Prior to its trouble with the Securities and Exchange Commission (SEC), Ripple (XRP) was one of the most popular cryptos. It is a revolutionary cryptocurrency that is used to settle cross-border payments in real-time.
Since XRP is used by a wide range of financial institutions and retail investors, it is available on numerous cryptocurrency exchanges and trading platforms. If you intend to find the best Ripple exchanges in 2021, you should compare the crypto exchanges and the features they offer. We compiled a list of the exchanges which allow trading of Ripple with ease.
Compare the Best Ripple Exchanges
Ripple remains one of the leading cryptos in terms of market capitalisation. Here is our selection of the leading Ripple exchanges and what they have to offer.
Understanding Ripple Exchanges
XRP has been one of the most exciting cryptocurrencies since it was developed in 2012. Ripple is a Real-Time Gross Settlement System. As one of the leading cryptocurrencies, numerous exchanges allow users to buy/sell XRP despite recent delisting from some exchanges.
Ripple exchanges allow people to trade XRP with ease. They are highly liquid and operate at all times of the day and night, every day of the week. Hence, users can buy/sell XRP at will. The Ripple exchanges serve as the platforms that connect buyers and sellers, making it easy to access the cryptocurrency.
How to get started on a Ripple exchange?
Trading XRP or any financial asset isn't possible without money. To start trading XRP on Ripple exchanges, you have to register with the cryptocurrency exchange and fund the trading account. These exchanges allow you to trade XRP against a wide range of fiat currencies and cryptocurrencies.
With centralised exchanges and peer to peer platforms, you will need to verify your ID according to the KYC and AML requirements. The exchanges will require you to upload your proof of ID, proof of residence, bank statement, and more. These verifications measures are put in place to ensure that your funds are protected on the platforms.
You can trade with platforms that don't require KYC, but it is risky since you are blindsided by the people you are dealing with, and it could be for criminal purposes. You can fund your exchange account using any of the accepted payment methods, including debit cards, credit cards, e-wallets, bank transfers, and more. Similarly, place a withdrawal request on the exchange to withdraw funds from your account.
The Ripple exchanges allow you to trade XRP against stablecoins, other cryptocurrencies and fiat currencies. You can buy or sell XRP via the 'Buy' or 'Sell' orders.
Different types of Ripple exchanges
- Centralised exchanges: They are the primary places to buy/sell XRP as they have more substantial liquidity and are regulated by financial agencies. They provide numerous XRP trading pairs, including XRP/USD, XRP/BTC and more.
- Decentralised exchanges: These exchanges are designed to cater to the needs of anonymous traders and investors. The transactions are completely anonymous, and you can buy/sell XRP with ease on these platforms.
- Derivative exchanges: The derivatives exchanges offer advanced investment vehicles like futures and options but for XRP. Thanks to options, futures and CFDs, you can invest in XRP without holding the coins.
- P2P exchanges: Peer-to-peer exchanges serve as intermediaries between buyers and sellers, providing a platform for them to meet and transact directly. The P2P exchanges provide escrow services to the users to ensure smooth transactions.
- Fiat vs. crypto exchanges: The fiat exchanges are the Ripple exchanges that only accept deposits or withdrawals in fiat currencies. Meanwhile, the crypto-only exchanges are those that accept deposits or withdrawals in cryptocurrencies only.
How to Choose a Ripple Exchange?
As one of the leading cryptocurrencies, XRP is readily available on a wide range of crypto exchanges. Trading with the wrong platform can affect your financial progress as you have to deal with issues like high fees, difficulty in deposits, and withdrawals and more. To avoid such situations, learn a few things about a crypto exchange before you start using it. You can assess a Ripple exchange using the criteria discussed below.
- Usability – The ease of use of a Ripple exchange should be a feature that attracts you. It would help if you didn't trade on a hard-to-navigate platform, especially as a new trader or investor.
- Payment methods – The payment options offered by a Ripple exchange and their transaction fees should go a long way to convince you to trade with them.
- Liquidity – Your ideal Ripple exchange should have substantial liquidity to allow you to buy/sell XRP with ease.
