What is Ripple?
Ripple is a digital payment network, which is also among the leading cryptocurrencies on the market right now. It was established way back in 2012 with Opencoin as its original name. Its main goal was to improve International banking transactions.
To accomplish this, the network used advanced technology to develop transactional platforms such as xRapid, xCurrent, and xVia. Its primary token is known as XPR, is used on Ripple’s Blockchain. XPR comes with such efficacy so that all its banking transactions are much faster, and with much lower fees, compared to the traditional banking systems.
Although Ripple targets banks, it also allows traders to buy and sell XPR coins which run on XPR ledger Blockchain. The transactions are validated by a particular list of nodes and only authorized by Ripple. The use of trusted parties to authorize XPR is on the premise that the company considers the security of every transaction as its principal concern.
What is Ripple Trading?
There is so much that happens in Ripple-trading. First of all, Ripple is not mineable. It already has its 100Billion, of which 40% is currently in circulation, under its XPR coin. Ripple is a real currency which can be prone to volatility. It’s the reason most traders ride on the wave of its unpredictability in prices to make instant profits. Its volatility also saves most traders from unnecessarily getting a wallet, since they can sell the coins the moment they realize that the market is on a downward trend.
- You need to use specialist cryptocurrency platforms such as Atecs Capital to buy your Ripple currency. You also need to find a wallet for storage. To prevent the creation of dubious accounts, every wallet you create should have at least 20 XPR.
- Then, you can use the same platforms to exchange your coins for fiat currency or exchange for bitcoins.
- You can also use your credit card to buy your Ripple currency.
Ripple trading VS Bitcoin trading
The original goals for the creation of Bitcoin and Ripple are what set them apart. For instance, Bitcoin is primarily a decentralized and peer-to-peer payment system, where there’s no third party involvement. Ripple, on the other hand, aims to improve banking payment systems, and not to do a replacement. But the moment you start to weigh the two giants and how they’re performing on the Blockchain, you get so many reasons to validate Ripple as the next big thing on the cryptocurrency platform. Let’s investigate.
- Transactions speeds: The number one difference between Bitcoin and Ripple is seen in their delivery speeds. Both of them being cryptocurrencies that are supported by Blockchain technology, Bitcoin takes about 10 minutes for transactions to be confirmed. This is slow if you compare the confirmation time of Ripple. It takes just a few minutes to transact XPR from wallet to wallet. As such, Ripple is a far better option for most traders.
- Fees: Secondly, costs have always been Bitcoins Achilles’ heel. The fiercest battles between Bitcoin and its breakaways were mostly because of issues of high fees which Bitcoin charges. Now, Ripple takes credit for its much lower fees. Most traders view ripples fees as practically free. The reason is that standard charges for a single wallet transactions stand at 0.00001 XRP, which is quite negligible. It also means that traders can do thousands of transactions for $1 or even less.
- Scalability: It’s a significant determinant on how the two cryptocurrencies are working and which positions Ripple way ahead. The reason is that Bitcoin can handle about seven transactions per second, while Ripple is known to handle about 1,500 transactions per second. This means that Ripple is so ready to handle more significant transactions on the global platform.
- Decentralization: Bitcoin is not as decentralized as it should be. The reason is because of its use of expensive ASIC hardware, which allows only a few interest groups to afford to mine. On the contrary, although many people see Ripple as a centralized network, it’s more of democracy because no single validator can issue orders, make changes, or take control of the system, without team consensus.
Some Basic Trading Rules for Future Ripple traders?
There is an influx in the number of traders in Ripple. It’s the reason that you equip yourself with winning strategies in terms of Ripple-trading. Before you visit our Education Center, you can start with the following guidelines:
- Invest in XPR: Most clever traders always invest on the XPR, which is Ripple’s token, mostly because of its skyrocketing prices, and its volatility. It’s a situation which helps many people to earn massive profits within short periods. XPR also allows you to trade in one currency to another with practically no fees.
- Take extra care with leverage: Most exchange platforms entice traders with generous leverage options and terms. But in as much as leverage can amplify your profit margin, it can also devastate your trading account if you are not careful.
- You need a good plan: A good entry strategy allows you to go into the market more seamlessly. For this reason, you need to take into account such tools of the trade like charts, and signals. You also need to carry out a thorough analysis to give you the accurate picture of the currency. You can also undertake to backtest your strategy while comparing it to all types of historical data.
- Keep Yourself Abreast With Trading News: The market is quite volatile, and news always spread like wildfire, especially when there is news about cryptocurrencies such as Ripple. Major announcements can also involve adoption or not of Ripple in the banking sectors, which affects its prices for a specified period.
- Be Aware Of Any Potential Pitfalls: Factors such as volatility usually favor short-term traders. The more you stay, the more you can easily be susceptible to its price falls, and loss of profit. It’s the reason you need to quickly earn your profits, make an exit, and strategize once more when things are calm.
Ripple’s popularity has been on the increase in recent times, and there are signs that it’s a continuing trend. There is so much goodwill around the currency, and new traders can now ride on this wave to make massive profits. Other than that, traders need to embrace great strategies wholesomely, to make their time on the platform worthwhile.