Join the eToro Ripple trading boom today with a free account!
~ 2 min read, updated Nov-18
Ripple has become a main staple in any trading portfolio due to its high volatility, ie. large price movements. These large price movements are a daily occurrence and can be sometimes unpredictable, however if you can read the markets and understand what influences this volatility, then you can take full advantage using eToro’s very intuitive trading platform.
eToro Ripple trading is very secure. They are a world renowned company, with sophisticated and secure systems, making sure your investments are safe.
eToro is regulated by the FCA, which is the UK body that governs financial markets. The FCA is respected world wide with many other countries equivalent bodies taking similar policy approaches. Trading with a platform that is not regulated by the FCA is asking for trouble in our book, so eToro is a safe bet when trading Ripple.
Buying vs trading Ripple
Both buying & trading Ripple have advantages and disadvantages just like any other form of investment.
Explore some of the pros & cons of eToro Ripple trading below:
- Trade long (buy) and short (sell) to take advantage from rising and falling prices
- No need to setup a virtual wallet
- Account is secure and very unlikely to be hacked
- A lot cheaper than buying in terms of fees (check out the actual fees for Etoro Ripple trading here) and up front investment.
- Buying Ripple at full market price is very expensive
- You may have to pay tax on your profits
- You will have to buy Ripple on an exchange, so you’ll need a digital wallet (setting up a digital wallet can be complex and can be open to security issues, ie. hacked)
How to trade Ripple on eToro
eToro Ripple trading is executed via a CFD. CFD is an abbreviation for Contract For Difference. When you open a trade for Ripple you are making a contract at the current market price. Depending on whether you traded it to go up or down you profit from the price difference if you predicted the correct price direction. Its that straightforward to trade Ripple on eToro and a very simple way to take advantage of the high price movement without having to physically own the Ripple . You’re basically trading the price difference from where you opened the contract with the broker. You can trade on the price going up and down using a CFD and close the contract/ trade anytime day or night.
Is eToro Ripple trading a good idea?
The following are some of the reasons that people trade Ripple :
- High volatility – because Ripple coins are a much newer markets they can be more volatile with bigger price swings. This presents opportunities for traders to profit from price volatility.
- Flexibility in how you trade – with traditional investment options you’d looks to invest and hold your investment as prices rise. By trading Cryptocurrencies through a CFD broker you can go long or short and profit whether the price rises or falls.
- Trade at a time that suits you – Ripple trading markets are open 24/7 so you’ll never miss a trading opportunity.
- Trading on leverage – by trading CFDs on leverage you can gain a larger exposure to the market than you might otherwise be able to by either buying Crypto direct or through more traditional forms of investment.
What influences Ripple price movements?
The cryptocurrency market is much newer than other more traditionally traded assets and as such is much less known about how they react to market volatility, this is key to finding outside correlations to changes in the price
Cryptocurrencies such as Ripple are not controlled by central authorities in the same way that traditional currencies are.
The greater threat (or conversely) or opportunity regulation of the crypto sector is one of it’s biggest challenges. Each time a government bans or backs the cryptocurrency sector the price movement is great.
I would recommend anyone who is interested is trading Ripple to check out eToro’s trading platform. Not only are they the world’s leading social trading network, they also provide one of the best Ripple trading experiences in the market. Start your eToro Ripple trading journey today, but before you part with your money, you should try out the demo/ practice account. this offers the opportunity to trade but with virtual funds, provided to you for free. This way you can make mistakes whilst getting used to the platform without costing you any money. Find out more on your eToro Demo account guide here or sign up below if you feel you’re ready for the challenge.
- US residents allowed
- FCA Regulated
- Copy Trading
- Mobile app
- Simple & friendly interface