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Lykke Exchange: Review & Analysis

Last updated: February 18, 2020

One of the more ambitious projects on the market that seeks to go above and beyond providing the traditional trading experience, Lykke is a Swiss-based blockchain company which operates an exchange, wallet provider, and also develops several financial investment products that users may need to successfully navigate the market. If you have found yourself on their website but need a comprehensive overview of all of the services they provide for their audience, let's break down each of their offerings and what you can expect when you use the platform.

What Is Lykke?

At its core, Lykke is a cryptocurrency exchange that is designed to help users buy, exchange, and sell cryptocurrencies like Bitcoin, Litecoin, and Ethereum. It boasts benefits such as easy signup process and easy use (making it a great platform for individuals who may be new to the trading experience), upfront costs, no hidden fees, and Swiss quality.

These qualities extend over to their secure Lykke wallet, which makes it easy to buy and sell crypto. If you're looking for something a little more in-depth and you have experience in trading, the good news is that their trading dashboard provides users with a comprehensive trading dashboard that features live pricing information, an order book and trade log, and an interactive price/depth chart. Overall, Lykke is clearly a platform that provides a little something for everyone, from the beginner trader to the seasoned investor.

Lykke's Additional Products

Besides the Lykke wallet, which users have to sign up for or download from the app store in order to use, Lykke offers its own Lykke Crypto Index (LyCI), a secure LyCI Service token, and a short LyCI option (Short LYCI). The LyCI service token comes with an additional two product options: PayLyCI and Smart LyCI. Each of these products are designed to simplify the trading process and improve the functionality of the platform. Here is a brief explanation of each of their listed products.

The Lykke Crypto Index (LyCI)

Rather than forcing you to analyze the performance of all underlying assets listed on the Lykke exchange, the LyCI consolidates some of the major crypto assets on the market (such as Bitcoin, LTC, and ETH) and places them into a singular fund that you can purchase, which allows you to diversify your portfolio and easily track the overall performance of the market. This way, changes in the market will reflect accurately for users across the whole index.

Lykke also points out advantages such as buying into a portfolio that provides you with multiple assets rather than having to select your own products and spend more money in the process. They do provide a rather comprehensive index fund, which consists of the following assets:

Lykke constituents

There is also a 1.45 percent annual service fee deducted from your overall basket value on a minute-by-minute basis. If users need further explanation about the fund, Lykke recommends reviewing their index specification document.

The LyCI Service Token

It's important to note that the LyCI is accessed using their LyCI service token, which is an asset that essentially represents the value of the collection of cryptocurrencies that you invest in when you decide to place money into the fund. This makes it easier to keep track of your assets as you only have one consolidated cryptocurrency rather than owning the full spectrum listed above.

This asset can then be applied to two more products listed on their website: PayLyCI and SmartLyCI. PayLyCI is an index fund consisting of the top 10 cryptocurrency assets that can be used to buy and sell goods and services while SmartLyCI focuses on 10 blockchain projects that focus on settling recording and settling agreements within the network.

Lykke other products

With three different funds to buy into, the LyCI service tokens give investors several ways to pool their money into the most desirable products on the market.

Short LyCI

For investors who are more hesitant when approaching cryptocurrency or for those who anticipate a bearish market in the near future, Lykke offers its short LyCI product.

This product essentially provides the same portfolio as the LyCI service token. The difference? The short LyCI token is designed to gain in value when the collection of assets declines in value ("shorting the market" without the associated risks that normally come with shorting the market through borrowing and selling). There are few differences between the LyCI and the short LyCI, with the exception being a 3.45 percent annual fee for using the product.

Bottomline

Built for traders and investors of all experience levels, Lykke is an excellent exchange designed to make the process of buying, swapping, and selling assets simple. With additional products like their LyCI and short LyCI, accessing the market without experiencing as much of the risk is easy. Overall, Lykke and its many offerings are perfect for those looking to break into crypto quickly and efficiently.

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