Trading Ripple on Plus500
On Plus500 you can trade in various well-known cryptocurrencies like Bitcoin or Ethereum. Recently it has also become possible to trade in Ripple using CFDs. But how exactly does trading in Ripple with Plus500 work and what makes Ripple unique compared to, for example, Bitcoin?
Trading Ripple on Plus500
In this explanation we look at how you can trade Ripple with Plus500. If you have not already done so, you must first open an account on Plus500. You can try the possibilities on Plus500 completely free with a demo. Use the button below to open an account with Plus500:Ripple is not available on Plus500 anymore. You can still trade other CFD cryptocurrencies on the platform.
After creating an account, you can immediately start trading CFDs on Ripple. But how exactly do you do that? First you need to find the Ripple CFD within the software. You can find the CFD by using the search function or by navigating to the cryptocurrencies category.
Within the category you can find the Ripple CFD. You have two options here:
When you press on buy you speculate on a price increase and when you press sell you speculate on a price decrease. This makes it possible to take a position on the cryptocurrency Ripple under all market conditions.
Some things you should be aware of
When trading in Ripple using CFDs, there are a few things to keep in mind. First of all, it is important to remember that you do not trade directly in the Ripple. When you use CFDs, you trade in a derivative on the Ripple. You can respond perfectly to price developments with a CFD, but you will never own the Ripple for the long term.
Trading through CFDs has the necessary advantages. A big advantage is that you can use a leverage. By using leverage, you can take a larger position with a smaller amount. You also have the option short sell with Plus500. When you go short you bet on a declining Ripple price.
However, trading in Ripple in this way also has two disadvantages. The first drawback is that you are dealing with an expiration date. The CFDs on Ripple expire every 60 days, and after that period you will have to open a new position again. A second drawback is that you pay financing costs on a daily basis on your trading on the Ripple. The daily costs are not high, but make it unattractive to trade in Ripple with CFDs in the long term.
What is Ripple?
Ripple is a cryptocurrency just like Bitcoin is. However, this coin has some unique features. For example, the Ripple is not fully decentralized. The Opencoin company started Ripple in 2012 and aims to significantly reduce transaction costs on international transactions. You can quickly convert dollars to Ripple and vice verca.
The price of one Ripple is much lower than the price of a Bitcoin. However, this does not mean that the Ripple is less interesting. The value of a cryptocurrency also strongly depends on the number of coins that come on the market. There are far fewer Bitcoins (up to 21 million) in total than Ripple coins. When you invest in a cryptocurrency, it is therefore important to look at the market capitalization. This number indicates the total value of all coins together.
We already mentioned that the crypto currency Ripple is not fully decentralized. The coin is managed by a company. New developments are only implemented if 80% of the users agree.
The makers of Ripple still have a lot of power: they currently own 62 percent of the coin, which equates to 100 billion Ripple coins. They managed to set up a more efficient system than with Bitcoin. The costs for a transaction are only 0.00001 XPR and the transaction is executed immediately. With transactions with the Bitcoin you quickly pay $ 20 or more and it takes an average of 1 hour and 10 minutes to complete the transaction.
The Ripple currency clearly has the necessary advantages over Bitcoin. It can therefore certainly be interesting to trade in this coin at Plus500. The Ripple is very volatile and you can take advantage of this as an active trader. It is important to remember that these types of investments are very risky. You can lose your full deposit if you make the wrong decision.