Built on the Ethereum network, the Loom Network provides developers and institutions with scalability solutions that they need to practically implement cryptocurrency in their day-to-day operations.
Since January 2020, the price of the Loom Network’s token, LOOM, has compounded from a value of about $0.05 per token to a price of around $0.18 per token just a few months later.
Are you interested in learning more about the Loom Network and its token? Our guide will help you learn more about what makes LOOM unique — and how you can add LOOM to your cryptocurrency portfolio.
What is LOOM?
Loom is a platform for developers who want to deploy their decentralized apps across multiple blockchains at once. This provides developers with the ability to create one DApp that can work across multiple chains that Loom supports. Loom allows developers to “future proof” their DApps by expanding potential audiences with inter-blockchain connectivities. Ethereum, Bitcoin, Binance and Tron blockchains are currently supported with more coming soon. Unlike other blockchains like Ethereum, Loom Network developers pay a flat monthly fee in order to host their DApp on the network, which can help lower usage costs.
Loom has a governance token, LOOM, that acts as a proof-of-stake token used to secure the Loom Mainnet, known as “Basechain.” In order to incentivize users to stake their tokens to ensure transactions on Basechain, LOOM holders earn rewards when they help operate the network through token staking.
Brief History of LOOM
The Loom Network is a platform that allows developers to run large-scale decentralized applications (dapps) using the Ethereum network as a base. Introduced in 2017, the Loom Network aims to provide developers with a smoother interface on which to construct their dapps, which allows users to transfer tokens and execute actions on the network in less time when compared to executing actions on the Ethereum network alone.
The Loom Network’s token, LOOM, acts as a proof-of-stake token that ensures network operations. Investors who hold LOOM can earn rewards by staking their tokens.
How to Buy LOOM
- Open an online account.
The 1st step to investing in LOOM is to open an account with a broker that supports trading of the Loom Network token. A cryptocurrency broker is similar to a stockbroker — after opening an account, your broker will provide you with a trading platform that you can use to buy and sell cryptocurrencies as you wish. Two of the best exchanges with LOOM trading are Pionex and Binance.
The broker will then carry out any orders that you place and ensure that they’re filled, sometimes in exchange for a small commission.
There are multiple cryptocurrency brokers offering LOOM trading. Some of the factors that you might want to consider when you decide where you’d like to open an account might include:
• Per-trade commissions and account fees
• Additional cryptocurrencies that you can buy and sell on each platform
• Trading platform analysis and educational tools
• Mobile trading availability
• Local and regional availability (not every broker is authorized to offer accounts in every state)
• Access to additional types of investments (stocks, ETFs, futures, options, etc.)
• Types of accounts that you can open
• Account funding options
- Buy a wallet (optional).
If you plan to store your LOOM as opposed to actively trading it on a daily basis, you’ll want to open an independent cryptocurrency wallet. A cryptocurrency wallet is a computer program or hardware device that offers you a private set of keys that you can use to store your investments. This ensures that your coins and tokens will be safe if your brokerage account is targeted during a hack.
There are 2 major types of cryptocurrency wallets:
• Hardware wallets: Hardware wallets are USB-like devices that keep your coins and tokens in offline “cold storage.” Though hardware wallets are the more expensive storage option, they provide you with an enhanced level of security because they don’t need to be connected to the internet to access your investments.
• Software wallets: Software wallets are desktop or mobile applications that store your cryptocurrency using online “hot storage.” New investors usually prefer software wallets because they support more types of tokens and they’re free to access. However, if you’re looking for the highest possible level of security for your cryptocurrencies, you’re usually better off with a hardware wallet.
- Make your purchase.
Once your account is funded and your wallet is set up, you can place a buy order to invest in LOOM. If you’ve ever traded stocks before, you’ll likely already be familiar with the buy order options that your broker offers.
If not, familiarize yourself with these 2 common order types before you buy any type of crypto.
