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Gavito

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I'm new to cryptocurrency trading and I want to invest $100k in xrp, but first I need help to understand the risks. 
For instance, If with   $100k, I buy 100k Xrp and I don't trade them with other currencies. If the xrp keeps falling, the value of xrp in dollars will decrease but still I will have 100k xrp right? So, when the price of xrp goes up, lets say 1xrp = $1.5, those 100k xrp now will be equal to $150k? 
Does it work this way, or another?

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10 minutes ago, Gavito said:

So, when the price of xrp goes up, lets say 1xrp = $1.5, those 100k xrp now will be equal to $150k? 

Welcome.  Yes.   The vast bulk of us here think XRP is the one to become the global standard bridging the worlds value movements.  Just understand going in that the best gain for XRP will be as a long term hold....   don't sell at first big rise....  Over a few years this will increase dramatically if Ripple are successful.   That's how most of us here view it...   but the journey will be for sure full of bumps and drops.   Good luck to you.

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Guest Ripplista79

If you do buy even 5% of the amount you are discussing, please take the time to look into getting your XRP off the exchanges and into storage via toast wallet, nano ledger, etc. 

You will want to use youtube as your friend here.  Educate yourself on it.  When you transfer any amounts do two small transactions to confirm it works before moving large value.  

It is ideal to spread it around a bit.  For example, I keep my xrp spread across 5 exchanges and 2 non-exchange wallets.  Awaiting my ledger nano but it will take two months to arrive.  Ledger nano would be my first choice if I had one.  Do not buy this from amazon or ebay, no exceptions.  Buy directly from the ledger nano manufacturer and wait for it to come.

Security is #1 rule in crypto - Please educate yourself more if you plan to invest big.

Risk management is #2 rule in crypto - This is usually the one you earn your education by way of battle scars.

 

 

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7 hours ago, Gavito said:

I'm new to cryptocurrency trading and I want to invest $100k in xrp, but first I need help to understand the risks. 
For instance, If with   $100k, I buy 100k Xrp and I don't trade them with other currencies. If the xrp keeps falling, the value of xrp in dollars will decrease but still I will have 100k xrp right? So, when the price of xrp goes up, lets say 1xrp = $1.5, those 100k xrp now will be equal to $150k? 
Does it work this way, or another?

The crypto market works like any other. If you make a purchase of 100k of XRP with $100k then your basis is 1 XRP = $1  Your fortunes swing from that point.

Also, to echo @Ripplista79  if you do indeed make a purchase of that size, don't go cheap - get yourself a Nano S and educate yourself on its use.  Always do

a small test transaction first.  Best of luck and stick around here for good support, especially when things go south

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You're right in your assumption but, likewise, if XRP lost 90% of its value then your $100k would be worth $10k. However, these basic questions for someone looking to gamble that sum of money. It really is a gamble, this is not investing in a conventional sense. The rewards can be huge and, equally, devastating.

Do not step into this arena lightly. Do not rush. Gamble with a small amount initially and get used to how to buy, how to transfer to different storage devices, how to retrieve from them and how to keep them safe. Read as much of the help in the forum to avoid accidentally losing out giving away your secret key.

That said, if you know what you're doing and you don't risk more than you are happy to lose then this can be an exciting pastime.

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4 hours ago, xrp_joker said:

 This whole crypto market is a roller coaster being dragged up and down by the dinosaur of crypto aka bitcoin. 

Thank you very much for your welcome, I appreciate it. Can you please explain to me how does the bitcoin affect ripple? If bitcoin value goes up, does it mean the value of xrp goes up as well, or the opposite?

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4 hours ago, Badger said:

You're right in your assumption but, likewise, if XRP lost 90% of its value then your $100k would be worth $10k.

Thank you for your advice, I'll take it due to the lack of my knowledge. It wouldn't be wise to gamble that sum of money right in the beginning. In the scenario you mentioned above; after XRP loses 90% of its value , $100k = $10k but will I still have 100k XRP (just in terms of number). Then lets say, when the XRP goes up from $0.1  to  $10 (long term), will the multiplication be like this:
100k XRP  x  $10= $1,000,000

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Yes. If you buy 100 XRP then you always have 100XRP, it's just the value of each XRP that changes. 

Right now, XRP is about 0.93USD so you'd need to spend $93 if you want 100XRP.

If the price rises to $1.50 per XRP the total value will be $150. That's $57 profit on your original investment.

You could sell any amount of your XRP at any time and convert back to your local currency. Be aware of tax implications if you make a profit.

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On 03/02/2018 at 12:47 AM, Gavito said:

I need help to understand the risks. 

welcome @Gavito

XRP is a very risky investment, as all other digital assets/ cryptos. The rule is pretty simple: you should be ready to lose your investment. If you are willing to accept so, then welcome among the investors!

Peace  

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To give you a panorama of the risks related to XRP investments (from my point of view):

Low - 1. Value proposition: XRP does not succeed as a bridge digital asset for FIs

Low - 2. Hacking of your wallet (on the XRP Ledger) where your funds are stored

Low to Medium- 3. Internet/ Network down: inability to perform transactions (buying/ selling)

Medium - 4. Hacking of your wallet (off-blockchain) within an exchange platform environment 

Medium - 5. Technology down: bug from the client where you perform your transactions (XRP Ledger or Platform's Client Apps) 

High to Very High - 6. Volatility/ Speculation: risk of important loss in a very short period of time

Edited by Lumpy
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