Currently, each LRC is worth over 50 cents (CoinMarketCap), and with a circulating supply of 572 million coins, this yields a market cap of $310 million. This makes it the 50th highest crypto market cap out of the thousands of different cryptocurrencies on the market, and combined with daily trading volume millions of dollars, it makes Loopring essential to know about if you are an investor or trader.
When you deposit cryptocurrency into a centralized exchange, you lose control of the money, because the exchange owners hold the private key. So, until you successfully withdraw the money into your own wallet, you don’t have control of the money and are trusting the exchange. This negates one of the main advantages of cryptocurrency, which is that it’s trustless and you have full control of money when you and no one else holds the private key.
Loopring is a decentralized cryptocurrency exchange platform that is built directly into the blockchain. Therefore, it is far more anonymous and secure than centralized exchanges, and no one can freeze your money on this platform; plus, it is almost impossible to hack. Users of this crypto network can trade without surrendering any personal information. The platform also utilizes blockchain smart contracts to execute trades, and increases liquidity by breaking trades down into smaller pieces to obtain the most profits. It can be integrated into any blockchain that has smart contract technology, thus opening up a wide range of coins that can be traded.
A decentralized exchange platform is essential to maintain freedom and anonymity when trading cryptocurrency; it provides peace of mind that coins will never be stolen. Therefore, Loopring’s decentralized exchange is essential for the growth of cryptocurrency markets, and it is likely its token LRC will increase in value in the long term, as activity increases on its network. LRC is required to execute trades on this crypto-platform, and therefore, its value is intimately tied to use of the platform.
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This is not advice. Advice should be accepted by your chosen legal counsel only and financial advice should come from a licensed or certified financial professional. As always – do your homework and make decisions based on your own education. Seek information and look into projects before adding to or diversifying your portfolios.
Reference:
https://loopring.org/en/index.html
