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How to buy Loopring online
This beginner’s guide gives you the lowdown on the Loopring exchange and whether its cryptocurrency is worth a look. Learn about what makes it different from other decentralised exchange platforms, and get some helpful tips about what to look out for.
Compare where to buy Loopring, and open an account
Know all you need to about Loopring already? Then head straight to one of the brokers below. These are some of the top trading platforms around and have been chosen by our team of experts based on their features and accessibility. To learn more about Loopring first, scroll down to keep reading.
What is Loopring?
Loopring is decentralised exchange software that lets you buy and sell cryptocurrency. A developer can use its software like a template to build their own exchange and Loopring binds all these together, matching trades and providing liquidity across the whole network. Holders of the LRC token can earn rewards paid out of the trading fees.
Exchanges are just one wing of the booming world of decentralised finance. All of these platforms are about offering somewhere to trade crypto assets without a central institution running things. Loopring’s version is built on top of the Ethereum network and dates to 2017, when it was created by Daniel Wang, a Chinese software engineer.
How does Loopring work?
Loopring works by batching orders together across its network of exchanges and then adding them to the Ethereum blockchain all at once. This makes it possible to match virtually any order – with liquidity pooled from every exchange – and to execute them almost instantly.
It does this with a technique known as ‘zero knowledge proofs’, or ‘zkRollups’. This is basically just a quicker way of verifying everyone has the money they say they do, and means Loopring can perform hundreds of transactions and add them to the blockchain in one go.
The key part of all this is speed. Combining transactions on Loopring makes it possible to run thousands of trades per second, whereas the speed of the Ethereum network on its own is restricted to less than 20.
How to buy LRC online – a step-by-step guide
Step 1. Find an exchange
The best place to find cryptocurrency is through an exchange. This way, you get to own the coins themselves. There are many different types of exchange with slightly different features, but have a look around and pick one with a good reputation that’s easy to use. A couple of our favourite ones are:
- Binance: Binance is the largest exchange by trading volume and already has millions of users swapping hundreds of coins every day. It also has its own coin that you can use to get cheaper trading fees. Join Binance now >
- BitPanda: BitPanda is another exchange you can use, and lets you deposit fiat currency as well as cryptocurrency to get started. Signing up gives you access to your own wallet to store your coins in as well. Sign up for BitPanda today >
Step 2. Sign up and fund your account
You have to set up an account to be able to use an exchange. Normally this is a quick and easy process, you just need to enter some contact details like an email address and phone number. Some platforms also ask for a form of ID as verification.
The most popular exchanges accept deposits in fiat currency (GPB, USD, or EUR, for example) these days. Just be aware that some might only accept cryptocurrency deposits.
Step 3. Purchase
To find a coin on your exchange platform, you need to search for its coin ticker. In this case, that’s LRC, and you’ll be shown a list of currencies you can use to buy it in the form of pairs – like LRC/BTC or LRC/ETH – and you just need to choose one of those. Then you can enter in the amount you want and execute the trade.
Step 4. (Optional) Get a suitable wallet
Now that you have your coins, it’s time to decide where to store them. Some exchanges offer their own integrated wallets, or you can leave them sitting in the exchange account itself. If you want some more security, there are wallets that give you a unique private key and keep your coins safe. Two of the top options are:
- Infinito Wallet: Infinito Wallet is a mobile wallet, so you can access your coins through an app on your phone. It also boasts lots of other features so you can stake and trade coins from within your wallet. Get Infinito Wallet now >
- Nebeus: Nebeus is a hardware wallet that stores coins in ‘cold storage’, completely offline. Again, it offers features like saving accounts and straight from your wallet. Sign up for Nebeus now >
How to trade Loopring – a step-by-step guide
Step 1. Find a broker
If you’re interested in trading coins, trying to make lots of trades and scoop a bit of profit each time, you should sign up with a broker. Preferably, one with low trading fees, otherwise all your activity can get very expensive.
Step 2. Deposit money
The only way to fund a broker account is with fiat currency. Be careful of the fees for doing this, though. All these platforms have to make money somewhere, and brokers tend to charge for some combination of deposits, trading, and withdrawals.
Step 3. Decide how you’d like to trade
One of the most popular ways to trade cryptocurrency is with contracts for difference. You can use CFDs for other assets like stocks and commodities as well, and they’re a way of speculating on the price without needing to own the asset itself. Virtually all brokers offer CFD trading but if this is how you want to trade, check before you sign up.
Step 4. Start trading
Think about using a beginner account to trade with pretend money before you dive into the real thing. Your broker probably offers this as an option in the settings, but it’s another thing to check before you sign up.
Whether you’re using real or fake money, the process of trading is the same. Look for the coin you want to trade and decide if you think it’s likely to go up or down in value. If you think it’s going to go up, then buy it (this is also known as taking a ‘long’ position). If not, perhaps ‘shorting’ it is the right move, which means selling it with the hope of buying it back later at a lower price.
There are some more advanced ways of trading too. The most common is using leverage. To trade with leverage you put up a fraction – perhaps 10% – overall trade value as a deposit. Then you borrow the rest from your broker and trade with it. Be warned: whatever happens you’re liable for the whole amount, so if it goes down it can be very expensive.
To help you come to a final decision, we’ve summarised some of Loopring’s pros and cons in the boxes below. Afterwards, there are three more questions to help you decide what to do.
- Earn rewards for staking LRC coins on Loopring
- 70% of fees are returned to stakers
- The platform burns 10% of all fees to reduce the total supply of coins, which could be good for the price
If you want more help choosing whether or not to invest in Loopring, here are three final questions to think about.
1. Is it a good time to buy Loopring?
It depends on what your goals are. If you want to hold it for a long time, perhaps now is the right time to buy. You can hold these coins in a wallet, use them to earn interest, or get rewards from the Loopring platform. Just remember that the end goal is always for the coin to go up in value.
The current price is important for traders with a more short term view as well. If that’s you, then you might want to think about using some indicators to see if there’s an opportunity to make a small profit quickly. If you want some help, you can get some extra guidance from our market analysis:
2. What problem does Loopring solve, and what are the coin’s investment prospects?
Loopring solves the problem of slow transaction speeds that hold back decentralised exchanges from widespread adoption. It creates a template exchange that developers can use and trust to always provide liquidity and match orders made on their own platforms.
The investment prospects for decentralised finance look good on the whole. Financial services that can be accessed instantly and opportunities to trade and create savings accounts for your coins are only likely to become more popular. Loopring also destroys 10% of the coins it receives in fees to control supply and reduce inflationary pressure.
That said, these systems are unregulated by nature and there are lots of other platforms that offer similar features, like 0x and the Kyber Network. If you’re looking long term, you have to decide if there’s room for all of them or, if not, which is most likely to succeed. Use our latest news to stay on top of everything useful that you need to know:
3. Do you want to hold Loopring for the long term?
It lends itself to a long term hold with rewards for staking coins on the platform. As it destroys some of its coins and makes developers stake thousands as collateral to use one of its exchanges, it controls the supply. This could be good news for its price in the long term. Whether your horizons are long or short, however, here are some final things to consider.
Considerations for a long term investment strategy
If you want to stake coins on the platform or expect the LRC coin to go up in value over time, the best thing to do is find an exchange. If you don’t plan to stake them, think about getting a wallet to store your coins in afterwards.
Considerations for a short term trading strategy
The key to successful short term trading is a lot of quick trades to make small profits each time. Get yourself a reliable broker with low fees and learn to trade CFDs. You might also think about learning to use leverage as well.