Buy Uniswap (UNI)
What is cryptocurrency? It is digital money that can be converted into traditional fiat currencies such as roubles, dollars, euros and so on. You may also hear the term altcoin refers to all cryptocurrencies except bitcoin.
Is it worth investing in cryptocurrency alongside traditional assets? How to invest in cryptocurrency to generate income? These are questions that most novice crypto investors have.
There are many successful examples of crypto investing. People who bought bitcoin ten years ago and didn't sell it against the ups and downs certainly took a risk. But thanks to its volatility, many of them are now millionaires.
In this article, we will tell you about Uniswap cryptocurrency. You will learn how to buy UNI, how to invest in Uniswap and how else to make money from cryptocurrency.
What is Uniswap
Uniswap is an Ethereum-funded project that acts as an alternative to the Controlled Entity Exchange (CEX). The protocol allows ETH and other ERC-20 coins to be traded without the use of an order book. By reading the Uniswap cryptocurrency review, an investor will be able to understand its uniqueness and whether it is suitable for short-term and long-term investments.
History of Uniswap (UNI)
Generally speaking, if you plan to buy UNI, it is advisable to look into all aspects. The idea of launching an automated market maker (AMM) based on the Ethereum blockchain to generate liquidity pools to trade tokens belongs to developer Hayden Adams.
He has a bachelor's degree from Stony Brook University in engineering, worked as a mechanical intern at Vista Wearable Inc. and as an engineer at Siemens.
Initially, the protocol was to be called Unipeg. It is a union of 2 English words: pegasus + unicorn. But Vitalik Buterin suggested a more sonorous and concise name, which Adams also liked.
The developer participated in the Ethereum Foundation's grant programme and won in the end-user build (#build grant) category. In 2018, he was awarded $100,000 to implement the project.
Adams received $100,000 to launch DEX.
Programmer Callil Capuozzo, who has worked at Google and Microsoft, Andy Milenius, Philip Dayan and others were involved in developing the decentralised exchange.
16 September 2020, UNI's native token was created to manage the network to regain leadership in DEX. It provided shared ownership of the system and the community and gave a voting tool for protocol updates. With this move, trading volume exceeded $425 million and allowed DEX to overtake even Coinbase.
Immediately, 1 billion units of UNI cryptocurrency were generated. This is a significant step in the history of Uniswap.
The first 150 million coins (15%) went immediately to community participants: liquidity providers, users and holders of NFT SOCKS tokens. But 430 million (43%) was retained by HM Treasury to be gradually distributed through grants, funding programmes and community initiatives. 40% in year 1, 30% in year 2, 20% in year 3 and 10% in year 4.
Uniswap cryptocurrency features
Uniswap is a 100% open, automated peer-to-peer protocol developed on the Ethereum blockchain and designed for cryptocurrency exchange. It is a set of immutable smart contracts and is based on the following principles:
- Enhanced security.
- Self-service and operation without intermediaries that could restrict access.
Essentially, Uniswap is a non-custodial DEX exchange. As a result, users retain total control of their assets and accounts. That is fundamentally different from the centralised CEX venues.
The developers abandoned the classic order book model. Instead, they began combining tokens into smart contracts and creating liquidity pools.
With the platform, programmers, traders, liquidity providers (investors who provide tokens to support quick sales) have access to an open financial marketplace. In addition, they can quickly exchange Ether and other ERC-20 coins generated through the Ethereum blockchain.
DEX's functionality has expanded as updates have been implemented.
The protocol had three versions. All three versions of the V1, V2, V3 protocol run parallel and will exist as long as the Ethereum blockchain works. Users are not required to migrate liquidity to the newer version, but switching to V3 may be more advantageous, as it is the protocol that the developers plan to run most of the trading in.
Initially, transfers through Uniswap were not very fast, as the Ethereum network was used with low bandwidth (around 14 TPS). In fact, it took between 0.6 and 1.2 minutes per transaction. However, Uniswap started using Optimism's Layer 2 solution (software deployed on top of the underlying network). With it, the confirmation of transactions is instantaneous. Optimistic Ethereum (OΞ) shows faster speeds than centralised CEX exchanges and also results in 10-17x or more reduction in gas fees:
- Swap on the core network costs 0.01 ETH on average.
