Trading UNI to USD
The UNI to USD pair’s composition makes it alluring for investors and traders, because there are numerous factors that could cause changes in its value. The UNI token is particularly interesting, because it is associated with the decentralised finance (DeFi) revolution. The Uniswap exchange succeeds in decentralising one of the most critical aspects of cryptocurrencies. Distribution of UNI tokens and the fact that it gives voting rights in the Uniswap protocol make this token attractive for anyone who wants to participate in the decision-making process. Aside from profits due to price changes, owners of UNI tokens have the opportunity to make additional gains from transaction fees and as liquidity providers.
The features and characteristics of the UNI token and Uniswap exchange might offer numerous trading opportunities in both the short run and the long run. For instance, the UNI price chart shows that its price fluctuated more than 1,000% within the first year of its launch. You can track the changes in UNI to USD value induced by relevant news and events live on Dzengi.com’s tokenised asset platform.
What is Uniswap (UNI)?
A major drawback of trading digital assets through traditional crypto exchanges is the high degree of centralisation of the trading process. The classic crypto exchanges are operated or administered by companies or institutions that control the funds of their users and clients. At the same time, the trading process is executed through an order book that may lack liquidity.
Uniswap is a decentralised exchange (DEX) that overcomes the disadvantages of the centralised exchange system and is not owned by any one authority. It is built on the Ethereum blockchain and was established in 2018 by Hayden Adams, a former mechanical engineer at Siemens. Uniswap v2, introduced in 2020, allows for direct swap between ERC-20 tokens. Listing tokens on the exchange costs nothing, which is another advantage over centralised crypto exchanges, which charge high listing fees.
Instead of the traditional order book, which considers the market depth, the Uniswap exchange has introduced a new form of trading referred to as the automated liquidity protocol. Uniswap has been built on open-source principles that allow anyone to copy its code and create a decentralised exchange.
Uniswap’s native token is the UNI, launched in 2020 to stop users moving to other exchanges, such as SushiSwap, which attempted to take a number of Uniswap users through the allocation of SUSHI tokens. The UNI is a governance token that entitles holders to a voting right relating to changes and developments of the Uniswap platform. Owning UNI tokens gives voting rights according to how minted tokens are distributed among the community and its developers.
Uniswap did not sell its token through an initial coin offering (ICO) or private sale, as is the case with most tokens. Instead, Uniswap distributes UNI tokens based on a defined release schedule among community members, its team, investors and advisors. Uniswap executed an airdrop by giving 400 UNI tokens to entities that had been using Uniswap services before September 2020. Also, Uniswap allows users to earn UNI tokens when they stake tokens in specific liquidity pools that represent what is known as yield farming.
Interesting facts about UNI tokens:
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Uniswap created one billion UNI tokens to be released over four years, with an inflation of 2% per year after the four-year schedule.
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60% of UNI tokens are allocated to the community, while 15% have been transferred to previous users.
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21.266% are planned for team members over a four-year vesting period.
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18.044% are reserved for investors, with a four-year vesting period.
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0.69% will be distributed to advisors during the four-year vesting period.
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Uniswap is one of the most popular decentralised exchanges based on the Ethereum blockchain.
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Uniswap motivates users to participate in liquidity creation on the exchange by donating part of the transaction fees and UNI tokens that have been created.
The UNI to USD value is influenced by numerous factors relating to the overall crypto industry, along with considerations connected solely to either the digital asset or the fiat currency in this pair. While traditional economic factors influence USD, the UNI token has more specific factors. For instance, an upgrade of the Uniswap DeFi exchange to Version 3 might increase the UNI price.
An increase in both the number of users and liquidity could positively affect the price of UNI, while a decrease in transaction costs could also cause an appreciation in UNI value. However, the price of UNI could also be affected by an adverse event, such as hacks or activities that cause losses to its users.
How to invest in UNI
The fact that UNI tokens were not sold through private sale or ICO makes this token interesting for traders and investors. While Uniswap users received a certain number of tokens for free, non-users were not able to buy the token and profit from the significant price increase at launch. The availability of UNI tokens on exchanges might be limited, because it has a defined distribution schedule and specific potential receivers of tokens. The opportunity to make gains from changes in UNI price by purchasing the token from exchanges could be limited.
The process to buy and sell digital assets through crypto exchanges means that you need to find an exchange that lists the token and a respective crypto wallet to store your cryptos. Traders and investors should search for more flexible and easier-to-understand methods to trade UNI to USD and earn profits from potential changes in its price.
Tokenised assets offered by the Dzengi.com trading platform are derivative instruments that remove the need for traders to go through exchange search and token storing. Instead, tokenised pairs allow traders to invest in UNI or other tokenised assets directly on the Dzengi.com platform. This is possible because tokenised instruments replicate the price movements of the underlying assets, while speculating on future price movements is the same as trading the real-life asset. For instance, you take a long position with a tokenised pair if you expect the UNI price to increase and a sell order for a possible price decrease.
Another significant advantage of trading tokenised crypto pairs on the Dzengi.com platform is the provided leverage. This means that traders could increase their potential gains, which is especially beneficial for traders with a lower level of capital.
Why trade UNI to USD with Dzengi.com
- Advanced charts and analysis tools
Access to more than 70 technical indicators and tools, powerful charts, and real-time price alerts.
- Smooth trading experience
Instantly buy tokenised assets. Keep your holdings safe and transfer easily and quickly.
- Choose crypto or cash
Fund your account or withdraw fiat with your credit card, bank transfer or a crypto wallet.
- Stop paying more
Do more with less. Start with only 0.002 UNI and use the power of 20x leverage.
- Control your risk
Never lose more than you put in with guaranteed stop-loss and take-profit orders.
