Cryptocurrencies are booming! Most people know exactly what the bitcoin is, but other digital coins such as the Ripple are regularly overlooked. That’s too bad! Especially when you recognize that by investing in multiple cryptocurrencies you can diversify your investment. In this article, we will investigate how to trade Ripple with Plus500, as well as the possibilities this digital currency offers for traders and investors.
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What is the Ripple?
Like the bitcoin, Dash, IOTA or Ethereum, Ripple is also a cryptocurrency. However, there are some important differences. For example, the Ripple is not entirely decentralized: there is a party that determines the amount of Ripple coins on the market. Currently, a billion Ripples or XPRs are released every month. 55 billion XRPs are still reserved on an Escrow account, to be released later. If the newly released Ripples are not sold, they will return to this safe.
But what’s unique about the Ripple next to the fact that this currency is centrally controlled? Well, it is mostly the ambition of the Ripple that makes this cryptocurrency unique. Ripple tries to bridge the gap between different physical and non-physical currencies. Ripple makes this possible because it is facilitates the transfer of a transaction directly to another country with extremely low transaction costs. This would be no more than a thousandth of a cent!
Investing in Ripple
One of the best ways to invest in Ripple is by trading in this online currency in the short term. You can do so with an online broker. You can then quickly buy or sell XPRs, allowing you to profit from small market movements as well. The price of Ripple is quite volatile, making it an attractive instrument to trade with in the shorter run.
One of the few goodbrokers to trade Ripple CFDs is Plus500. With Plus500 you can trade Ripple without paying commissions. An additional advantage of Plus500 is that you can try the possibilities of their trading platform with an unlimited demo account. We therefore recommend you to open an account with this broker and discover the possibilities with the demo account. Click here to open your account >>
The Ripple is not as famous as the bitcoin: nevertheless, this currency must not be underestimated. There are many more XPRs in circulation than there are bitcoins in circulation. The price of an individual Ripple is obviously lower, but its overall market capitalization is a lot higher. Ripple is therefore one of the largest digital coins on the market.
What further contributes to the success of the Ripple is the fact that the Ripple network is supported by many large banks. The ability to transfer money internationally almost free of charge is of course very attractive to large international banks. This attention could boost the price of the Ripple in the long term.
Why buy Ripple?
If you already have bitcoins, you might wonder why you should also invest in Ripple. Well, the answer is simple! Ripple and bitcoin beautifully complement each other! The Ripple has several advantages over the bitcoin. Of course it is possible to perform a direct peer-to-peer transaction that would allow a bank account to be linked to the Ripple network.
Additionally, transactions within the Ripple network are almost immediately validated and executed, allowing banks to quickly approve the transaction. This greatly increases the user-friendliness of the Ripple of course.
The fact that the currency is centrally issued also has certain benefits. This allows problems to be solved much more quickly. Within the Bitcoin network, a consensus of 95% is required before action can be taken. Because of that, the algorithm behind the Bitcoin develops rather slowly. The Ripple, does not have these problems because the currency is managed from a central point.
All these unique features of the Ripple make it an attractive investment. You can also benefit from fluctuations in the price of this currency due to its large volatility.
Price of Ripple
Below you can see the current CFD price of the Ripple as provided by Plus500. You can immediately buy or sell the Ripple by simply clicking one of the buttons.