Ripple Day Trading 2023 – 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 2023? 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.
#1 - Forex.com
Trade major cryptos against USD, EUR, GBP and AUD. All traded with tight spreads. No virtual wallet is required, just a trading account. Cryptos are not available in the US, UK or Canada.
"Forex.com is an excellent broker for active forex traders with over 80 currency pairs, tight spreads, low commissions and powerful charting platforms for day traders. "- DayTrading Review Team
- Crypto Spread: BTC 1.4%, ETH 2%
- Crypto Lending: No
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
- Crypto Staking: No
- Minimum Deposit: $100
- Regulator: NFA, CFTC
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of day trading markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
- Excellent trading tools including Trading Central, SMART Signals and MetaTrader 4
- Low minimum deposit of $100
- Fast execution speed of less than 1 second
- $15 monthly inactivity fee
- No copy trading platform
- Investment offering varies between countries
#2 - Interactive Brokers
Buy and hold Bitcoin, Bitcoin Cash, Ethereum and Litecoin with low commissions of 0.12%–0.18%. Fees are low and the broker offers a secure environment to invest in digital assets.
"Experienced day traders seeking a regulated broker with sophisticated trading software and very low fees should look at IB. Their range of stocks also can't be beaten."- DayTrading Review Team
- Crypto Spread: Variable
- Crypto Lending: No
- Platforms: AlgoTrader, OmniTrader, eSignal, TradingCentral
- Crypto Staking: No
- Minimum Deposit: $0
- Regulator: SEC, FCA, IIROC, SFC
About Interactive Brokers
Interactive Brokers is a leading global brokerage that provides access to a comprehensive offering of stocks as well as forex, futures, metals, bonds and cryptos. The firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, IIROC, and SFC. Day traders can use the proprietary Trader Workstation and can access powerful tools and data feeds as well as comprehensive educational resources.
- Regulated by some of the world's most reputable bodies including in US
- Commission reimbursement with Toggle AI
- Direct market access, including to the FTSE 100 index, the CAC 40 and Germany’s DAX 40
- Mediocre customer support
- The TWS platform falls short in terms of technical charting
- Accessing products like CFDs is not straightforward compared to competitors
#3 - Kwakol Markets
Trade cryptos against fiat currencies, other cryptocurrencies and metals like gold. This separates the broker from many alternatives that only offer cryptos paired with the USD. High leverage up to 1:20 on cryptos is available, plus support for Expert Advisors and copy trading.
"Kwakol Markets is a good option for newer traders with a dedicated learning academy, copy trading and a choice of reliable charting platforms. New clients can also sign up and start trading in four straightforward steps."- DayTrading Review Team
- Crypto Spread: From 0.8 pips (Standard Account)
- Crypto Lending: No
- Platforms: MT4, MT5, cTrader, AutoChartist
- Crypto Staking: No
- Minimum Deposit: $1
- Regulator: ASIC, FINTRAC
About Kwakol Markets
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of day trading assets are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
- The MT4, MT5 and cTrader platforms offer a comprehensive charting environment for active day traders
- There are excellent market research tools available to support trading decisions, including the Acuity Expert Advisor and AutoChartist
- You can access 1000+ short-term investment, including cryptos and synthetic products
- You must deposit at least $10,000 to access the best trading conditions
- There's a limited range of funding methods, with just bank transfers, card payments, and PayPal available
- The only base currency available is USD
#4 - 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.
"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 are also higher than most alternatives climbing to 98%."- DayTrading Review Team
- Crypto Spread: Floating
- Crypto Lending: No
- Platforms: TradingView
- Crypto Staking: No
- Minimum Deposit: $250
Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.
- Videforex regularly runs trading contests, offering great practice and cash prizes
- Mirror the trades of experienced investors with low fees
- You can trade every day and through the weekends
- US clients aren’t accepted due to legal restrictions
- No MetaTrader 4 integration
- The broker isn’t overseen by a trusted regulatory agency
#5 - Uphold
I found that 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.
"I opened an Uphold account, tested every inch of the platform and what stands out for me is how convenient it is for accessing the crypto markets. I can buy, trade and transfer over 250 digital tokens in a few clicks. It is a one-stop-shop for crypto investors."- DayTrading Review Team
- Crypto Spread: Up to 1.5%
- Crypto Lending: No
- Platforms: Desktop Platform, Mobile App
- Crypto Staking: Yes
- Minimum Deposit: $0
Uphold is a digital asset platform offering a range of services, from crypto trading and staking to payment cards that provides rewards and easy multi-currency payments. The company was established in 2015 and has enabled $4+ billion in transactions. Uphold is now active in 180+ countries and deals in 200+ crypto and fiat currencies.
- Over 250 cryptos are available including major tokens like Bitcoin and Ethereum
- Two-step authentication bolsters user security
- Crypto staking is available on 30+ tokens with above-average rates up to 16%
- There is a 2.49% fee if you want to use debit or credit cards
- Uphold operates with limited regulatory oversight
- I find the customer service slow with limited contact options
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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
- Business Insider
- 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.
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.
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.
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.