Ripple Day Trading 2024 – Tutorial and Brokers
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 2024? This page will answer all those questions, whilst also covering its benefits and drawbacks, including top Ripple brokers, trading platforms, price, volume, analysis, and regional differences to be aware of.
Ripple Brokers
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1
FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2
DNA Markets
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:500ASICCFDs, Forex, Indices, Commodities, Stocks, CryptoMT4, MT5Credit Card, Debit Card, Wire Transfer, BPAY, Skrill, Neteller, Bitcoin Payments, Bitwallet, AstroPay, MastercardUSD, EUR, GBP, CAD, AUD, NZD, SGD -
3
Pocket Option50% Deposit Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$50$1MISABinary Options, Currencies, Commodities, Stocks, Indices, CryptosWeb, MT4, MT5Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCashUSD -
4
IQCent20% to 200% Deposit Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$250$0.011:500IFMRRCBinary Options, CFDs, Forex, Indices, Commodities, CryptoOnline Platform, TradingViewCredit Card, Debit Card, Wire Transfer, Bitcoin Payments, Ethereum Payments, Visa, MastercardUSD, EUR -
5
RedMars
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
€2500.01 Lots1:30 (Retail), 1:500 (Pro)CySECCFDs, Forex, Stocks, Indices, Commodities, CryptosMT5Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, VisaUSD, EUR -
6
Interactive Brokers
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$1001:50FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMAStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, CryptocurrenciesTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentralCheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit CardUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF -
7
UpholdTerms Apply. Cryptoassets are highly volatile. Your capital is at risk.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$1CryptosDesktop Platform, Mobile AppWire Transfer, ACH Transfer, Bitcoin Payments, Debit Card, Credit Card, Mastercard, Visa, Ethereum PaymentsUSD, EUR, GBP -
8
Videforex20% to 200% Deposit Bonus
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
9
xChief$100 No Deposit Bonus
$100.01 Lots1:1000VFSCCFDs, Forex, Metals, Commodities, Stocks, IndicesMT4, MT5Wire Transfer, Bitcoin Payments, Credit Card, UnionPay, Skrill, Neteller, WebMoney, Perfect Money, Debit Card, Ethereum Payments, FasaPay, VoletUSD, EUR, GBP, JPY, CHF -
10
Sage FX$1,500 trading competition
$100.01 Lots1:500PendingForex, indices, cryptosTradeLockerCredit Card, Visa, Mastercard, Bitcoin Payments, Ethereum PaymentsUSD, EUR, GBP, CAD, AUD
Here is a short summary of why we think each broker belongs in this top list:
- FOREX.com - You can trade a small range of 8+ cryptos against USD, EUR, GBP and AUD with tight spreads and no virtual wallet required. Algo traders can also utilize Expert Advisors (EAs) to automate their crypto trades.
- DNA Markets - You can trade a strong range of 120+ cryptos 24/7, surpassing alternatives like Vantage with its 40+ tokens. That said, the spread from 170 on Bitcoin is significantly higher than the cheapest crypto brokers.
- Pocket Option - Pocket Option offers a modest crypto offering with 10+ digital currencies including Bitcoin and 65+ tokens if you deposit $1000. The integrated analytics feature in the platform is helpful for finding opportunities, while the daily signals service makes it straightforward to act on short-term crypto opportunities.
- IQCent - IQCent offers 17 crypto pairs through its proprietary terminal, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is capped at 1:10, whilst binary options payouts vary by token but remain competitive. OTC assets, for example, pay out up to 95%.
- RedMars - RedMars offers 13 crypto CFDs, including the popular BTC/USD, ETH/USD, and LTC/USD. However, there's no option to buy the underlying cryptocurrency. As a comparison, eToro allows the underlying purchase of 44 cryptocurrencies with copy trading on digital currencies also supported.
- Interactive Brokers - IBKR lets you purchase and hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin at competitive commission rates and without needing a crypto wallet. Additionally, there is a range of other diverse assets to explore, such as crypto indices like the NYSE Bitcoin Index, as well as futures contracts like the BAKKT Bitcoin Futures.
- Uphold - You can buy and sell 250+ crypto assets with fiat currencies or in crypto pairs using the straightforward mobile app or through Uphold's browser-based account homepage. This is significantly more than many rivals. You can also earn up to 16% APY by staking one or more out of 32 valid tokens, or send tokens to an external wallet.
- Videforex - Traders can speculate on crypto prices in pairs with USD and CNY through binary options and CFDs. The range of digital currencies is fairly narrow vs alternatives but major tokens like Bitcoin are available.
