How To Trade (Buy/Sell) XRP within the Ripple.com Client

[webr3]

Ripple itself is great, a side feature of it is the currency XRP, and the ability to trade within the client - this text focusses purely on a quick intro to trading within the client.

Basic:
Currency like USD and BTC can be traded within the Ripple client by using Gateways - such as Bitstamp and Weex. In short you add currency to your gateway account, then withdraw it to Ripple, trade within Ripple, then deposit from ripple back to the gateway (and elsewhere) as you see fit.

Why
Like any other digital currency, it's value can fluctuate up and down, on a per currency basis - it's roughly tied to the $USD and this provides two important properties to the trader (a) arbitrage ability (b) a comparatively stable home for digital currency whilst BTC / ***coin markets fluctuate.

A couple of weeks ago one XRP was worth $0.0009 and now it's worth roughly $0.00138 - a rise of 43.6%. If it goes parity with the cent that's a 935% rise in value. Even a conservative estimate of $0.027 USD per XRP gives a 2695% rise.
 

Seeing the markets:
The client: http://ripple.com/client

1) Sign up
2) Contacts -> add contact (the +) Name: Bitstamp ... Address: rvYAfWj5gh67oV6fW32ZzP3Aw4Eubs59B
3) Advanced -> Trade ... click "change issuer" and start typing bitstamp or rv.. hit "confirm" .. hit "order book"
4) Chance currency pairs and repeat the (3) for each


Using the markets:
You'll need to get some USD/BTC/Whatever in to Ripple, to do this you need to trust the gateway (say bitstamp) and then withdraw from the gateway to your ripple account.

1) Advanced -> Trust (add +) .. enter user Bitstamp, then the amount and currency - typically set this high, certainly higher than the amount you want to put in to ripple. You must repeat this for each currency you want to use.
2) In Bitstamp (or whatever gateway) hit withdraw -> ripple, then withdraw to your ripples address.. within seconds it'll be in your ripple account.
3) make offers to buy and sell currency.

Caveats:
You need a base level of XRP to add trust, and to make offers, it's good to keep min 500-1000 200 XRP in your account at all times - if you don't have any and want to get started, ask in #ripple on freenode and I'm sure somebody will lend you some to get started, or sell you some for defacto market rate.

Disclaimers:
I don't work for Ripple, Opencoin, or anybody, I'm unaffiliated and have no business interests other than a spot of typical side trading in my spare time.

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[drewdtom]

This is a very good starter guide, Thanks! I'll send people here who are lost like I was.

If you need your first 321XRP to start buying on BitStamp I am happy to help!

https://bitcointalk.org/index.php?topic=149599.msg2409711#msg2409711

#BitcoinNotBombs

[tclo]

Using the markets:
You'll need to get some USD/BTC/Whatever in to Ripple, to do this you need to trust the gateway (say bitstamp) and then withdraw from the gateway to your ripple account.

I looked at Bitstamp but doesn't look like it is a good gateway for me, being in the USA and not wanting to mess with an international wire transfer.  Is there another compatible gateway where I can use cash (like Bitinstant) or Paypal or credit card??

Thanks.

[ahbritto]

I looked at Bitstamp but doesn't look like it is a good gateway for me, being in the USA and not wanting to mess with an international wire transfer.  Is there another compatible gateway where I can use cash (like Bitinstant) or Paypal or credit card??

You can use BitInstant to send funds to Bitstamp.

[tclo]

I looked at Bitstamp but doesn't look like it is a good gateway for me, being in the USA and not wanting to mess with an international wire transfer.  Is there another compatible gateway where I can use cash (like Bitinstant) or Paypal or credit card??

You can use BitInstant to send funds to Bitstamp.

How?  Got to their website and Bitstamp is not an option to Transfer To.  Right now, it only shows MtGox an Bitcoin address.

[ahbritto]

You can use BitInstant to send funds to Bitstamp.

How?  Got to their website and Bitstamp is not an option to Transfer To.  Right now, it only shows MtGox an Bitcoin address.

Looks like BitInstant has run out of funds as Bitstamp.

[arthurb]

Ok say I want to buy XRP for BTC

1) Advanced -> Trust (add +) .. enter user Bitstamp, then the amount and currency - typically set this high, certainly higher than the amount you want to put in to ripple. You must repeat this for each currency you want to use.
2) In Bitstamp (or whatever gateway) hit withdraw -> ripple, then withdraw to your ripples address.. within seconds it'll be in your ripple account.

Ok, so the idea is that instead of having bitcoins in my ripple wallet I will have bitcoin IOUs from bitstamp, is that right?
So if I have 2 btc on bistamp and withdraw them to ripple, assuming I trust bistamp for more than 2 btc, I will have a 2 btc bitstamp IOU showing up in my wallet. Correct?

3) make offers to buy and sell currency.

And basically the idea is that bistamp will receive back its IOU and will send me XRP?

[bitcoinik]

This is awesome - thanks for posting.

If only people would start using this system to trade BTC.

[saigo]

wow, seems XRP went up in value already ! I bought 50,000 a few weeks ago for small change...

[ft73]

Willing to trade and buy some XRP, but now i have a 299 xrp balance, and looks like it does not suffice.
Is anybody willing to help me? I'm a bit frustrated.

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Thanks anyway.

[best_btc]

can anyone send me some starter 300 XRP? address is in my singature, thank you in advance!

[sunriselad]

I had 1000 XRP, added the trust to bitstamp, and my XRP went down to 999.

Where did it go and why?

[webr3]

I had 1000 XRP, added the trust to bitstamp, and my XRP went down to 999.

Where did it go and why?

Each transaction in ripple costs 0.00001 XRP, so you actually have 999.99999 XRP, rounded that looks like 999

[sunriselad]

Which transaction? Is adding trust a "transaction"?

[webr3]

Which transaction? Is adding trust a "transaction"?

Yes, rather than "transaction" I should have said "ledger entry".

[sunriselad]

Ahh I see, thanks.

[dchapes]

Which transaction? Is adding trust a "transaction"?

Yes, rather than "transaction" I should have said "ledger entry".

Actually "transaction" is the right term. To change a ledger entry (such as adding/removing/changing trust) requires a signed transaction just as payment requires a signed transaction. They're just different types of transaction.

The real reason I posted: since this topic was started a Ripple blog post tries to cover this subject. They gloss over a few things but it's a nice overview.

https://ripple.com/blog/how-to-currency-trades-on-the-ripple-network/

[Captain C.]

I have a question: I started playing with my ripple account lately. So to get started I transfered money from bitstamp to my ripple wallet. In order to do that I had to trust bitstamp with the amount of money I wanted to transfer.

Does that mean I am now trusting bitstamp with that amount of money or just my own bitstamp account?

[crazy_rabbit]

I have a question: I started playing with my ripple account lately. So to get started I transfered money from bitstamp to my ripple wallet. In order to do that I had to trust bitstamp with the amount of money I wanted to transfer.

Does that mean I am now trusting bitstamp with that amount of money or just my own bitstamp account?

I don't understand the idea of 'selling' ripple and getting "Bitcoin Denominated IOUs", what if I just want Bitcoin?

[crazy_rabbit]

I made it work. Followed the guide, and it does indeed seem to work. However, I don't get what problem it is solving.