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As the number of cryptocurrencies in the crypto world keeps increasing the demand for various exchange platforms increases as well. As the number of cryptocurrency exchange platforms increase the competition among these websites increases as well. In order to face the competition, the websites either tackle the fees and make them more user-friendly, or give more options more anonymous purchases and so on. One of the most competitive websites in terms of fees and user-friendliness is Lykke. Lykke is a cryptocurrency exchange that allows its users to trade Bitcoins, Ethereum, and digital assets. The main goal of Lykke is to create a platform which can be used by the whole world to exchange all digital assets without charging any fees. By the end of this article, you will get answers to many commonly asked questions such as – “Is Lykke a scam?” “How to use Lykke?” and many more.
What is Lykke?
Lykke is a FinTech company that has released the very first marketplace which is global and is designed for various classes of assets and instruments. The company uses the distributed ledger technology aka DLT, which brings various macroeconomic benefits. To be more precise, this technology is independent and works without vendor lock-in. This is keeping people from abusing the platform and helps to create a trustworthy marketplace.
Initially the marketplace was developed based on blockchain of Bitcoin, however, currently, Lykke is expanding and developing the Ethereum blockchain. The exchange is easily accessible because you can get access through the web browser or even through your mobile phone. You are only required to download its wallet to start the process of trading. Lykke offers several benefits to its users. For example, it gives an execution that is guaranteed, a settlement which is instant and also direct ownership that is certified by the blockchain.
The spreads rate is low. The exchange has a machine that focuses on the spreading. It gives 0% commission to brokers.
Lykke has its own coin known as the LKK Coin (LKK). Every LKK coin represents 1/100 share of the company. It is only in this exchange where you can buy or sell Lykke coin.
The company is located in three different locations.
- One is Lykke AG which is located in Zug, Switzerland.
- The other one is Lykke Corp UK Limited that is registered in London.
- There is also Lykke Vanuatu Limited, registered in Vanuatu.
Lykke Vanuatu Limited is controlled by Vanuatu Financial Services Commission, (VFSC). Lykke exchange was founded in 2015 and started operating the same year. The founder of the company was Richard Olsen, who is also a co-founder of Oanda, which is among the best Forex industry based in the US. The company behind Lykke has two other subsidiaries. One is registered in the United Kingdom, but it is yet to get its FCA license. The other one is registered in Vanuatu.
Lykke is supported by countries all over the world except USA, Canada, Japan and Australia.
Lykke Coin (LKK)
In October 2016, Lykke cryptocurrency exchange held an ICO with the goal of raising funds to develop their exchange platform. Back then, the idea of ICO was unpopular. The company invested heavily in educating people about their exchange before they were finally able to raise $1.2 million from 700 investors.
From the start, Lykke offered their coins as a share instead of a typical utility token. Owning one Lykke token means you have 1 share in the exchange. It also gives you the rights to get involved in how the company is being run. However, unlike any other shareholding business, the proof that you are a shareholder is symbolized on the LKK tokens you own. Your name or details about your investment in the Lykke coin are not written anywhere. The company sold the tokens for $0.05 a piece. After availing the coin on their exchange, it didn’t pick up immediately. The coin’s value remained $0.05 or below for five straight months.
Lykke got a breakthrough between April and May 2017 when its value rose from a mere $0.05 to $0.4. The coin maintained a value of above $0.3 in the next few months before it started plummeting to the current value of $0.06 value. You can buy Lykke coin on the official Lykke exchange website and store it in the Lykke coin wallet provided by the exchange.
Since the coin’s success is tied to the exchange’s success, the coin has a future. Lykke is yet to show aggressiveness in marketing their services including the Lkk coin wallet, but if this happens investors could reap great rewards.
