Buy Uniswap (UNI) - how to invest in Uniswap in India

What is Uniswap?

Today a lot of people want to buy cryptocurrency to get rich. But to buy already common cryptocurrencies is expensive and does not promise much profit. But some currencies are rapidly gaining momentum. One of these is the cryptocurrency Uniswap.  In this article, you will learn about one of the most promising cryptocurrencies, Uniswap. Not surprisingly, after it, you will want to buy Uniswap.  

Uniswap is a popular open-source, decentralized exchange (DEX) based on the Ethereum protocol. In other words, it is a fully automated liquidity platform that requires no intermediaries to settle transactions. 

How to buy Uniswap cryptocurrency?
How to buy Uniswap cryptocurrency?

To facilitate trading, DEX includes liquidity pools created by liquidity providers. It not only provides users with a decentralized pricing system but also provides order book depth. Thus, users on the Uniswap exchange can easily exchange their ERC-20 tokens (ERC-20 is an Ethereum-based protocol on which many tokens are developed) without the need for centralized management or confirmation.

Due to the availability of liquidity pools, any ERC-20 token can be launched at any time. Moreover, the decentralized nature of the platform ensures that there is no listing process, which means that users do not have to pay a listing fee either. 

History and developers of Uniswap

The Uniswap platform was developed in November 2018 by Hayden Adams. However, the technology the platform uses was first described in 2016 by Vitalik Buterin. Adams began working on the idea after he was fired from Ethereum. He developed the very first draft of Uniswap, which included smart contracts functionality and a proof-of-concept algorithm. The idea proved so interesting that he received several grants, including $100,000 from Ethereum.

At first, the project's feature set was minimal. For example, it could only manage simple swaps with a single liquidity provider contract. However, after the project's official launch, Uniswap very quickly attracted liquidity providers and started working with large volumes. 

In addition, the project also began to expand and prepare updates. In May 2020, the team launched Uniswap V2, the second version of the protocol. After that, the Uniswap team announced that they were starting to develop version 3, and they managed to raise $11 million in investment for this purpose in August 2020.

One of the most remarkable additions to Uniswap's decentralized exchange was the creation of the UNI token. What's more, the team announced that anyone who has ever used Uniswap could get 400 UNI tokens as a reward. Most surprisingly, at the time, 400 UNI tokens were worth about $800.

This rapid development and approval from the crypto world have expanded potential buyers. Now there are more and more eager to invest in Uniswap every day. 

Popular cryptocurrency
Popular cryptocurrency

What makes Uniswap special?

Centralized exchanges have very high spreads for low-liquid assets. Uniswap solves this problem. By placing assets, users become market makers in the liquidity pool. 

As a result, based on the volume of trading activity, users can make profits. It is known as the Constant Product-Market Maker model. So, to determine the price of a token added to Uniswap, the platform uses a constant equation that looks like this:

  • Equation = X * Y = k.

In the above equation, "k" is a constant, and the X and Y values represent the number of ERC-20 and ETH tokens. Thus, to calculate the price of a particular token, the equation uses the supply and demand of ERC-20 and ETH tokens and the balance between them.

For example, if a person buys an "XYZ" token, its supply will decrease while the number of ETH tokens will increase. Thus, the value of the "XYZ" token will increase, which is a great way to balance the importance of the different tokens. 

Simply put, the above equation explains that the value of any token can only change on Uniswap if users open trades with it. But, of course, this also reflects users' willingness to trade any particular token. 

  • Affordable exchange.

Exchange on Uniswap is very affordable as the user only has to pay 0.3 per cent each time, which is much cheaper than other protocols.

  • Reduced risk for cryptocurrency storage.

Centralised exchanges can be subject to cyber-attacks and can also lose money, putting your funds at risk. But this is not the case with Uniswap because no legal entity owns your funds.

  • Eliminating the possibility of identity theft.

To use Uniswap, you don't have to provide your personal details to the platform. Consequently, identity theft is not possible on this DEX.

  • Fast access to new tokens.

Uniswap allows you to access new tokens as soon as they appear on the exchange. In addition, the platform can automatically list all the latest coins.

  • Large market capitalisation.

The market capitalisation of any organisation or asset plays a vital role in their stability. Uniswap has a market capitalisation of more than $10 billion, which attracts the attention of more investors.

  • Listing.

The Uniswap token is listed on all major cryptocurrency exchanges, which increases the reliability of the platform and the number of its community members.

  • Security.

As already mentioned, Uniswap is an open-source protocol that has been tested repeatedly by the development community. Reports from experts say that the coding of smart contracts is fully secure. That gives users complete control over their cryptocurrency wallets and private keys.

Choosing a cryptocurrency
Choosing a cryptocurrency

What is UNI cryptocurrency?

