How To Sell Ripple (XRP)
If you own ripple (XRP), then at some point it will come time to sell your XRP tokens. While this may seem simple at first glance, you will still need to master certain subtleties to carry out the sale in the best possible conditions and for the best price.
In this post, we’re going to tell you how to best sell ripple. For this, we will take a look at the procedure to follow, the reasons that may push you to part with your XRP and the cases where it might be more interesting to keep your XRP than sell them.
The importance of carrying out transactions on a serious exchange
While this seems obvious to most power users, it’s still worth giving a little reminder about it. If you want to sell your XRP, it is important to do so on a reliable exchange.
If you make the mistake of depositing your ripple on a dubious platform, you may never be able to recover your assets. You should therefore be particularly careful and only carry out your sales transactions on serious trading sites.
If you don’t have the time to check the reliability of a sales platform for yourself, you can use one of the sites in our list above. These are all serious exchanges, tested by us, where you can sell your XRP safely.
How do you sell your XRP on a platform that allows you to get fiat money?
There are mainly two types of exchanges where you can sell ripple. Those where you can directly sell XRP tokens for fiat money (pounds, euros, dollars, etc.) and those where it is only possible to trade XRP tokens for other cryptocurrencies, like BTC or ETH.
If you are on a platform that allows you to directly trade Ripple for legal tender, then things are pretty straightforward. All you need to do is type in the number of XRP tokens you wish to sell, see how much that is in the currency of your choice and then confirm your sale.
Once the fiat money is available in your account, all you have to do is send it to your bank account or to your credit card. You are then free to do what you want with it!
Successfully selling your XRP tokens when they is not redeemable for £ or $
While the solution above is fairly simple, you may not always be able to sell your XRP directly for fiat money.
The exchange platforms that make the link between the real and crypto worlds are generally very well regulated. As a result, they only offer their clients a very limited number of crypto assets that can be traded directly for fiat. The exact list varies from platform to platform, but BTC and ETH are generally available pretty much everywhere, while XRP may not be.
In the event that you can’t sell your ripple directly for real money, then you will have to start by trading your XRP for ETH or BTC. Next, you will need to transfer these to an exchange site that offers fiat money for them. All you have to do then is sell your BTC or ETH to get pounds or dollars, then withdraw the amount obtained to your bank account.
Why would you want to sell your XRP tokens?
You obviously don’t need to have a specific reason to sell your XRP, you can do it as you wish without being told. But is it really a good choice? You’re probably thinking, shouldn’t I wait for a better time to sell my ripple?
If you want to optimise your investments in cryptocurrencies, then you should obviously not buy or sell without having a specific plan that justifies it. Here are some situations where you may consider selling your XRP tokens:
- Sometimes, your XRP investment may suddenly gain several tens of percent in just a few days. Usually this happens on the back of good news – or sometimes for no reason at all – but what happens next is always roughly the same. After a few days, the XRP price will drop back to its previous value. It is therefore pretty attractive to sell at least part of your XRP to take profits before the prices fall.
- If you don’t have the time to continuously monitor the progress of the Ripple Project, things can be dangerous. You will not be able to anticipate the evolution of prices because you will not be aware of events that are likely to influence it upwards or downwards. If you are on too many projects at once, it is important to reduce this number so that you are always aware of what is likely to happen. In this case, you can sell your XRP.
- You hit your profit target for ripple. If you have reached the threshold you set for yourself, then you can sell your XRP.
- Another more promising project appears, offering a bigger return on investment. If your goal is to make money, then it is important to know how to move your investments from one project to another. If you find that you have more room for improvement elsewhere, then don’t hesitate to sell your XRP.
What is the tax law on the sale of Ripple?
The UK is ahead of the game when it comes to defining what a crypto asset like Ripple is and where you stand from a tax point of view. In short, if you are trading XRP (and any other cryptocurrencies for that matter) like you would shares or securities, when you dispose of them into fiat (i.e. £) you are liable to pay capital gains (currently 10% and 20% depending on your income tax level – this is of course after your £12,300 Capital Gains tax-free allowance).
Is it sometimes better to keep your XRP tokens rather than sell them?
We have seen the reasons you may want to sell your XRP tokens, but we have not yet talked about when it might be more financially worth keeping your ripple.
If you invested in ripple for the long term, then you must have used only the money you could afford to lose. No matter how the XRP price develops, you should not part with your XRP under any circumstances. Of course, if you hear terrible news that heralds the end of the project, then yes, you can sell up. But if nothing drastic happens, then you have no reason to sell.
If you are very emotional and react too quickly to news, you risk making a lot of judgment errors that will cause you to buy or sell at the wrong time. In this case, it is recommended that you do not trade by buying and selling Ripple, as you will most likely lose more money than by keeping your tokens.
Finally, if you believe that cryptocurrencies are the future and that ripple is likely to rise in value, then there is no reason to sell it.
You now know where you can sell your Ripple tokens, why you might want to do so, and what methods are available to you.
When the sales platform allows you to directly redeem your Ripples for fiat money, then everything is nice and simple. However, sometimes you may need to go through a middle step of converting to BTC or ETH first before selling these digital assets for fiat.
Also remember that you must have a good reason to sell your XRP. Otherwise, it’s best to keep them because you risk making mistakes and ultimately losing more money than you would have earned.
If you want to know more about XRP, we invite you to consult our Ripple guides (insert link). You can take a look at a few different articles related to XRP, and learn about a new aspect of the project each time.
I discovered the world of cryptocurrency in January 2018. Arriving at the worst moment ever to invest did not stop me from learning and later sharing my knowledge in order to promote the adoption of crypto.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.