Trading XRP to BTC
Can trading XRP to BTC be profitable? The Ripple to BTC pair is composed of two of the top cryptocurrencies in terms of market capitalisation. Each has a high degree of volatility. Trading the combination Ripple to Bitcoin shows that there are profits to be made but you should closely watch factors which could weaken or strengthen Bitcoin or XRP currency.
The size of the fluctuations for this pair can be different depending on the time frame. Regardless of your trading preferences, XRP/BTC has the potential to provide an adequate number of signals which could create the opportunity for profitable trades.
Be careful with the XRP to BTC exchange as the rate can be confusing given the number of zeros and decimals. This is solely due to the enormous difference in the per-unit price between the two cryptos.
What is Bitcoin?
Since its introduction in 2008, the Bitcoin had a significant impact on the financial markets and on trading. Despite the scepticism related to BTC in the early years, it is now one of the most actively traded cryptocurrencies in the world. Bitcoin is a base or quoted currency in tens of currency pairs with a daily trading volume reaching tens of billions of pounds.
Here are some interesting facts about the BTC
- At the beginning of 2010 the Bitcoin price was only $0.003, so with $1 you were able to buy more than 300 Bitcoins.Today $1 can be used to cover only a portion of your trading fees because BTC has appreciated substantially since then.
- Although the name Satoshi Nakamoto is associated with the invention of Bitcoin, in reality, the creator (or creators) of Bitcoin is unknown.
- Losing your crypto wallet private key most likely means that you can no longer access your Bitcoins, they are lost for ever. So, find a safe way to keep your private key.
- The Bitcoin supply is limited to 21 million coins.
- In some stores, you can use Bitcoins to buy food and drinks, video games, flights and even property directly.
- The real-world transaction in Bitcoin was made in 2010 when Laszlo Hanyecz paid 10,000 BTC for two pizzas which were worth only $30. Later on, 10,000 Bitcoins were worth tens of million dollars.
Which factors affect Bitcoin value?
The supply and demand for Bitcoins have a major influence on its price. The cost for mining Bitcoins also affects the value of BTC, in a way that higher costs would imply that BTC value should increase or mining would be unprofitable. The number and strength of competitive cryptocurrencies and the number of currency exchanges which quote the BTC can positively or negatively impact BTC value. Moreover, different regulations and legal issues can affect the value as it was evident in the past.
What is the Ripple (XRP)?
Ripple is an open-source protocol platform enabling the swift and low-cost transfer of funds. At the same time, XRP is the associated cryptocurrency used to execute the transfer process. Some crypto experts anticipate that Ripple may dominate the international payments in the future as it is a more efficient alternative to the existing SWIFT network and it has attracted the attention of the banks.
Which factors affect XRP value?
XRP currency is among the top cryptocurrencies in terms of market capitalisation. Being part of the cryptocurrencies market means that XRP is vulnerable to factors which can have a positive or negative impact on the digital currencies. The XRP value is also driven by its supply and demand on the exchanges where an increase in supply during a limited demand may cause depreciation.
While it is rare, big players may cause fluctuations in XRP price by opening numerous smaller trades with the objective to manipulate the demand and supply for the currency. This type of trading can also be used on any other cryptocurrency. Furthermore, speculations related to cryptocurrency regulations might also affect the value of XRP and consequently Ripple to BTC.
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