What is Ripple?
One of the most popular and widely used cryptocurrencies, Ripple has been growing constantly since its launch in 2012. The name represents both a payment network and a digital currency. The currency, XRP, is used to promote transactions on the Ripple network and serves as a bridge for other exchanges.
The main goal of Ripple is to create a global, modern payment system with minimal transaction fees at high speeds. This is done by converting any other currency to XRP on the sender side. Then, it would be sent in this form to the wanted receiver where it could be converted back. The transaction would be done in a matter of seconds instead of waiting for hours or days. Ripple aims to support all types of currency conversions, from fiat to even gold and bitcoin. Transactions would be decentralized, and public ledgers would serve as storage for all verified and completed transactions.
What is Ripple Trading?
Ripple can be sold and bought for either other cryptocurrencies or fiat money. Online exchanges, like MGC Logic, are a beginner-friendly and easy way to start trading. These exchanges support many different pairs of currencies, including USD/XRP and EUR/XRP. A free of charge registration on the website is required. After that, a deposit is needed with which you will be able to trade for the wanted currency.
The trading interface is simple and easy to use. A graph, which shows the price fluctuation over time, helps with determining the best course of action. By choosing the amount and clicking on the corresponding buttons you can buy or sell instantly. A popularity chart shows the difference between people who bought compared to those who sold. Custom price alerts are helpful for notifying you when the certain price is reached. There is no minimum amount for withdrawing and it’s as simple as pressing a button.
Buying Ripple VS Buying Bitcoin
There is a big number of differences between these two. Even though Bitcoin is the oldest and largest cryptocurrency, Ripple aims to fix some of the major problems associated with Bitcoin trading. It has a much bigger goal – to provide a complete overhaul of the modern payment and transfer systems – than Bitcoin which was mainly created as a way to pay for different goods and services.
XRP transaction speeds are at a huge advantage. They take about 3-4 seconds, where as Bitcoin needs from 10 minutes to an hour. With XRP, variations are minimal, meaning that no matter how big or small the distance is between the sender and the receiver it will always take approximately the same time.
XRP’s transactions are practically free with the cost of less than $0.01. When compared to the Bitcoin’s $40-50 fees, it’s clear who the winner is. This makes XRP perfect for both smaller payments and bigger transactions, especially when combined with its near-instant transaction speeds.
When it comes to scalability, Ripple can handle up to 1500 transactions per second. This means that if it becomes a global payment system, it will be able to handle huge number of transactions without getting overloaded.
On the other hand, Bitcoin is able to process only about 7 transactions per second, which is one of its main problems. Also, XRP from the transaction’s fees doesn’t go to anyone but is destroyed, which helps increase the value of the remaining tokens.
Regarding decentralization (a lack of control/ownership from one person/company), Bitcoin is open-source and highly decentralized, backed up by a large community. This can make it difficult to agree on certain aspects and makes upgrading the system tough. Also, Bitcoin’s decentralization is in danger with the increasing use of ASIC devices that give their owners an advantage over other users. In comparison, Ripple is a privately-owned company. Even though they can oversee the transactions, they don’t have the control over the supply of XRP. Since all developers work for the same organization in unison, updates can be applied faster and more reliably. Furthermore, selling or trading for XRP can be done without a third party.
What You Need To Know Before Buying Ripple
Crypto trading can seem complicated, especially for a beginner. In addition to our Trading Academy here are a few basic tips and rules will help make it a bit easier.
Do Research and Keep Learning
Never trust a single source or a person that tells you when to buy or sell. Always keep a close look on the market and watch for price fluctuations. It will take a bit of time at the start to learn and notice the trends. Knowing what you’re investing in can make all the difference and help you see what the main goal of that specific currency is. Inform yourself on all the different aspects of it and see what it aims to change/improve. Trading without knowledge is the same as playing the lottery. Almost all good projects have a specific objective that they work towards. Empty promises of numerous different solutions often lead nowhere and don’t last long.
Don’t Get Greedy
If you see a significant jump, don’t hesitate to take it. A 30% increase in price doesn’t guarantee an additional 20% increase in the future. In many cases, this leads to even losing money because dreaming about huge profits that might never come is much more attractive than taking smaller steps. However, if the price falls instead of increasing, you will regret not selling on the initial jump. Don’t be afraid to sell.
Don’t Make the Same Mistake
You’re bound to go wrong somewhere. By learning from the mistakes, you’ll gain experience. Analyze the situation, find out what went wrong and think about how it could have been prevented. It’s impossible to go out as a winner from every single trade. Because of that, only invest what you can afford to lose. Accepting failure is crucial in not letting your emotions get to you. A losing streak can quickly get nerve-wracking and cause you to trade sloppily. Take a break, cool off and try again. Sometimes
Waiting is Better
Prices can get highly unpredictable. Knowing when not to trade is as important as knowing when to trade. Both holding and trading too often can lead to bad experience. Aim for the balance between those two. Try to buy low and sell high. If a coin has a big goal, it will take time to achieve it.
If you look at trading as a chore, it will quickly get tedious. As with anything, trading profitably and successfully is going to take a bit of time and practice. At the end of the day, try to have fun while researching and be smart about it.
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