Can you buy Ripple on eToro?
Ripple or “XRP”, the name of its token, is a blockchain project with a singular focus – to revolutionise the way that cross-border money transfers take place. Traditional bank transfers pass through a host of intermediaries before the funds arrive at the desired destination. Assuming that no problems occur along the route, the process can take 24 to 48 hours to complete.
For those individuals or companies that have experienced delays that have caused a loss, it can take weeks to research, collect evidence, and correct an error. The beauty of the blockchain system is that transfers from one address to another are instantaneous. However, depending on the size of the transaction, one to several confirmations may be required before the funds are accessible. Ripple Labs and its outspoken CEO, Brad Garlinghouse, are determined to replace the outdated money transfer model with a solution based on the direct benefits of blockchain technology.
When you buy XRP, you are not investing in Ripple Labs: it is a private company that manages the project. It has also retained 50 billion in escrow of the maximum cap of 100 billion XRP tokens. The Ripple management team attempted to quell this confusion when it stated that “XRP is the digital asset native to XRP Ledger.” The XRP Ledger is also an open-source, distributed ledger.
Ripple is not without its share of controversy. Aside from openly attacking the global banking network, Ripple management has infuriated investors by continually dumping XRP tokens on the market to fund ongoing development and operations. The Ripple group stated that it would begin buying back tokens, and over the last quarter of 2020, it bought back $46m XRP.
Secondly, the US Securities and Exchange Commission (SEC) has been embroiled with Ripple, claiming it sold tokens as securities on the market without complying with the law. In December 2020, the SEC filed a landmark lawsuit in court. XRP prices dipped on the news but have recovered since.
Is XRP a worthy investment? If cryptos are to survive and thrive, then they must be absorbed into the very fabric of international commerce. Ripple and XRP are attempting to achieve that objective. If and when it gets past its SEC entanglement, the prospects may be bright. For now, it has a ranking of number seven on the crypto hit parade. Its market cap is $48bn, which means it has ample investor support to follow through in the marketplace. All cryptos, however, are risky!
How to buy Ripple on eToro
You cannot buy shares in Ripple Labs because it is a private company. XRP, which powers the Ripple network, can be purchased from crypto exchanges, but the most convenient way to buy XRP in today’s market is through an online broker like eToro.com. To do so requires three simple steps:
Step 1: Set up an account: The eToro Home Page will ask you to join the group. To open an account, you will need to provide personal identity information and answer a few profile questions. All brokers are required to follow these procedures by law. The private data you enter will be encrypted for protection.
Step 2: Deposit funds: Once your application is approved and you log in, your Desktop screen will appear. To begin trading, you obviously need to deposit some money into the account. Press “Deposit Funds”. Several money transfer options will appear based on where you live and what your banks will honour. Choose your favoured method, enter an amount, and execute the funding order.
Step 3: Invest in XRP: After your fiat currency is transferred, a cash balance will appear in your portfolio. Press the tab in the left column to view your holdings at any time. To invest, click “Trade Markets” and then select “Crypto” at the top of the screen. You may need to scroll down to find XRP. Press “Buy”, and a market order will appear. Enter the amount you wish to invest, and press “Open Trade”. The platform will do the rest. Your units will appear in your portfolio.
Do you own your XRP on eToro?
There are two ways to buy XRP on eToro. The guide above illustrates a direct purchase. Etoro buys the XRP on your behalf, stores your units in its offline, internal wallet system, and keeps them in a segregated account for you. EToro also supports a wallet app if you wish to download your tokens into a mobile device.
If you wish to use leverage or to short XRP, you may do so with a Contract for Difference (CFD). With this instrument, you do not own XRP; you are dealing directly with eToro. The trading of CFDs is very risky and may be restricted in your country of residence.
Is it safe to buy XRP on eToro?
Etoro has been in business since 2007 and is worth nearly $1bn. It is in compliance with the rules of major regulators across the world, and your deposits are kept safe in segregated accounts in Tier One banks. The eToro wallet system safeguards your purchased assets.
If you wish to invest in XRP and its future, then eToro.com offers the most convenient, safe, and cost-effective manner of doing so. You could follow the SEC lawsuit’s progress and buy on the dips, that is, if you can tolerate the risk and volatility of cryptos.