UNI is a proprietary token (cryptocurrency) used in the Uniswap network. Anyone with a UNI token automatically has a say in the community when critical decisions are made regarding the platform. Simply put, UNI coin holders can vote, and their vote will be counted for any changes to the network.

At the time of its creation, the token issue was 1,000,000,000 UNI. Of this, 40% is reserved for the platform's team and investors. The remaining 60% is distributed to all community members. Below is a profile of the UNI token, which explains its current market performance.

Having a diverse portfolio is very important for an investor. The key rule of investing is that you cannot put all your eggs in one basket. To minimise the risk of loss, it is advisable to buy different cryptocurrencies. But each cryptocurrency purchase should be approached thoughtfully and deliberately. 

Is UNI cryptocurrency worth buying?

In September 2020, Uniswap made 400 UNI tokens available to all members of its community. At the time, the value of 400 tokens was around USD 800, but the same number of Uniswap tokens is now worth more than USD 7,000. 

This fact goes a long way towards explaining whether UNI tokens are worth buying or not.

Other factors make UNI a good investment. For example, its parent Uniswap protocol has become an essential part of the De-Fi (decentralised finance) industry. 

Today, Uniswap is the largest decentralised cryptocurrency exchange based on the Ethereum network. However, the most important thing to remember is that UNI tokens are highly volatile, and investing in them can be profitable in the long term.

Of course, many people want to buy such a cryptocurrency that will help them make a fortune. However, as you can see, UNI is one of the most promising cryptocurrencies. So if you want to buy Uniswap, you know the deal. 

Information about cryptocurrency Uniswap
Information about cryptocurrency Uniswap

Emotions in trading

It is well known that psychological factors in the form of our emotions, moods, urges, and desires can have a strong negative impact on stock trading results. Many stock market specialists, speculators and investors talk and write about this problem to a greater or lesser extent. For example, a well-known expert on the stock market, Van Tharp, who has a doctorate in psychology, wrote in his book "Super Trader": "We also believed that trading psychology ensures 60% of success, position sizing - 30% and about 10% is left for system sophistication. Unfortunately, most traders ignore the first two components and, in addition, do not have a system. That's why 90% of them fail...".

In turn, a professional trader and one of the authorities in the field of stock trading Alexander Elder wrote the following about the psychology of traders: "Most traders are killed by one of two bullets - ignorance and emotion".

From this, we can conclude that every person, who decides to manage assets on the stock market independently, should carefully and in detail understand the essence of the problem to minimise the negative influence of psychological factors on the results of their trading.

As a rule, when we speak about psychology in trading, we first remember the negative influence of greed, fear, excitement on traders` actions. These emotions of the trader are considered to be the culprits of their financial losses on the stock market.

 One can say that the influence of the above emotions on trading is only a visible part of an iceberg, the central part of which remains invisible, hidden underwater. However, if you dive deeper and carefully study it, you will see that emotions are not in themselves to blame for our exchange failures. On the contrary, they are necessary for us to start trading in the stock market in the first place.

It is only with experience that one comes to fully understand these aspects. 

Trading conditions for the purchase of Uniswap
Trading conditions for the purchase of Uniswap

How can I buy Uniswap in India? A three-step algorithm 

So, if you want to buy Uniswap in India, we provide you with a step-by-step algorithm to help a newbie buy UNI. By following these steps, you can buy UNI as well as any other cryptocurrency. By working through this guide, you will be able to buy UNI quickly, conveniently and promptly.

Register on the investment platform
Register on the investment platform

1. Step one: conduct a market analysis.

If you want to invest in Uniswap in India or any other asset, the first and most crucial step is a detailed evaluation. 

You need to understand everything about the UNI coin, the platform's features, current market performance, historical price data.  Thus, pre-screening will allow you to determine if investing in UNI can help you meet both short and long-term financial goals.

2. Step two: Create and fund your account.

Once you have done the necessary market analysis, the second step is to go to the cryptocurrency exchange of your choice and create your free cryptocurrency trading account by registering. Again, it is not hard to do.

3. Step three: buy UNI.

Once you are registered on the platform of your choice, you can start buying. 

How to open a demo or a real account?
How to open a demo or a real account?

Conclusion

Uniswap is an up-and-coming decentralised crypto exchange that is empowering its users. With innovative approaches to cryptocurrency exchange and ease of use, the community grows day by day. As a result, UNI cryptocurrency is also improving. You can use this platform to exchange tokens by connecting your Ethereum-based cryptocurrency wallet. 

The platform and the cryptocurrency are still in the early stages of development, but many investors have already taken advantage of its sudden price jump. What's more, the cryptocurrency's price could rise in the future. We hope this guide will help you determine whether you should invest in UNI tokens.

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