Is Ripple a good investment option? What can it be used for and how is it different from other coins? Today I'm going to go through some of the Ripple Fundamentals to help you make better investment decisions.
I've bought a small amount of Ripple and hopefully this post will help you answer if you should too. Remember all cryptocurrencies are highly speculative, so only invest what you can afford to lose.
What is Ripple?
Ripple is a distributed settlement engine. It connects banks with payment processors to make sending money between countries and services frictionless. When someone wants to make a payment to another country Ripple's engine tries to find the fastest and cheapest way to make that happen. It can do this because Ripple has partnered with financial institutions such as banks and payment processors to make this happen. Sending a payment between banks in different countries takes days. This is a problem that Ripple is looking to solve. It's a big problem and if they can successfully solve it, it will make Ripple extremely valuable.
In theory Ripple is trying to bridge the gap between fiat and cryptocurrency.
Ripple has been created by an actual company – Ripple Labs, not an anonymous entity. Some people like this idea, some people don't. But Ripple Labs is dedicated to developing the platform, so it's not going to just be abandoned.
What makes Ripple different to Bitcoin?
Ripple is designed to do something very different to bitcoin. And in Bitcoin and Ripple can exist alongside each other and Ripple will actually benefit Bitcoin. Bitcoin can be part of Ripple's settlement network. In terms of being used as a currency, Ripple transactions are confirmed almost instantly so it does have some benefits as a currency.
The future of Ripple
Ripple is backed by some of the worlds largest banks. Many see cryptocurrency as a threat to their ecosystem, and by backing Ripple they are hedging their bets. So Ripple will be least affected by any regulation on cryptocurrency. Ripple is also backed by some big name investors who use Ripple as a base currency for their funds.
Ripple is currently on almost all digital currency exchanges. However it hasn't been listed on Coinbase – the largest seller of cryptocurrency in the world. Many people speculate that this is only a matter of time. Being listed on Coinbase could be a huge boost for the currency and push the value of it higher.
Where to buy Ripple
Ripple can be purchased from most digital exchanges including:
You'll first need to buy Bitcoin and transfer it into Binance. From there, you can exchange it into Ripple. I like Binance due to the sheer number of different altcoins on offer and a good reputation.
This is where I buy Ripple, but it's only available in Australia. CoinSpot allows you to buy Bitcoin, Ripple and dozens of Altcoins using fiat. They offer instant deposits using your bank account. Being able to buy Ripple using fiat is so much more convenient and cheaper than having to first buy Bitcoin.
eToro is now one of the most popular trading platforms for Cryptocurrency. You can trade Bitcoin, Ripple, Ethereum and a handful of other popular coins. As eToro is a traditional broker, you can also trade stocks, forex and commodities alongside cryptocurrencies.
How to Short Ripple
You can short Ripple through eToro. They allow you to open both long and short positions in cryptocurrency. This means you can trade both sides of the coin as it moves around. Remember shorting is always more risky than just buying and holding a coin, and I recommend it to more advanced traders only.