29th June 2018 at 8:47 am #36160
Good Broker GuideKeymaster
Question: Where is the best place to buy ripple?
GBG: the answer to this really depends on “how” you want to buy Ripple…
If you want to buy and hold Ripple then you need a cryptocurrency exchange like Coinbase.
We don’t currently have a comparison table of cryptocurrency exchanges as it is an unregulated market. However, when looking for a crypto exchange a little research can go a long way.
You need to be aware though that you have little to no protection if these exchanges go bust as there is no regulator or compensation scheme in place.
However, if you just want to speculate on the price of Ripple, you may find that a Cryptocurrency broker is more efficient – but as will all trading there are some other risks attached.
Trading Ripple on CFDs or through a spread bet enables to you trade them just like any other foreign currency on margin. Which means you take leverage bets on where you think the price may go.
With CFDs and spread betting you also have the benefit of being able to bet on the cryptocurrency going down, by shorting Ripple…
Beware though, cryptocurrencies are very volatile and you can lose all your money very quickly as if you want to buy £10k of Ripple, you only need to put down a 40% deposit (IG’s current margin rate) – so your risk/reward ratio is more than doubled.
All the Ripple brokers in our comparison tables are regulated by the FCA, so some of your funds will be protected under the FSCS should there be any insolvency issues.
If you want to reduce this risk/reward ratio but still trade crypto through spread betting (so no tax on profits) or CFDs, Ayondo, will allow you to set your margin rate at 100%. Essentially meaning you have to fully pay for your positions.
Bare in mind with all leveraged positions, fully margined or not, there will be overnight financing charges to pay. Cryptocurrency financing is expensive at the moment so beware the cost of holding long-term leveraged positions.
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