The theme of cryptocurrencies has always been to let users have more control, and Uniswap (UNI-USD) brings this feature to crypto exchanges. Mainstream crypto exchanges like Binance and Coinbase are centralized and often controlled by one body that manages users’ funds. This raises concerns about liquidity, as low numbers in an order book make it harder to initiate buy and sell transactions.
Uniswap combats this issue with a fully decentralized exchange (DEX). Utilizing an open-source network and an automated liquidity protocol, the Ethereum-powered exchange allows users to trade directly from their wallets. This means traders have complete control of their funds, removing the risk of assets being seized or frozen by a central authority. The exchange also uses a peer-to-peer trading model, which cuts out the middleman and lowers transaction fees.
Uniswap controls over $6 billion in crypto assets and recently launched a V3 protocol with a tiered fee structure. The company has played a huge role in giving Ethereum a first-mover advantage in the DEX space. It is poised to serve as a hub for such trades in the future. The massive potential that DEXs offer puts Uniswap among the top cryptos to buy for future millions.