Trading Ripple: What Are Your Choices in 2021? [+ Broker List]

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Risk Warning: Your Capital is at Risk.

If you have a basic understanding of what Ripple is, you may be interested in trading it. We explore some reasons why you may or may not want to trade Ripple, followed by a list of regulated broker recommendations for those in .

If you want to own Ripple instead of trading it as a derivatives instrument like Ripple options or CFDs, you can see our list of exchanges where you can buy it outright.

In a hurry? If you want to get buy or trade Ripple, here are options available in :

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

Should I Trade Ripple?

We explored some of Ripple’s features and position in the market to come up with some reasons you may or may not want to speculate on price movements.

Reasons You Might Want To Trade Ripple

  1. Exclusively designed as a payment platform
  2. Ripple focuses technological developments on B2B
  3. Near-Instant interbank settlement

Important: This is not investment advice. We present a number of common arguments for and against investing in this commodity. Please seek professional advice before making investment decisions.

Exclusively Designed As A Payment Platform

Unlike most cryptocurrencies, the Ripple platform is designed in such a way that it can handle the whole transaction cycle.

Users are not dependent on using third-party services, third-party exchanges, or wallets to make a transaction and then have the money converted back to local currency on the other end.

Ripple Focuses Technological Developments On B2B

Ripple is designed to be able to be compliant with banking security, risk and privacy requirements such as Anti-money Laundering (AML), and Know Your Customer (KYC) practices.

Businesses also operate under similar requirements meaning they would not have to go out of their way and create their own compliance policies.

Without other cryptocurrencies, they would be bound to such compliance policies.

This allows Ripple more scope to engage with financial services businesses and bring them into their platform.

Near-Instant Interbank Settlement

Ripple offers almost instant settlements for interbank transactions. Currently, most interbank settlements, be they international or local, occur on the SWIFT network or local networks that operate in a similar fashion.

As sophisticated as these networks are, they rely on decades-old infrastructure and best practices that cannot compete. A SWIFT payment from one bank to another relies on intermediary banks to act as middlemen.

This adds unnecessary cost and elapsed time to each transaction that as a result can take days to clear. In contrast, a Ripple payment can clear across borders within seconds.

Reasons Why You May Not Trade Ripple

Following the SEC’s filed lawsuit against Ripple in December 2020, Coinbase suspended XRP trading. Blockchain.com likewise halted XRP trading.

Two main reasons traders may choose not to trade ripple are:

  1. Dependence on exposure via mainstream financial companies
  2. Narrow user appeal and few unique selling points

Important: This is not investment advice. We present a number of common arguments for and against investing in this commodity. Please seek professional advice before making investment decisions.

Dependence On Exposure Via Mainstream Financial Companies

Ripple Labs have ambitiously been working on providing solutions to the financial services industry since before Bitcoin was invented, and as such have not made as many inroads as expected.

Ripple is still a cheap buy with a lot of upside price potential, but its price is also heavily influenced by external events.

If the financial services industry decides to get behind Ripple in a big way, this would have a huge bearing on the price.

However, this hasn’t happened yet and the market remains volatile and hanging on the next news article that relates to its adoption.

Narrow Appeal & Few Unique Selling Points

Most cryptocurrencies benefit from their users becoming the biggest users and advocates of their platforms – the more users that buy-in, the more the platform makes an impact on the market.

On the other hand, Ripple has a much narrower and pre-defined use case that narrows its metrics for success.

This means that Ripple users are more likely to feel a type of disconnect as the success of the platform is more reliant on the efforts of Ripple Labs’ ability to bring financial services partners on board than it is on its holder’s enthusiasm and advocacy.

Where Can I Trade Ripple?

One preferred option is to not buy Ripple at all and instead to trade Contracts for Difference (CFDs), forex, or other trading products using a regulated broker.

CFD contracts allow you to speculate on price movements without owning the asset. If you want to learn more about Ripple before you dive in, see our General Guide To Ripple.

Other derivatives products with Ripple include options, futures, and forwards, though not many brokers offer these.

IMPORTANT: CFDs are not available in the USA due to local regulation, and regulated brokers do not accept US citizens or US residents as clients.

Ripple Brokers Available in

Here’s a list of options available in that offer forex, CFDs, and other trading products on cryptocurrencies such as Ripple.

See our full guide to trading Ripple, or start your research with reviews of these regulated crypto exchange and trading platforms available in .

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. <b>Between 53.00%-83.00% of retail investor accounts lose money when trading CFDs.</b> 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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Please Note: Availability subject to regulations. Cryptocurrency CFDs are not available to UK retail traders.

How To Buy And Own Ripple

So you’ve decided that you want to take the plunge and own Ripple. The next step is to figure out how to acquire some XRP.

What Is The Best Way To Buy Ripple?

The best way to buy Ripple is to first buy Bitcoin using Fiat currency through an exchange. You can then trade this BTC for XRP.

Here is a list of exchanges where you can do this:

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Some exchanges also allow you to deposit your native currency like EUR, AUD, or USD, with which you can purchase Ripple directly. Another common currency pair on cryptocurrency exchanges is USDT-XRP.

What Drives the Price of Ripple?

Major cryptocurrencies tend to rise and fall in tandem. Ripple is no exception. If you see a big rise or fall in the value of Bitcoin or Ethereum then there’s a high likelihood for Ripple to follow.

As with all other cryptocurrencies, Ripple is volatile. You should expect to see fairly dramatic fluctuations in value.

What Role Does The Media Play In Ripple Prices?

Media interest plays a big role in the price of Ripple.

As cryptocurrencies hit the headlines large numbers of new traders tend to pour in. This inflates the value of cryptocurrencies across the board.

This kind of rise is usually followed by a pronounced dip as early traders engage in profit-taking. You should keep a close eye on the headlines when deciding how to trade Ripple.

How Does Mainstream and Financial Adoption Impact Prices?

Ripple, in particular, sees large boosts when it is adopted by established financial institutions.

XRP saw a surge in value in May of 2017 when SBI Ripple Asia announced the creation of a Japanese Bank Consortium designed to facilitate cross-border payments.

Ripple is also prone to regulation aimed at curtailing cryptocurrencies but its role as a bridging currency provides it some protection.

Will China’s Hostility Towards Some Cryptocurrencies Obstruct Ripple?

You should also keep an eye out for changes in Asia, while China has recently become more hostile to cryptocurrency Ripple’s utilitarian nature may mean that it could be taken up by firms like Alibaba.

Firms can then facilitate faster payments.

The key driver of Ripple prices will always be the overall network usage, even if it isn’t directly P2P. The more support that Ripple’s open network gains the more value your Ripple trade will take on.

Further Reading

To learn more about the history of Ripple as a cryptocurrency, see our General Ripple Cryptocurrency Guide.

If other cryptos interest you and you want to learn where you can trade them, see these trading guides on Bitcoin Cash, Verge, ZCash, Dash, NEO, and Decred.

Here are a few useful articles to scan through before you begin trading Ripple:

Plus500 is not available in the US

Legitimate CFD brokers, like Plus500, cannot accept US clients by law

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