Loopring is a decentralized exchange protocol and automated execution system where users can trade across different cryptocurrency exchanges while reducing their trading costs, and it is built on the Ethereum blockchain.
The Loopring token (LRC) is the native cryptocurrency token of the Loopring protocol, which can be used to pay fees that occur on the network.
If you are thinking about investing in Loopring yourself, it is a good idea to do research on this project first.
On this page, you will discover everything you need to know about Loopring, from its history, to how it functions, and even the platforms through which you can invest in the coin, with a step-by-step guide on how to do so.
Best Way to Invest in Loopring in 2023
There are different ways to invest in Loopring (LRC). Some of these will suit your needs and requirements better than others, so to help you in your research process, we’ve put together a list of some of the best providers you can choose from.
What Is Loopring?
Loopring allows traders access to a decentralized and automated trade execution system where they can implement their trades across many cryptocurrency exchanges without counterparty risk and reduced trading costs.
Daniel Wang founded Loopring in 2017 with the goal of disrupting the centralized exchange industry. Loopring is not a decentralized exchange but a protocol that facilitates decentralized exchanging through order matching.
Loopring was first valued on August 31, 2017, when the token had a value of $0.1134 when it got listed. At the time of writing, the token has a value of $2.68. This is a 2263.32% increase in value since the token got listed.
- As it is non-custodial, users always have full control over their digital assets.
- Off-chain execution of trades allows for reduced transaction times and, as such, reduced gas fees.
- Decentralized exchanges are encouraged to be helpful towards users through fear of losing any staked LRC tokens.
- Funds have to be stored and used from a layer-2 digital wallet, which can be a barrier to entry.
How Does Loopring Work?
To use Loopring, a user has to deposit funds into an exchange. However, the user maintains control over their funds as they always remain in the user’s wallet and are never locked by order.
The user places a trade through their Loopring wallet and signs their private key. Then the order gets relayed to the Loopring network smart contracts, alongside the off-chain relay nodes.
These smart contracts then ensure that the funds in the wallet are exchanged properly for the coins they are trading. The off-chain nodes are responsible for the process of maintaining the order book and broadcasting it to the ring miners.
Ring-miners ensure that orders can be filled through order rings until all parties complete the trades. Ring miners get compensation from the fees in LRC or a split margin on the final purchasing amount of an order.
This gives users full autonomy over their finds while trading, which enables users to cancel, decrease, or increase an order before it gets executed.
Ways to Buy Loopring
When you buy Loopring, you own all of the LRC coins outright. You can use them for anything that you want and should store them in a wallet after you have purchased them.
Loopring (LRC) can be bought through the usage of many different methods. That said, the primary methods you need to look out for include exchanges, peer-to-peer (P2P) marketplaces, and in-person trading.
Cryptocurrency Exchanges:
These are the exchanges that allow you to buy LRC directly on the open market. You will only need to find an exchange that supports LRC and provides you with fair fees and a high level of liquidity.
Peer-to-Peer (P2P) Marketplaces:
These marketplaces connect you with sellers of the LRC token directly. Keep in mind that there has to be someone selling the token for you to be able to buy it.
In-person Trading:
This is a type of trading process where you can arrange a meeting with the seller of the LRC tokens at a physical location and make the transaction on the spot.
When you are ready to buy Loopring (LRC), you will need to follow a set of steps.
Step 1: Find a Cryptocurrency Exchange
Step 2: Verify Your Identity
Step 3: Fund Your Account
Step 4: Buy your LRC Coins
How to Trade Loopring
Trading Loopring means that you are buying the underlying assets with the aim of profiting based on the movements of the market, however, you do not have direct ownership over the LRC coins outright.
The goal here is for you to buy the token while it's at a lower price and sell it when its value goes up.
If you decide to deal with derivative products, you can speculate on how the price of the LRC token will move in the future, either up or down, without purchasing the token directly.
You can utilize short-term and long-term trading, as well as margin and leverage trading strategies and can set entry orders, stop losses, profit-limit orders, and risk-management methods when you trade.
You can trade Loopring (LRC) through a cryptocurrency brokerage.
This is the go-to option for a lot of beginners as the process itself is streamlined tremendously through a simple-to-use user interface.
To trade Loopring, you’ll need to follow a different set of steps from the ones you followed when buying the coin.
Step 1: Find a Broker
Step 2: Verify Your Account
Step 3: Fund Your Account
Step 4: Choose and Trade
Step 5: You Can Buy Now
Is It Safe to Invest in Loopring Right Now?
However, what you need to keep in mind is that cryptocurrencies are popular targets of hackers, scammers, and other cybercriminals. You need to ensure that you take extra precautions in order to keep yourself as safe as possible.
That said, you can achieve this by following these steps:
Step 1: Enable Two-Factor Authentication (2FA)
Step 2: Research Common Scam Types
Step 3: Read Platform Reviews
Step 4: Store Your Coins in a Private Wallet
Only ask for assistance on official websites and reputable forums, always double-check links before clicking on them and only do so if you trust the person supplying them.
