Trading Ripple CFDs comes with many benefits compared to actually buying, holding and then selling XRP via an exchange. First, trading Ripple CFDs means you can perform both a buy or sell trade immediately. This is because CFDs allow you to trade the Ripple price without the need to actually hold it. Ripple CFDs also allow you to potentially benefit from both the rise and fall of Ripple.
Ripple, or XRP, is a cryptocurrency but unlike Ethereum and Bitcoin – it is actually intended as a payment protocol based on blockchain. One reason that Ripple has garnered so much attention is that it has been adopted by over 100 clients, including mainstream financial services companies such as UBS, RBC, Credit Agricole, Santander, American Express and MoneyGram. Ripple was established in 2012 and claims to have the fastest payments settlements, is the most scalable amongst its crypto-counterparts and has negligible energy consumption.
From inception Ripple was intended to be used by banks to replace their current payment protocols.
Although Ripple has experienced fluctuations – it has acted in a much more predictable way. The main reason is that it is not as easily purchased as other cryptocurrencies.
When it was established in 2001 easyMarkets was one of the first brokers to offer online trading and credit card funding. We continue to innovate, offering customers optimal trading conditions.
easyMarkets offers you multiple unique and innovative risk management tools including free guaranteed stop loss.
Ripple CFDs allow for instant trading – our CFDs let you trade the XRP/USD price without needing to own it. When you have Ripple in a wallet though, you will have to put it on an exchange and then wait for someone to be on the opposite side of the transaction – i.e. if you’re selling, you need to find someone to buy, and when you buy Ripple you need someone sell at the price you want.
Access to leverage is another benefit of trading Ripple via a CFD; something that is not an option if you hold the actual asset. Leverage in essence is short term credit a broker offers its client to be able to open a larger position. Since leverage multiplies movements in both directions, risk can be managed with tools like stop loss. A standard feature on all easyMarkets accounts is free guaranteed stop loss that allows you to set the maximum risk you are comfortable with when you are using leverage.
Finally, the other significant benefit when you trade Ripple CFDs is the ability to potentially benefit from both the rise and fall of Ripple’s price. When you hold XRP, a drop in its price would result in losses, but presents an opportunity to purchase it at a lower price.
|Trading Ripple CFDs||Buying and Selling Ripple on an Exchange|
|Immediately trade – don’t get stuck with Ripple if it drops.||Wait for a buyer or seller to be on the other side of your transaction.|
|Potentially benefit from both the rise and the fall of Ripple. No need to wait for someone to be on the opposite side of your transaction.||A drop in its price is a potential opportunity to purchase Ripple. If you are holding Ripple this will result in a loss.|
|easyMarkets offers unique and exclusive risk management tools||Risk must be performed manually or on software outside the trading platform.|
|No need to find a crypto wallet or register on a cryptocurrency exchange. Trade XRP/USD in minutes.||Researching and finding the right crypto wallet and a creditable exchange can be time consuming.|
|Trade Ripple with a regulated broker established in 2001, with exceptional conditions and customer support.||Cryptocurrency exchanges can be vulnerable to cyberattacks which have cost Ripple traders some or all of their assets.|
All easyMarkets accounts feature robust risk management tools. Your spreads are fixed no matter what market conditions are. No hidden fees, deposit/withdrawal fees. easyMarkets also offers a high level of choice, not only do you have access to Ripple but also to 200+ other instruments to trade. Additionally you can choose to trade on mobile, our user-friendly and innovative web platform and the very popular MT4.