eToro Ripple Trading Guide

Other than Bitcoin, eToro also offers a trading platform for Ripple, the real-time gross settlement system and currency exchange developed by Ripple Labs Inc.

If you are interested in learning more and trading this crypto-asset, the following sections talks about everything you need to know about Ripple and how to trade it using eToro.

Already thinking of investing in XRP?

You might be considering of trading Ripple at this point but in case you do, just click the button below and this will redirect you to eToro's XRP trading platform. This will give you a preview on how it looks like and should you decide to go on a trade, all you have to do is click the "Sign up" button on that page to quickly register.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Ripple 101

So what is Ripple? Created by Ripple Labs Inc. in 2012, Ripple incorporates both the RippleNet, a type of a digital payment platform for financial activities and transactions and its cryptocurrency the “XRP“.

It is known more as a “digital payment protocol“ than its cryptocurrency functions. XRP and RippleNet allows users to transfer money in any form such as Bitcoin, Litecoin and other currency like the US Dollar and the Japanese Yen, thanks to its designation as a peer-to-peer and open-source platform.

The main difference of Ripple’s XRP tokens from other cryptocurrencies is that it doesn't use Blockchain for its transactions. Instead, Ripple uses a network of servers (Ripple Protocol Consensus Algorithm or the RPCA) that records and compares transactions continuously making it achieve a faster transaction time than Bitcoin.

What is RippleNet?

RippleNet is the platform developed by Ripple that provides a huge network of payment providers like finance and banking businesses, to send and receive money worldwide. RippleNet allows payments and transactions using Ripple's currency XRP, Bitcoin and other cryptocurrencies.

XRP is the currency of RippleNet. You can use and trade XRP tokens across the RippleNet platform.

Difference Between Ripple and XRP

Bear in mind that XRP is the token or coin of Ripple and Ripple or Ripple Labs is the company that created and developed the XRP crypto coin.

The Common Uses of Ripple

Thanks to its fast transaction speed, Ripple is commonly used for converting currencies that you can't trade in the global market. For example, the Brazilian Real can't be directly traded for EUR. USD or UK Pounds for a variety of reasons such as inflation. The Brazilian Real is just one of the many world currencies that are considered as "soft" currencies, or the non-convertible currencies.

To trade these soft currencies, the cryptocurrency Ripple (XRP) make it possible to convert these soft currencies without waiting for the traditional time delays of a bank transaction—which usually lasts a few days.

Aside from providing a faster transaction, Ripple processing fee is super cheap at only $0.00001. Traders on eToro often trade Ripple to achieve massive profits by using Ripple to trade forwards and backwards using soft and flat currencies.

Buying and selling Ripple currency produces the same concept of generating income as those of trading shares on the stock market.

Why Trade Ripple (XRP)?

The advantage of trading cryptocurrencies such as Bitcoin and Ripple is the high volatility of crypto assets as compared to stocks, bonds, indices and even in real estate.

For example:
Bitcoin's value moves at least 5-7% in a day either by higher or lower. This fluid level of volatility means more opportunities to make a handsome profit for investors and traders.

Other advantages of trading Ripple and other crypto-currencies are: 24/7 trading hours, low minimum investments and low trading or transaction fees.

Bear in mind:
The more banks that uses Ripple as a platform for their financial transactions, the higher the price of the XRP becomes. Imagine, if banks around the world adopts Ripple to be its "unified bank currency", then this would mean great returns for all Ripple investors.

How to Trade Ripple with eToro?

Given you already have a confirmed eToro account and you want to invest in Ripple, you just need to follow these simple steps:

1. On your profile page, key in “Ripple” on the search bar and from the drop-down search results, select “XRP”. This will open the Ripple asset page.

   

2. Click the “Trade” button.

   

3. Set the amount you want to invest.

   

4. Click the “Open Trade” button.

   

Copy XRP Traders

If you are not yet familiar with trading XRP, you can take advantage of eToro’s unique feature which is the CopyTrader.