• Market order: A market order is executed as soon as possible at the current market price that the coin or token is trading at. For example, if the current market price of LOOM is $0.20, you can expect to pay around $0.20 per LOOM token you purchase.
• Limit order: A limit order is a type of buy order executed at or below a price that you specify. For example, you might place a buy order to purchase 100 LOOM tokens with a limit price of $0.25. This means that you’ll pay no more than $0.25 for each token you purchase. If your broker cannot fill the order at or below a price of $0.25, the order will remain open indefinitely.
When your broker is able to finish filling your order, you’ll typically see your shares in your investing account. Depending on the broker you choose, you might also be able to invest with more advanced order types.
Best Crypto Exchanges
Not sure where to begin your search? Consider a few of our favorite crypto brokers offering access to Loom Network trading by using the chart below.
Best Crypto Wallets
Let’s take a look at our favorite hardware and software wallet options for ERC-20 tokens like LOOM.
Best Hardware Wallet: SecuX V20
Investors who are searching for a comprehensive option to store all of their cryptocurrencies love the SecuX V20 hardware wallet. With support for Bitcoin, Litecoin, Dogecoin and more than 1,000 individual ERC-20 tokens (including LOOM), the SecuX V20 provides you with a 1-stop-shop for all of your storage needs.
In addition to wide compatibility, the SecuX V20 also features a bright 2.8-inch full-color touchscreen that allows you to view and manage your holdings no matter where you are. Simple Bluetooth compatibility completes the wallet’s functional and easy-to-master design, allowing you to deposit and withdraw your coins and tokens without directly connecting to your personal computer.
Best Software Wallet: Coinbase Wallet
If you’re an experienced cryptocurrency investor, you’ve no doubt heard of Coinbase’s exchange. But did you know that Coinbase also supports its own off-chain software wallet option? Supporting every ERC-20 token alongside major names like Bitcoin and Ethereum, the Coinbase wallet makes it easy to invest in cryptocurrency and immediately move your investments off your exchange account.
Need to send cryptocurrency to another user on the Coinbase Wallet network? Splitting bills using crypto is now easier than ever before thanks to Coinbase’s straightforward username system. Enter the username of the person you’re sending money to in order to instantly transfer cryptocurrencies between accounts — no more memorizing long wallet addresses.
The team behind the Loom Network has recently announced the completion of another successful round of private funding, and they’ve also introduced a new marketing executive to their team. This scaling up could mean more integrations (and higher prices per token) in the near future.
Trade, Sell or Convert your LOOM
When you see your LOOM tokens in your account, you’re officially the newest investor in the Loom Network. Now, you’ll need to decide how you want to earn a return on your investment.
Most investors choose 1 of 3 methods to see a return on their trades.
- Trading: If you want to actively trade your LOOM, you can strategically buy and sell LOOM tokens when it’s most advantageous to you.
- Selling: If you believe that the price of LOOM will increase in the long-term, you may want to store your tokens off-exchange and sell them at a later date.
- Converting: Select exchanges (like Uniswap and Changelly) allow you to instantly convert your tokens into another token available on the network. The type of tokens that you can convert between will vary depending on what’s supported by the exchange you’re working on. Converting tokens can be a useful feature if you’re looking to use LOOM as a medium to invest in a cryptocurrency that’s more difficult to buy and sell directly.
Current Crypto Prices
The cryptocurrency market is constantly changing — and the price that you’ll pay for the tokens and coins you invest in can vary on a minute-to-minute basis. Keeping track of how market prices are changing can help you buy in at the most advantageous time.
Browse a few of today’s top market movers below to get started.
Is Loom Network a Good Investment?
If you believe in the future of decentralized applications built on the Ethereum network, LOOM can be an affordable and effective cryptocurrency to add to your portfolio. However, it’s important to remember that wide scale usage of cryptocurrencies is likely still years away — and that the value of any individual token can drop at any time.
If you do decide to invest in LOOM, be sure that the token makes up only a small percentage of your overall investing portfolio.
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