Why You Should Buy Some Ripple

Why You Should Buy Some Ripple

Should you buy Ripple (XRP)?

People buy Ripple because of the potential it has for advancements in the banking industry. Ripple is a real time gross settlement system, currency exchange and a currency called a ripple (XRP). Ripple boasts “secure, instant and nearly free global financial transactions of any size with no chargebacks”. Currently, Ripple is the third largest cryptocurrency by market cap, after Ethereum and Bitcoin. Ripple is a solution for banks to avoid intermediaries.

Ripple is growing very fast since it’s being adopted by many different financial institutions in the world. Recently, Axis Bank, a popular commercial bank in India, integrated RTGS payments which can do funds transfer within minutes. Ripple is a great choice for cryptocurrency trading because it’s being accepted by different institutions worldwide. I think going short on Ripple would be a very profitable investment. This is because people don’t buy Ripple as much anymore and thus the currency is falling.  That’s what makes Ripple great for cryptocurrency trading. You can buy Ripple in a falling market with CFD trading to make great short term profits.

How does Ripple work?

Currently, all banks have to go through intermediaries to send funds. Along with the costs, these intermediaries can take a lot of time to process your fund’s transfer. What’s worse is that there’s usually not just one intermediary. Put all this processing time together and you can have serious delays to complete an international funds transfer. However, with traditional banks, this time can be dramatically well over 5 days. Ripple provides a solution that allows banks to complete funds transfer in minutes. That’s how fast Ripple works. This is the primary reason why people think the currency will be worth more in the future and that’s why they buy Ripple.

Furthermore, since Ripple has a coin called the XRP, it’s evident that it runs on a blockchain. Today, conventional banks do not reveal a lot of information in terms of how they operate. Sometimes, you just need to trust your bank that the funds have been transferred. This is unfortunate for the consumer since it’s his money and he can’t see where it is at this moment. If all banks were to use Ripple, you can access all records to make sure that your money is safe. Since it’s run on a blockchain, the consumer can also verify all the transactions that he completed.

Where should you buy Ripple?

However, in the past few months, Ripple has been falling in value and it’s not sure that the currency will crash. That’s why it’s a bit risky to still own the currency to trade but there’s a better solution for everybody; CFD trading. You can use Plus500, a CFD trading platform, to trade CFDs of Ripple. CFD trading is quite complex but we’re going to boil it down to basics. If you think that the price of an asset will rise, you purchase 10,000 CFDs to show that position in the market. Now, if the price actually does go up, you would make a proportional profit. This works conversely as well.

If you think that the price of an asset will decrease, you can short the asset on Plus500. That means “selling” the CFDs first and then buying them back at a specific price. If the price of the asset decreases after you sell it, you will make a great profit and vice versa. Another advantage of Plus500 is Leverage Trading. It’s essentially like buying assets on a loan from the platform. You need to put in around 50% of the trade, the rest of it is paid by the broker. In the case of CFD or margin trading, this ‘broker’ would be the platform itself. You can do CFD trading instead of buy Ripple, it’s much more profitable in the short run.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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