Ripple is both a platform and a currency and the Ripple platform is an open-source protocol which is designed to allow for cheap and fast transactions. The platform also has its own currency (XRP). Part of the reason that Ripple (XRP) has one the larger market capitalizations within the cryptocurrency space is due to its increasing popularity in the global banking and financial industry. Ripple Labs Inc., a U.S.-based technology company, launched the Ripple cryptocurrency in 2012. Numerous banking firms started to contact the company with great interest in using Ripple for facilitating financial transactions.
In 2019, MoneyGram, a major remittance company announced it was beginning to use the Ripple cryptocurrency to facilitate financial transaction services. Also, Azimo, a European money transfer firm began to use Ripple for transaction services starting in February 2020. Financial firms are attracted to Ripple due to its deep liquidity which helps make money transfers faster for customers.
Ripple Labs has garnered industry-wide recognition from the technology and financial sectors. The company was named by MIT Technology Review to be among the 50 Smartest Companies in February 2014. Also, researchers working out of Stanford and Stockholm University found in a study that the cryptocurrency’s energy efficiency was exceptional compared to other cryptocurrencies.
Unlike Bitcoin and many other cryptocurrencies, Ripple does not use blockchain technology but instead utilizes a distributed consensus ledger which has a network of validating servers. So, let us look at how you can invest in and trade Ripple to maximize your profitability.
Where to Buy Ripple?
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Online cryptocurrency brokers and crypto exchanges are the main ways that investors can access cryptocurrencies, such as Ripple. Brokers and exchanges are different in a variety of ways, in some ways advantageous and other ways not so much. You should be sure to understand the differences between both of these choices before making a decision on how to access the Ripple market. In addition, before you start investing or trading, take the time to ensure that the broker or exchange you partner with is reputable and offers top services and features.
Buy Ripple from Brokers
Many investors prefer cryptocurrency brokers because you never actually have to own the asset you are trading. This is referred to as CFD trading or contracts for differences. Here you are basically attempting to predict the future direction of the asset’s market, in this case, the Ripple market. The broker will provide you with access to a trading platform with various charting tools and technical indicators designed to assist in analyzing the markets and making smart investment decisions.
Usually, brokers will make a profit for themselves by using a price spread, which is the difference between the price of buying and selling a cryptocurrency. Each broker is different with varying spreads. It is a good idea to compare the various spreads offered by potential brokers before making a decision. Brokers also provide numerous banking methods, customer support and educational resources of varying mediums.
Brokers are popular for a number of advantages they provide to investors. However, there are also some drawbacks to choosing a broker to access the cryptocurrency markets. Be sure you grasp all of the pros and cons listed below before making a decision.
Buy Ripple (XRP) From Exchanges
Another way you could start investing in the cryptocurrency market is through cryptocurrency exchanges. These are platforms which enable investors to use fiat currency to trade cryptocurrencies. Many times, the buyers and sellers are able to exchange with one another while the exchange functions as a facilitator. The exchange will charge a fee for each transaction. That is, a crypto exchange can be a market maker that typically takes the bid-ask spreads as a transaction fee for its services, or it could be a matching platform, that matches buyers and sellers and then charges fees. With this in mind, it is important to remember that there are pros and cons of choosing cryptocurrency exchanges to invest in Ripple, which are detailed below:
Accessing the cryptocurrency markets is easy with Binance, one of the industry’s top cryptocurrency exchanges. The Binance platform is one of the fastest available with 1,400,000 transactions performed per second. Binance users can choose from a variety of options for making deposits and withdrawals. Some of these choices include credit and debit cards, third-party payment companies and peer-to-peer exchanges. Also, Binance provides access to a professional and responsive customer service team that is available 24/7 to find answers to your questions.
The Binance platform uses its own native cryptocurrency, BNB, to facilitate transactions. BNB is utilized for paying transaction fees and can also be used for in-store purchases via Binance’s platform. The fees on Binance are quite reasonable and competitive with others in the market. Additionally, the taker of an order can receive discounted transaction fees if the taker uses BNB to finance the transaction.
Binance has been smart in designing the exchange’s software interface. The exchange is highly user-friendly. No matter how much previous trading experience you have, you will easily be able to figure out where all of the powerful features are located and how they work.
Best of all, Binance provides you with access to the exciting and innovative Ripple coin.
Traders, over the years, have also found the Kraken cryptocurrency exchange to be a responsive and dependable platform. Kraken was founded in 2011 by Jesse Powell with the goal of empowering everyday people to be able to make money trading the cryptocurrency markets.
With Kraken, you will have access to buy and sell Ripple as well as a wide array of other cryptocurrency tokens. Also, Kraken is unique in that it is one of the few exchanges to offer cryptocurrency indices, which are a group of selected cryptocurrencies weighted by market cap. Additionally, you can also trade Bitcoin futures with leverage, just like you would be able to with an online cryptocurrency broker.
Also, it does not matter if you are a beginner or an advanced trader, you will be able to easily trade Ripple and other cryptocurrencies using Kraken. The exchange has been designed to be as intuitive as possible. You will have no problem learning how to navigate the different features.
To top it all off, Kraken is known for having a professional customer support department. The representatives are courteous and knowledgeable about the platform and the financial markets.
Buying Ripple Using a Wallet
An eWallet is essentially like a regular physical wallet. It is a place where you store your money, except in this case, you are storing cryptocurrencies, such as Ripple. The eWallet is basically a software application which stores your cryptocurrencies and allows you to send and receive tokens.
Here are some of the pros and cons of using a wallet to buy Ripple:
Ripple arguably has more future potential than many other cryptocurrencies including Bitcoin and Ethereum. Unlike Bitcoin, Ethereum and many other cryptocurrencies, Ripple uses a distributed consensus ledger instead of blockchain technology. By designing the Ripple technology in this way, the cryptocurrency has better scaling capabilities than blockchain. This is one of the main reasons large global financial firms have shown strong interest in Ripple for facilitating financial transactions.
With Ripple garnering significant adoption by the worldwide financial system, there will be more and more interest in the cryptocurrency. This means increasing demand for Ripple coins. As a result, the market valuations for Ripple (XRP) may go up based upon increasing market demand. Therefore, traders may not want to miss out on this profitable opportunity for future gains. Make money trading Ripple now.