- xChief - xChief’s range of 5 cryptocurrencies paired with USD is smaller than most competitors. In addition, the average BTCUSD spread of 30 pips is not the cheapest. That said, the broker does offer some useful crypto trading guides for beginners.
- Sage FX - Trade CFDs with leverage up to 1:100 on 23 crypto pairs with USD including popular tokens like Bitcoin and Ether and lesser-known options like OMG. On the downside, crypto-only pairs are not offered.
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| Coins | BTC, BCH, ETH, LTC, XRP |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | BTC 1.4%, ETH 2% |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Minimum Deposit | $100 |
| Regulator | NFA, CFTC |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
Cons
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
DNA Markets
"DNA Markets is an excellent choice for short-term traders familiar with the MetaTrader platforms. The smooth sign-up process also makes it easy to get started while the $100 minimum deposit is accessible. That said, DNA Markets trails the top brokers in education, research and mobile trading. "
DNA Markets Quick Facts
| Coins | BTC, ETH, LTC, XRP, 1INCH, AAVE, ADA, AGIX, ALCX, ALGO, ALPHA, APE, APT, ARB, ASTR, ATOM, AUDIO, AVAX, AXS, BADGER, BAND, BAT, BCH, BLUR, BNB, BNT, BTTC, CAKE, CELO, CFX, CHR, CHZ, CLV, COMP, CREAM, CRV, DENT, DODO, DOGE, DOT and many more |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | $28 (Bitcoin) |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | MT4, MT5 |
| Minimum Deposit | $100 |
| Regulator | ASIC |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, SGD |
Pros
- After a recent upgrade, there are now over 800 assets available to trade via CFDs, with a particularly impressive range of 120+ cryptos
- Short-term trading strategies are permitted including scalping and automated trading using Expert Advisors (EAs)
- The broker provides 24/5 customer support with response times of <2 minutes during testing
Cons
- Despite access to MT4 and MT5, there is no proprietary trading app for seamless account management whilst on the go
- Although it continues to strengthen its client base and reputation, DNA Markets lacks the track record of top brokers like Vantage
- Unlike many alternatives, there are limited educational and research tools for traders seeking an all-in-one solution
Pocket Option
"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."
Pocket Option Quick Facts
| Bonus Offer | 50% Deposit Bonus |
|---|---|
| Coins | BTC, ETH, BCH, LINK, AAVE, ALGO, TLM, ALPP, ANT, AVAX, AXS, BNB, ADA, CHZ, COMP, ATOM, DASH, MANA, DGB, DOGE, ENJ, EOS, FIL, GLMR, ILV, ICP, KAVA, LTC, MKR, MASK, MIOTA, XMR, ALICE, NEAR, NEO, NULS, OMG, DOT, MATIC, QTUM and many more |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | N/A |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | Web, MT4, MT5 |
| Minimum Deposit | $50 |
| Regulator | MISA |
| Account Currencies | USD |
Pros
- The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
- Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
- Extremely fast and smooth sign-up process that takes less than 2 minutes
Cons
- Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests
- You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available
- Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
IQCent
"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
IQCent Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| Coins | BTC, ETH, LTC, ETC, DOGE, MATIC, QNT, SOL, XRP, USDT, XMR, BNB |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Variable |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | Online Platform, TradingView |
| Minimum Deposit | $250 |
| Regulator | IFMRRC |
| Account Currencies | USD, EUR |
Pros
- There's an accessible $0.01 minimum stake for new day traders with a small budget
- CFD trading fees are competitive based on tests, including 0.7 pips on major forex pairs such as EUR/USD
- The broker offers up to 98% payouts on binary options, which is more than alternatives like Pocket Option, only offering up to 92%
Cons
- The broker is not overseen by a respected regulator, though this is common among binary options firms
- There's no automated trading support for algo traders
- IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
RedMars
"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."
RedMars Quick Facts
| Coins | BTC, ETH, LTC, XRP, XLM, DOT, ZEC, XMR, QTM, NEO, EOS, BCH, DSH |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | 65 |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | MT5 |
| Minimum Deposit | €250 |
| Regulator | CySEC |
| Account Currencies | USD, EUR |
Pros
- Clients in the EU, in particular, can trade with peace of mind knowing RedMars is authorized by the CySEC with up to €20K compensation available through the ICF in the event of bankruptcy
- The broker is one of a limited number of firms to offer an account specially designed for VIPs with premium support and invites to exclusive events
- Getting started on RedMars is incredibly easy - you can be up and running in just a few minutes based on tests
Cons
- RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
- While RedMars' spreads are within industry averages, they don't offer a significant edge over the cheapest day trading brokers we've personally used, notably IC Markets
- With just 300 instruments, RedMars offers a narrow trading environment, particularly compared to category leaders like BlackBull Markets which offers 26,000 assets
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Interactive Brokers Quick Facts
| Coins | BTC, LTC, ETH, XRP |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | 0.12%-0.18% |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral |
| Minimum Deposit | $0 |
| Regulator | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.
