Everything You Need to Know About Trade Ripple
Posted on: 22 February 2019 by Tom Clark
Cryptocurrency has come a long way since the introduction of bitcoin in 2009. Today, there’s a wide variety of cryptocurrencies each having its own niche.
Ripple seeks to become a trading protocol common to all major financial institutions across the world. Doing this will enable a cheaper and convenient way to make and receive cross-border payments.
As such, trade ripple doesn’t compete with other fiat or cryptocurrencies in the market. Instead, it complements the system by ensuring secure, instant and nearly cost-free financial transactions across the globe.
But How Does Trade Ripple Work?
The system is designed to work via the ripple network. The network allows transfer of real assets through a process known as issuance.
For instance, one bank may wish to transfer gold to another bank or institution. In doing this, the bank adds the gold it wishes to transfer to the Ripple network and transfers the asset to a ‘trusted party' who’ll claim the asset. The process makes it easier to trade without any transaction fees.
However, a small amount of XRP is taken during this transaction. But that’s not to compensate the traders as ripples are irrevocably destroyed. With this, traders aren’t able to spam the process with incessant requests.
Put simply, Ethereum and bitcoin act more like bank accounts. Users can trade either of them for goods or services. However, that’s not the case with ripples.
A ripple acts as a medium between currencies effectively facilitating a transaction. It’s not a stand-alone currency like bitcoin or Ethereum.
How Are Ripples Made?
Unlike other cryptocurrencies, ripples aren’t made. Instead, XRP was mined at the initial stages.
Remember, the XRP ripples are not meant to be traded like other currencies. Instead, they seek to protect against spamming and facilitating the conversion of real-world assets into issuances.
So, what’s sets ripple apart from other cryptocurrencies?
1. Ability to Send or Receive any Currency
Well, don’t get confused, bitcoin is a currency while ripple is an internet protocol that allows people to trade in any currency. For instance, Party X may buy and pay goods in US dollars, Party Y can directly get the payment in Euros through this platform.
Ripple, like bitcoin, is a shareable public database. It also acts as a global income and expenditure ledger. The consensus mechanism makes it easier for computers in this network to receive an update any transaction within seconds. In most cases, this will be automatic and won’t need to go through the central data exchange.
3. No Exchange Risk
Ripple Coin (XRP) doesn’t have limitation to sale, time, place and currency. The user can use it at any time or moment they deem fit.
Even better, instant exchanges with fiat money are available in more than sixty countries. The emergence of this system makes it easier to transfer cash across the globe.
Ripple seeks to provide a vertical solution to most payment problems. In the wake of globalization, easing cross-border payments will bring untold benefits to the development of human society.