- Fees – Choose a Ripple exchange that offers low deposit and withdrawal fees, and also competitive conversion and order processing fees. The exchange should also have a transparent fee structure.
- Transaction speed – How fast a cryptocurrency exchange processes your buy/sell order should also come into play when choosing a platform to trade with.
- Account verification – Account verification is important for traders that are using centralised and P2P exchanges to ensure their funds' safety. The decentralised exchanges don't usually require account verification.
- Reputation – The reputation of a crypto exchange should be looked into before you open an account with them.
- Security – The Ripple exchange you choose should have adequate security measures in place to protect your funds and data.
Advantages & Disadvantages of Using a Ripple Exchange
Should I Buy or Trade Cryptocurrency?
The decision to buy or trade cryptocurrencies depends on the trader. The trader's objectives and market knowledge usually play a role in determining if they should trade or invest in XRP. If you intend to buy and keep the cryptocurrency for the long-term and earn profits in the process, then you are an investor. However, by leveraging the cryptocurrency's price volatility and making money daily, you are a trader.
A key piece of advice to traders and investors is always to start small. XRP is trading below $1, which makes it a cheap cryptocurrency to buy. You can always start trading small and grow your investment from there. Ensure you seek knowledge of the crypto market as you grow your investment. The presence of derivative products like futures, options and CFDs (Contract for Difference) have made it possible to access XRP and other cryptocurrencies without owning them.
- Options: These are agreements between buyers and sellers of XRP that gives the buyer the right to buy/ sell an underlying commodity or asset at a later date (expiration date) at an agreed-upon price (strike price).
- Futures: This is also a legal agreement to buy or sell an asset or commodity (XRP in this case) at a predetermined price at a specified time in the future. It is a highly risky investment vehicle but comes with high rewards.
- Contracts for Difference (CFDs): CFDs are financial contracts between buyers and sellers stipulating that the buyer will pay the seller the difference between the current value of a commodity or asset and its value at the time of settlement of the contract.
3 Steps to Using a Ripple Exchange
Step 1: Choose a Ripple Exchange
The most important aspect of trading XRP is finding the right exchange. You have to compare the various exchanges and their features to find the right fit. Or you can select from any of the best Ripple exchanges listed above if you wish to spare yourself the tedious research.
Step 2: Signing up with a Ripple Exchange
After finding the right exchange, create an account with them by completing the sign-up and account verification process. These allow you to access XRP and a wide range of other cryptocurrencies offered by the exchange.
Step 3: Deposit the initial amount and start using the Ripple Exchange
Opening an account is followed by funding the Ripple exchange account with trading capital. Select the payment method on the exchange you are comfortable with and fund the account using cryptocurrencies or fiat currencies. You can use the deposited fiat or cryptocurrencies to buy XRP on the platforms.
Ripple remains one of the top cryptocurrencies, and it is available on several cryptocurrency exchanges. Hence, you can easily buy or sell XRP on numerous exchanges and trading platforms. This article touched on the basics of Ripple exchanges and how to effectively find the best ones. We also compiled a list of the best Ripple exchanges in 2021 and the unique features they offer.
Frequently Asked Questions
Ripple had some legal troubles with the SEC and was delisted from some exchanges. However, it is still available on a wide range of crypto exchanges.
Verifying your ID on centralised exchanges makes it easier to protect your data and funds. The verification is according to international AML and KYC requirements.
You can store XRP on exchanges. However, if you intend to hold the XRP for the long-term, it is best to transfer them to cold storage wallets for safekeeping.
Use a reputed exchange to trade safely and protect your funds from scammers.
If you are a day trader, you will need the funds to be in your Ripple exchange account so you can use it to trade the cryptocurrency. However, as an investor, your XRP is best stored on cold storage wallets for safekeeping.
XRP isn't available on all crypto exchanges since some exchanges focus on certain types of cryptocurrencies.
Ripple exchanges make money via commissions and fees after facilitating transactions for the trader.
Ripple exchanges are legal in virtually all parts of the world but check your local laws before investing.