This guide I will teach you ALL the basics of XRP and how to buy it like a pro! We will delve into a brief history of XRP, the key theories and ultimately how to buy XRP (Ripple) on eToro. This way you can get a broad understanding and make an informed decision!
What is XRP (Ripple) ?
Ripple is a cryptocurrency that acts as a ‘bridge’ between cryptocurrency (such as Bitcoin and Ethereum) and fiat currency (like pounds and dollars). It allows global transfers to occur in just seconds, compared to minutes for other cryptocurrencies and days for traditional banking and other monetary transfers. Ripple, also known as XRP, has attracted hundreds of ‘big business’ investors, such as American Eagle, who are eager to make use of this high transaction speed. After all time is money!
Along with high-profile investment, the finite number of XRP ‘tokens’ available (100 billion) makes the currency far more stable than other, more well-known cryptocurrencies like Bitcoin. The value, although more stable, still fluctuates due to demand increases and decreases; unlike some online currencies, no more is being produced, meaning that as demand grows, so does the value of XRP. This makes Ripple an invaluable investment, whether as a personal way to generate income or as a trading currency.
What is XRP (Ripple) Used for?
Due to the transaction speed, Ripple is mainly used for converting currencies that cannot be directly traded on the global market. For example, many South American currencies, such as the Brazilian real, cannot be traded directly for pounds or dollars. This is due to historic issues with inflation, fakery and political volatility; currencies such as these are referred to as ‘soft’ currencies, or ‘nonconvertible’ currencies.
For businesses trading with and within these countries, using cryptocurrencies such as XRP (Ripple) allows them to quickly convert money without having to wait for days at a time for traditional banking processes. The Ripple process is also exceedingly cheap, costing just $0.00001 per transaction. Many businesses therefore prefer this as an almost cost-free alternative to traditional conversion methods. On an individual level, this can be used to produce huge margins of profit: using XRP to trade backwards and forwards between ‘fiat’ currencies depending on their value can quickly create massive profits, especially if large sums of money are involved. Furthermore, the variations in XRP price can have the same effect. Buying and selling XRP depending on its value can produce income in a similar way to trading shares on the stock exchange.
How is Ripple stored online?
There are two main options when it comes to storing Ripple. It can either be withdrawn from accounts and placed in personal digital wallets or left on trading and storing platforms. The obvious benefit of storing platforms is the insurance against loss and theft of your devices, as well as them making it easier to directly trade online. The main weakness of storing cryptocurrency in online systems is their vulnerability; if a business goes bankrupt or the website is taken down overnight, there is no way to recover the cryptocurrency. The other vulnerability, hackers are also an issue with storing any money, be it crypto or fiat currency that is being stored.
The major downfall of withdrawing Ripple to an online wallet is that they exist only on your device: if a laptop is lost or stolen and the currency is not backed up it is not retrievable and has the same impact as losing physical cash.
The Shane Ellis Theory for XRP (Ripple)
The Shane Ellis Theory is based in the liquidity of XRP as a currency; as the Ripple Preferred Partner Solution pairs with more and more exchanges, the use of XRP in arbitrage trading will also decline due to coordinated price movement. Existing XRP provided by Market Makers will boost the liquidity of the currency and therefore its trading potential, and increase the price of the currency. As the reserve pool of currency is used to service transactions, this then means that the value of XRP exponentially increases as more and more currency is used at higher monetary values. The Shane Ellis theory predicts that by completing higher and higher value transactions will push up the price of XRP in dramatic jumps, all whilst a Buy/Sell wall maintain price stability.
Many have agreed with this theory; there is not a way to predict when XRP goes live, meaning that the production and transaction movements will begin to flow at the same time, all whilst the price increase is stabilised, synchronised and maintained by the Exchange. Others have argued that this method is far too simplistic to be realistic, and noted that as buyers begin to move to XRP and the value increase, investors will begin to sell their XRP at higher and higher rates, which will cause the price to drop again.
What are the Risks with XRP (Ripple)
Risks associated with XRP mean that investors are not thrilled about its long-term trajectories as a lucrative investment choice. They argue that the reason that XRP has seen such rapid asset growth is directly related to the increase in media attention surrounding Ripple Labs’ partnership with the banking sector, which investors argue is short-term hype that will fall through once mainstream interested declines.
Furthermore, this media hype is more related to cross-border currency vehicles such as XCurrent, not XRP itself, which is not clearly differentiated by Ripple Labs. Ripple is also a centralised currency, with much of it owned by Ripple Labs themselves, meaning that any flaws in the Ripple Labs’ system may negatively impact the value of the currency with disastrous results. A distinct issue for some investors is the lack of information surrounding Ripple, as they believe that it could destabilize the value of the currency.
