Published On: Fri, Sep 25th, 2020

Ripple Trades At Elevated Levels, But What Are The Next Targets From Here?

Ripple has recently been trading at elevated levels reaching as much as $0.30 per token. The value of the ripple trading token tracked Bitcoin and various other alternative cryptocurrencies up the ranks. A market correction followed. The coin Ripple XRB token was introduced to the cryptocurrency market in 2012 at around $0.005.

There it stayed until the cryptocurrency market peak in 2017, when the XRP reached a price of $0.36 per token. Over the next six month it hovered around the $0.20 level per token. Then in January 2018, it reached a startling $3.84 but it slowly fell $0.29 by September. It’s ranged between $0.56 and $0.2 since then. Analysts have mixed views on whether XRP is on an upward trajectory.

Trading in XRP

Ripple is one of the top 5 cryptocurrencies in the world with a market capitalisation of just under $11 million.

If you’ve decided to take the plunge and invest in Ripple, you first have a few decisions to make. PrimeXBT can assist with advice on this matter. You can choose to trade in one of two ways in Ripple.

·         Speculate on Ripple price movements using leveraged trading. This is called a Contract for Difference or CFD. This is a financial instrument and the transaction typically takes place between a broker and an investor. You’ll choose between a long position if you believe that prices will rise or take a short position if you think they will fall.

·         Invest in ripple and hold it as you would any asset that you hope to sell at a later date to make a profit. This is considered a long-term investment as you’ll want to wait until there is a significant increase in the price before you sell.

If you decide to take the first option you don’t have to pay the full amount up front. You will, however bear the full weight of both profit and loss. There is a big difference between investing in a cryptocurrency and trading in CFD’s. You’ll store the first in your wallet, whereas a CFD is stored in your account. Financial authorities regulate CFD’s. A CFD offers you more liquidity because you have not invested in the underlying asset.

How Ripple works

XRP, the currency produced by Ripple, operates quite differently from other cryptocurrencies. The supply of XRP is controlled by the organization and not through mining as it is the case with other cryptocurrencies. By controlling the supply, the owners also control the currency price. Ripple has produced more than 100 million XRP’s, 60% of which it retains. The rest is open for trade.

Financial institutions have fully supported Ripple and are among their main users. The Ripple concept originated in Canada in 2004, but it was only in 2014 that the major banks started to use Ripple. Ripple is a currency exchange network that uses its own cryptocurrency XRP to enable transactions. It also allows trades with fiat currencies. Transactions made through ripple are secure, instant and cost next to nothing. The technology was originally designed as a payment solution using blockchain.

Get prepared before you trade

Before you start to trade with Ripple, or indeed with any trading partner, you must develop a trading plan. Any good plan starts with a set of goals and objectives. Your objective should include your choice of trading plan. You need to understand how much you are prepared to lose so that you can activate stop losses to prevent a free fall. Seek the advice of a professional at PrimeXBT to find out how.

It is vital that you understand how Ripple works. No one should risk their money until they have done their research. Before you trade you must know the drivers of price movements so that you are able to identify trends and appreciate the direction that prices are likely to take. To get a full understanding of how XRP works, you should read the available technical analysis and any news that deals with the trade in XRP. Look at charts and examine price trends as this can give you invaluable insight into what may happen next.

It is important to find crypto exchanges with robust trading platforms. You don’t want to miss an opportunity because the platform is down at a time that you want to buy or sell. Ripple trades around the clock 24/7 so when you’ve done your homework you can start to trade.

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