Ripple (XRP) is a leading cryptocurrency and digital asset used for making money transfers and transactions around the world. As one of the leading crypto assets with a lot of buzz around it, there are repeated questions concerning where to buy them. In this guide, you will learn more about XRP and how to buy some for yourself using eToro, a leading crypto exchange platform. The guide will take you through how you can buy XRP on eToro.
What is Ripple (XRP)?
Ripple is an initiative of Ripple Labs Inc., composed of three co-founders: David Schwartz, Arthur Britto, and Jed McCaleb. Ripple is a digital form of currency built on an open-source blockchain network, highly decentralized, for quick and low-cost transactions. It is used worldwide as a real-time money payment system, currency exchange, and for remittance with XRP as its native digital currency.
XRP is not run on a blockchain like the popular Bitcoin and Ethereum networks. Its developers created a patent technology called Ripple Protocol Consensus Algorithm (RPCA) to verify transactions. Transactions on the RPCA are consensus-driven, where transactions have to go through verification to pass as real before they are validated.
Created as a copy of Bitcoin but without any form of mining, XRP has garnered a reputation as a leading alternative to changing the way payments. Transactions are made across borders and on a world scale. It currently occupies a position among the top ten cryptocurrencies in the world, with a market capitalization of a whopping $23.95 billion.
Features of XRP that make it an attractive buy
- XRP is regarded as the fastest crypto asset in terms of transaction operation. It can complete 1500 transactions per second and around the clock, which makes it faster than any digital asset, including Bitcoin.
- Ripple Labs Inc., through XRP, provides fast and easy solutions to payments across borders with its efficient real-time movements of assets.
- It is referred to as the only existing cryptocurrency specifically created to provide payment and financial services around the world.
- Within cryptocurrency circles, XRP ranks among the most secured. Its ledger is a programmed open source code that takes into account all XRP transactions and is analyzed properly by developers and governance validators.
- Buying and selling XRP is quite simple. All you have to do is pick a trading platform from which to trade, with eToro a recommended exchange.
- XRP’s growing popularity is seen in its massive adoption by thousands of merchants and banks (such as Union Credit, Westpac, Axis Bank, UBS, and Santander) for transactions. Commission fees are low, usually at a 0.0001 XRP for transactions.
Why is eToro A recommended Trading Platform To Buy XRP?
eToro is a reputable trading platform where investors can buy and sell digital currencies and stocks. The trading platform was launched in 2008, and ever since, it has built a strong following for itself. It is one of the best trading platforms due to its fast and easy access for old and new users. The platform charges a 1% single fee on buy and sells transactions for cryptocurrencies listed on the platform.
Trades on eToro are executed very fast, with deposits and withdrawals allowing users to trade XRP against different currency pairs. Also, eToro provides users with instant trade executions and advanced trading tools, which are valuable for the analysis of crypto assets as well as stocks. Users can use eToro’s demo trading features to test out strategies with virtual funding up to $100,000.
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78% of retail investor accounts lose money 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.
Trading forex or CFDs on margin involves a high degree of risk and may not be suitable for all investors. There is a possibility that you may suffer a loss equal to or greater than your entire investment.
CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 68% of retail investor accounts lose money 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.
One benefit attached to using eToro to trade cryptocurrencies is that you can start with as low as $25 per trade. Given the price fluctuations, you can profit from the market due to the trading platform’s instant buy options. Finally, eToro offers more than just demo trading to newbies to learn the market. It allows social trading where newbies can copy trades of professional and successful traders.
eToro’s reputation as a lead player in the trading industry is enhanced by its regulation by top regulatory bodies in the world, such as CySEC. Investors can make transactions with the broker and rest assured that their investments are safe.
Benefits And Shortcomings of Buying Ripple on eToro
Buying XRP on eToro has its advantages as well as drawbacks. Here are the usefulness and shortcomings you might come across while buying XRP on eToro:
Benefits
- The trading platform is very accessible to a lot of users due to its low rate for a minimum deposit.
- Creating an account on eToro is very convenient and also user-friendly to operate.
- It is a well-regulated and reputable exchange recognized in the world not only for trading crypto assets but also for trading traditional assets such as stocks.
Shortcomings
- The minimum balance of XRP users need to transfer and transact is, to some extent quite on the high side.
- XRP’s spread on eToro is relatively high in comparison with other exchanges
Buying XRP on eToro
If you have decided to buy XRP using eToro, you can move on to deciding which payment method you intend to use to deposit into XRP. The trading platform supports multiple payment methods such as PayPal, bank transfer, credit, and debit cards. You might consider opening an account on eToro before buying XRP. Although to buy the crypto asset on the eToro trading platform, you are not required to open an account, but then there are limits to what you can purchase. It is a recommendation that you open an account to remove whatever buying restrictions you might face later on, especially if you want to buy a considerable quantity of units.
