The Beginner’s Guide to Ripple
What is Ripple
Ripple, a newly decentralized cryptocurrency, is making waves within Bitcoin’s community. Whereas with Bitcoin, anyone can send, receive, and hold bitcoins via the decentralized network and across the globe with low fees; Ripple wants to enable everyone to do the exact same also with any of the other currencies.
Creating an Account
Opening a Ripple wallet is the first step if you want to start buying and selling it. Just like it was with in 2009 with Bitcoin, currently, when it comes to Ripple, there’s only one available Ripple client. The Ripple client that is available is the official one that you can find at www.ripple.com. While it is a lot more easy and powerful than BitcoinQt, which is the client’s web interface, there aren’t any required software downloads. The process is as straightforward as opening a new account at any of the other cryptocurrency websites; all you need to do is just click on “Start Ripple” then “Create an account” and carry on from there.
Activating your Account
After you have opened an account, next, the following step is activating it. Unlike with Bitcoin, when it comes to Ripple you cannot create however many accounts by just setting up new private keys. Also, you need to initially deposit 50 XRP, the internal currency at Ripple, to make the account usable. Once you have done so, there are two methods of receiving the initial deposit.
The first method, OpenCoin, which occasionally giveaways of free XRP, gives out generous amounts of XRP to as many people as possible. For the mean time, OpenCoin is targeting Bitcoin’s community, so, therefore, its initial considerable giveaway required that the users post on a popular forum on Bitcoin, [Bitcointalk](www.bitcointalk.org).
It’s likely that later on the giveaways will be based on cellphone numbers and Facebook accounts. You can also try to look for someone else who you can buy Ripple from. Additionally, if you are looking to purchase more Ripple later, Ripple has a “decentralized exchange” inside it allowing you exchanges with any of the other currencies that is in Ripple’s system for XRP. However, it requires that your account has a minimum of 50 XRP to use.
Sending and Receiving
With Ripple, it is the same process to send and receive as with Bitcoin. In the tab “Receive” of the Ripple wallet, the web interface provides a new Ripple address. This address resembles a Bitcoin address but it starts with an “r” rather than an “1”. To send someone a payment, you need to enter in their address, type of currency, and amount to send in the “Send” tab. You can use this same process for sending any currency that’s in your own Ripple account. However, if you aren’t linked to the recipient through a trust chain, you only can convert is XRP.
When your account has a minimum of 50 XRP, you’ll probably want money in some other currencies (such as USD or BTC) into your own account. To achieve this, you’ll have to open a new account at a gateway. So far, there are two different choices for gateways: BitStamp and WeExchange. This is WeExchange process. First, you need to sign up and then create a WeExchange account. Once you have done so, you need to login and get a Bitcoin address by going to Funds -> Add Funds -> BTC and you can use that address for depositing your Bitcoin to (you can deposit the fiat currencies as well but, Bitcoin is the simplest).
Once that WeExchange confirms that they have received your deposit, go to Funds -> Withdraw Funds -> Ripple. You’ll see at the end of the page a list of addresses that are trustworthy. You have to open your Ripple wallet, go to the “Advanced” tab, and then click “Trust”. Then you can add the BTC address to your trust list.
You should enter a trust amount that is at least as big as what you’re depositing. This, then creates a credit line between you and WeExchange. The credit line lets WeExchange send you BTC – rather, more correctly, an IOU for BTC, through the Ripple network. You then need to go to the “Receive” tab, and you copy your Ripple address. On WeExchange, you select “BTC” as the withdraw currency, enter the amount to deposit and your Ripple address. The result is that now you have BTC in your Ripple account.
Converting to Another Currency
To convert the BTC into a different currency, you need to go to the “Advanced” tab in Ripple and then click “Trade”. At the top of the trade interface, you’ll need to choose the “BTC/XRP” option if you haven’t selected already. Then you need to click “change issuer”. Once you have done so, copy in the same Ripple address you have entered into your trust list. Also, you need to make WeExchange as the currency issuer for BTC. By using the trade interface, you can then sell your BTC for the other currency. You do so in the same way, that you would trade BTC for fiat currency at an exchange like BitStamp or MtGox. Unless you want to make an offer that’s above the current “bid” price as an attempt at securing a better deal for yourself, the trade should process quickly. You will then have your chosen currency.
How to Choose the Best Cryptocurrency Broker
With all the different options available in the trading industry for online Cryptocurrency Brokers, making the decision on who to trade with seems like quite a complicated and daunting task. This guide has a few main points to have in mind to help you reach an educated decision on picking the best broker for you.
Remember to consider your tech needs and trading style
Beginners to cryptocurrency trading may not plan to trade as frequently as others. In this case, you should try to avoid the brokers that charge a fee for inactivity if you do not meet a specific minimum number of trades per month, quarter or year. You should look for the brokers that offer the types of investments that you want for forex trading at the most feasible price. At this stage, you probably will not need all the extras, such as an advanced trading platform.
On the other hand, active traders will want an online trader that supports that amount of frequency. This includes weighing the trading platforms of a broker, analysis tools, data and research offerings as well as commissions, and fees.
Because there’s so much competition in the industry as well as having countless brokers to choose from, it can be difficult to know which online broker will be best for you. Beginner investors have different needs than more advanced traders, so these are a few key points we suggest keeping in mind when making your decision:
Each country has its own regulatory body such as the Financial Conduct Authority (FCA), in the UK. The regulatory body develops rules, services and programs to protect the integrity of the market, traders, and investors as well as the brokers themselves, and to help members meet regulatory responsibilities. Due to potential safety concerns regarding deposit, accounts should exclusively be opened with firms that are regulated.
Cryptocurrency trading takes place 24 hrs a day, so customer support should be available at all times. Ideally, you will want to speak with a live support person rather than a time-consuming auto-attendant. Give a quick call to the customer service center to get an idea of the type of customer service provided. Check on wait times and find out the representative’s ability to answer questions regarding spreads and leverage, their trade volume, as well as company details.
Your ideal FX broker should be able to offer either multiple account options or an element of customizability. Look for an online Forex Broker that offers competitive spreads and easy deposits/withdrawals. Find out if there are account options specifically for beginners and if so what that account offers to benefit new traders.
The best brokerages can provide a huge selection of currency pairs. However, it is most important is that they provide the variety of pairs that interest you. While there are many currencies available for trading, there are only a few get the majority of the attention, and as the result, trade with the highest liquidity.
While selecting the best trading broker for you, it’s possible just to concentrate on cryptocurrencies if you choose. However, you should keep in mind there are many types of investment alternatives offered as well, such as Forex, Stocks, CFDs, ETFs, or trading in options or futures.
The trading platform is the investor’s portal to the markets. So with that in mind, look for a platform that is easy to use, straightforward and offers an advanced collection of analytical and technical and tools, to enhance your trading experience.
For more information on selecting the right trading platform, please see our tutorial: What To Look For When Choosing A Trading Platform
Buying and selling crypto currency costs money. However, unlike buying stocks or bonds, brokers usually charge a percentage. You may consider looking for an online broker that charges a flat rate fee instead of the percentage model.
Because Ripple is traded in a market where people are both looking to buy or sell the currency, it’s crucial to consider the amount of liquidity that an exchange can have. Liquidity is the ability to sell without the price being significantly affected, causing the price to drop.
To learn more about Cryptocurrency trading, please see our tutorial: The Basics of Cryptocurrency