XRP tokens each month. There are currently over 50 billion XRP tokens in circulation, and any unused part of any XRP will be put back into a third-party escrow account.
We’ve already shown that there are currently over one million cases of Ripple trading occurring each day. Many of these will be transactions in terms of standard payments like you would try some Binance coin trading.
However, the majority of XRP transactions are still made to transfer other assets. This is because there are over 200 major financial institutions in over 40 nations who’ve signed up to RippleNet to enjoy fast, cost-free and reliable cross border payments.
Security, Features, Use Cases – Are there XRP trading scams?
It’s pretty easy for anybody to enjoy XRP trading. You can simply buy and sell XRP tokens just like you would any other cryptocurrency. We can help in this by showing you some of the best XRP trading sites. Like most cryptos, XRP is a fairly volatile asset. This means that it is capable of exhibiting soaring highs and crushing lows. As of January 2021, the all-time high of XRP stood at $3.40, but this came against a volatility rate of 1.49.
Such volatility means that buying XRP can sometimes be a smart and quick investment. But it’s always best to be careful when you buy crypto online. After all, the Ripple price was skyrocketing at the end of November 2020, before plunging to nearly one-third of that value just one month later.
The relative volatility of XRP has meant that many banks have avoided the cryptocurrency. Despite this, the growth of Ripple trading in the financial sector should not be underestimated.
Thanks to the speed of payment transmission, near-instant payment notifications, and complete lack of chargebacks, Ripple trading has become a commonplace way for banks to send payments across borders.
Let’s take a look at how this works. Imagine that you wanted your bank to send £50 to a friend in another country that uses another currency. Your bank would be able to use XRP to transfer your funds over the Ripple network.
This transaction would be made without any charges and it would be carried out instantly. Your friend’s account would be credited with the money once the transaction has been authorised by on the Ripple network. This verification should ensure that there are no scams. Plus all of this could be done without the delays that are common for Bitcoin or fiat money transfers.
How To Trade – Your guide to Ripple trading
While a large number of XRP transactions take place in the banking industry, it is relatively straight-forward for just about anybody to buy and sell XRP tokens. So we will walk you through the best XRP trading practices.
Pick your crypto trading site
The first thing you will need to do is to go to a crypto trading site. We have created a fantastic resource of the best crypto trading sites currently available in the UK. Each of these exchanges have been checked to make sure that they are regulated by the UK Financial Conduct Authority. Plus you can read each of our crypto trader reviews to see which one offers you the best XRP trading service.
Sign up for a crypto trading account
Once you have picked a decent crypto trading site, you will need to sign up to its services. It should be pretty simple to register an account at a crypto trading site. You’ll normally have to provide your email and also create a unique username and secure password.
Verify your crypto trading account
Then it’s a matter of verifying your account. If you want to buy Ripple or even try some LiteCoin trading, you’ll commonly have to provide evidence of your name, country of residence, telephone number and your date of birth. Remember that if you want to trade in regular fiat currencies, you might have to provide more proof of identity documents.
Depositing at a crypto exchange
Once you’ve set up your account, you’ll be ready to make your purchase. If you’re using a crypto exchange, then you will need to make a deposit. This can be done either by depositing a crypto payment to the address given at the exchange. Most decent crypto exchanges will also let you make deposits with fiat currencies.
Buying XRP at a crypto exchange
After you have made a successful deposit, you can simply purchase your XRP. Most crypto exchanges will require you to open a new order, fill out the order form for the quantity of XRP you want to buy, and then you’ll simply be able to complete the transaction. Just don’t forget to double-check the Ripple price before you hit that ‘Buy’ button.
Buy XRP from a cryptocurrency broker
Many XRP trading reviews will also recommend that you buy from a crypto broker. Here, the process is again pretty simple as you’ll just have to sign up, verify an account and deposit your money. From here you’ll be able to browse all of the featured cryptos, and there will be a variety of tools that help you make your XRP prediction. You’ll simply be able to request how much XRP you want to buy and then make the trade. You might notice that the XRP price changes once you trade. This is because the broker may charge you a commission fee upon execution. Just a small price to pay for investing in one of the world’s most promising cryptocurrencies.
Future Outlook – Our XRP price prediction
The overwhelming Ripple price prediction is that this cryptocurrency is due for a long and relatively sustained rise. While any XRP prediction will always factor in volatility that is normal in cryptocurrencies, there’s enough to the Ripple brand to help it overcome any sudden losses in value.
This is largely due to the fact that the Ripple Network has enjoyed a massive uptake by hundreds of the world’s leading banks. The fact that it has become trusted by major financial institutions gives Ripple that all-important image of trust that has blighted the mainstream adoption of other cryptocurrencies.
This has meant that XRP is one of the most likely crypto coins to be adopted by banks for transferring assets. However, this isn’t the only reason why many Ripple predictions are so positive.
This is because there is a finite number of XRP in existence. As the supply of XRP slows down due to lack of supply, it’s nearly inevitable that its price will skyrocket. All of which shows that XRP predictions regarding value are almost universally positive.
Reputation and Customer Feedback – Should you buy Ripple?
The overall reputation of Ripple is that this is a trusted and reputable company. After all, this is a brand that was named one of the 50 smartest companies by the MIT Technology Review way back in 2014.
But it’s the fact that over one-third of the world’s largest banks use Ripple that’s a testament to its positive reputation. When banks as far-ranging as the Bank of America to Santander use Ripple technology, it shows that this is not some flash-in-the-pan crypto trend.
As a side note, the production of Ripple has also earned it plenty of unlikely fans. This is because running a server on Ripple was found to use the same amount of energy as that of just a standard email server. All of which has helped Ripple gain a decent reputation in the crypto community.
Overall Conclusion – Why you should consider XRP trading
There is little doubt that XRP is one of the world’s leading cryptocurrencies. While Bitcoin might be making all of the headlines, we’ve shown that Ripple and XRP are definitely worth a look.
This is because Ripple offers a network that has been employed by many of the world’s leading banks. This technology allows you to make near instant payments with lower fees than rival cryptos like Bitcoin. While the XRP crypto suffers from a fair amount of volatility, it has shown impressive gains over the past few years.
We should note that we are not offering investment advice for anybody thinking about trading cryptocurrencies such as XRP. But given the quality of the Ripple network, the fact that it is used by leading financial institutions, and the low costs, it seems that XRP looks to be a shrewd choice for anybody who is thinking about investing in cryptocurrencies.