Want to jump straight to how to buy Loopring (LRC)? You can buy LRC on Binance.US and Crypto.com today!
More investors are using decentralized exchanges (DEX) than ever before, and transaction prices on Ethereum’s blockchain have been steadily increasing.
Decentralized exchanges interact directly with a blockchain’s network. There is no 3rd party like Coinbase or Binance that holds your funds. Holding custody over your digital assets adds another layer of security centralized entities simply can't provide investors.
Loopring (LRC) has made a protocol on Ethereum’s network to solve scaling problems on Ethereum’s blockchain. Investors who use Loopring can benefit from the added security of a DEX while paying much less to transact on Ethereum.
Learn how to buy Loopring now.
What is Loopring?
Loopring is a smart contract protocol built on Ethereum’s blockchain. A smart contract is just code that’s uploaded to the blockchain.
What makes smart contracts unique is their ability to hold funds in escrow without using a centralized 3rd party. Ethereum developers have made smart contracts for insurance claims, decentralized exchanges and supply chains.
Loopring’s protocol lessens transaction costs associated with trading on decentralized exchanges. This is done through a technical process called Zero-Knowledge rollups (ZK-rollups).
ZK-rollups use a smart contract on Ethereum to hold the exchanges funds, but compute trades on Loopring’s sidechain. These trades on Loopring’s DEX are ensured to be valid through what’s called zero-knowledge proofs.
Brief History of Loopring
Daniel Wang founded Loopring in 2017 with the goal to scale decentralized exchanges by making transactions faster and cheaper.
Before founding Loopring, Wang worked as a tech lead and senior software engineer at Google. He also has previous experience in the cryptocurrency industry, founding the crypto exchange Coinport Technology Ltd. in 2014.
Since its inception, Loopring has upgraded its protocol several times, increasing its utility significantly. Loopring version 2 was able to process only 2 trades per second and cost about 10 cents per transaction. The Loopring 3.0 upgrade increased the transaction throughput to 70 trades per second and decreased the transaction cost to less than 1 cent per transaction. Loopring 4.0 should provide even more functionality and transaction speed, pushing the token’s value higher.
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.
Loopring token had its initial coin offering (ICO) in August 2017, raising $45 million in Ethereum tokens. Each token was put on sale for 6 cents and appreciated to over $1 soon after.
Through the crypto bear market of 2019, LRC depreciated to a low of less than 3 cents per token. As of January 2022, LRC is trading for over 20 times more than its ICO price at well over $1 per token. However, the crypto downturn of June 2022 pushed the token’s value below $0.50, and the token has fallen even farther to around $0.25 as of October 12, 2022.
How to Buy Loopring (LRC)
- Open an Online Account
To purchase LRC, you’ll need to sign up for a cryptocurrency exchange account with an exchange that supports LRC tokens. As you’re now aware of, there are 2 main types of cryptocurrency exchanges: centralized exchanges (CEX) and decentralized exchanges (DEX).
The most popular cryptocurrency exchanges that support LRC tokens are Binance.US, Crypto.com and Coinbase. Coinbase is a centralized exchange founded in 2012 and is headquartered in the United States. Investors trust Coinbase for its extra security measures taken to protect users' crypto assets, such as storing 98% of its users’ funds on hardware wallets.
Alternatively, you can use a decentralized exchange (DEX) on Ethereum to buy Loopring. Mobile apps like Argent let you directly interact with DEXes from its mobile app, which is among the easiest ways to use decentralized exchanges. Other popular DEXes that you can use with Ethereum wallets include Uniswap, Sushiswap and Curve finance. - Buy a Wallet
Once you’ve made a cryptocurrency exchange account, you’ll need to choose where to store your Loopring tokens. Storing any crypto asset on an exchange isn’t recommended, as leaving your crypto on an exchange puts your cryptocurrency at risk for being stolen.
