Uniswap (UNI) price predictions
The crypto market’s showing great Uniswap price predictions for the year 2021. Lots of hidden gems like UNI coins have surprised the crypto market. Is Uniswap one of the cryptocurrencies you need in your portfolio?
We’ll get everyone up to speed with the basics of Uniswap. Then, we the numerous ways it is rocking the world of decentralized finance. To understand if it’s a good investment, we need to see its benefits and risks.
Many cryptocurrency exchange platforms use the old-timey order book model. Unfortunately, it’s limiting the way people buy and sell crypto assets. Uniswap may change all that in the long term, making UNI coins an exciting investment.
What is Uniswap?
In July 2017, Hayden Adams lost his job as a mechanical engineer at Siemens. He told his friend Karl Floersch from the Ethereum Foundation what happened.
Floersch introduced Adams to the wonders of ETH. He studied all he could think about it. Then on November 2, 2018, he launched his Uniswap project on Twitter.
Uniswap (UNI) is a decentralized exchange platform for cryptos. Adams wanted a better way of buying and selling coins. Based on recent UNI price trends, the general market wanted it too.
In September 2020, Uniswap’s trading volume reached an all-time high. Its price gained a significant boost after listing on several exchange platforms. From $2.94, it went up to $6.96.
At the time of writing, it’s #11 on the crypto list. It’s one of the altcoins that are surprising the general market. Uniswap’s price is at $37.91, and its market cap is around $2.12 billion.
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How does Uniswap work?
If you trade on Coinbase or Binance, you’ve seen the order book. It’s the green and red numbers that keep changing near the bottom. Those are buy orders and sell orders for a coin.
It’s also an old-timey system from the stock market. Unfortunately, it can’t keep up with the supercharged trades of the crypto market. Worse, it’s causing problems for traders:
- You need market makers – The buy and sell prices often have a huge difference. Market makers are folks who are willing to take their median price. This ensures the trades go smoothly. Their job becomes too complex and expensive in the crypto market, though.
- Slippage – Let’s say you want to buy UNI tokens. Your buy order won’t work if there aren’t enough sell orders. That delay is called slippage. If it takes too long, you may not get the coins at your desired price.
Uniswap tries to solve this problem by introducing liquidity pools. They store specific cryptocurrencies that allow buy and sell orders to execute smoothly.
A liquidity pool
A liquidity pool contains amounts of Ethereum and an ERC-20 altcoin of equal value. If you have $20 of DAI stable coin in the collection, it should have $20 worth of Ethers.
The crypto prices follow the common law of supply and demand. Let’s say more people buy DAI. There’s reduces the DAI supply and boosts the ETH supply.
This raises the DAI price and lowers the ETH price. This system encourages traders to buy more ETH and less DAI. This refills the pool and allows it to supply other buy and sell orders.
Uniswap runs on two smart contracts: Exchange and Factory. The former manages the token swaps while the latter adds new coins to the platform.
People who hold UNI coins could vote on Uniswap changes. Moreover, altcoins like Tezos (XTZ) and Polkadot (DOT) have similar features.
Should you invest in Uniswap?
This could improve the cryptocurrency market in the long run. It allows a more involved and improved experience for traders. It’s one of the reasons why Uniswap price predictions are often positive.
Wise investors look for coins that have several uses. Their prices are more likely to increase in the long run. They don’t just look for the trendiest coins buzzing in social media.
There’s no such thing as a perfect investment, despite the optimistic Uniswap price predictions. It has its perks, but it has troublesome quirks too. Consider these to learn if Uniswap is a good investment.
Pros
- No one else holds your funds – Exchange platforms could lose money or experience cyberattacks. This puts their users at risk. You won’t find this problem in Uniswap.
- The exchanges are more affordable – You only have to pay 0.03% each time. It’s much cheaper than other platforms.
- You don’t have to share personal data – Users don’t have to worry about identity theft.
- Users could access the newest coins faster – Uniswap can list new projects automatically. This causes crazy price fluctuations that allow traders to earn massive returns quickly.
Cons
- Scam coins – People could list fake coins to trick others into sending them actual cryptos.
- Transactions could fail – Many things could get in the way. These include maximum price, gas fees, and insufficient liquidity.
- Lots of competition – Many coins are similar to Uniswap, namely SushiSwap. If those become more attractive, UNI coin prices may drop.
- It relies too much on the Ethereum blockchain – You need Ethers to buy altcoins on Uniswap. ETH prices could mess with its price.
How to buy UNI coins
Go to an exchange platform for crypto coins. You have plenty of options like Binance, Coinbase, and Kraken. See their features to choose the best one. Then, follow these steps:
- Create an account.
- Link your debit card, credit card, and bank account.
- Select UNI coins or other cryptos. The platform will show the current prices.
- Confirm your purchase.
- Wait for the coins to appear in your account.
Some people could hack your account. In response, you should protect your assets using crypto wallets. They give extra protection for your investments.
These devices are as small as most USB thumb drives. They act as keys to your crypto coins. No one else could get to your investments if you use a crypto wallet.
Final Thoughts
Uniswap coins are trending as they near the top 10 cryptos. If you invested last year, your coins are several times more valuable now! That’s why you should find the underdogs in crypto.
Many of them have good features. Also, their prices are more likely to increase in the long run. Take time to Google these great additions to your portfolio.
If you want quicker returns, consider learning technical analysis. Learn how to determine short-term price movements. Eventually, you could be successful as a trader!
Be clear about your investment goals and stay calm. Many factors could mess with the prices. For example, most cryptos rise or fall based on how the bitcoin price moves.
If your coin’s a winner, it will keep growing in the long run. Still, be on the lookout for more additions to your portfolio!
Learn more about UNI price predictions
What is Uniswap, and how does it work?
Uniswap lets people exchange ERC-20 tokens with ease. It doesn’t use the trade book system on other platforms though. Instead, Uniswap uses liquidity pools to facilitate trades.
Why is Uniswap so expensive?
If the Ethereum price increases, so does the UNI coin price. Also, gas fees are costly in Uniswap. Future Ethereum upgrades may change this, though.
Does Uniswap have a future?
It’s hard to predict the future of most cryptos. Still, valuable cryptos like Uniswap have an excellent chance to prevail in the long term.
Some Uniswap price predictions say it might even reach $100 or higher!
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