Ripple Day Trading 2025 – Tutorial
There has been a surge in the number of people day trading Ripple in recent years. But what precisely is it and how does it work, and even more importantly, how do you go about trading Ripple in 2025?
This guide for beginners will answer all those questions, whilst also covering its benefits and drawbacks.
Ripple Brokers
Best XRP Brokers And Exchanges
Ripple Chart
What Is Ripple?
Ripple is a fintech company that builds products on the XRP Ledger, a blockchain whose native cryptocurrency is XRP. It looks to facilitate quick and easy transactions across the world in a matter of seconds.
The end goal is to enable everyone to smash through the ‘walled gardens’ of financial networks, such as Western Union, which charge access and exchange fees, plus inhibit customers with significant processing delays.
With Ripple’s technology and the XRP Ledger, it’s possible to move value between many different currencies via supporting gateways and exchanges. If adoption continues, it could become a serious competitor to legacy systems like SWIFT or PayPal for certain types of cross-border payments.
Low Cost
One of the selling points of Ripple is the low cost. Some even describe it as ‘free(ish)’. That’s because, where banks and PayPal charge hefty transaction and conversion fees, Ripple takes a tiny fraction of a cent, currently around 1/500th of a cent at today’s price.
The amount taken is then destroyed. This is because the deduction is simply supposed to act as a safeguard from individuals who may want to perform millions of transactions at once.
Why Trade Ripple?
For those looking for potential profits, the world of cryptocurrencies and Ripple can be an appealing choice.
Volatility
Ripple, much like the other big players in the cryptocurrency world, is hugely volatile. With that unpredictability comes the potential for profit, especially for short-term traders. One news announcement can send prices soaring or plummeting.
XRP, Ripple’s native currency, traded under $0.01 for years and closed 2017 around $2.30 after peaking near $2.85. This spike coincided with growing interest in crypto generally and a wave of announcements about banks and payment providers experimenting with Ripple’s technology.
Throw in a growing trade volume that exceeds billions of dollars a day, and you can see why Ripple is a rich hunting ground for the aspiring intraday trader.
Direction
Whilst other cryptocurrencies shun banks, Ripple is embracing them. This could be good for traders. It means Ripple’s value may continue to increase, along with trading opportunities. Compared with Bitcoin, XRP and the XRP Ledger (XRPL) are designed for speed and efficiency:
- Transaction speed: XRP transactions typically settle in around 3–5 seconds, versus an average of about 10 minutes for a Bitcoin block.
- Energy use: XRP relies on a consensus protocol rather than energy-intensive mining, so the network’s energy footprint is far lower than Bitcoin’s proof-of-work system.
- Supply: The total XRP supply was created at launch and capped at 100 billion tokens. By contrast, Bitcoin’s maximum supply is capped at 21 million coins, and the circulating amount gradually increases over time as new blocks are mined until that cap is reached.
Ripple, then, is taking a markedly different approach than other cryptocurrencies. This bold move to work with major financial institutions so far seems to be paying off. This may increase Ripple prices and trading volume, providing an opportunity for the switched-on day trader.
On top of that, more trading into and out of XRP can support market liquidity and, when net buying pressure is strong, can also contribute to upward price moves.
Leverage
Plenty of brokers offer generous leverage options when it comes to day trading with Ripple, AvaTrade, for example. They will effectively give you a loan, enabling you to increase your position if you see a price move on the horizon.
However, it is worth noting, whilst leverage can magnify profits, it can also increase losses. In some countries, regulators like the UK’s Financial Conduct Authority (FCA) have significantly restricted or banned leveraged crypto derivatives for retail traders, though some traders may access exchange-traded products instead.
Automated Opportunities
If you’ve already formulated a successful strategy, then employing a Ripple trading bot could boost your profits. Many firms facilitate straightforward bot setups.
Once you’ve programmed your trading requirements, the automated system has the ability to execute a vast number of trades automatically.
Video – Ripple Explained
Getting Started
The first thing you need to do is get your hands on some XRP. To do that, you need to follow three simple steps.
- Ripple (XRP) wallet – XRP wallets are very much like Bitcoin wallets. However, when you’re setting up your wallet, make sure you note down the secret key and store it in a secret location. This key can give any user access to your wallet, so keep it secure. To activate an account on the XRP Ledger, you must keep a small “base reserve” of XRP locked on the ledger as an anti-spam measure. This number has been reduced over time by network governance. As of late 2025, the base reserve is 1 XRP.
