Investment Disclaimer: Conducting fundamental and technical analysis before investing in cryptocurrencies is essential to ensure that you understand what you’re getting into. If you invest in Uniswap as a novice, you will almost certainly lose a lot more money than you put in.
Everyone seems to be looking for a cryptocurrency other than Bitcoin to diversify their portfolio. Among the list of top cryptocurrencies that most investors are carefully looking into is Uniswap. But is it a good investment?
Uniswap is not only one of Ethereum’s most popular decentralised applications (dApps). UNI, the company’s novel token, is currently the 12th largest digital asset by market capitalisation and a major DeFi coin.
In our Investors’ Digest Article, we will explore the pros and cons of investing in UNI. We will also include how and where you can invest in Uniswap UNI. Read on to know more!
Table of contents
What is Uniswap?
Uniswap is an Ethereum-based decentralised exchange. It uses an automated market-making system instead of a traditional order book. Without any middlemen, Uniswap permits peer-to-peer cryptocurrency transactions to take place online, safely and securely.
Hayden Adams founded Uniswap in 2018. After reading a post by Ethereum co-founder Vitalik Buterin, the developer was allegedly inspired to create the platform. According to CoinMarketCap, Uniswap is the world’s largest decentralised exchange (DEX) by market capitalisation. At the time of writing, it currently has over $12.9B market cap and over $478M volume trading.
PROS of buying UNI
- Strong Community – Due to its importance in providing core DeFi functionality of asset exchange, Uniswap is integrated with almost all major DeFi protocols. As a result, Uniswap has a sizable fan base.
- Potential Oracle Solution – Uniswap may become an oracle token, giving accurate price inputs to smart contracts, according to Vitalik Buterin, the inventor of Ethereum. Uniswap is well-suited for this purpose due to its deep liquidity and high usage, guaranteeing that prices on the protocol are not manipulable, and others may benefit from these features.
- Growing DeFi Industry – One of the best DeFi platforms to take advantage of this growing interest is Uniswap. It is, in reality, one of the most widely used DEXs, with an Automated Market Maker mechanism ensuring liquidity. Uniswap may be able to attract more attention as a result of the rise of decentralised platforms, increasing its value over time.
- Secured Network – Uniswap is a non-custodial decentralised application. This means that users have complete control over their accounts. They are in charge of their private keys, wallets, and cryptocurrency custody.
CONS of buying UNI
- Limitless Competition – Uniswap faces rivalry from centralised and decentralised crypto exchanges. PancakeSwap runs on Binance’s smart and once outperformed Uniswap as the DEX with the most noteworthy daily trading volume. Different contenders also include Sushiswap (Ethereum) and JustSwap (Tron).
- Not A Perfect Exchange – There is no perfect platform. Uniswap may not be able to process transactions. When a particular pool does not have enough funds to conduct transactions, this may be caused by insufficient liquidity. That being said, if you choose a relatively low gas fee that does not meet the miner’s requirements, your transaction may not be verified. In addition, due to the rapid changes in the price of tokens due to the fluctuation of cryptocurrencies, constant price fluctuations during the processing process may cause the transaction to fail.
Experts by the newly launched crypto media portal – Dart Europe, predict that UNI will reach the $200 mark by 2030. It is advisable to always rely on trustworthy predictions from specialists who researched and analysed in detail all possibilities. Such in-depth analysis is available for the Uniswap price prediction by Dart Europe.
How and where to invest in UNI?
There are several top crypto exchanges where UNIs are available for buying or investment. These include Binance, OKEx, Coinbase Pro, and Uniswap’s protocol.
How do I purchase Uniswap? Follow the steps below, and you will start buying your first UNI.
Step 1: Choose a trustworthy trading platform and sign up with your accurate information, e.g. full name, residential address, e-mail, and phone number.
Step 2: Add funds.
Step 3: When you have funded your verified account, you may start searching for Uniswap.
Step 4: Complete Uniswap investment by entering the amount you wish to invest. Always keep in mind that you should only invest what you can afford to lose.
What are crypto analysts saying about UNI?
According to WalletInvestor, long-term investing in UNI would be a great choice. The site has predicted that its current price of $21.65 may increase up to $51.997 in just a year. In five years, UNI can be valued at up to $167.382.
Disclaimer: Make sure you understand the risks involved in crypto trading before investing any money. Never put yourself in a position where you can lose more than you can afford to lose.
Dart Europe does not provide financial or technical advice on how to use cryptocurrencies. The goal of this article is to provide assistance and education to our readers. If you trade or use cryptocurrency, you could be exposing yourself to risks against which you have no protection. The market for cryptocurrencies is extremely volatile. To reduce your risk of losing your entire investment, we strongly advise you to conduct a thorough review of your chosen digital assets and seek advice from a licensed financial advisor.
