Trading XRP to RUB
The Ripple to RUB combination consists of the national currency of one of the largest economies in the world with one of the most popular cryptos. The XRP/RUB exchange rate may move several per cent during the trading day. Also, the price may move in a clearly defined upward or downward trend during the trading week, fluctuating less than five per cent. Within a 30-day period there are sideways movements which may be broken by substantial price swings of more than 10 per cent.
What is Ripple?
Ripple is an open-source protocol platform enabling the swift and low-cost transfer of funds. At the same time, XRP is the associated cryptocurrency used to execute the transfer process. Unlike Bitcoin and other cryptocurrencies, the XRP cryptocurrency is not mined.
Some crypto experts anticipate that Ripple may dominate international payments in the future as it is a more efficient alternative to the existing SWIFT network, and it has attracted the attention of banks. A growing number of institutions accept Ripple as a method of international payments. Whenever a transaction is made through the Ripple network, the user is charged a minor amount of XRP.
Here are some interesting facts about the XRP:
- The maximum number of tokens for XRP is set at 100 billion. Around 40 per cent of the XRP tokens are in circulation; Ripple owns the majority or around 60 billion of the created 100 billion tokens.
- Transactions made in XRP can be settled in only a couple of seconds. It is much faster when compared with Bitcoin or Ethereum.
- XRP can be considered as a bridge currency. It enables financial institutions to execute transactions cutting down the number of intermediaries and decreasing the transaction costs.
- XRP was created to be used mostly in banks and as a money transfer system and not as a payment currency, unlike Bitcoin which can be used in stores.
Which factors affect the Ripple value?
When talking about the value of XRP, traders should consider the general factors that affect the cryptocurrency markets and also XRP-specific things.
Speaking about general factors, the value of the XRP currency may be affected by the regulatory framework in different countries. This means that traders should monitor potential signals which may indicate a relaxation or tightening of cryptocurrency-related regulation.
Speculative trading might also put pressure on the XRP value, or there may be a sudden increase in demand or supply for manipulation purposes or based on unreliable information. In addition, the supply and demand of XRP on the market can also create fluctuations in the price.
Ripple is trying to attract more customers to use the services. Consequently, when larger financial institutions implement Ripple technology in their operations, this will have a positive impact on the XRP value. So, traders should also monitor announcements in which banks or other institutions share their plans to test or use this technology.
What is the ruble (RUB)?
The Russian ruble, rouble or RUB is the national currency of the Russian Federation and it is convincingly one of the oldest currencies in circulation in Europe as it originated in the 13th century and has an 800-year history. The currency has experienced at least four redenominations in the past 100 years.
Which factors affect RUB value?
The actions taken by the Russian financial authorities in the past show their readiness to defend the value of RUB on the foreign exchange market using foreign currency reserves. The interesting part is that while they have successfully protected the RUB rate, in 1998 the country spent its foreign currency reserves, resulting in default and inflation. However, even though the Russian Federation introduced a freely floating exchange rate regime, the Bank of Russia may intervene in the foreign exchange markets to stabilise its currency from major fluctuations.
The value of the currency and, consequently, the XRP to RUB rate may be influenced by numerous domestic and international factors. An economic slowdown, hindered balance of payments, capital outflow, as well as an insufficient level of foreign investments, harm the RUB value and the factors may also impact the Ripple to RUB rate.
Some of the most important factors which can drive the value of RUB up or down are related to the characteristics of the Russian economy. Namely, traders should monitor the changes in oil prices because an increasing oil price may strengthen the RUB and vice versa.
Moreover, aside from the economic situation, traders should also watch for the political situation in Russia and the political relationship of the Russian Federation with other countries, especially the Western developed countries. The introduction of sanctions against the Russian Federation had a negative effect on the RUB in the past.
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