The number of Decentralized Finance (DeFi), NFTs and projects using Ethereum has increased dramatically, so transaction fees and processing times have also gone up. The average ETH transaction fees reached $40 in February 2021.
Layer-1 protocols like Solana and Avalanche, which are both developed by Avalanche and SOL respectively, attempt to address these issues through the creation of new networks with superior performance that can compete directly against Ethereum. Layer-2 protocols, on the other hand are intended to solve problems such as high network fees and congestion by scaling Ethereum.
Loopring is an Ethereum Layer-2-scaling protocol that the Loopring team operates. This protocol allows users to create DeFi payment system and decentralized exchanges. (DEXs), which can compete with centralized exchanges for performance. Loopring provides low-fee, high-speed decentralized finance (DeFi) services and allows users to sidestep the high costs and slow speeds associated with Ethereum’s decentralized network.
Continue reading to find out everything about Loopring (LRC), and how you can buy Loopring.
Let’s get started!
What is loopring?
Loopring describes itself as “an open-sourced, audited, and non-custodial exchange and payment protocol.” It can handle up to 1,000 times more trades per second than Ethereum, with each one costing a mere fraction of a cent.
Loopring leverages zero-knowledge proofs, Loopring claims that it allows high-performance trading without having to sacrifice Ethereum-level security guarantees. Throughout the entire trade cycle, users have 100% control over their assets. Loopring claims that “Nobody in the Loopring ecosystem needs to trust others. zkRollup assures assets are always under users’ own control; 100% Ethereum-level security guarantees.”
Loopring provides its LRC token and Zero-Knowledge Rollup Operators (zk-Rollup), liquidity providers, and operators of Zero-Knowledge Rollup.
Loopring offers DeFi services such as infrastructure creation, protocols and products for users via the L2 app. It claims to offer “a low-fee, high-speed platform for trading, swapping, liquidity providing, and payments.”
What’s an LRC Token?
LRC (the ERC-20 token that runs on Ethereum) is the principal token. Loopring was able to raise $45 million through an initial coin offering (ICO) in August 2017. Loopring Protocol launched with over 20,000,000 LRC. All LRC locked up to operate exchanges are currently out of market.
LRC holders have the ability to stake LRC and earn a portion of all Loopring exchanges’ protocol fees. 70% are paid to the stakers and 20% is used for the Loopring DAO, which funds the community of LRC owners. The remaining 10% will go towards the burning.
DAO votes for spending these funds to provide grants, impermanent loss protection and further liquidity incentives.
Tokens were not only sold during the ICO; the market was also replenished by LRC that miners received to verify the Proof of Work consensus in operations within Loopring. LRC Burn Rate is used to increase tokens’ value on the market. To pay the Loopring transaction commission, this token will be used.
These are the applications that LRC offers:
- You have the right to vote for development updates
- Structure of rewards for ringminers/relays
- Burning LRC tokens
- To reduce platform fees, DEX operators can stake
- Loopring DEX lock-up time
What is loopring?
Loopring (LRC), a batch processing system that processes thousands of requests off-chain with verified correct execution through zkRollups achieves better performance and reliability than other decentralized exchanges. zkRollups, Layer-2 scaling solutions allow a computer claim ownership of data without sharing it. The “zk” in zkRollup stands for “zero-knowledge” and refers to the type of proof Loopring must provide to verify that the off-chain transactions are accurate. zkRollups bundle multiple transactions into a single transaction, allowing fast and cheap trade execution outside the Ethereum blockchain to avoid Ethereum’s network congestion. These transactions then are stored on the blockchain. Zero-knowledge proofs can be used to confirm that these transactions are accurate.
Loopring uses order rings to fulfill orders. An order ring can contain up to 16 orders. Each order can be exchanged for the tokens they desire without needing an opposite order.
Loopring provides asset protection, by allowing you to choose a trusted third person as your guardian. Loopring Wallet users only pay 1% Ethereum Layer 1 fees.
Loopring’s blockchain-agnostic nature means that all platforms that use smart contracts (e.g. NEO or Ethereum) are able to integrate with Loopring.
What makes the Loopring Network secure?
Loopring is available on the Ethereum, Neo and Bitcoin blockchains. There are plans to support the Qtum Blockchain in the future. LRC, Neo and LRN are respective tokens for each of the networks. When it launches, the Qtum network token is named LRQ.
The hash functions of the underlying blockchain platforms safeguard these tokens: LRC by Ethereum’s Ethash, LRN by Neo’s SHA256 and RIPEMD160, and LRQ by Qtum’s Proof-of-Stake PoSv3 algorithm.
