Uniswap is a missing piece of your investment success puzzle. It is a defi coin that requires thorough research to understand what you are putting your money into. It is because investing in uniswap with no prior knowledge about the possibilities of the Defi coin can increase the chances of making tremendous losses.
In this article, we will provide you with detailed knowledge about why investing in this digital asset is a good option.
What Is Uniswap?
Uniswap is one the most popular decentralized trading protocols that uses global liquidity pools to create unique markets for pairs of assets and employs an automated liquidity pool as its trading model. It is also known as a decentralized exchange that automates both trading and decentralizes finance tokens.
Moreover, it exists in two separated and interconnected entities:
- Uniswap Decentralized Exchange- It enables direct peer-to-peer cryptocurrency transactions to occur online safely and securely without any intermediaries. It allows users to hold their keys while trading by employing liquidity solutions, like order books, liquidity pools, and many more.
- UNI- It is a ticker symbol of Defi coin trades on exchanges and brokerages. It is the token that controls the decentralized exchange of Uniswap. Moreover, the UNI holders control the treasury of the community. It enables them to indulge in token staking and split fees earned by the liquidity pool.
Benefits of Investing in Uniswap
Has Large Capital Asset
The market capitalization of assets plays a very significant role in determining their stability. If the asset has a large cap, it means that its value in the market is more than 10 billion dollars. It helps growth and value investors a lot as it is less likely to come across the business or economic circumstances that can render it extinct and force the entire project out of operations. Uniswap also has a large market capitalization, making it popular among investors.
Decentralized Exchange
Uniswap is a disrupted crypto exchanger that complies with the original Defi standards. It is non-custodial in nature. It means that users can trade it without an authorization process. Moreover, several coins are unavailable on other exchanges.
Large Financial Institution Adapting Defi
According to analysts, the overall value held in Ethereum-based Defi projects is anticipated to be US$20,000. Considering its history, it is not an unbelievable forecast. Moreover, to meet organizational compliance and regulatory standards, its liquidity pool will be independent of existing liquidity pools on Aave.
Increased Users
The Uniswap Exchange does not ask for any government-issued card for verification purposes. Its decentralized nature also excludes the Know Your Customer (KYC) process, which is considered essential in centralized exchanges.
Therefore, if you have money and you are ready to buy and sell ERC-20 tokens, the trading journey can be commenced within minutes. Furthermore, a lot of investors prefer investing online anonymously. And the current setting of the centralized exchanges with anti-money laundering identity verification is not helping them to a great exchange. It is also one of the reasons for people shifting from these exchanges to Uniswap exchanges.
Runs On Ethereum Blockchain
Earlier, in 2021, Uniswap became a decentralized finance business. It is one of the most active exchanges on Ethereum’s blockchain. And since centralized exchanges control Bitcoin, it is an attractive target for cryptocurrency hackers. It is effortless for a hacker to gain access to exchange by penetrating its security. That is why Uniswap is considered the most secure exchange today. It interacts immediately with the Ethereum wallets, which secures it from hacking as hackers have to infiltrate your wallet since the exchange does not hold your asset.
Conclusion
The Uniswap exchange team distributed 400 UNI directly to everyone’s Uniswap account ahead of the September launch. Traders bought about 66 million UNI tokens out of a total of 150 million UNI tokens in the first 24 hours. So there is a lot of room for beginners to build their crypto portfolio. However, it is advisable to conduct a thorough research about the digital asset and the appropriate exchange from which you can buy it. And since, it is a large capped digital asset, it is available in almost every exchange, making it effortless to be found and traded.
Written in partnership with Ascend