Below is a process through which you can sign up and set up an account to buy XRP:
The first step is to search for the eToro trading platform on your web browser using “www.eToro.com” or use the app if you have one.
Tap on the “Start Trading” button on the top right corner of the homepage. The page that will open after this will require that you provide personal information about yourself. You don’t have to worry too much as your information is secure with the platform. Some of the information required includes:
- Your legal first name
- Your legal last name
- A chosen username
- Your email address is important
- Input a password that you are not likely to forget
- Add your phone number and country code
When you are done with the above steps, read the user agreement and click to accept eToro’s terms and conditions if you are okay with it. From here, click on “Start Trading” and then confirm the link that will be sent to your email to confirm your registration as a new user.
After creating an account with eToro, sign in to your account and input your profile details to be completely registered as a user. Tap on “Complete Profile” and follow the prompt that you will be shown to give extra detail about yourself. Here is some information that eToro will request from you:
- Your gender
- Date, month, and year of birth
- Contact information
Secure your eToro account
It is one thing to open a user account and fund it and another to secure the account. To secure your account, activate 2FA (two-factor authentication) security on your account. The two-factor authentication is a secure connection between two separate means of verification. You can use a combination of your email and a randomly generated code using Google Authenticator. You might as well use your phone number and email to set up your account for 2FA.
How To Get Started By Depositing Funds
To start trading on eToro, you need to fund your account with an initial deposit as low as $25. The trading platform allows users to find their accounts using multiple methods such as Skrill, PayPal, Neteller, credit card and debit card, and through bank transfers.
Find and click on the “Deposit of Funds” icon on the homepage. Insert the amount you want to fund your account. Pick your preferred means of payment, then click on the “Submit” button. Before you click on the “Submit” option, you will discover that a commission fee is inclusive of the deposit amount you are to pay.
How to Purchase XRP On eToro
Buying XRP on eToro is easy, and orders are cleared fast, depending on the details of your order request. There are two options, the buy order and invest order, which allow users to execute trade decisions. The buy order is a trade option that enables you to set a target price to buy the cryptocurrency of your choice. Once the market price reaches your target price, it automatically triggers the buy order to purchase your chosen asset. The invest order buys the crypto asset at its current market price. Decide which of these options you would employ to place your purchase of XRP, then click on the “Place order” or “Open Position” to trigger the buy order and invest order, respectively.
Search for the “Discover” icon on your dashboard on the trading platforms and click on it to go to a page where you see “Crypto.” Click on it to go through a list of cryptocurrencies available for trading on the platform. Search through the list to discover XRP. Select your payment method, then insert the amount you want to purchase into your account. Complete the payment, and your account will receive a credit of the equivalent XRP worth your fund.
Store XRP Using An eToro Wallet
What Is eToro Digital Wallet?
An eToro wallet is an easy-to-use digital wallet that can store multiple crypto assets securely. The eToro digital wallet is enabled by a unique address on-chain which allows users to transfer or receive crypto deposits from any account or wallet. Users can leverage the wallet’s high-level security to convert their crypto assets from one to another using the wallet.
How To Store XRP on eToro Digital Wallet
Despite the industry-standard security measures put in place by eToro for the users of the platform, you might consider sending your XRP to a digital wallet for extra safety. The trading platform allows you to open a wallet by sending your XRP directly into the wallet. Once you send XRP to the eToro wallet, it activates automatically.
To initiate opening an eToro wallet, you have to make a standard deposit of at least 45 XRP. The 45 XRP will remain in the wallet to keep it open: 25 XRP will serve to manage the wallet, while 20 XRP will be the base reserve for the wallet to remain open. The transaction will deduct 45 XRP from the initial amount you send to the wallet. So you can factor that into your transfer.
The process of sending XRP to the eToro wallet is easy. Open up your eToro portfolio, then pick out XRP and click on “edit trade.” Tap the “Invested amount” icon to input your desired XRP units for transfer. A pop-up display containing the number of units you want to transfer will appear and how much the order will cost. Now, all you need to do is confirm the transaction.
Conclusion
From a thorough look at eToro, it is easy to see that the trading platform is an excellent choice if you want to trade XRP and other cryptocurrencies. Its flexibility allows both old and newbies to navigate through its services conveniently. You can choose to trade XRP at low transaction fees using several trading pairs ranging from fiat currencies to digital currencies.
Finally, you can decide to trade XRP on the platform as a real token or Contract For Differences (CFDs), in which you make profits off the difference in price. Trading CFDs is intriguing when you accurately predict the crypto asset’s movements and make some profits. When you add this flexibility to the security and regulatory measures put in place by the trading platform to ensure users are secured and satisfied, you will come to terms with eToro as a recommended choice for trading XRP.