Loopring LRC Tokenomics
Loopring LRC’s total supply is 1,373,873,439. According to CoinStats data. According to CoinStats, the current circulating supply of Loopring LRC tokens is 1,245,991,469 tokens. This represents 90% percent of total token supply. On CoinStats, you can view the LRC market price, market cap and total supply as well as trading volume and other metrics.
CoinStats provides real-time updates on its LRC and USD prices.
Find Looprings in Your Area
Here are 5 top exchanges that allow you to purchase Loopring (LRC), using a debit or credit card.
Coinbase
Coinbase (listed on the Nasdaq under the name $COIN) is the most popular, fully regulated, and licensed centralized cryptocurrency exchange platform in the U.S. It’s also one of the largest and most well-known digital currency exchanges globally, with clientele from more than 100 countries, including Australia, Canada, Singapore, and the United Kingdom.
Coinbase has over 70 million users who have traded more than 460 Billion USD. Coinbase takes security seriously, and 98% of clients funds are kept safe offline. Easy-to-use, the platform supports trading in 140 different cryptocurrencies including Loopring and LRC. Coinbase is accessible on PC and Android as well as iOS.
Coinbase, with the exception of Hawaii is fully licensed in the United States and under regulation.
Make sure to keep it up
In the United States, Uphold is very popular. It’s an innovative trading platform that supports various cryptocurrencies, including Loopring (LRC). The platform stands out for its simplicity, unique features, and the company’s credibility.
Uphold has a desktop and mobile app that are easy to use. Uphold’s trading view can be customized with the most traded assets. The app has a modern, easy-to-use interface on desktop as well as mobile.
Uphold, especially for newbies is very popular.
KuCoin
KuCoin is the most well-known and largest cryptocurrency exchange. It supports more than 300 cryptocurrency, including Loopring. The exchange offers bank-level asset protection, an easy interface, beginner-friendly UX and many crypto services. These include margin and futures trading and instant-exchange services. You can also borrow or stake digital assets via Pool-X. There is an IEO launchpad to crypto crowdfunding and non-custodial trade. KuCoin has one of the most competitive trading fees.
The exchange currently accepts US residents.
Binance
Binance is one of the world’s leading cryptocurrency exchanges by trading volume. The exchange offers cryptocurrency-to-crypto trade in more than 500 cryptos, including Loopring and LRC. It has limited trading options in the US but offers low fees and access to a wide range of currencies worldwide. You can instantly purchase Bitcoins, 15 of the most popular cryptocurrencies, using fiat currencies, credit cards and bank accounts. Users can trade crypto derivatives with leveraged positions—(up to 20x leverage on futures and 10x on margin trading)—for maximum returns. Binance supports crypto loans and staking. Binance’s NFT marketplace and trading platform is the premier destination for NFTs and digital collectibles across mediums, from visual arts and gaming to music and sports. Loopring (LRC), which you can buy on this exchange has lower fees and better liquidity. You are able to sell and purchase quickly to profit from market-moving announcements.
The exchange can be used by investors coming from Australia and Canada as well as Singapore and the United Kingdom. Residents of the United States are not permitted to purchase most tokens.
Huobi Global
Huobi Global, founded in 2013, has evolved to become one of the world’s largest digital asset exchanges, with a total trading volume of US $1 trillion. Huobi has more than 5,000,000 users across 130 countries. It is responsible for over half the global total of digital asset transactions. Huobi Global, one of the most popular exchanges currently supporting Loopring (LRC), trading. Currently, the exchange doesn’t welcome the United States or Canadian residents.
How to Purchase Loopring
Now that you know how Loopring works and why it’s unique, you can follow our simple step-by-step guide below for buying Loopring right away!
Step 1. Choose a Crypto exchange
Loopring is available for purchase and sale on different cryptocurrency exchanges. To find the right trading platform for you, compare the different options. You should also check whether the exchange accepts your preferred payment method such as a debit or credit card or another cryptocurrency. Loopring can be purchased via bank transfers. The exchanges may offer advanced trading tools such as limit orders and market orders, crypto loans and crypto staking.
There are two types of cryptocurrency exchanges available: decentralized and centralized. Before opening an account or trading, traders need to be aware of the pros and cons for each type. The exchange’s degree of decentralization impacts how the platform executes transactions, offers new crypto assets, and interacts with clients.
