Everything to know about the XRPEUR trading pair
Even though Ripple is a leading American enterprise software company, and XRP is one of the world’s top cryptocurrencies by market cap, people are still confused to learn that Ripple and XRP are not the same. The concept becomes even more complex when you factor in the cryptocurrency's different trading pairs, such as XRPEUR. Because of this, we are going to explore the differences between Ripple and XRP. We will also look at how XRP trading pairs differ from the main cryptocurrency and the advantages and disadvantages of each. In particular, we will look at the XRP to Euro trading pair.
Founded in 2012, Ripple is a private American technology company that created the Ripple Protocol, an open-source protocol that supports RippleNet and the Ripple Consensus Ledger (RCL). The RCL supports the transfer of tokens representing commodities, fiat currencies, and cryptocurrencies via distributed ledger technology. XRP is a cryptocurrency that runs on the ledger.
For most of the company's lifetime, Ripple's primary source of funding has been the sale of XRP, selling an estimated $1,254.54 million worth of the cryptocurrency between 2016 and 2020. There are several purposes for purchasing XRP, including buying the cryptocurrency as an investment or as a coin to exchange for other currencies.
As a currency, Ripple is popular with intraday traders who buy and sell instruments within the same trading day. Ripple also has a fixed limit of 100 billion coins. This is noteworthy since 100 billion coins are significantly higher than Bitcoin's fixed limit of 21 million. Compared to Bitcoin, XRP transactions also tend to be settled faster, and no mining is involved. However, XRP cannot be used in stores like Bitcoin and Ethereum.
You can also look at Ripple as a medium of exchange for other currencies. For example, different XRP trading pairs are available on various cryptocurrency exchanges like Bitstamp, which added XRP EUR to its roster in January 2017. Trading pairs allow you to trade between two assets, and in the case of XRP EUR, you can trade Euros for XRP and vice versa.
Why is XRP Euro popular?
The Euro is the second most-traded currency in the world after the USD, and this high level of demand and supply for the Euro helps add liquidity. Trading XRP Eur is also a faster approach to exchanging currencies since you do not have to go through a bank. For instance, let’s say you want to exchange Sterling for Euros.
Instead of going to a bank, you can exchange your GBP for XRP on the Ripple network and then use XRP to buy Euros. Not only is this faster than going to a bank, but you also avoid the high fees banks tend to charge when handling currency exchanges.
XRP EUR prices compare to other cryptos
According to reports that looked at the history of Ripple in Euro, it is not uncommon for breakthroughs to happen with this trading pair and for XRPEUR to see price fluctuations (up to 15%) within a single day.
As of July 4, 2022, XRP Euro has a day range of €0.3010 to €0.3110 and a 52-week rate range of €0.2824 to €1.1928. For comparison, Bitcoin USD has a day range of $19,044-19,850 and a 52-week range of $18,669 to $68,925.
Advantages and disadvantages of trading XRP EUR
As mentioned, some of the advantages of trading XRP Eur include:
- The Euro adds liquidity because the currency has high levels of demand and supply
- You do not have to go through banks to exchange and purchase Euros. This saves you time and money
- Single-day XRP Eur price fluctuations are common
However, there are some disadvantages associated with XRP Euro trading. In particular, economic news and EU-specific regulatory frameworks can impact the XRP Eur price. Because of this, you want to make sure you're keeping up to date with monetary reports released by the European Central Bank (ECB). Even though the Euro is one of the most well-established currencies in the world, it can still be affected by macroeconomic data such as a country's rate of unemployment.
Of course, this is the case with all cryptocurrencies. For example, Bitcoin's price fluctuates depending on government regulations, investor sentiments, and supply and demand. Changes to the blockchain system can also impact the value of virtual currencies. Likewise, other XRP trading pairs, such as XRP USD, are impacted by regulation and economic news. In 2021, the United States Securities and Exchange Commission (SEC) took regulatory action against Ripple, which resulted in several major US crypto exchanges like Coinbase removing XRP from its listings.
All of these factors also impact other financial instruments, such as stock market indexes. The DAX index, for instance, can be positively or negatively affected by the news surrounding the German economy and the European Union.
XRP Eur CFD trading vs investing
Because the XRP Eur price can fluctuate depending on a range of external factors, CFD trading may be a suitable alternative than investing directly in cryptocurrencies. When you trade cryptocurrency CFDs, you can speculate on the price movement of XRP Eur, XRP USD, or Bitcoin without investing in the virtual currency.
You can also benefit from rising and falling cryptocurrency prices, which is not the case with traditional investments. CFD trading also allows you to access other global markets such as indices in the same single trading environment as the crypto market.
Before you purchase XRP as an investment or you use it as a medium of exchange, turning XRP to Euro or USD, it is important that you spend time learning more about the history of XRP and how trading pairs like XRP Euro differ from the main cryptocurrency on the Ripple ledger. When looking at the differences, make sure you are taking into account all of the factors that can impact the XRP Euro price - our guide to day trading crypto provides all the information you need to know about this strategy.
Not investment advice. Past performance is not indicative of future results. Trading cryptocurrency may not be available depending on your country of residence.