Over the years, the business of trading assets has proved to be a hard nut to crack. Many have sorted for ways to help the situation and have devised means to find a way forward.
In the age of Cryptocurrency, there has been landmark mechanisations to spur the trading of assets. A superior technology to solving this problem is Loopring. Peep in the world of rings that make Loopring; discover more about this fantastic coin!
What Is Loopring (LRC)?
Loopring is a decentralized exchange protocol which was built on Ethereum. The opportunity of been built on Ethereum permits users to trade with it especially across exchanges. Loopring is not a decentralized exchange on its own, but it helps facilitate a sort of decentralized exchange through a procedure called ring-sharing and order matching.
All orders sent on loopring network are pooled and filled through the order books of multiple exchanges. Both the decentralized and the centralised exchanges on the network would then be able to implement looprings as this will open way sfor them to cross Blockchain and exchange liquidity, giving traders access to the best available price on the global market.
It is worthy to note that Loopring is a Blockchain that uses the smart contract, causing other exchanges like Ethereum, Qtum, etc, to integrate with it.
How Does Loopring (LRC) Work?
One beautiful thing about Loopring is that to start trading, traders do not necessarily need to deposit funds into an exchange to begin their trading. Unlike other exchanges that require one to deposit fund into the platform before use, mostly via smart contract; Loopring is free and flexible!
Funds are always left in the trader’s wallet and are not locked by any order. This grants traders complete autonomy over their funds when they are trading. They are able to cancel an order, trim an order, or increase it before it is executed. In fact after placing an order, traders are still able to move funds from their wallet, although this would affect their final order since the value of their wallet would be confirmed through ring miners’ protocol before matching orders.
How Do You Place Order On Loopring (LRC)?
When you are prepared to place order or start trading on Loopring, you would be required to submit an order through Loopring.io wallet. You would be required to sign in with your private key. Your placed order at this point would then be forwarded to smart contract on the Loopring network and to some off chain relay nodes.
The function of the Smart Contract is to ensure that your order is matched and that the fund in our wallet is exchanged for the traded coin. The off chain relay nodes also ensure that order book is maintained and help broadcast it to ring miners.
Where Can You Buy And Store Loopring (LRC)?
Do you feel concerned about where to get Loopring? Loopring is already listed on several exchanges, although most of it comes through Binance, Gate.io and OKEx.
These 3 platforms offer BTC and ETH trading pairs. After purchasing your coin, you may use the official Loopring.io wallet for storing and trading. Alternatively, you may keep it in an ERC20 compatible wallet depending on your choice.
Putting All The Rings Together
Here are some take-home points about Loopring that will help you understand its function and use better:
It does not seek to beat out other centralized exchanges like DEX; in contrast, it is trying to connect to them.
Ring orders also help separate Loopring from other decentralized exchanging protocols. This can help increase liquidity resulting in the pairing of 3 or more to each other as this will help traders execute several trades in an instance.
The use of order sharing gives traders advantage compared to using the traditional order matching models. It results in a more flexible trading.
Loopring is flexible; its Blockchain agnostic is open to use either by centralized or decentralized exchanges. It can also fulfill a single order through multiple avenues.
Your trading success is deeply embedded into Loopring. Loopring is fashioning new ways of ringing in the Cryptocurrency age. Hitch on the ride, join the moving queue, turn to Loopring!