Using this feature, you get to copy the XRP trading strategies of the more experienced and successful traders using the eToro platform. Just set an amount to mirror their Ripple trading activities.

When you begin copying other traders, you will open the same trade they open. Simply say, when they trade Ripple, you also mimic their trade.

Is Ripple a Scam?

No. Any Ripple-related trading activities transacted on the eToro platform is legal, legit and fully regulated by various financial regulators. This means eToro is a licensed broker that has passed numerous regulatory requirements.

Is It Possible to Lose More Than My Capital?

No. This is because eToro's platform comes with Negative Balance Protection which automatically abosorbs the XRP losses and resets the negative amount of your equity to 0.

Take note that you may lose the amount that you used for trading XRP if you used your entire capital and/or you incur overnight fees. But because of eToro's Negative Balance Protection policy, you will not have a negative balance on your account.

Trading Hours for Ripple

Unlike stocks, commodities, indices, ETFs and currencies, the trading hours for cryptoassets such as Ripple, happens 24 hours, 7 days a week so it is always open on the eToro platform.

Ripple Trading Fees

eToro does not charge any trading fees on any of its supported assets and that includes stocks and ETFs, commodities, indices, commodities and cryptocurrencies. They only charge for spreads.

Ripple Spreads

Since eToro does not charge any trading fees when you buy or trade cryptocurrencies, eToro only imposes a fee for spreads. The spread for Ripple is 2.45%.

Here’s an example for the cost of buying Ripple
Open position: BUY (long)
Initial investment: $1,000
XRP Ask rate: $5,000
Position: Open 0.200 units BUY
Close
eToro spread for XRP: 2.45%
Overnight fees: None
Total Fees: $24.50 (2.45%*5,000 USD*0.200 units)

XRP Price

You can view the real-time value of Ripple (XRP) on your eToro profile dashboard by simply searching for it or viewing it on your portfolio if you already invested on it, 24 hours and 7 days a week.

Live XRP Charts

The online platform is integrated with live price charts for all of its instruments including Ripple. The XRP chart can used for following and analyzing the cryptoasset’s price history and market performance with the option to configure the timeframes, use it for technical analysis studies and other investment purposes.

Do I Own the Ripple?

Yes. When you buy any cryptocurrency in eToro, you automatically gain ownership of them. However, since it is a digital currency, you won’t be able to physically own them. You end up owning a digital currency by storing them in a digital wallet.

Notice for eToro clients under ASIC:
For eToro users who are under the regulation of the Australian Securities and Investments Commission or ASIC, any cryptocurrencies including XRP which are bought via the trading platform are not executed as actual ownership of the assets but rather as contracts for difference (CFDs).

How to Safekeep Ripple Online?

There are two main methods of storing Ripple online. One, is to withdraw it from your account and keep it in personal "digital wallets" or keep it on a trading and storing platform.

Most Ripple holders prefer storing their XRP in storing platforms because it serves as an insurance from theft and loss of devices where most digital wallets are stored. Storing XRP in storing platforms also make it easier to trade online.

Threats to online storing platforms though includes hacking and sudden closures due to financial loss. Wherein the risk for storing Ripple in an online wallet is that they are stored in your device such as a laptop. If you lose your laptop or it gets stolen and your XRP is not backed up, you will never retrieve them back again.

How to Open an XRP Wallet?

Before opening an XRP wallet, you first need to transfer an XRP position from your eToro trading platform to your eToro wallet. Transferring XRP to eToro Wallet is free of transfer fees. Opening an XRP wallet is also free of charge.

XRP Crosses

Via the trading platform, users can also invest not just on the XRP coin alone but also on cross instruments that are linked to the Ripple cryptocurrency such as crypto crosses and currency crosses.

The availability of these crosses may change over time depending on the market demand.

Notice:
Some users might not be able invest on these particular crosses due to regulatory constraints. If you are affected by these restrictions then the trading option (buy/sell buttons) will be disabled and you will only be view these cryptoassets, track its market performance or discuss about it.

You will also see this warning when you click on the underlying asset:

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.