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 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 may 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.
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 are 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 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.
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. Compare it to Bitcoin, for example, and Ripple offers the following:
- Faster transaction times than Bitcoin. This may add to its value and see Ripple’s market share grow.
- It’s more energy efficient than Bitcoin, which may 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 may increas Ripple prices and trading volume, providing 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.
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.
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 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 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. 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 trading taxes guide.
Risks
Before you pour any savings into Ripple, you should be aware of its potential pitfalls. There are notable 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
Ripple’s popularity looks to potentially increase, as they offer 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.
Therefore, utilize smart strategies, news sources and other trading tools.