Table of Contents
1. Choose a crypto exchange
First things first, you need an exchange that both has Loopring, and is trustworthy!
You can find our top 3 exchanges for buying Loopring here, alternatively you can also check our comparison of the best Australian crypto trading platforms if you’re generally interested in seeing which exchanges work for Australians.
2. Sign up with the crypto exchange
Once you’ve chosen your crypto exchange, it’s just a matter of signing up and getting your account verified. Most exchanges have streamlined this process very well so it shouldn’t take long.
3. Fund your account
The next step is to transfer AUD or another cryptocurrency into your account. Most top crypto exchanges offer various payment methods. From bank transfer to PayID, POLi pay and credit cards, it’s very straightforward.
4. Buy Loopring
And of course, the final step is to find Loopring on the exchange and buy it. A lot of exchanges offer different ways of buying cryptocurrencies, like market orders and limit orders.
Where to Buy Loopring (LRC)
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How to Sell Loopring
- Sign into the exchange
- Find where you stored your Loopring, either on a hardware wallet or on the exchange.
- Transfer your Loopring to the right place on the exchange, it could just be the same wallet or a dedicated trading account.
- Sell Loopring.
Considerations when looking to buy Loopring.
LRC is an Ethereum-based cryptocurrency token for Loopring. It's an open protocol that allows the creation of decentralized crypto exchanges.
The average daily trading volume for the entire cryptocurrency market was between $50 and $200 million in 2020. The majority of this trading takes place on centralized cryptocurrency platforms -- online platforms that are owned and operated by private companies. They store user funds and allow for the matching of buy-and-sell orders.
These platforms come with a lot of disadvantages, so decentralized exchanges were created to address these issues. But fully decentralized exchanges don't come without their flaws.
Loopring claims that its goal is to combine central order matching and decentralized on-blockchain settlement into a hybridized product which will bring together the best of both centralized as well as decentralized exchanges.
LRC tokens were made available to the public in an initial coin offering (ICO), August 2017. The Loopring protocol was also first deployed on Ethereum mainnet, December 2019.
Loopring's main purpose is to bring together elements from both centralized and decentralized cryptocurrency exchanges in a protocol that can benefit from their unique benefits and eliminate inefficiencies.
Currently, centralized exchanges are the preferred method of operation for crypto trading. Although they are popular and easy to use, centralized exchanges can pose a number risks. The most important is their custodial nature. These exchanges store users' funds between points of withdrawing and depositing. This means that they are susceptible to hacker attacks, malicious agents inside the exchange, or regulatory intervention.
Another problem with centralized exchanges is their lack of transparency. Trades are not settled on blockchain but instead stored in the exchange's internal records. This makes it possible for price manipulation and allows the exchange to use funds for unauthorised purposes.
A decentralized crypto exchange (DEX) was created in recent years to solve these issues. It does not hold user funds in custody or process trades internally. Instead, it connects buyers and sellers directly and settles trades on a publicly accessible blockchain.
Although they remove the transparency and custodial risks, DEXs have their disadvantages: primarily, lower efficiency when compared with centralized alternatives. This is due to the limited capabilities of the blockchains and fragmented liquidity.
The Loopring protocol aims to preserve the benefits of decentralized exchanges, while improving or eliminating inefficiencies through innovative hybrid solutions. Loopring's approach to order management is centralized, but trades are settled on-blockchain. This allows Loopring to combine up to 16 orders into circular trades, rather than allowing only one pair of trading pairs. It also aims to improve the efficiency and liquidity of DEXs.