- While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
- The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
Cons
- TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
Uphold
"Uphold remains a top choice for crypto investors looking for a one-stop-shop solution to accessing the markets. There are over 250 tokens to buy, sell and trade through flexible platform options."
Uphold Quick Facts
| Coins | BTC, BTCO, AAVE, ALCX, DYDX, INH, XYO, API3, GHST, LSK, AUDIO, GLMR, NMR, CAKE, GODS, REQ, CHR, TRB, DAO, ROOK, XRP, ETH, BAT, ADA, ALGO, ATOM, AVAX, AXS, BCH, BAL, BTG, CSPR, COMP, CRV, DASH, DCR, DGB, DOGE, DOT, EGLD and many more |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Up to 1.5% |
| Crypto Lending | No |
| Crypto Staking | Yes |
| Platforms | Desktop Platform, Mobile App |
| Minimum Deposit | $0 |
| Account Currencies | USD, EUR, GBP |
Pros
- Fees are competitive based on tests, with 26 underlying platforms helping to source the best prices
- UK users can get the Uphold card with up to 2% cashback in XRP
- Crypto staking is available on 30+ tokens with above-average rates up to 16%
Cons
- There is a 2.49% fee if you want to use debit or credit cards
- Uphold operates with limited regulatory oversight
- The charting analysis features on the platform trail specialist exchanges
Videforex
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."
Videforex Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| Coins | BTC, ETH, QUANT, UNI, SOL, BNB, DOGE, XRP, XMR, MATIC, USDT |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Floating |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | TradingView |
| Minimum Deposit | $250 |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Videforex regularly runs trading contests, offering great practice opportunities and cash prizes to beginners and experienced traders
- Videforex allows you to enter positions with just ¢0.01
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent
Cons
- US clients aren’t accepted due to legal restrictions
- The broker isn’t overseen by a trusted regulatory agency
- No MetaTrader 4 integration
xChief
"xChief continues to prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The broker's rebate scheme and investment accounts will particularly appeal to seasoned traders. However, the lack of top-tier regulatory oversight is a major drawback."
xChief Quick Facts
| Bonus Offer | $100 No Deposit Bonus |
|---|---|
| Coins | BTC, BCH, ETH, LTC, XRP |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Variable |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | MT4, MT5 |
| Minimum Deposit | $10 |
| Regulator | VFSC |
| Account Currencies | USD, EUR, GBP, JPY, CHF |
Pros
- xChief offers STP/ECN execution with low spreads from 0.0 pips and low commission rates starting from $2.50 per side
- Traders can access a copy trading solution via the MetaQuotes Signals service
- The broker offers several account types to suit different traders, including a Cent account for beginners and pro-level hedging/netting accounts
Cons
- The Classic+ and Cent accounts provide access to fewer instruments than the other account types, at 50+ and 35+, respectively
- The total range of 150+ assets is much lower than most competitors who typically offer hundreds
- xChief is an offshore broker with weak regulatory oversight from the VFSC, so traders will receive limited safeguards
Sage FX
"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."
Sage FX Quick Facts
| Bonus Offer | $1,500 trading competition |
|---|---|
| Coins | BTC, XRP, LTC, DASH, ETH, EOS, NEO, TRX |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Floating |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | TradeLocker |
| Minimum Deposit | $10 |
| Regulator | Pending |
| Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- Ability to deposit and withdraw via Bitcoin
- Flexible accounts with STP and ECN solutions available
- Bonus offers and trading competitions
Cons
- Relatively narrow range of asset classes
- Not regulated by any reputable body
- Lacks educational resources and other extra features
Ripple Chart
What Is Ripple?
Ripple is both the name of the digital currency (XRP), plus an open payment network where the currency can be transferred. 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, who charge access and exchange fees, plus inhibit customers with significant processing delays. With Ripple, you can transfer almost every currency, and if it succeeds, it will relegate systems like SWIFT and PayPal to the pages of history.
Its use is perhaps best understood with the following example: Transferring currency directly and inexpensively from Croatia to Malawi (HRK/MWK), isn’t usually a walk in the park. You’d probably transfer HRK to USD and then USD to MWK.
