If you are interested in invest in UniswapIn this article I will explain where to buy UNI token and some clues about the potential of this project that help us decide if we should include this cryptocurrency in our investment portfolio.
How to buy Uniswap
Buying UNI is very simple due to its reputation and the time since its inception available on major exchanges such as Binance or Coinbase Pro.
If you are just starting out and not quite sure how to buy UNI, here is the recap:
- Search CoinMarketCap for exchanges trading the UNI token.
- Create an account on the exchange of your choice, which is very simple.
- Verify your identity to work. Don’t worry about this because once you register they will tell you the steps to follow.
- Transfer funds to your account via wire transfer, debit card or any other available method.
- Once done, your account will be available and you will be ready to purchase Uniswap.
If your idea is to invest in this coin (or any other) for the long term, I recommend keeping them in your own cryptocurrency wallet. UNI tokens are very easy to store in any wallet compatible with ERC-20 tokens.
What is Uniswap?
Uniswap is a decentralized automatic exchange. It is basically an open-source Dapp built on Ethereum that facilitates the trading of ERC20 tokens through liquidity pools of various assets.
Users can use Uniswap in two ways:
- They can exchange two ERC20 tokens for free.
- They can provide liquidity to the system and earn commissions for it.
To access the exchange, all you need is an Etherum wallet like Metamask. We would connect our wallet to the platform and perform, for example, the exchange of tokens, always having them under our control.
Uniswap was launched in 2018 without any type of ICO or funding. Its founder, Hayden Adams, believed in improve decentralized exchanges that she was at that time, at the head of which was Etherdelta.
The project attracted a large number of users who preferred to avoid traditional exchanges, and adoption accelerated in 2020 with the arrival of Defi Crypto. In March of that year, they released a lot of improvements with version 2.0, which not only increased functionality, but also made Uniswap faster, more robust, and more secure.
The project has not only attracted the attention of users, but also that of venture capital funds.. In August 2020, Uniswap raised $11 million from a funding cycle from the Series A led by Andreessen Horowitz of A16z.
THE the total amount of Uniswap tokens is 1 billion units. There is currently just over 30% in circulation and the rest will be distributed over the next 4 years among the various members of the Uniswap ecosystem: community, team, investors and advisors.
The project intends that a portion of the units are distributed through initiatives that increase the value of Uniswapsuch as encouraging the use of cash.
On the other hand, the idea of the project is not that users simply keep the tokens in their wallet. It’s about encouraging participation by supporting liquidity and taking responsibility for the direction the protocol should take.
Why invest in UNI
Uniswap is a very interesting project because it has a real usefulness. The idea of decentralized exchanges still appeals to many users because many of us crypto investors prefer to avoid centralized exchanges. This way we can Protect our private keys while avoiding transaction fees.
The difference of Uniswap with other similar protocols is that it is much more effective in creating liquidity, adjusting the price of orders according to a number of parameters. Without going into more detail, one could say that this solves the liquidity problem that these types of exchanges usually faced.
One of the reasons why decentralized exchanges might prevail in the future is their ease of use. The release of ETH 2.0 will also allow for faster transactions and higher volume. There will be thousands of pairs that can be traded and with improved interoperability between blockchains, its use can be extended to other ecosystems.
Another point in their favor is their attempt to make the symbol of governance work effectively. After all, its users want to increase the price and for that, it is better to make the best possible decisions regarding the development of the protocol.
In short, it is a decentralized exchange that works perfectly with a real utility token and also allows us to earn fees for providing liquidity to the system.
In my opinion, Uniswap is a project with a bright future in the years to come.
However, remember that you run certain risks. The main thing is to know how the regulatory authorities will see this project. It should not be forgotten that the SEC in 2018 announced charges against the founder of one of its predecessors, Ether Delta, for operating an unregistered exchange.
Finally, remember that this article does not constitute any type of financial advice, so I recommend anyone wishing to invest to be properly informed and do so at their own risk.