Ripple is popular globally for its use as a medium of exchange and as a platform for universal money transfer. The attention received by XRP on the global scene comes from institutional players like Banks as well as retail users.
Ripple is cheap to use as a means of exchange, and this opens a new world of possible investment that cannot be ignored. Persons who are savvy in making decisions can explore how to invest in Ripple in 2018 and beyond.
Part 1: How to use Ripple XRP
Ripple offers a token known as XRP, and a platform for the facilitation of trade in currencies across the globe. Using RippleNet, money transfers can be made from a sender in Country A where USD is the base currency to Country B where CHF is used.
Since there is no underlying reason to exchange forex when using XRP, a sender can easily get money across to a recipient in a matter of seconds. The application of Ripple is such that provides cost-savings in many aspects of global monetary transactions.
As people place their orders on Ripple Net, the platform automatically searches the easiest route to get it completed. The user pays a transaction fee, and XRP is the transaction unit on RippleNet.
To make transactions possible between two persons or institutions, all that is needed is an access to a Ripple wallet. For clarity, it is best to see Ripple as a distributed exchange that a registered user can access anywhere.
Is Ripple XRP Distinct?
Anyone who wants to invest in Ripple should be rest assured of the inherent value of the platform and token. Many altcoins are existing without an underlying value, but, Ripple is different. Ripple is continuously updating the operating algorithm to make service delivery optimal,
In recent months, several banks and money transfer organizations have signed up to use RippleNet as a result of its pace and affordability. When compared to existing money transfer platforms, RippleNet offers a saving of $3.76 per user. For organizations that process up to 1 million transactions each month, this is huge.
Part 2: How to Invest in Ripple
To invest in Ripple begins with knowing how to get it. This is explained further to simplify the processes for a better understanding.
To get Ripple, there are two possible ways you can explore. On Ripple website, there are more than 200 partners and merchants that are already integrated to RippleNet.
1. Receiving Ripple Payment
You can ask clients and other parties to send you Ripple XRP for goods and services they have to settle.
RippleNet is open for use by merchants and other institutional players, and this means that retail users have little or no access to it. However, anyone can buy XRP tokens to invest and trade with them.
2. Buy Ripple
Here is how to buy Ripple:
Buy Ripple XRP Using an Exchange
What you need to do:
- Choose an exchange and register your account. If you are a newbie, you can register at Coinmama
- Complete your account opening and click on the confirmation link sent to your inbox
- Validate your account by providing your ID
- Link your phone number and verify ownership with the SMS code sent to you
- You can buy the units of your choice at this stage.
Part 3: Sell and Trade Ripple XRP
Investing in Ripple is not just to buy and hold XRP. As the market price goes volatile, more opportunities exist to make money with XRP. From the vantage point of skilled investment analysts, price volatility is a chance to make money.
Here are some points to note for anyone who desires to know more about how to invest in Ripple:
Buy to Hold
One means to explore when investing in Ripple is to buy at low prices and sell at a high price. This is the time-honored principle of simple profit-taking.
To be able to take the right step to buy, hold and sell at higher prices, you need to follow the market patterns. Do not buy when the prices are too high or when there is no suggestion that the price surge will endure.
Ride the Market
Market price speculation is a dire method of investment that calls for acquired skill and risk taking. Cryptocurrencies have been volatile in recent months, and riding the market requires deep insight.
You will have to use the exchanges that have margin trading and stop-loss triggers to ride the market. You can use exchanges like Poloniex, GDAX and Binance for this purpose.
What you need to do is to:
- Set a market price at which you want to buy XRP
- Determine the quantity you want by using a market order
- Set a maximum buying price by using stop-limit order
- At the limit order, you are able to buy at a price you think is low enough
- At a stop-limit order, you are able to set a price above which you might incur losses
- Using ‘market’ order you can limit your quantity by choosing the percentage under the ‘Amount’ row
- The same ‘limit’, ‘Market’ and ‘Stop-limit’ functions are available when selling XRP.
By continuously buying and selling in this manner, you will be able to limit your losses and maximize your profit. Selling and buying Ripple is a profitable investment.
You can watch this video to see how to trade in Ripple:
Ideas and Tips
- When the price of Ripple drops like all other cryptocurrencies, do not be in rush to sell off as you prices improve after a while
- Buy your Ripple progressively over a period to naturally take advantage of the rise and drop in prices
- Use a trader’s instinct by selling when Ripple prices go up and buying as prices drop
- Do not store Ripple in an exchange if you are not trading it. It is better to use a compatible wallet to store it
- When buying a base cryptocurrency to swap for Ripple, try Ethereum as it has lower transaction cost, and a faster processing time
- Cost reduction makes a difference , so, use exchanges like Binance and Kucoin for savings in transaction costs
To invest in Ripple, you can buy XRP and store in your token wallet while expecting a price surge before you sell. On the other hand, you can decide to buy and sell XRP to ride the market volatility for personal gains.
Irrespective of how you choose to trade Ripple, you have a chance to make some profit and minimize losses. You can buy Ripple using Kraken, Bitrex, Binance or HITBTC, among others.