What is Ripple?
Ripple is a new-age cryptocurrency and blockchain technology that allows rapid, reliable payment transfers anywhere in the world. It is a digital asset expressly designed for making payments. Ripple, or XRP as it is known, is the native cryptocurrency on the XRP Ledger. This fully decentralised blockchain technology is frictionless, open source, and does not require the permission of banks, financial institutions, or government bodies. Transactions can be settled rapidly, in as little as 3-5 seconds. With no need for an intermediary, XRP transfers can be initiated rapidly.
Chief among the benefits of XRP are fully scalable operations, extremely low costs, and rapid transfers. XRP functions on the RippleNet – a global blockchain that makes it easy to exchange funds, instantly settle transactions, and create efficient monetary transfers online. With an open developer platform for money – RippleX – this technology is quickly leading the way as an e-commerce game changer. This open-source technology is overseen by the XRP community, replete with independent validator nodes of all Ripple transactions.
Put simply, Ripple entered a crowded crypto space and transformed the industry. The Ripple Network is a powerful ecosystem which allows clients to break free from traditional, established financial enterprise. You don’t have to worry about banks, credit card companies, and middlemen – Ripple is quicker, cheaper, more reliable, and safer to use. Based on market capitalisation in February 2021, XRP ranks at #4 on the cryptocurrencies list, at a price of $0.3670, and a market capitalisation of $16.723 billion. The cryptocurrencies ahead of Ripple include Bitcoin, Ethereum, and Tether.
Ripple Trading is Exclusively Available to Pro Traders at AvaTrade UK
The name Ripple generally refers to the network, while the digital currency is referred to as XRP. The Ripple coin’s frequency of release determines the price of XRP, and the rate of exchange. Ripple Inc was established in 2012, and is the brainchild of Chris Larsen and Jed McCaleb.
The Ripple founders envisioned a rapid, frictionless, and low-cost, transactions processing system. XRP digital currency can be used for payment transfers between individuals, for between banks. A total of 100 billion XRP exists, and the company which owns the network is Ripple Labs Inc, a US-based technology company – originally named Opencoin before 2015.
XRP hit an all-time high of $3.29 on January 4, 2018. Unlike other cryptos – Bitcoin especially – the number of XRP has already been produced – 100 billion. Not all of them have been released into mass circulation.
According to reports, Ripple Labs owns 60% of all XRP. Viewed in perspective, this decentralised cryptocurrency is in fact largely owned by a centralised authority in the form of Ripple Labs. At the very least, it is a majority shareholder with a significant controlling interest.
Many major financial institutions, including banks are already on board with Ripple technology. These include PNC Financial Services Group, Banco Santander, Bank of America, Euro Exim Bank, and scores of others. Banks which partnered with Ripple technology in the past include BBVA, PNC, SEB, and Start One Credit Union, but no US bank uses XRP as yet.
Recent events with the SEC (Securities and Exchange Commission) have put a damper on Ripple Labs, but the litigation is ongoing.
Trading XRP CFDs for Professionals at AvaTrade UK
As of 2021, the regulatory authorities in the United Kingdom expressly permit professional traders to buy and sell cryptocurrency CFDs. As a licensed broker, AvaTrade UK facilitates crypto CFD trading for professional traders. Upon registration, select your level of trading experience from 1-10+, as indicated in the image below. You will then be able to proceed with crypto CFD trading.
- Open a cryptocurrency trading account with AvaTrade UK
- Fund your account
- Enter your preferred investment amount
- BUY (Go Long) or SELL (Go Short) Ripple
AvaTrade is an industry-leading broker with some of the best trading conditions available, including the lowest crypto spreads on the market.
Why Trade Crypto CFDs With AvaTrade UK?
- Uncompromised Safety – With six regulatory authorities and segregated accounts, your money is protected at all times.
- Many Cryptos to Choose From – Trade on the wide variety of cryptos available on our trading platforms.
- No Hidden Fees – We offer zero commissions and no bank fees on transactions!
- Crypto Never Sleeps – AvaTrade UK is one of the few brokers offer around-the-clock service and support in 15 languages.
- Generous Leverage – Increase your initial capital with generous leverage and get far more exposure to trade than your account balance. Up to 2:1 (for EU residents) 25:1 (for non-EU residents).
- Limit Your Risk – You can preset profit and loss levels by using stop losses or take profit limits when you trade. Determine the maximum amount you are prepared to risk when speculating on the price, or set a price at which you want to take profits. Future orders like Buy Stops and Buy Limits are also available. Also, use our incredible AvaProtect™ risk management tool to protect your trades from losses.
