How to buy LBRY Credits (LBC)
A beginner’s guide to buying, selling and trading LBRY Credits.
LBRY is a community-run digital media library. This decentralised blockchain platform designed to make it possible for artists to upload their content to a network of hosts and set a price per stream or download, or give it away for free.
LBRY Credits (LBC) are the native currency of the LBRY platform and can be earned and spent throughout the application in a number of ways. Read on to find out what LBRY is, how it works and how you can buy LBRY Credits in the UK.
A step-by-step guide to buying LBRY Credits
If you want to buy LBC, here’s one example of how you can do it:
Step 1. Create an account with a cryptocurrency exchange that allows you to trade LBC
LBC isn’t listed on every crypto exchange around the world, so search for a suitable platform that allows you to exchange LBC with the currency of your choice. Once you’ve found a site, sign up for an account by providing your name, email address and contact information.
In line with Know Your Customer (KYC) laws, some exchanges will also require proof of ID before your account can be verified and you can begin trading. It’s also recommended that you set up two-factor authentication for increased account security.
Depending on how busy your chosen exchange is, verification can take anywhere from a few hours to a few weeks.
Step 2. Deposit funds into your account
Many cryptocurrency exchanges don’t allow you to swap fiat currency, such as GBP, for cryptocurrencies directly. If this is the case, you’ll need to acquire a cryptocurrency that’s available in a pairing with LBC, such as Ethereum (ETH) or bitcoin (BTC), and then exchange it for LBC.
Step 3. Buy LBC
Once the necessary funds have been deposited, search for the currency pair you want to trade, such as LBC/ETH. Review the current price of LBC and click on “Buy LBC”.
You will then need to choose a limit or market order, enter the amount of LBC you want to buy, and review the full details and cost of your transaction. If you’re happy with all the details and ready to proceed, confirm your buy order.
How to sell LBC
If you want to sell your LBC holdings, look for the “Sell LBC” link from your trading account and you can then follow essentially the same steps as outlined in Step 3 above. Of course, it’s also important to point out that it often won’t be possible to exchange LBC directly for the currency you want, so it may take multiple transactions to convert LBC into your desired currency.
Which wallets can I use to hold LBC?
Storing your cryptocurrency holdings on an exchange is not recommended for security purposes. Instead, it’s safer to store your LBC in a secure wallet. The LBRY app features an in-built wallet and is available for Windows, macOS, Linux, iOS and Android operating systems.
If you’re looking for a standalone wallet, LBRY recommends the Coinomi wallet.
How LBRY works
LBRY is a digital media library and marketplace that aims to overcome problems of content censorship and centralised control. The LBRY protocol uses blockchain technology to allow users to upload their own content, including e-books, videos, music, artworks and more. And the content creator gets to keep everything they earn through the platform, with no need to pay fees to a third party.
However, users get to define the terms and fees they adopt when sharing their content, and because the content is divided and distributed over the network, it cannot be censored or limited to specific geographic areas.
The LBRY project is run by a company known as LBRY Inc., which is developing a LBRY app to allow users to interact with the protocol. LBRY Credits (LBC) are the built-in cryptocurrency payment system of the LBRY platform and have a number of important functions, as you’ll see below.
Key things to consider if you’re thinking about buying LBC
Cryptocurrencies are complex and speculative, so make sure you understand and accept all the associated risks before making a purchase. If you’re thinking of buying LBC, remember to consider the following factors first:
- Supply. According to CoinMarketCap, at the time of writing (02/02/2018) the circulating supply of LBC was 145,835,901, out of a total supply of 520,735,904 LBC. The LBC market cap on the same date was US$70,127,818.
- Future supply. Eventually, 1,000,000,000 LBC will exist. 400,000,000 LBC of those are held back to be administered by LBRY, Inc., with 100,000,000 earmarked for charity and 300,000,000 strategically allocated to partners.
- How to acquire LBC. You can get LBC in the following ways:
- As a gift through the LBRY Rewards program, which allows users to earn credits for completing tasks throughout the LBRY application. You can receive LBC rewards for actions such as streaming your first video, publishing your first piece of content or watching several videos.
- By referring friends who sign up to LBRY.
- By helping with tasks such as providing additional testing or offering assistance to the LBRY community.
- By contributing to the LBRY project as a developer or engineer.
- By mining them. LBC are mined over a 20-year proof-of-work period. Block rewards increase every 100 blocks by 1LBC, peak at 500LBC, and then decline slowly.
- By publishing content to the LBRY network and selling it at the LBC of your choice.
- By buying LBC on an exchange.
- Roadmap. If you want to know of any future technological developments and releases that could influence the price of LBC, check the roadmap on the LBRY website.
- Takeup. The value of LBC is closely tied to the adoption of the LBRY platform – the more content producers and users the platform attracts, the more valuable the currency should be.
By considering the above factors and more, you’ll be able to make an informed decision about whether you should buy LBC or not.
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