- Swap through Optimistic Ethereum - 0.000563 ETH.
The reduction in fees is also due to the limit on the number of transactions: up to 50k per day (or 0.6 TPS).
Implementing a solution to speed up transactions is worth using the Optimism Gateway tool. You can also add a new network to your wallet using chainid. link.
Uniswap Coin (UNI) is unique because of the following features:
- The token is a management and voting tool in the system. Therefore, it is not needed for paying commissions (ETH is used for that), creating applications and so on. That is, its functionality is strictly limited.
- First, the protocol was created. Only after more than two years, a native token was released, though it was not planned initially.
- The standard of the coin: ERC-20. It was created in the Ethereum blockchain and is accepted by dozens of wallets because of this.
- UNI is a native token of the protocol that acts as a decentralised exchange. According to CoinMarketCapUniswap, V3 is the 2nd most popular DEX. It accounts for 19.306% of market volume in August 2021.
- Token trading is available on both CEX and DEX.
- The project has received its first funding from the Ethereum Foundation.
The developers immediately set a maximum number of tokens issued: 1 billion. The circulating supply in August 2021 is about 61%. The creators also immediately stipulated that a perpetual inflation mechanism (2% per year) will be implemented in 4 years from the project's launch. The project will receive ongoing input and support from passive coin holders with this approach.
How to start buying Uniswap?
Naturally, many people have a question about how to start making money from UNI cryptocurrency. If you want to buy Uniswap in Somalia, so there are several ways to get into cryptocurrency and earn money:
- Uniswap mining.
- Investing in Uniswap.
- CFD trading .
Below we will tell you in more detail about each method.
This is not coin mining in the way we are all used to. Instead, it is based on the principle that anyone can become an LP. He can place his crypto coins in a pool and then lock them up for a particular time. Then receive commissions for doing so.
Once any transaction is completed, the sender is charged a fee. In the V3 version the amount is 0.05%, 0.3% or 1%, in V2 it is 0.3%. The community can add other levels of fees by first gathering a quorum and getting majority support.
The commission is allocated to the LPs in the pool where the transaction took place in proportion to their contribution. Thus, to start earning passive income, all you need to do is connect one of your wallets to DEX.
DEX needs a deposit to keep it running and allow investors, traders to make transactions.
It is up to everyone to decide how much to invest and which currency. But we advise newcomers to invest only the money they are prepared to lose. And, of course, to constantly monitor crypto news.
If you want to invest in Uniswap in Somalia, know that you can be friends with the risks of cryptocurrency volatility.
By carefully monitoring and analysing all the small price movements, experienced traders have learned how to capitalise on them, buying and selling coins at the right time of day. Of course, such flair comes with practice, but knowledge-study trading tools also back it. They help you not only stay in deficit but also make profits.
The financial market is like a living organism. It is subject to positive and negative price fluctuations. The high volatility of cryptocurrencies allows for quick and large profits when speculatively buying and selling them, but there is no guarantee of breakeven and minimal profitability.
Yes, the cryptocurrency market is volatile and unpredictable, and some experts do not recommend it for long-term investment. That's why one of the most well-known methods of making money from cryptocurrencies is CFDs.
CFD contracts are a type of bet between two parties concerning the future value of a particular financial instrument (currency, shares, etc.). Both parties agree to settle an amount equal to the difference between the opening and closing price of the position. Hence the term "contract for difference".
In simple terms, if you buy such a contract and the underlying instrument's price goes up, you will receive the corresponding difference from the broker who sold it to you. But, on the other hand, the difference will be taken from your account if the price falls.
When you open a position on a CFD contract, you need to know that you do not become the holder of the underlying instrument. Instead, it is a bet with the other side of the contract whether its price will rise or fall.
CFD trading gives you the opportunity to make money on both rising and falling prices.
If you think the price of an instrument will rise, buy a CFD contract (you have a long position). You profit when the price goes up.
How to buy Uniswap right now?
Want to invest or buy Uniswap? Start by choosing a reliable broker and register on the website. Often registration requires some personal information to identify the user.
Then the platform gives you the option to trade in a demo account with virtual money—an excellent opportunity to get suitable for trading. Again, there is no risk of wasting your money.
If you want to practice and earn money, make a minimum deposit and begin trading with a real account. Study and earn. That is your chance!