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How to buy CRED (LBA)
Learn how to buy, sell and trade LBA tokens in Canada.
As the native currency of the CRED lending platform, LBA tokens offer a number of benefits to borrowers looking to access a crypto or fiat loan. They can also be traded on a variety of exchanges, so choose an exchange that offers low fees and supports your preferred payment options.
Where to buy LBA
Compare exchanges that support LBA by deposit methods and fiat currency support:
A step-by-step guide to buying LBA
Here’s how to buy CRED (LBA):
Step 1. Create an account on an exchange that supports LBA
Look for an exchange that lists LBA in one or more currency pairings, and sign up with your email address and a password. Compare exchanges when buying LBA to find the lowest fees and freshest exchange rates.
- Note: Many exchanges also require your full name, contact information and proof of ID before allowing you to trade.
Step 2. Deposit funds into your account
If your exchange supports CRED you’ll be able to buy LBA directly with CAD. Some exchanges charger varying fees depending on the amount of LBA you’re buying, so pay attention to the cost of your transaction.
- Note: Some payment methods have higher fees, with credit card payments usually being the most expensive.
Step 3. Buy LBA
Navigate to the markets section on your chosen exchange to find your desired LBA pairing. Look for the section on buying LBA, and type in the amount of the paired cryptocurrency you want to spend or the amount of LBA you want to buy.
- Note: Carefully review your transaction details — including the amount of LBA you’re buying and the total cost of the purchase — before completing the transaction.
How to sell LBA
If you decide you want to sell your LBA tokens, the process you’ll need to follow is quite similar to the one outlined in step 2. However, this time around you’ll need to enter your transaction details in the “Sell LBA” rather than the “Buy LBA” section.
It’s also important to be aware that LBA is only listed in trading pairs with a limited range of cryptocurrencies, so you may not be able to immediately exchange your tokens for your desired currency.
Which wallets can I use to hold LBA?
While you can store your LBA tokens in your exchange wallet, it’s generally recommended that you move them into your own secure wallet that allows you to retain control of your private key. With exchanges regularly targeted by hackers, this is widely considered to be a much safer storage option.
The good news is that because LBA is an ERC20 token on the Ethereum network, there’s a wide range of wallets available. For example, you might want to manage your tokens in a hardware wallet like the TREZOR, a web wallet like MyEtherWallet, or using a browser extension like MetaMask.
How CRED works
CRED, formerly Libra Credit, was founded in 2017 by ex-PayPal executives Lu Hua and Dan Schatt. With an aim to offer open access to credit anywhere and anytime, CRED is a decentralized lending ecosystem based on the Ethereum blockchain.
How it works is simple: borrowers can provide their crypto assets as collateral, and CRED then matches them with a loan in either digital or fiat currency from its network of lending partners. The loan funds are sent straight to the borrower’s digital wallet or bank account and need to be repaid along with interest charges within an agreed term.
The system utilizes CRED’s AI-based credit assessment framework, which assesses your credit score and the volatility of the crypto you offer as collateral to determine your loan eligibility and terms. CRED says its aim is to cater to borrowers who aren’t being properly serviced by traditional lenders, such as first-time borrowers and people in developing nations.
LBA tokens are needed to access CRED and can also be used as loan collateral. The LBA token sale was held in May 2018, raising in excess of US$26 million, and CRED’s desktop platform for crypto-to-crypto/fiat lending officially launched in Q3 2018.
Thinking about buying LBA? What to consider before you do
Cryptocurrencies are a lot more complicated than many people realize. They’re also volatile and highly risky assets, so it’s important that you do your own research to develop an understanding of the many factors that drive crypto price movements.
If you’re thinking of buying any LBA tokens, make sure you consider the following factors:
- Supply. The maximum supply of LBA is 1,000,000,000 tokens, so weigh whether you think inflation will benefit your purchase.
- Use. LBA tokens have several uses:
- Membership. LBA tokens are used to pay for access to CRED.
- Transactions. Tokens are the medium of exchange on CRED. For example, LBA can be used to pay transaction service fees.
- Incentives. Tokens can be offered as incentives to developers who contribute to the platform, and to those who introduce other lenders to CRED.
- Governance. LBA token holders govern the CRED network by participating in surveys to provide feedback on specific projects and proposals.
- Distribution. LBA tokens were distributed as follows:
- Private sale: 42%
- Team reserve: 20% (team reserve vests at 12.5% quarterly over a 24-month lock-up period)
- Token reserve 1: 15% (24-month lock-up)
- Token reserve 2: 15% (36-month lock-up)
- Public sale: 4%
- Bounty: 2%
- Advisors: 1%
- Backers: 1%
- LBA benefits for borrowers. Borrowers who offer LBA as collateral for a loan through CRED can take advantage of interest-free repayments. They can also enjoy greater borrowing power than users who offer another digital currency as security for their loan.
- Competitors. CRED isn’t the only project focused on crypto-backed loans, so check out our guide to cryptocurrency lending and borrowing to find out more about some of the platform’s key competitors.
Disclosure: At the time of writing, the author holds ADA, ICX, IOTA, POWR and XLM.
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