How To Buy Loopring (LRC)?
A common question you often see on social media from crypto beginners is “Where can I buy Loopring?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Loopring on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Loopring (LRC)
First, you will need to open an account on a cryptocurrency exchange that supports Loopring (LRC).
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Fees (Maker/Taker) 0.075%*-0.1%*
Available for Trade 500+
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Europe, Asia, Oceania, Africa
Fees (Maker/Taker) 1.49%*-3.99%*
Available for Trade 75+
$10 sign-up bonus*
North America, South America, Europe, Asia, Oceania, Africa
In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Loopring (LRC) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Loopring (LRC)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Loopring (LRC) or Loopring (LRC) trading pairs. Look for the section that will allow you to buy Loopring (LRC), and enter the amount of the cryptocurrency that you want to spend for Loopring (LRC) or the amount of fiat currency that you want to spend towards buying Loopring (LRC). The exchange will then calculate the equivalent amount of Loopring (LRC) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Loopring (LRC) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What Is Loopring (LRC)?
LRC is the Ethereum-based cryptocurrency token of Loopring, an open protocol designed for the building of decentralized crypto exchanges. In 2020, the average daily trading volume of the entire cryptocurrency market fluctuated in the approximate range of $50-$200 million. Most of that trading is conducted on centralized cryptocurrency exchanges — online platforms operated by private companies that store users’ funds and facilitate the matching of buy and sell orders.
Such platforms have a number of downsides common to all of them, so a new type of exchange — decentralized— has emerged to try to alleviate these disadvantages. However, fully decentralized exchanges are not without their own flaws.
Most notably, Loopring claims its platform will allow exchanges built on top of it to sidestep the slow speeds and high costs associated with decentralized exchanges on Ethereum through the use of a newer type of cryptography called zero-knowledge rollups, or zkRollups.
With zkRollups, Loopring asserts its exchanges can offer faster settlements for traders. Rather than settling trades on the Ethereum blockchain directly (as other decentralized exchanges do), zkRollups enable Loopring exchanges to complete key computations elsewhere.
The idea is that this can reduce the number of transactions that a Loopring exchange will need to submit to the Ethereum network, thus increasing speed and reducing costs for traders. This is in contrast to other decentralized exchanges, where trades require transactions to be confirmed by the Ethereum network, taking minutes instead of seconds or milliseconds.
Loopring’s purported goal is to combine centralized order matching with decentralized on-blockchain order settlement into a hybridized product that will take the best aspects of both centralized and decentralized exchanges. LRC tokens became available to the public during an initial coin offering (ICO) in August 2017, while the Loopring protocol was first deployed on Ethereum mainnet in December 2019.
Who Are the Founders of Loopring?
The founder and current CEO of Loopring Foundation, which manages the development of Loopring protocol, is Daniel Wang, a software engineer and entrepreneur based in Shanghai, China.
Wang has a bachelor’s degree in computer science from the University of Science and Technology of China, as well as a master’s degree in the same field from Arizona State University. Prior to starting work on Loopring, Wang has held multiple managerial and executive positions in major tech companies: he was a lead software engineer at the medical device manufacturer Boston Scientific, the senior director of engineering, search, recommendation and ads system at the Chinese e-commerce giant JD.com, as well as a tech lead and senior software engineer at Google.
Wang has also co-founded several companies: Yunrang (Beijing) Information Technology Ltd. and the cryptocurrency services firm Coinport Technology Ltd.
What is the Loopring Token (LRC)?
The Loopring token is a necessary part of the Loopring network. LRC tokens can be used for transaction fees as well as staking.
Staking puts your LRC tokens into a smart contract which earns you interest and discounts your trading fees. LRC tokens also are necessary to make an exchange on the Loopring platform, allowing anyone with the funds to start their own crypto exchange and profit from trading fees.
The Loopring protocol can settle up to 2,025 trades per second while guaranteeing the same level of security as the underlying Ethereum blockchain. This is made possible by using a construction called zkRollup, which aggregates and executes transactions off-chain, in a provably correct manner. For context, prior versions of Loopring (and current versions of some other DEX protocols), can settle only 2 or 3 trades per second. With Loopring’s layer 2 scaling, non-custodial exchanges can match the performance of custodial competitors.
The settlement cost per trade is roughly 450 to 800 GAS on layer-1, which is 0.15-0.30% of the cost of most layer-1 DEX protocols. From a user’s POV, there are no gas fees, just ‘normal style’ fees of a few basis points or cents.
As Loopring has made tremendous technical progress throughout the years, it has also cultivated an amazing community. And while the Loopring foundation engineers are the ones who predominantly built the protocol and products, it will become more powerful if guided by the Loopring community.
The Loopring DAO is set to launch in Q3, and it will be receiving 10% of all protocol fees. What it does with those funds is up to the DAO members (LRC holders) to decide via voting. It can buyback LRC and burn it, use for impermanent loss protection to draw more LPs, distribute to DAO voters, distribute more incentives to LPs/makers, fund grants, etc.
Official website: https://loopring.org/#/
Best cryptocurrency wallet for Loopring (LRC)
There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.
HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Loopring (LRC)?
Deciding which type of wallet to use depends on a variety of factors, including:
- How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades.
- What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
- Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
- How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
- What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.
For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.
Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).
Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).