Make the most of ripple (XRP) price movements by trading ripple CFDs with ADS Securities.
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What is Ripple?
Bitcoin’s growing popularity led to the emergence of a raft of cryptocurrencies, including ripple, a global payment solution that comes with its own eponymous digital currency, also known as XRP.
Whereas bitcoin was intended to replace fiat currencies, ripple intends to facilitate faster, cheaper global payments through blockchain technology.
Ripple consists of two parts:
- RippleNet, a payment network that enables currencies (including cryptocurrencies) to be transferred around the world.
- The XRP digital currency, which underpins the entire network and acts as a bridge between different currencies.
How Does it Work?
Gateways are used to automatically convert any transaction or exchange.
Let’s take a look at a USD/GBP exchange to see how the process works:
- USD is sent via the USD/XRP gateway, converting USD into XRP.
- XRP is sent via RippleNet to the GBP/XRP gateway and is converted into GBP.
- GBP arrives in the recipient’s bank account.
This not only simplifies international transactions, but also drastically improves transfer times. Traditionally, SWIFT transactions take days, whereas RippleNet transactions can be completed in seconds.
What Factors Make Ripple’s Price Move?
XRP Supply: XRP isn’t mined like most cryptocurrencies are. Instead, XRP supply is controlled by the company behind ripple. This theoretically means that they can control its price.
Access: XRP isn’t currently listed on Coinbase, one of the most popular exchanges. Coinbase currently say they have no plans to add ripple, but this could change.
Understanding: As we’ve already seen, ripple is different to most cryptocurrencies, as it’s a global payment solution.
Rival Success: The success of bitcoin means investors are looking for an alternative. With a low cost per coin, ripple could be seen as an attractive option for gaining access to the Cryptocurrency market
Profile and Adoption: Many large banks such as UBS use ripple
Why Trade Ripple CFDs?
A CFD is a contract for difference where you agree to exchange the difference in price of XRP from when you opened your position to when you close it. You have the same exposure to price movements as if you bought the currency outright.
One advantage of trading ripple CFDs is that you never own the underlying cryptocurrency. This is different to trading cryptocurrencies where you purchase the currency on an exchange and hold it in a ‘wallet’. This can be a slow process that’s expensive to maintain. But now, ADS Securities clients can have the convenience of trading ripple through their ADS Securities account, removing any time-consuming barriers.
You can buy ripple CFDs to go long (where you think the price will rise) or sell them to go short (where you think the price will fall).
Open an account with ADS Securities today to start trading ripple CFDs, or try our interactive CFDs trading courses.