Centralized exchanges are responsible for keeping your private keys safe –– your private key is what gives you access to your crypto investments. These exchanges are a top priority for hackers because if they’re able to breach an exchange’s security, they’d be able to steal all the funds on the exchange.
To mitigate this risk, you should store your cryptocurrency on a hardware or software cryptocurrency wallet. Software wallets are mobile apps and computer programs that store cryptocurrency, and they’re generally free to use. Hardware wallets are the most secure way to store cryptocurrency, as they store your funds on a physical device not accessible to the internet. - Make Your Purchase
Once you’ve made a crypto exchange account and decided on a place to store your crypto, you’re ready to make your purchase. You can buy cryptocurrency in a similar way to stocks: as a limit or market order.
Market orders purchase crypto at the exchange’s market price for the asset, while limit orders only execute upon reaching a specified price.
Best Crypto Exchanges for LRC
Best Crypto Wallets
Here are the best software and hardware wallets for Loopring.
Best Hardware Wallet: Ledger Nano S
Ledger has been making hardware wallets for crypto investors since 2014. It’s the most popular hardware wallet brand in the business and supports a wide range of altcoins.
The company has a unique app store, making it possible for you to download new altcoin wallets onto your hardware wallet. This is a great feature for investors looking to purchase smaller market cap altcoins that would otherwise be difficult to store on a hardware wallet.
Ledger’s 2 most popular hardware wallets are the Ledger Nano S and the Ledger Nano X. These devices serve a similar purpose, but the Ledger Nano X has premium features like bluetooth connectivity. The Nano S is an affordable choice for most crypto investors, coming in at just over $50 on Amazon.
- Best For:ERC-20 tokensVIEW PROS & CONS:securely through Ledger Hardware Wallet's website
Best Software Wallet: Coinbase Wallet
Coinbase Wallet is a great software wallet choice for new and experienced investors alike. The application makes it easy to store your cryptocurrency securely, and it’s easy to transfer your crypto assets to and from your Coinbase account.
If you’re actively trading crypto, Coinbase is a great choice for security. The exchange stores 98% of it’s crypto assets in a hardware wallet, leaving the other 2% on the exchange for liquidity. In the unlikely case of a security breach, only 2% of the exchange's funds could get stolen.
Trade or Sell Your Cryptocurrency
Many crypto investors trade altcoins against Bitcoin instead of against USD. These investors see Bitcoin’s return as the standard return for the market. If they’re gaining value in Bitcoin then they’re beating the market.
Another reason investors trade against Bitcoin is to accumulate more bitcoin to HODL. This is also referred to as “stacking sats”, which means accumulating more satoshis. (A satoshi is the smallest denomination of a bitcoin.)
You can’t store your crypto in a cryptocurrency wallet If you want to trade your crypto actively. If you plan on day trading your crypto, the exchange's security should be your top priority. Coinbase and eToro both have security measures in place if there were ever a breach in the system, making it safer to actively trade crypto.
Current Crypto Prices
The start of 2022 has shown a decrease in cryptocurrency prices across the board, with only a few outliers appreciating in value. The depegging of Terra simply made things worse, and tokens are still trying to recover as of October 2022. The digital asset market is open 24 hours a day, 7 days a week, so it's a good idea to use a crypto portfolio tracker to stay up-to-date on cryptocurrency prices. In the meantime, check out the table below for real-time cryptocurrency pricing data.
Is Loopring a Good Investment?
Loopring has intense competition from a few other blockchain protocols aiming to accomplish similar goals. Kyber Network and 0x are similar projects, both with 9-figure market capitalizations.
But Loopring offers a solution to Ethereum’s biggest problem –– scalability. Its innovative approach to scaling transactions allows users to trade on DEXes in a fraction of the cost and time it would take on Ethereum’s blockchain.
Frequently Asked Questions
Is Loopring safe?
All investments involve risk, but Loopring is a crypto project with strong backing that has been on the market for some time. Do your research before investing.
Can you make money on Loopring?
Loopring might help you make money, but you should do your research and budget properly before making an investment in this project.