Decentralized exchanges have been at the forefront of helping the crypto market achieve mainstream adoption across the world. They aim to improve liquidity, trading volumes and speedy transaction processes, as well as mitigate hacking risks. However, trading digital assets typically require custodians or third parties. Will the possibility of trustless crypto trading be achieved by the crypto sphere without signing up for an account?
Luckily, Uniswap DEX is one of the pioneers in building a new structure for the Ethereum blockchain. Along with that, the platform has paved the way for its token called Uniswap (UNI) cryptocurrency. What makes it different from the leading digital assets in the market like Bitcoin or Litecoin? How can it help you improve liquidity?
If you’re curious to know more, continue reading below!
What is Uniswap (UNI) cryptocurrency?
Before you start learning about Uniswap (UNI) cryptocurrency, you have to know about Uniswap exchange first. Back in 2016, Ethereum co-founder Vitalik Buterin proposed the idea of a decentralized automated market maker. Two years later, a former mechanical engineer named Hayden Adams launched the first version of the Uniswap protocol (V1).
Now, the platform is considered to be one of the largest decentralized exchanges in the market. You can swap any Ethereum-compatible asset without undergoing verification processes like signing up for an account or the Know-Your-Customer (KYC) protocol. UNI allows you to trade or ‘swap’ any ERC-20 tokens. It is also known for having a fee model that pays the investors who provide liquidity to the protocol.
How does its token differ from other digital assets? Uniswap (UNI) is the main token used in Uniswap DEX (decentralized exchange), the platform with the highest trading volume at US$884,066,548.20. Specifically, it is both considered a digital currency and an exchange platform.
It plays an important role in maintaining the network’s operations, allowing UNI holders to govern the protocol and vote on proposals in improving the platform’s ecosystem. The team behind Uniswap created the token to develop a self-sustainable model where you can transact without a middleman.
In addition, if you want to send proposals to the network, you need to hold a minimum of 1% of the overall UNI supply.
Why should you invest in Uniswap cryptocurrency?
The launch of Uniswap has helped the crypto industry address its issues on decentralisation. It has significantly eliminated a huge chunk of control and power held by popular exchanges like Coinbase, Binance and OKX. Aside from that, different businesses have access to international liquidity that other platforms cannot provide.
Why should you include Uniswap in your investment portfolio? Here’s why:
If you’re a Uniswap holder, you get the chance to earn rewards from trading fees and participate as a liquidity provider. How does it work? The accumulated percentage of all trading fees will be redistributed among the users that are proportional to their share. That way, you have a way of securing an income without directly selling your digital assets.
Experience real decentralisation
One of the best things about investing in Uniswap is that it follows the nature of decentralisation. This means that you can trade your tokens without lengthy authorization steps like providing government-issued IDs or account registration. It allows traders to participate in the crypto market and start their portfolios regardless of their background.
Being a Uniswap token user allows you to trade without a central authority that can block or seize your funds on their terms. No custodian has the power to dictate your trading habits or decide if your investments are too large.
Since UNI tokens are primarily used in Uniswap DEX, you get access to better security. The platform is an open-source project that has been evaluated and reviewed by its development community. The smart coding contract in the platform is non-custodial and secure. If a hacker tries to attack the network, they gain no profit from it. They have to infiltrate your wallet because the exchange does not store your funds.
However, you still have to be mindful of scams and rug pulls! Uniswap currently has no quality control measures so tread extra carefully.
Be a liquidity provider: How to buy Uniswap tokens
If you want to secure a passive income and reap the benefits of Uniswap DEX, then buy Uniswap tokens to get you started.
Make sure you have a Uniswap-compatible wallet such as Metamask, Exodus, Trezor or Ledger. The best option is to store your tokens in a hardware wallet to prevent anyone from accessing your funds via the internet.
Your first option is to buy UNI through a centralised exchange like Gemini, Coinbase and Binance. For example, if you prefer to use Coinbase, you can buy tokens using a bank account or a debit card. Type ‘Uniswap’ on the search bar and enter the amount you want to purchase. Once done, click ‘Preview Buy’ to further review the details of your transaction before proceeding.
You can also purchase UNI directly using the Uniswap exchange by using another digital asset like Ethereum and other ERC-20 tokens.
Uniswap cryptocurrency: A pioneer of real decentralisation
When Uniswap DEX was launched alongside Uniswap tokens, it built an innovative protocol in the Ethereum blockchain. With the absence of custodians and account registration, the cryptocurrency allows all traders to participate in the crypto sphere. When you invest in Uniswap tokens, you experience a crypto frontier that complies with the standards of real DeFi.
Since their protocol is inspired by the vision of Ethereum, this ERC-20 token has opened new doors for neutrality and a trustless structure. Once you become a holder, you have immediate ownership of protocol fee switch, governance and liquidity tokens.
The future is undeniably bright for Uniswap, thanks to its competitive team and vibrant community that drives its success. Interested to know more about its future projects? Stay tuned here at BTC Post!
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