Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong.
Why Investors buy Uniswap: What Is Uniswap (UNI) and what is it used for? Uniswap is a decentralised exchange (DEX) platform. In this article, we’ll dive into what Uniswap is, how to buy UNI tokens, and explore the functionalities of this innovative platform.
UNI is the native of the world’s largest decentralised exchange, . An ERC-20 token built on top of the Ethereum network, UNI is a governance token, which means holders can vote on the funding of grants, partnerships, liquidity mining pools and other proposals.
A decentralised exchange is one where matching between buyers and sellers is entirely automated, facilitated by users who stake their tokens in trading pair ‘liquidity pools’.
The deeper the liquidity pool, the better the prices available to potential buyers.
During the DeFi boom of mid-2020, Uniswap became the go-to platform for listing and trading DeFi tokens.
While its success spawned numerous competitors on a number of different platforms, Uniswap remains the most widely used dedicated exchange with billions of dollars in Total Value Locked (TVL) – a measure of how much capital is locked into the protocol’s liquidity pools.
Uniswap is an automated market maker (AMM) built on the Ethereum blockchain. Unlike traditional centralised exchanges, Uniswap operates without order books.
Instead, it relies on liquidity pools to facilitate cryptocurrency trading.
Here are the key features of Uniswap.
Uniswap is a DEX, meaning it operates without a central authority. Users can trade directly from their wallets.
Uniswap’s liquidity pools are created by users who deposit funds into smart contracts. These pools enable seamless token swaps and provide liquidity for various trading pairs.
UNI is Uniswap’s native governance token. Holders of UNI have voting rights and can participate in shaping the platform’s future.
Uniswap supports a wide range of ERC-20 tokens, making it a versatile platform for trading digital assets.
If you’re interested in buying UNI tokens, follow these steps.
Start by selecting a reputable cryptocurrency exchange that supports UNI. CoinJar is one such exchange.
Sign up on CoinJar or any other exchange of your choice.
Verify your identity as required.
UK residents must complete an assessment and wait for 24 hours (see more details below).
Deposit Sterling (GBP) into your exchange account using methods like bank transfers or debit cards.
Once your account is funded, navigate to UNI. Place an order to buy UNI tokens. They can stay in your CoinJar wallet (in your account) or you can move them to a software or hardware wallet.
UNI serves several purposes within the Uniswap ecosystem.
UNI holders can vote on proposals related to platform upgrades, fee structures, and other governance matters.
Users who contribute to liquidity pools earn UNI tokens as rewards.
Crypto is generally very volatile, with the risk of abrupt market changes, corporate collapse, inadequate client fund segregation, and cyberattacks. Don't invest anything you aren’t prepared to lose.
UNI incentivises liquidity providers and traders to participate actively on the Uniswap platform.
Uniswap’s decentralised nature enhances asset protection, but always exercise caution. Research thoroughly, use reputable exchanges, and store your UNI tokens in a manner that prioritises their protection.
Uniswap is a powerful platform that empowers users to trade digital currencies efficiently. Whether you’re a seasoned trader or a newcomer, exploring Uniswap can open up exciting opportunities in the crypto space.
Supply and demand drive Uniswap’s liquidity pools, making it a dynamic marketplace for digital currency enthusiasts.
Cryptoassets traded on CoinJar UK Limited are largely unregulated in the UK, and you are unable to access the Financial Service Compensation Scheme or the Financial Ombudsman Service. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits. CoinJar’s digital currency exchange services are operated in the UK by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).
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