- Trade Cryptos Against Fiat Currencies – Unlike many exchanges out there, who are restricting their clients to trade only Crypto-to-Crypto, our clients can trade Cryptos against Fiat currencies (USD, EUR, JPY etc.), as well.
What are the advantages of Trading Ripple with AvaTrade UK
- We offer Ripple CFD trades with up to leverage
- You can start trading Ripple from as little as
- This volatile crypto makes for an excellent addition to any financial trading portfolio
- AvaTrade UK is one of the only brokers that offers around-the-clock Ripple trading, for maximum convenience
- You can sell Ripple (Go Short) and potentially profit even when the market price is in a downtrend
- Enjoy live language-specific customer support around the clock
- AvaTrade UK offers zero commissions on Ripple trading and no bank fees charged on transactions
- Zero exposure to hacking or theft simply because you don’t actually own a digital wallet
- AvaTrade UK is regulated on 6 continents
- Trade Forex and Ripple from a single trading platform
- Execute trades in just 3 clicks, free from the complex crypto purchasing process
Based on the Ripple website, their concept is a ‘basic infrastructure technology’.
The idea of Ripple was born in 2004 by Ryan Fugger from Vancouver, Canada. The currency was developed over the following ten years, until finally, in 2014, various large banks started using Ripple and the related payment networks. The Ripple system offers numerous advantages to banks, like distributed ledgers, pricing and security.
The company behind Ripple is ‘OpenCoin’. There are two separate entities that make up Ripple:
- The payment network – Ripple
- The actual currency on the payment network – XRP Ripple
Building on the decentralised digital system, Ripple’s concept is to work with different payment systems worldwide.
Ripple allows businesses to perform transactions within 3-5 seconds. The payments are processed and received automatically and are irreversible. Various financial institutions worldwide have established partnerships and started using the Ripple system.
In many ways, Bitcoin and Ripple are similar. Like Bitcoin, the Ripple coin has a limited number of units that can be mined. Both can be transferred from peer-to-peer, and both have digital security keys to prevent face transactions of coins. Payment information on the ledger is private, however, transaction information is public.
The people behind Ripple insist that they provide faster transaction times than Bitcoin, because there is no waiting on block confirmation, and transactions transmit through their network very rapidly.
What are the Differences Between Bitcoin and Ripple?
- Both are open source – not owned by any one company or any individual
- Transactions for both can be anonymous and free over the internet
- Both Bitcoin and Ripple are decentralised currencies (no banks or approvals needed)
- Ripple is faster in processing transactions and more energy-efficient than Bitcoin
- Bitcoin is owned by a community; Ripple is owned by a private company and its internal ledger is a closed affair
- The total valuation of all bitcoins in circulation stands at approximately $270 billion, while Ripple is at $120 billion
Bitcoin wants to change WHAT we pay with; Ripple wants to change HOW we pay.
When trading with AvaTrade UK, you are trading on the price changes of the digital coin, and not physically purchasing it.
The maximum accumulated position size for Ripple is $250,000 notional value, details in our Conditions and Charges page.
Ripple Trading FAQ
Will the price of Ripple continue to go higher?
The Ripple cryptocurrency looked like 2020 was going to be a bust as it was up just 24% through the end of October, while competing cryptocurrencies sported gains of 100% or more over the same time frame. That all changed as Ripple rose nearly 300% in November 2020. Since then the gains have partially evaporated as they came primarily from a free airdrop of coins to holders of Ripple at that time. Which has traders wondering if Ripple can return to those November heights. What will really determine if the coin can go higher will be adoption by banks. While that is slowly happening, it hasn’t been nearly sufficient for Ripple to become widely used or in high demand just yet.
Is Ripple a good cryptocurrency for trading?
In general most cryptocurrencies exhibit a high degree of volatility and are suitable for short-term trading. Ripple is no exception, but typically we don’t think it is the best cryptocurrency for trading. Still, there are times when it can be better than others, such as when it becomes overbought like in November 2020, or when it becomes oversold like in March 2020. In short, there are always going to be opportunities in trading cryptocurrencies like Ripple, but you need to keep your eye on the coin to know when those opportunities are arising.
What’s the best strategy for trading Ripple?
Ripple traders can use many trading strategies and styles to profit from price changes in the coin, but no matter which strategy is used we believe they should all revolve around the use of CFDs rather than going to an exchange and actually buying the Ripple cryptocurrency. There are simply too many risks and confusing steps when you own the cryptocurrency and need to move it from wallet to wallet, or exchange it for fiat currency. Trading CFDs does away with all this and allows the trader to focus solely on the price action and on making a profit.
Please note that crypto trading is not available to UK Retail clients