By Sonya Kuhnel, COO and Co-Founder at Xago
There are few things like a dip in cryptocurrency prices that excites the mainstream media and they’ve had a field day since the bubble burst in 2018.
Those of us with a longer-term view considered that a necessary event and we’re entering a welcome phase where the wheat is sorted from the chaff, with Xago considering XRP very much in the former category.
Price predictions certainly make for interesting reading.
Investinghaven.com made an insightful observation by stating that XRP can go lower until weak crypto investors have sold, after which smart crypto investors take control.
As I write here, you can purchase a single XRP for R3,28 on Xago. Just last week it was briefly priced at R2,81.
Some crypto experts generally take a positive long-term view of the XRP price.
The truth, however, is that you don’t need an uptick of the price to use XRP to put cash in your pocket. In fact, lower prices offer an exceptional trading opportunity, especially for South Africans.
For example, the price difference between overseas and local exchanges is sometimes around 10%. On a good day you can buy on Binance and sell at a premium on Xago, making a tidy profit even after all the charges of the payment platform were deducted.
The process is staggeringly easy once you become comfortable at navigating your way around the Binance site.
Once you indicate that you would like to buy a certain amount of XRP, you will be offered payment platform options, with Koinal in our experience being the cheapest facilitator.
I did a transaction recently and the sequence of events, after submitting my payment through Koinal, were as follows:
- An e-mail from Koinal informing me that my payment was being verified.
- Another e-mail four minutes later that my payment had been approved and confirming the amount of XRP I would receive.
- An e-mail six minutes later that XRP had been sent to my Binance wallet address.
- Binance, a minute later, e-mailed a confirmation that I had received a deposit.
- I then made a withdrawal on my Binance wallet, requesting that the XRP be sent to my Xago wallet. Binance sent an e-mail requesting confirmation, which I provided with a single mouse click. Binance followed up with an e-mail confirming a successful withdrawal.
- Minutes later I could sell my XRP for rands on Xago and pocket a tidy little profit after cashing it into my bank account for a charge of only R8,50.
From beginning to end, the process took 25 minutes.
A word of caution: this was a seamless transaction and, of course, there is a chance that everything won’t always go according to plan — as is the case with any investment. I also first did a calculation on a spreadsheet to determine exactly what my profit will be before starting the transaction (including fees).
There may also be price swings during the process, but seasoned traders overcome that by keeping and selling assets on one platform as soon as they buy on the other, thereby locking in the price and reducing the risk to the technical aspects of the process.
Opportunities to make these winning trades come and go, but you will always be in a position to see the price you’ll get through the transaction on Binance and weigh it against what is on offer on Xago.
So as far as the future price of XRP is concerned, I’ll ask my husband his opinion when I take him out for dinner with the money I made between Binance and Xago.
- Disclaimer: The above does not constitute advice and trading is by its nature a risky endeavour, so don’t do it with money you can’t afford to lose. Also keep in mind that the above-mentioned trade impacted on the writer’s annual single discretionary allowance, which is capped at R1million per calendar year. Stay on the right side of the law!
- If you would like to learn more about these opportunities, enrol for the Blockchain Academy and Xago’s new course: Trade and Arbitrage Effectively with XRP on 4 February 2020 via Google Hangouts.
More info here: https://bit.ly/35EVw7M