I noticed recently that the popular social trading platform and broker, eToro has added Ripple trading.    Is there money to be made in Ripple?  How does it compare to other cryptocurrencies.

I thought I would write about this interesting Cryptocurrency and the potential money making opportunities and how you can get started trading it as well.

What is Ripple

The best way to think about Ripple is as a distributed exchange.  People put orders onto the network, and Ripple will act as a pathfinder trying to find the cheapest route to exchange one thing for another.

To use the exchange you pay a transaction fee.  And that’s where XRP comes into play.  XRP is the token used on Ripple.

XRP transactions are very quick, and they clear in just a matter of seconds.

Why invest in Ripple

Ripple has huge potential to disrupt the financial industry.  While Ripple might not appeal to consumers, that’s probably a good thing.  Ripple was designed to be used my large organisations within the financial industry.  Ripple shouldn’t be thought of as a traditional cryptocurrency.  It really doesn’t fulfill this role and it’s not what it was designed for.

How to invest in Ripple

The easiest way to speculate on the price of Ripple is through a platform like eToro.  On eToro you’ll be able to trade Ripple, alongside more traditional investments such as Forex and stocks.

If you want to actually purchase and hold Ripple, then you’ll need to do this through an exchange.  This is a slightly more tricky process which will require you to first purchase Bitcoin and then use that to exchange into Ripple.

Speculating on the price of Ripple can the fraught with danger.  The price can move around a lot.  So if you’re not an experienced trader, then I would recommend Copy Trading instead.  This is where you automatically copy the trades of a trader who actually knows what they’re doing.  On eToro, just search for traders who invest in cryptos to find people who are trading Ripple.

Find out more about Ripple here