- Ripple trading exchange – You can buy XRP with fiat currency, such as GBP, EUR, USD, etc. This can be done with ease via wire transfer through major cryptocurrency exchanges, such as Bitstamp, Kraken, Bitfinex, and others. Alternatively, you can trade Bitcoins for Ripple on specific exchanges. Trading with Ripple on Coinbase, for example, is a popular choice. As the popularity of Ripple increases, so does the number of exchanges on the market.
- Withdrawal – Ensure you withdraw your XRP to your wallet. Leaving any on the exchange you bought them on could open you up to security vulnerabilities. This is because you don’t control the private key for your coins, so they aren’t actually yours. So, keep them in the Ripple wallet only you hold the keys to.
Trading Tools
So you’ve got a platform and currency at your fingertips, but you also need several other components to enhance your chances of success.
Strategy
You need an intelligent strategy to give you an edge over the market. That means taking into account charts and signals, whilst conducting thorough analysis. You also need to backtest your strategy against historical data so you can utilize open trading hours.
Example
One example of a Ripple strategy is as follows. Let’s say Ripple has been trading within a tight range of $0.017 on the lower end and up to $0.21 on the upper. Those attempting to breakout and breakdown of this range are yet to prove successful.
On top of that, previous attempts to rally were met with substantial resistance at the downtrend line. So, you need cryptocurrency to break out of $0.21 to find significant buying support. On the downside, a breakdown and close below $0.17 would sink Ripple to $0.165 levels.
Therefore, it could be a sensible move to buy Ripple on a breakout and close above $0.21. Then keep your stop loss at $0.16. On the upside, you’d then expect a rally to $0.3 levels.
Your strategy will depend on your individual trading style, but for detailed guidance, see our day trading strategies guide.
Ripple Trading News
Part of your strategy will need to take into account trading news. In such a volatile market, government moves and news announcements around cryptocurrencies can seriously impact the price of Ripple. If a major bank announces it’s going to adopt Ripple, prices may well spike for a period.
That means you need to be constantly tuned into a variety of reliable sources. Below are several sources that offer fast and accurate information on all things Ripple and cryptocurrency.
- Coindesk
- Business Insider
- CCN
- CNBC
- Coin Telegraph
- Brave New Coin
- Yahoo Finance
Before you trade today, head over to some of these sites and ensure you’re not missing anything. On occasion, some of these sources can also offer trading ideas and account advice. So, a savvy trader will keep his ear to the grindstone.
Regional Differences
Before you dive in, it’s worth being aware of any regional differences. This is because, firstly, processing times will vary depending on where you’re based, and secondly, different financial systems have different trading rules and tax regulations.
You need to look at how long your bank and exchange will take to facilitate payments. Different countries and exchanges will also offer different pairs.
You then need to check the rules around your financial system’s tax. Do some digging to find out where you will pay tax, domestically and/or abroad? What tax will you pay, and how much will you pay?
For more detailed guidance, see our trading taxes guide. For official guidance, consult resources from tax and regulatory authorities in your jurisdiction, such as HMRC’s crypto tax manual, the IRS’s digital asset guidance or the EU’s rules on crypto-asset reporting.
Risks
Before you pour any savings into Ripple, you should be aware of its potential pitfalls. There are notable drawbacks:
- Security – Academic research has highlighted potential attack scenarios and misconfigurations in parts of the Ripple credit network and gateway infrastructure, which in some cases could freeze or endanger IOU balances. As with any blockchain, bugs or poorly designed third-party services can create security risks.
- Uncertain future – Trading with Ripple today provides plenty of opportunity to short-term traders, as a result of its volatility. However, institutional attitudes toward XRP are still evolving, as illustrated by the US Securities and Exchange Commission’s enforcement action and subsequent settlement with Ripple. Some banks and payment providers still remain cautious about using or holding XRP directly, often because of regulatory uncertainty or internal risk policies.
Final Verdict
Ripple’s popularity looks to potentially increase, as it offers a global settlement network that reduces transaction fees and processing times. However, there remain significant risks to your capital – you could lose anything you invest. Nothing in this guide constitutes investment advice; always consider your own circumstances and, if necessary, seek independent financial advice.