Trading Cryptocurrencies: What is Ripple?

May 27, 2021 | AtoZ MarketsCryptocurrency is much more than Bitcoin. While not as popular as its older sibling, Ripple (XRP) is one of the most popular up-and-coming tokens in the Altcoin category. Over just a couple of years, Ripple's trajectory had crossed many ups and downs, until it landed in the third place of most popular cryptocurrencies in the world. Here you will have the chance to learn more about Ripple and how to trade it with 0% commission with TradeOr.

What is Ripple?

The first thing about Ripple is that it is not a cryptocurrency. Ripple is the name of a company founded in 2012 by the owners of a digital payment platform OpenCoin. The goal with Ripple was to create an evolution on the concepts behind Bitcoin and its technology, to allow better and faster implementation for banks, companies, and more. To trade on this network, you need their proprietary cryptocurrency, XRP. That is why the market associates the name Ripple with the crypto XRP even though they are separated entities.

Ripple differentiates from BTC also in its validation process. While Bitcoin uses the blockchain and mining to validate transactions, every XRP activity goes through what is called a distributed consensus mechanism. According to Ripple, this process is faster and consumes less energy as not every transaction needs to be validated in every node of the network. As the demand for greener forms of cryptocurrency grows, now is a perfect moment to look into XRP and the Ripple network.

Ripple’s Origin

Developed by Arthur Britto and David Schwartz on a concept created by Jed McCaleb, originally Ripple was created as a form of financial social media platform. With the explosion of Bitcoin's popularity, OpenCoin seized the opportunity to join the newly-created cryptocurrency market and rebranded around their form of digital currency.

The Ripple network has its own quirks. For instance, instead of mining for new coins, XRP is already "pre-mined" and it is released periodically in the network, as a way of saving energy and avoiding flooding the market with too much currency. Not only that, XRP has already a larger standing with traditional companies, such as the megabank Santander, which makes its path to larger acceptance easier than most competitors.

How to Trade Ripple

As similar to what happens to most cryptocurrencies, volatility can be wild with XRP. That does not mean the coin is a tough asset to add to your portfolio, but rather reveals the myriad of strategies that can wield results from your XRP/USD trades.

Most altcoins - cryptocurrencies that are not as popular as Bitcoin and are considered "alternatives" - benefit massively from spot selling and technical analysis.

Spot Selling Ripple

Whenever volatility is at its highest, spot sellers thrive. By quickly opening and closing positions, they leverage the power of a fluctuating market and make profits from the smallest differences between bid and ask prices. By using our 0% commission platform, all your small profits from spot selling will pile up into bigger victories in no time.

Technical Analysis Trading Ripple

It is part of human nature to perceive patterns in the world. That is not different in the trading markets. Some traders make use of pattern-detecting tools to estimate when the market will change because of this pattern-seeking tendency we all share.

For instance, cryptos tend to get a boost in value if their prices are getting too close to a round number only because we tend to see round numbers as something positive. There are many tools for more complex patterns, such as Fibonacci, Bollinger Bands, Moving Averages, and more.

Trading Ripple on TradeOr

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Once you have opened an account with TradeOr you will have access to 0% commission on not only your XRP/USD trades but on all your favorite assets. This is a crucial aspect when choosing a broker as it means you get more from your trades.

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