At each stage you’ll wrack up transaction and exchange fees, not to mention it will be time-consuming. However, using Ripple allows you to transfer HRK to XRP (Ripple’s currency), relatively cheaply, send XRP to the recipient (who has a Ripple wallet or Malawian bank), and then XRP to MWK. Ripple effectively acts as a catalyst, speeding up the transaction process, whilst also cutting costs.
Low Cost
One of the selling points of Ripple is the low cost. Some even describe it as ‘free(ish)’. That’s because whereas banks and PayPal charge hefty transaction and conversion fees, Ripple takes but a tiny percentage. That percentage is the equivalent to 1/1000th of a cent. The amount taken is then actually destroyed. This is because the deduction is simply supposed to act as a safeguard from individuals who may want to pour millions of transactions through at once.
Trading Price
Before we get on to the benefits of trading XRP, how many Ripple trading coins are there, and at what price?
The company intends to create 100 billion Ripples. Half will be available to consumers, and the other half will be retained by Ripple, for now. With each priced at around 25 cents (November 2017), that puts its total value at around $25 billion, giving it the third highest market capitalisation in the cryptocurrency world, after Bitcoin and Ethereum.
Why Trade Ripple?
For those looking for serious potential profits, the world of cryptocurrencies and Ripple is an appealing choice. Below are several reasons trading Ripple is a smart move.
Volatility
Ripple, much like the other big players in the cryptocurrency world are hugely volatile. With that unpredictability comes the potential for significant profit, especially for short-term traders. One news announcement can send prices soaring, or plummeting.
XRP, Ripple’s native currency soared from under $0.01 to over $0.30 a coin in 2017. This spike can be attributed to its adoption by numerous banks and the global growing interest. These price fluctuations provide precisely the environment needed to bolster profits.
Throw in a growing trade volume that exceeds hundreds of millions of dollars a day and you can see why Ripple is a rich hunting ground for the aspiring intraday trader.
Promising Direction
Whilst other cryptocurrencies shun banks, Ripple is embracing them. This is good for traders. It means Ripple’s value will continue to increase, along with trading opportunities. Compare it to Bitcoin, for example, and Ripple offers the following:
- Promises faster transaction times than Bitcoin. This will add to its value and only see Ripple’s market share grow.
- It’s also more energy efficient than Bitcoin, which will only draw further support from financial institutions.
- Whilst there is a set number of Bitcoins that is increasing, Ripple’s total number is fixed at 100 billion.
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 will all increase Ripple prices and trading volume, providing ample opportunity for the switched on day trader.
On top of that, every time any currency is traded into XRP, liquidity and value of XRP increases as a result of the increased demand. This may lead to XRP ending up as a global reserve currency, but in the meantime, you can jump on the money train.
Leverage
Plenty of brokers offer generous leverage options when it comes to day trading with Ripple, AVA, 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.
Automated Opportunities
If you’ve already formulated a successful strategy then employing a Ripple trading bot could boost your profits. Many brokerages 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 in a secret location. This key can give any user access to your wallet, so keep it secure. Rules stipulate your Ripple wallet must be funded with a 20 XRP reserve. There are plenty of online wallet options, both Ledger Nano S and Rippex do a good job.
- 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 too.
Trading Tools
So you’ve got a platform and currency at your fingertips, but you also need a number of 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 utilise every minute of open trading hours.
Example
One example of a Ripple strategy is as follows. Recently 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 strategies page. You can also find strategy advice in the ‘Contrarian Ripple Trading’ book and pdf, by Aidan J. McNamara and Martha A. Brozyna.
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 they’re 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
- CryptoCoinsNews
- CNBCCoin 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. Trading Ripple in India may not be the same as it would in Canada. 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. In India, for example, you can buy XRP on BTCXIndia using INR. So, do your homework first.
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 taxes page.
Risks
Before you pour your life savings into Ripple, you should be aware of its potential pitfalls. As it currently stands, there are two main drawbacks:
- Security – Research from Purdue University recently found that the Ripple platform is plagued with security vulnerabilities. As a result of its open nature, intra-network nodes could be susceptible to attack, preventing some clients accessing their funds.
- Uncertain future – Trading with Ripple today provides plenty of opportunity to short-term traders, as a result of its volatility. However, that uncertain future has meant many banks want nothing to do with XRP. If it does go south you don’t want to be left holding the expensive buck. So, be cautious if you start thinking about entering any longer-term positions.
Final Verdict
In the next couple of years Ripple’s popularity looks to increase, as they offer a global settlement network that reduces transaction fees and processing times. Those who start Ripple fx trading have the opportunity to make vast profits. However, whilst it may only be at the beginning of its ascent, there remain risks. Therefore, utilise smart strategies, news sources and other trading tools to stay firmly in the black.