Potential in XRP (Ripple) to make you money!
XRP allows for instant international transfers, and is especially useful for banks trading in large sums almost instantly and with minimal transfer costs. As well as their partnership with over 100 international banks, Ripple Labs aims to continue the growth of XRP over coming years. Over the course of the last few years,
XRP has grown in value by over 35,000%
and as it continues to be used by more and more banks for global transfers, it is set to become even more valuable. As it is a highly secure and low-cost way of trading currencies, this increase in popularity will no doubt lead to an increase in the value of XRP assets. This makes it a potential lucrative investment choice. However we are a long way of the 2017 gains of a 1000% a year instead I believe the usefulness and the fundamentals of the coin is to become increasingly important. And simply put I believe XRP has one of the best use cases of all coins and is the most likely to be adopted.
Where to Buy XRP (Ripple) Online
There are multiple platforms on which to buy Ripple; most notably Coinbase and eToro. When dealing in cryptocurrencies, it is important to use mainstream, trusted platforms, as they offer more protection for users and businesses, with better defences in place against hacking, fraud and stealing. Between eToro and Coinbase, the platforms serve over 33 million users worldwide, making both services reliable and trustworthy. These platforms allow you to buy, send and trade cryptocurrencies, including Ripple (XRP) amongst other currencies, as well as use them for purchasing commodities, services and other items across the internet.
These websites are huge platforms; they are safe, secure, and free to sign up to. Both Coinbase and eToro do have a minimum $25 initial deposit, though, meaning that you must invest at least $25 dollars in Ripple and other currencies, whether this is all at once or over the course of several transactions. Both Coinbase and eToro have a similar basic setup; sign up via the website and deposit a small amount of money to start trading. In order to create an account with Coinbase, you must provide proof of identity: they suggest on their website any form of photo ID, which in the UK equates to a passport or driving license. On eToro, however, the only verification needed is done through a confirmation email; many reviews therefore suggest that Coinbase is a more secure platform for buying and spending Ripple.
How to buy Ripple currency on Coinbase
Previously, to buy Ripple on Coinbase, users had to purchase mainstream cryptocurrency such as Bitcoin in order to purchase XRP. Ripple was considered an ‘alternative coin’, but since its growth to the second-largest cryptocurrency, it has become directly available. Now, in order to buy and sell XRP on Coinbase, users merely need deposit their minimum of $25, and click several buttons to confirm their purchase. Much like with shares in companies, the value of XRP can then be tracked using either the Coinbase app or website, and the Ripple can then be sold when the prices are higher, or more can be bought if they decline. Due to the finite number and the immense value to global businesses, the more popular Ripple becomes, the more valuable it becomes to everyday users in this setting.
How to Buy XRP (Ripple) on eToro
Time needed: 30 minutes.
A quick and easy guide to buying XRP on eToro!
- Signing up
The easiest step just sign up to eToro and create an account and deposit the money you wish to invest, link HERE. Also make sure you check out everything you need to know about cryptocurrencies !
- Searching for XRP on eToro
Once you’ve signed up the next step is to navigate eToro and find the XRP to buy. To do this in the search bar simply type XRP or Ripple. A drop down will appear, all you have to do is click on XRO to be taken to the XRP main page
- XRP Product page on eToro
As you can see from the below screen shot eToro provide a load of options to help you trade effectively and make better choices! But you will want to hit the big Blue Trade button on the top right!
- entering into a trade with XRP on eToro
The next very easy step is to buy however much XRP on eToro you want you put the amount you want into the amount section then hit OPEN TRADE. You will notice that the price changes. previously the price was 0.2382 and now its costing you 0.2440 per token. This difference in price is called the spread and its how eToro makes its money! This does mean you will start at a loss so its not recommended that you try to trade XRP on eToro but if you are in it for the long term then eToro is the perfect choice as they are FSCS protected and regulated, you are also insured up to £1,000,000 should eToro go insolvent which is far superior than other methods and really adds another level of protection you might not get elese where
- Well you’ve gone and done it!
So in 5 easy steps you have successfully bought some XRP (Ripple) from eToro, you will notice that you start off at a loss this is because you have to pay a 2.45% fee for XRP. Over the long term I think eToro is awesome and I think XRP is a good buy as far as cryptos purely because it has the most utility and is the most likely coin to be adopted by big banks for global transactions and as the XRP supply diminishes then price will increase! Happy Trading all!
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My name is Joseph Moricca, I run Velox Investments and I am an Investor on eToro and have been for a number of years.
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Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
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