How to buy CRED (LBA)

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.

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Where to buy LBA

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A step-by-step guide to buying LBA

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.

• Step 1. Buy BTC

  The first thing you’ll need to do is get your hands on some bitcoin. For step-by-step guidance on how to do this, check out our guide to buying BTC.

• Step 2. Register for a Huobi account

  LBA tokens can be bought and sold on several exchanges, so compare the features of a range of platforms before deciding where you want to place your trade. For the purposes of this example, we’ll look at how to buy LBA on Huobi Global.

  Before you can make any trades, you’ll need to register for an account. Click the “Sign up” link on the Huobi website and provide your email address, create a password and enter your nationality.

  Don’t forget to also enable 2-factor authentication before proceeding to step 3.

• Step 3. Deposit BTC into your account

  Now it’s time to transfer the BTC you acquired in step 1 over to your Huobi Global account. To do this, look for the “Balances” drop-down menu at the top of screen and click on “Deposit & Withdraw”.

  Find bitcoin in the list of supported currencies and click the BTC “Deposit” link. You’ll then be shown a BTC deposit address you can copy, or a QR code you can scan, to be sure that you send your funds to the right place when making a deposit from your bitcoin wallet.

• Step 4. Buy LBA

  Start the final step by clicking the “Exchange” link near the top left of screen. Use the box provided to search for “LBA/BTC”, and then choose either a Limit or Market Order.

  You can now enter the details of your transaction, including the amount of LBA you want to buy. Make sure you take a moment to review those details before clicking “Buy LBA”.

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 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.

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.

Find out how to choose the best wallet in our cryptocurrency wallets guide.

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 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.

Thinking about buying LBA? What to consider before you do

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:

Frequently asked questions

• Can I offer other tokens as collateral when applying for a loan through CRED?

  Yes, CRED accepts a number of other cryptocurrencies as collateral, including bitcoin, Ethereum and Binance Coin (BNB).

• Why are they called LBA tokens?

  CRED was initially known as Libra Credit, which is why its native token was given the LBA ticker symbol.

Compare ways to buy CRED

Image: Shutterstock

Disclosure: At the time of writing the author holds ADA, ICX, IOTA, POWR and XLM.