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The modern world is full of some dazzling and surprising things. Nobody at the start of the nineteenth century could have thought that the physical dollar bills will become obsolete. The recent trend has shown that people are continuously finding new ways to invest their money safely. The recent coronavirus lockdowns have only escalated this trend. From Elon Musk to Gwyneth Paltrow, everyone wants to be a part of the cryptocurrency revolution. But they also want it to be in the true spirit of cryptocurrencies – decentralized, like on platforms like Uniswap.
The crypto market is at its best days, as there are a plethora of options. The consumer can choose between well-established options like Bitcoin and also new and exciting options like the Uniswap coin.
Now, what is Uniswap all about?
The Need for Uniswap
The idea for Uniswap came from the motive of giving more control to the consumers. There are a lot of cryptocurrency trading options in the market, but most of them offer a centralized exchange model. The term refers to a single company owning the platform and executing the day-to-day working of currency-related operations. This withholding of power singularly has spooked a controversy recently, as some companies have been guilty of manipulating the trade values in the past.
Ask any good consumer expert, and they will tell you that customers always want accountability and their say when it comes to their financial withholdings. One of the first effort to address this came in the form of Uniswap, which would be a decentralized exchange. It was a masterstroke, as it made sure that consumers are on top of the pyramid. The idea was to have an open-source Uniswap exchange, which is accessible to every customer.
What Makes Uniswap Unique?
“The problem of liquidity is always there,” is a phrase common in the world of large businesses around the world. Every business needs some amount of liquid assets to carry out its day-to-day activities. The current circumstances of the ongoing coronavirus pandemic have highlighted it more. As supply chains have suffered, so has liquidity on assets. Uniswap ensures that the consumer can have the desired liquidity with a smooth open-book system, which is very easy and efficient in practice.
[wd_hustle id="4" type="embedded"/]An open-source environment also makes sure that there is accountability, which gives Uniswap the much-required flexibility. The idea of not having any single owner of the platform serves well for its unique selling proposition.
How to Use Uniswap and How Uniswap Works
One feature that makes Uniswap stand out from the crowd is that it has an Automated Liquidity Protocol that ensures a minimum amount of liquidity is always maintained. Unlike regular open order book exchanges, Uniswap works by adjusting asset prices based on supply-demand ratios. Users add their coins to a liquidity pool, and the change in volumes of the coins impacts their price in the pool. This change in price allows you to trade it against another asset.
Just like any other cryptocurrency exchange, Uniswap has some Standard of Procedures when it comes to trading. It divides its functioning into two sections – the Factory Contract and The Exchange Contract.
The Factory contract is the first step towards availing new tokens and adding them to your account. The current Uniswap framework allows the user to have a wide variety of tokens like ETH- USDT/USDC/DAI and many more. Recently, the number of users in Uniswap has increased by a whopping 5 Percentage.
The Exchange contract is a set of predefined protocols with taking care of most of the activities on the platform, which include trading, swapping, and forfeit of coins when required.
There is an option to exchange the present tokens as well. For example, you can change the ETH-USDT Token to ETH-USDC with a single click. A lot goes on as the currency trend change within minutes. Subject Matter experts recommend researching before investing.
Uniswap: Utility & Market Performance
Uniswap also has its own token – called the UNI token. The UNI token is a governance token offerings users the right to vote on updates to the platform. When you come across people with UNI price prediction queries, it is this token they are referring to.
The current market has many cryptocurrency and blockchain options, but many fail to address the consumer’s needs. The recent trend shows that consumers are more inclined to invest money somewhere other than banks, as they give fewer profits. The Internet has sure made the work of research easy, but it leads many to be confused. Uniswap has managed to address many critical demands of the customers.
It ensures minimum liquidity is maintained and also assures accountability. The open-source system allows the user to use the platform according to his/her wishes. In modern times, credibility on Internet has been tough to achieve, but Uniswap has somehow cracked the code. The fees of Uniswap is comparatively high as it is dependent on the gas and oil price limit, but the return of investment can make it worth it.
Since its launch in the last couple of years, Uniswap has emerged as one of the top platforms in the cryptocurrency market. It also has managed to present a blanket option and accept payments from most of the online wallets available in the market.
Conclusion
Due to the current lockdown restrictions, an increasingly large number of folks are spending a large chunk of time inside their homes. This has understandably led to many taking more time to research investment opportunities and efficiently using their resources. Consumer demands are on an all-time high, and options like Uniswap provide healthy competition to other options present in the market. The way forward is to add more features that make the platform more accessible to the rest of the sections of society.
Frequently Asked Questions
Is Pi Cryptocurrency Safe?
Pi Network captured the crypto community’s interest even before it officially debuted. Its innovative mobile mining approach and user-friendly design simplify crypto adoption for a broader audience. Some users see this as a chance to get engaged in the crypto from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.
Which Cryptocurrency Is Best To Invest In 2021?
Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.
Is Ethereum Safe To Invest?
The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.
What Is Virtual Currency?
Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.
What Is The Meaning Of Crypto?
A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.
How Many Cryptocurrencies Are There?
There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.
What Are The Best Cryptocurrencies To Invest In?
The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.
Who Invented Cryptocurrency?
Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.
How Safe Are Cryptocurrencies?
Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed. There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.
Is Crypto Legal In India?
Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
