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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 keep reading for your step-by-step guide to where and how to buy LBA.
This is our quick guide to just one way to buy LBA. Compare some other options in the table below.
It’s currently not possible to buy LBA tokens directly with Australian dollars. Instead you’ll need to first acquire a digital currency listed in a trading pair alongside LBA, such as bitcoin (BTC) or Ether (ETH), and then exchange those coins or tokens for LBA.
In this example, we’ll look at how to buy LBA with BTC.
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 4. 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.
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.
Find out how to choose the best wallet in our cryptocurrency wallets guide.
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 decentralised 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 utilises 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.
Cryptocurrencies are a lot more complicated than many people realise. 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:
Image: Shutterstock
Disclosure: At the time of writing the author holds ADA, ICX, IOTA, POWR and XLM.
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