However, the exchange has limitations for buying and selling. One of them is that the Credit/Debit card is only available in the USD wallet. If you are using cryptocurrency transfer, the only available cryptos you can trade are Bitcoin and Ethereum. In case your card is designated in another currency, you can make a transfer, but the funds will be changed to USD. The minimum level of spreads in the platform is 0.3 pips which are only in EUR or USD. However, there is no assurance if the real accounts have the same conditions. The most leverage ratio for forex trading is 1:100. Most brokers on the other hand offer 1:500 and even higher ratios. Bitcoin trading ratio is 1:4 but the margins are very risky. Before you begin trading, make sure that you are conversant with the risks and their management.
The highest liquidity combinations in the exchange are namely;
Lykke charges no trading fees. Who wants to pay trading fees anyway? This is considered as an advantage and a way of attracting investors.
- This exchange is currently only available on the mobile app.
- The mobile device has to be an Android or iOS.
- Only your fingerprint is required for verification.
- You can also create a private wallet which must be backed up by a 12 words seed.
- The exchange allows you to set a pin that you use to get access to your account and protecting the application.
Is LYKKE safe?
Lykke is guaranteed by blockchain. It has a VFSC license and is applying for the FCA regulation. However, despite all these efforts, it seems like not all people fully trust Lykke. This is mainly because of the absence of trade volume on Lykke exchange platform, as well as the fact that there are no fees charged. However, the reason behind these factors is that Lykke is not very big yet, therefore it lacks some financial instruments that other exchange platforms have.
This exchange has no encryption, but the orders are approved using your fingerprint.
The private key you have is stored on whichever device you are using to trade. The coins are stored in your wallet but I find this not enough and not safe for our coins.
The customer support is not good enough. The only way customers can communicate with them is sending the team an email. They take long to reply. You can also reach out to them through their social media accounts or send an email to email@example.com
The trade is done using the human speed. Therefore, the execution is guaranteed.
The trade takes a few minutes to be settled.
How to use LYKKE?
The following is the detailed information on how to use Lykke.
If you are interested in investing in different currencies beyond the Lykke exchange, you need to have a Lykke wallet. This wallet enables you to buy shares and also sell them. An advantage of having this wallet is that it is free to use and the commission rate is 0%.
The steps to start trading using this exchange are:
- Download the app on your device. It is free of charge.
- After the app opens, you will see a menu for wallets.
- Set up a pin for protecting your app and any other order confirmations.
- Register your account.
- Deposit money from your bank card or through the bank transfer.
Another added advantage of having a Lykke wallet is that the Lykke sends you an email of refund transaction only if the exchange has been jeopardized. In case there are any complications with the exchange; your money is sent back to you within 14 days. There are no limitations of withdrawing money since you can withdraw at any time and also the withdrawal is free of charge!
The LKK coin, as an asset available on the exchange platform, can neither be a stock or a cryptocurrency on its own. It is, therefore, equity or a digital token that cannot be mined and no blockchain is involved.
In case you have a great idea for a project, Lykke exchange allows you to raise capital. You can do this, by creating a token just the same as you issue stocks. The creation of LKK tokens is enabled by a technology Lykke exchange uses, referred to as colored coins. If approved by Lykke, you can also invest in someone else’s tokens.
If your phone gets lost or is stolen, you can disable the phone remotely.
Lykke Review Summary
The exchange has grown since it was launched in 2015. Lykke allows you to buy and sell a range of cryptocurrencies and also fiat currencies such as Swiss France and Lykke coins. This exchange is trying to create a balance between being a cryptocurrency exchange and a forex broker. The exchange is good for beginners since it is not complicated compared to other exchanges. With the trading fees being zero, is also an added advantage! The exchange offers a number of currency wallets and also bank transfers. The exchange also accepts the use of credit cards for deposits. The spreads are competitive but like I mentioned before, it is not clear yet if this applies to the real accounts too. However, the exchange is not up to par with the other exchanges, in terms of charting. The fact that this exchange is only available on the mobile app hinders it to reach its full potential. The credit card payments are only allowed to USD and the verification process is not strict.
We hope this Lykke review was helpful for you. Make sure to visit our website for more content. Thanks for reading and see you soon…