Today, most investors use Decentralized Exchanges (DEX), and everyone is well aware of the increasing price of the transactions on Ethereum’s blockchain.
Decentralized Exchanges coordinate directly with the blockchain’s network, and there’s no third party that holds your funds. Having custody of your digital assets gives a level of protection centralized exchanges cannot offer their investors.
Loopring (LRC) has created a protocol on Ethereum’s network to address its scalability issues on Ethereum’s blockchain. As a result, loopring crypto users can benefit from the added security provided by a DEX while paying significantly less on transacting on Ethereum.
In this article, let’s learn about what is Loopring crypto, Loopring crypto price predictions, and how to buy Loopring coin in India, along with understanding whether it is a good investment.
What is Loopring (LRC) Crypto?
Loopring (LRC) is an ERC-20 token and primary crypto for the Loopring blockchain network. On the other hand, it is an open-source blockchain protocol created to support Decentralized Exchanges (DEXs). It is an Ethereum mainnet-hosted layer 2 scaling solution.
Loopring differentiates itself from other Ethereum-based Layer-2 solutions in several ways.
Firstly, Loopring was the first zkRollup L2 to debut on the Ethereum platform. Secondly, it was explicitly created to support the development and deployment of decentralized exchanges, while the other Layer 2s, like Polygon, is generalized to support various niches.
As the Loopring was designed to aid faster deployment and more secured DEXs, all this is accomplished by ensuring the integrity and security of the DEXs installed on the platform. Additionally, it ensures that the platform’s exchanges are lightning-fast and that trading fees are 100X less than the gas fees on the ETH mainnet.
How Does a Loopring Work?
Loopring’s main point of differentiation is the advanced cryptography that it integrates on its platform. However, it’s vital to keep in mind that zkRollups are just one potential method of enhancing the Ethereum blockchain’s suitability for DeFi applications.
Some supporters believe that zkRollups are promising because they make use of a well-known approach of cryptography called zero-knowledge proofs, which enables the computer program to claim something about data without actually disclosing the data.
zkRollups combine several transfers into a single transaction, enabling quick and inexpensive trades to take place outside the Ethereum blockchain at first. Then, these transactions are resolved on the blockchain, where the accuracy of off-chain transactions is verified using zero-knowledge proofs.
zkRollups on Loopring
To begin transacting on a Loopring exchange, users should first transfer their funds to a smart contract that is run by the Loopring protocol.
Then, the Loopring exchanges shift the computation required to complete the deals of the primary Ethereum blockchain. This information includes things like order history and account balances for specific users.
Loopring resolves transactions on the Ethereum blockchain to complete deals between initially matched off-chain users. To minimize costs and speed up transactions, these deals are batch-processed. With this approach, Loopring claims to be able to execute over 2,000 trades per second.
Every batch of transactions is subsequently added to the Ethereum blockchain that includes zero-knowledge proofs that make it possible for anybody to reverse-engineer the off-chain transactions.
This makes users gain confidence that the transactions are real and that no unauthorized parties can tamper with them.
This is how Loopring works. Now let’s check the step-by-step process to buy the Loopring crypto.
How to Buy Loopring (LRC) Coin in India?
The following steps can help you buy LRC tokens in India via WazirX, India’s most trusted and widely used cryptocurrency exchange.
It has become easier to trade LRC tokens on WazirX via P2P trade. To learn more about it, click here.
Step 1 – Sign-Up on WazirX
To begin your first trading of the LRC token, you must first have an account on the WazirX platform. So, first, sign-up on the WazirX platform, or if you already have an account, you can directly log in.
Step 2 – Fill in the required details.
To sign up, you are required to add your email address and create a unique password.
To log in, enter your email id and password.
Step 3 – Verify your email account and set up your account security.
The next step is to verify and authenticate your email address. You’ll receive a verification link on your email id as soon as you have signed up on the platform.
You need to click on the link, where you’ll have two options to ensure the security of your account – the authenticator app and mobile SMS (as shown in the image below)
Note: The authenticator app is a safer way to stay protected when compared to mobile SMS because there’s a risk of delayed reception or SIM card hacking.
Step 4 – Select your country and complete the KYC.
Then you’ll be given an option to choose your appropriate country and complete the KYC process.
Note: If you don’t complete your KYC, you will not be able to trade with P2P or withdraw funds on the WazirX platform.
List of things you need to submit to complete your KYC:
- Your full name as it appears on your Aadhaar or any other ID proof
- Your birth date as stated on your Aadhaar or any other ID proof
- Your address as it appears on your Aadhaar any other ID proof
- A scanned copy of the document
- A selfie of yours to finish the procedure
You are done creating your account as soon as you submit the above document list. It’ll be verified within 24-48 hours.
Step 5 – Add funds to your WazirX account.
After you link your bank account to your WazirX account, you can start depositing funds to the WazirX wallet and start your first trading on the platform.
Step 6 – Buy LRC on WazirX
You can purchase LRC tokens using P2P trade through WazirX. Check the LRC to INR rate from here. After signing in to your WazirX account, you can select INR from the “Exchange” tab. You can see all the price charts, order book data, and an order input form on the right side of the screen.
Before placing your first order, check the Loopring (LRC) price in India.
Click “Buy LRC” after entering the amount and checking the total INR amount to be paid. The screen will look like this:
It might take some time for the order to be completed, but as soon as it is done, you will receive the LRC coins you purchased in your WazirX wallet.
Let’s now check whether Loopring is a good investment or not.
Is Loopring a Good Investment?
There is fierce competition for Loopring from a few different blockchain technologies with similar objectives. They are similar projects with 9-figure market capitalizations. But the prominent Ethereum’s issue that Loopring solves is that of scalability. Its innovative method of scaling transactions helps users to trade on DEXs at a fraction of the cost and time it would take on Ethereum’s blockchain.
Every crypto investment is risky, including the Loopring crypto. LRC is one of those crypto projects with strong backing and has stood in the market for quite some time. Always do your research before investing.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn’t represent any investment advice or WazirX’s official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.