Ripple(XRP) is currently one of the most profitable cryptocurrencies to trade. It has a market capitalization of approximately $18billion, which places it in third place after Bitcoin and Ethereum. The Ripple block chain platform was launched in 2012 to help banks settle cross-border payments more efficiently.
Ripple has been quite successful in its endeavor. Today, it is used by more than 100 financial institutions in over 40 countries. It recently partnered with American Express to help speed up cross-border payments between the United States and Britain. This partnership will help American Express customers send US dollars to British pounds through the Ripple network. Now that you know a little about Ripple let’s see how you can trade it on forex markets or any other exchange that supports XRP trading.
Step 1. Find a forex broker that offers Ripple trading
The first step is to choose a forex broker that supports ripple trading. It’s essential to ensure that you choose a reputable broker that you can trust with your money. This will help ensure that your funds are safe and secure and give you peace of mind even as you trade.
Step 2. Open and fund an account
Once you’ve identified a suitable broker, the next step is to open an account. Your account or wallet must be funded before you can start trading Ripple on the platform. This can be done through a bank wire transfer or a debit/credit card. You’ll need to choose between two main types of accounts – standard and premium accounts. The premium accounts come with higher minimum deposits, but they offer better spreads and more trading tools as well as insights into the market.
Step 3. Choose Ripple for your trading pair
A trading pair is a currency pair you can trade on a forex platform. For example, if you want to trade USD for EUR, your trading pair is USD/EUR.
We are interested in XRP coin as our trading pair in this example. This means that whatever currency you have chosen to trade with, we will buy and sell Ripple coin against that currency. For example, if you have chosen USD as the currency to trade with, the trading pair would be XRP/USD. If you have selected EUR as the currency to trade with, then the trading pair would be XRP/EUR.
Step 4. Set up your trade amount, leverage, stop loss, and take profit (if applicable)
The first part is to set up the trade amount. You can choose from a variety of currency pairs and leverage levels. Leverage allows you to control more funds than you have in your account and can give you more significant profit potential but comes with an increased risk of loss. After setting up your trade amount and leverage, set stop loss and take profit. Stop-loss is a limit order that automatically closes your position when XRP price hits a certain level so that you don’t lose more than what you invested initially. Take profit is also a limit order that automatically closes your position when it hits a certain price level so that you can lock in profits before they disappear or turn into losses due to market volatility or other factors.
Step 5. Click buy or sell to execute the trade
You have the option to buy or sell the Ripple. If you would like to buy, click on Buy, and if you would like to sell, click on Sell. To complete your transaction, click on Execute Trade.
Final Thoughts
Ripple is one of the most promising crypto, or digital currency, today. What’s more, traders all over the globe are flocking to it in increasing numbers. There are plenty of factors driving Ripple price upwards, the biggest being its lasting stability. With greater liquidity and more availability than many other cryptocurrencies, the price of XRP has remained resilient—and that may only be the beginning. It is also a cheaper option than Bitcoin(BTC), another well-known and reliable cryptocurrency if you prefer a comparable investment vehicle.