Centralized Exchanges and Decentralized Exchanges
A central crypto exchange (or CEX) is a similar exchange that allows trading digital assets. Coinbase and Binance are examples of centralized crypto exchanges. They charge fees for their use. The majority of cryptocurrency trading happens on centralized exchanges. Customers can convert fiat currencies like dollars or euros into crypto currency. Users must comply with KYC and AML rules on centralized exchanges by providing their personal data and identification documents. However, a CEX holds your digital assets on its platform while trades go through – raising the risk of hackers stealing the assets.
Decentralized exchanges (DEX) are not managed by any central authority. They operate over blockchain and charge no fees, except the applicable gas fee on specific blockchains, such as the Ethereum blockchain. Smart contracts are used to allow users to trade in crypto assets with no regulatory authorities. The automated market maker removes all intermediaries from the trade and gives complete control to customers. They are also less intuitive from an interface perspective and can be difficult to convert currencies. For instance, they don’t always allow users to deposit fiat money in exchange for crypto; users have to either already own crypto or use a centralized exchange to get crypto. Because DEX trades peer-to–peer, it can take longer to find someone willing to trade with your crypto. If liquidity is limited, then you might have to make concessions and sell/buy low-volume crypto quickly.
Step 2: Sign up
Once you have chosen a reliable exchange, it is time to open a trading bank account in order to purchase or sell Loopring LRC. The requirements vary depending on which platform you are using. Personal information such as your name, email address, contact number, social security number, home address, and a copy of your driver’s license, passport, or government-issued ID will be required for the majority of transactions. This information is required to authenticate if you intend to withdraw fiat currency to purchase Loopring.
Once you have submitted your account application, please check your email to find the verification code. Enter the code and begin trading. It’s advisable to enable two-factor authentication (2FA) to keep your funds safe once you’ve confirmed your identity.
Step #3: Fund Your Account
Once your account has been verified, funds must be deposited to purchase Loopring LRC tokens or other cryptocurrency. You can choose the payment method you prefer, including a bank transfer or credit card debit, MasterCard, Visa and e-wallets. The platform and your preferences will decide the method of payment you choose.
Be sure to check out the different fees associated with deposit options as they may be higher than others.
Step 4: Order LRC
LRC can be purchased next. Loopring buying is the same across exchanges. You should search for the Loopring token in the search box, check the LRC price, and click on the “Buy LRC” button.
Next, enter either the amount of LRC you wish to purchase or the fiat currency that is available to spend. Most exchanges will convert the amount immediately so that investors know how much they’ll pay and how much LRC they’ll receive. To ensure that there aren’t any inaccuracies, double-check every detail before you confirm to purchase LRC. Also, ensure that you’re buying Loopring (LRC) and not similar or lookalike tokens.
Loopring can be purchased from CoinStats by anyone who has an account at CoinStats
LRC Storage
The next step after acquiring your LRC tokens is to safely store them in digital wallets. We differentiate between a Software Wallet (Hot Wallet) and a Hardware Wallet (Cold Wallet).
Software wallets
A software wallet or hot wallet is required to regularly trade LRC. Software wallets make it easy and quick to access your keys online. Software wallets are easy to use and keep your keys safe online.
Software wallets can include CoinStats Wallet and Edge Wallet as well as MetaMask and Trust Wallet.
Hardware wallet
Cold wallets are also called hardware wallets. They allow offline storage which makes them much more secure and reduces the risk of theft. These wallets are password protected and can erase any data after multiple failed attempts. This prevents physical theft. Additionally, hardware wallets allow you to confirm and sign blockchain transactions. This adds another layer of security against cyber attacks. This is a better choice for traders who have accumulated a lot of tokens.
Ledger Nano X and KeepKey are examples of cold wallets. Trezor Model T is another example. CoolWallet Pro and SafePal S1 are also good options.
Let’s get to the bottom
Loopring has strong support and is constantly evolving and adding new features. The majority of its operations (e.g. trade and transfer settlement) are performed off Ethereum Blockchain to lower gas usage and reduce transaction cost.
Loopring promised some exciting developments for 2022. These include Loopring Earn and NFT Support. More details can be found in the Loopring Quarterly Report.
To learn more about cryptocurrency exchanges and tokens, visit the CoinStats blog. You also have access to our detailed buying guides for various cryptocurrency, including How to Buy Metaverse Index. What Is DeFi? How to Buy Cryptocurrency.
Information about Investments
This website contains information that is intended to be informative. It does not recommend you to purchase, sell or hold any financial products or instruments. This information was compiled using independent research. It may not be the same as what you will see at a service or financial institution.