Is Lykke a Good Crypto Exchange for Beginners?
It is important for novice cryptocurrency traders to choose the right crypto exchange. Not all companies can be used when you are just starting your path in trading, which is why the success in cryptocurrency trading depends on making the right choice. Beginners often wonder whether Lykke is a good crypto exchange to start trading with. In this article you will learn whether Lykke is good for beginners, what its pros and cons are and what a novice trader needs to know.
Short summary about the broker Lykke
The Lykke exchange was founded in 2017 by the owners and co-founders of the broker and quote provider OANDA. The mission of the platform is to create a full-fledged ecosystem for the implementation of the B2B (business to business) and B2C (business to consumer) models. Today, Lykke is a centralized portal for the exchange of cryptocurrencies of the DeFi, DEX, and DAO segments, and payment systems are paired with fiat currencies such as USD, EUR, CHF, and GBP. According to the analytical portal CoinMarketCap, the exchange is among the 100 largest in the world with a daily turnover of more than USD 1 million.
| 💰 Account currency: | EUR, USD, CHF, GBP, and fiat currencies |
| 🚀 Minimum deposit: | $50 |
| ⚖️ Leverage: | 1:1 |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies |
| 💹 Margin Call / Stop Out: | No |
Lykke Pros and Cons
👍 Advantages of trading with Lykke:
•One of the lowest total commissions. The goal of the developers is to maintain a leading position in the narrow segment of B2C and B2B transactions with cryptocurrencies, which are often used to maintain the health of ecosystems. Therefore, the exchange waived transaction fees, while maintaining a narrow exchange spread with other platforms.
•The possibility of implementing exchange arbitrage strategies — earning on the difference in the rates of one asset on different exchanges due to delays in quotes and internal technological processes.
•Reliability and guarantees. The exchange has existed for more than 5 years, and its leaders are the owners of companies in the financial sector. During that time, users have not had any complaints about the fulfillment of the platform’s obligations.
•Simple verification. The exchange operates by KYC (Know Your Customer) rules. Therefore, the verification procedure is standard here. But unlike the top exchanges, Lykke does not “put a spoke in new users’ wheels”. Verification takes place within 24 hours.
👎 Disadvantages of Lykke:
•Limited choice of cryptocurrencies. Although the listing contains cryptocurrencies of new trends (UNI, DOT, etc.), and in general, the choice is small — up to 70 pairs, in which up to 25 cryptocurrencies appear.
•The trading platform of the exchange does not provide the use of custom instruments. The platform does not provide leverage, it is not possible to add indicators, and the platform does not work with trading aggregators.
•The platform does not offer any additional products, only trading.
What is a Good Crypto Exchange for Beginners?
In order to choose the right broker for a beginner, you need to consider several aspects.
Here are the main ones:
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Education. It is important for novice crypto traders to learn how to trade. An exchange can offer educational courses, video tutorials, articles, webinars, etc. The more learning opportunities there are the better.
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Availability of a demo account. You will need this account to practice. It provides an opportunity for a beginner to trade risk free and try out trading strategies.
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Availability of a simple method to buy cryptocurrencies. An exchange service or a P2P exchange would be an advantage for an exchange.
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Low fees. The level of income of the trader depends on the level of the fees. Therefore, it is important to choose a company that charges minimum fees. Crypto exchanges mostly use the Maker and Taker fee model. It is important that you study them.
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Instruments for passive investing. In addition to active trading, passive income is also important for beginners. Pay attention to availability of copy trading or staking.
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Trading platform. It is important for a novice trader to choose the simplest trading platform that will be easy-to-use for trading.
In addition to these factors, you also need to consider how customer support operates, as it will also be important. Bonuses for beginners are also a nice perk.
Trading Conditions for Lykke Users
Before you start working with an exchange, it is important that you evaluate its trading conditions. Lykke offers traders the following conditions.
| 💻 Trading platform: | Proprietary platform |
| 📊 Accounts: | No split into accounts |
| 💰 Account currency: | EUR, USD, CHF, GBP, and fiat currencies |
| 💵 Replenishment / Withdrawal: | Cryptocurrency wallets, cards, bank transfers |
| 🚀 Minimum deposit: | $50 |
| ⚖️ Leverage: | 1:1 |
| 💼 PAMM-accounts: | No |
| 📈️ Min Order: | Depends on the cryptocurrency |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies |
| 💹 Margin Call / Stop Out: | No |
| 🏛 Liquidity provider: | No |
| 📱 Mobile trading: | Yes |
| ➕ Affiliate program: | No |
| 📋 Orders execution: | No data |
| ⭐ Trading features: | No |
| 🎁 Contests and bonuses: | Yes |
Commissions and Fees
The size of commissions and fees is also an important factor of choice. Traders Union analysts have prepared a short review of Lykke commissions and fees. In this section, you will find trading fees of the exchange as well as withdrawal fees.
Experts at the Traders Union analyzed the available information on the tariff policy of the Lykke exchange and took into account alternative commissions. According to the information on the website, there are no commissions for trading directly on the exchange. A trader sees the spread for each cryptocurrency/currency pair at the time of opening a position. It is impossible to conclude whether the Lykke spread — for example, for the BTC/USD pair, in comparison with the spread of other exchanges — is higher or lower, since it changes depending on current demand and volatility.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | $1 | Yes |
Investment programs of Lykke
It is important for novice traders not only to trade actively, but also earn passive income. Passive investing can help you earn extra profit, and also compensate for the losses you may incur as a result of active trading. Lykke offers the following passive income options.
Investment Programs, Available Markets, and Products of the Crypto Exchange
Investment programs are not provided by the exchange's development policy. Lykke is an exchange platform with its own terminal and e-wallet that allows you to implement any type of strategy, including manual speculative trading, algorithmic trading, and arbitrage. A long-term investment option is possible via the purchase of cryptocurrency and its long-term storage on the Lykke Wallet. Affiliate programs are also not provided.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of thedeal and all the steps from signing up to withdrawal of profits.
Conclusion. Is Lykke good for beginners?
The Lykke cryptocurrency exchange will be an excellent choice for beginners. The exchange offers a convenient trading platform, which a beginner can learn to work with rather quickly. There is an excellent education center with a large number of materials for novice traders. Also, traders can earn passive income on good conditions. Therefore, Lykke could be considered as a good cryptocurrency exchange for a start.
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FAQ
What do I need to know about the fees charged by cryptocurrency exchanges?
The majority of cryptocurrency exchanges use the Maker/Taker fee model. As a rule, they use a multi-level system for traders that depends on the trading volume. The higher the trader’s trading volume, the lower the fees.
How do I choose a reliable cryptocurrency exchange?
Crypto exchanges mostly operate without licenses, as the majority of countries haven’t adopted legislation to regulate them. In order to choose a reliable exchange, you need to find out about its reputation and read the reviews about user experiences with it.
How many cryptocurrencies could a crypto exchange offer?
The number of cryptocurrencies on the listing of a cryptocurrency exchange may be very different. Some platforms offer less than 10, while others – several hundreds. It is important that you check the choice of cryptocurrency before registering on the exchange.
What are the risks of investing in cryptocurrencies?
Investing in cryptocurrencies carry high risks due to their high volatility. It could cause substantial losses, which is why it is important to observe the rules of risk management.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.