eToro
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Here’s what you should know before trading the XRP JPY crypto/fiat pair

The foreign exchange market is the largest in the world, with trillions being exchanged on a daily basis. While the cryptocurrency market is still emerging and the volumes of the two markets are not comparable, cryptocurrencies have been described by some as “the currency of the future.” Some crypto evangelists even go so far as to say that cryptos will eventually replace mainstream currencies. While that remains to be seen, it is still quite apparent that cryptocurrencies have presented new opportunities for traders and investors, including their pairing with fiat currencies.

As part of eToro’s growing selection of crypto assets, the XRP JPY pair has been launched on the platform, pitting the XRP cryptocurrency against the Japanese Yen. Traders and investors who believe XRP will rise in value against the Yen could open a long (BUY) position for this instrument, while those who believe the opposite could open a short (SELL) position.

65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This is not investment advice.

XRP and the financial world

Ripple Labs, the company which created the XRP token, is one of the largest cryptocurrency organisations in the world, with its market cap ranked 3rd after those of Bitcoin and Ethereum (as of the time of writing). The company set out to harness the benefits of blockchain technology to improve traditional banking services for the billions who use them. With the Ripple protocol, people around the world can exchange currencies, cryptocurrencies and other tokens of value, such as frequent flyer miles.

Using a blockchain-based infrastructure, Ripple is able to quickly transfer the XRP token between various locations, using it as a mediating currency of sorts. The speed and efficiency of the protocol has made it quite popular among financial institutions, and Ripple Labs has partnerships in place with the likes of American Express, Banco Santander, BBVA, the Bank of England and many others.

Japan’s relationship with crypto

Asia is one of the largest crypto markets in the world. As one of the strongest economies in the East, Japan is no exception, with cryptos gaining massive popularity in the country, especially during the great crypto bull run of late 2017 and early 2018.

However, like most governments which saw an influx of funds funneled into the crypto market, Japan has imposed some restraints on the local crypto market and is in the process of a regulatory revamp, targeting crypto speculators. Since most of its activity is in the mainstream financial sector, Ripple Labs (and subsequently, its XRP token), could actually benefit from the process, as it is already working with various bodies that adhere to regulatory requirements.

How to trade XRP/JPY on eToro

The pairing of cryptocurrencies and fiat currencies enables traders and investors to potentially benefit from both short- and long-term volatility. While numerous fiat currencies are used around the world to purchase cryptocurrencies, using the pair as a financial instrument serves as an interesting option for those wishing to diversify their portfolios. As  the offering of crypto instruments on eToro continues to expand, traders and investors can now trade the XRPJPY pair on the platform.

65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This is not investment advice.

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