In December of 2021, news reports highlighted the performance of certain cryptocurrencies including Avalanche (AVAX) and Uniswap (UNI) (1). Avalanche describes itself as “the fastest smart contracts platform in the blockchain industry” (2). On the other hand, Uniswap is a fully decentralized crypto exchange. Avalanche is built on its own blockchain and is targeted towards users who have been dissatisfied with the growing transaction fees (called gas) and delays of the nearly overwhelmed Ethereum blockchain. Uniswap is, itself, built on the Ethereum blockchain and is focused on offering a more secure cryptocurrency exchange where users always retain complete control over their private keys. Both of these projects are focused on improving user experience on the blockchain and both are being watched closely for their large growth potentials.
Of course, many still want to know: which comes out on top when comparing AVAX vs Uniswap?
The AVAX coin is the default medium of exchange within the Avalanche ecosystem which means it is used for paying all transaction fees on the network. Like the ETH coin for Ethereum, owners of the AVAX coin make purchases and complete transactions on platforms and projects built using the Avalanche blockchain. Owners can also choose to ‘stake’ AVAX coins which means they are locking their holdings with the objective of earning interest or rewards. Currently, about 60% of the available AVAX tokens are being staked by owners who are earning a little over 9% (3). The price of the AVAX coin has performed remarkably well ending 2021 on a +3,100% gain (4). According to the AVAX price prediction for 2022 by WalletInvestor, the price is expected to continue rising.
The Uniswap token is UNI (5). Unlike the AVAX coin, UNI is a governance token for the decentralized platform. This means that owners of UNI are given the right to vote on new proposals for changes to the platform. Using the forum-styled Uniswap Governance website, users can log in and start threads to submit official proposals. They can also read existing proposals and cast their vote for or against them, thus impacting the future of Uniswap.
Where To Buy AVAX
In order to invest in a growing cryptocurrency such as AVAX, you will need to buy AVAX tokens. Recent AVAX news (6) shows that this investment has a strong track record and that Avalanche has many fundamentals that are likely to drive it to further profit and success. Of course, you may wonder where to buy AVAX. In order to purchase an AVAX token, you first need to select a crypto exchange where the tokens are available for trading. A large number of these exchanges are available to you (7) from Uphold (8) (one of the top exchanges in the United States) to Binance (9) (one of the largest exchanges in the world) and Gate (10) (which possess a very easy-to-use interface for beginners).
One such exchange is the online cryptocurrency exchange: AVAX Coinbase (11). Traders frequently utilize this secure, fast exchange to buy and sell coins such as AVAX from anywhere Coinbase is available.
The steps for how to buy AVAX on Coinbase are fairly straightforward. The first step to investing in a cryptocurrency like AVAX using Coinbase is setting up an account on the exchange’s website (12). Valid ID and proof of address will be required before you can successfully purchase coins.
The next step is to connect a payment method to your account. Just as you would with other sites, you can use your bank account, debit card, or start a wire transfer. Once you have a payment method set up, you will then be able to select “Buy” from a list of options and search for “Avalanche”. Selecting Avalanche in the results will pull up the purchase screen where you select how much you want to buy based on the amount of local currency you are committing to the investment.
Finally, you will have the option to preview your order before confirming your purchase and receiving your AVAX cryptocurrency. Currently, as a safeguard for the Coinbase network, users are limited to a minimum and maximum withdrawal amount over the blockchain which in the case of AVAX are 0.1 AVAX and 7,750 AVAX respectively (13).
AVAX Price
According to AVAX CoinMarketCap, the price of one AVAX is currently sitting at around $67 and is only expected to rise. Experts currently foresee that AVAX price prediction 2025 will climb up to $150.38 USD. Currently, the market capitalization of the AVAX coin is sitting at over $16 billion. This meteoric rise in value means that right now may be a great time to start investing in AVAX coins and locking in massive potential profits. The price of cryptocurrencies, like their fiat currency counterparts, can be greatly impacted by several environmental factors including supply and demand, regulation, competition, and important headlines. It is important that you do your research before investing in any particular cryptocurrency. You should also remember that cryptocurrencies are a volatile commodity that still involves a great deal of risk on the one side and huge potential profits on the other.
One of the contributing factors to the incredible increases in the AVAX price in 2021 was the announcement of a strategic partnership between Avalanche and one of the largest accounting and consulting firms in the world, Deloitte, in a project called ‘Close As You Go’ or CAYG (14). This new platform is being built by Deloitte using Avalanche blockchain technology and is designed to help state and local governments more quickly demonstrate their eligibility for federal emergency funding. The idea is to provide a tool that will help communities struck by a crisis to more quickly and effectively respond. Furthermore, Avalanche and Deloitte have both built CAYG to allow local governments to focus more of their efforts on rebuilding and recovery rather than filing claims. In other AVAX coin news, reports have shown that even when other cryptocurrencies have fallen in price, AVAX remains strong and continues to rise (15). This is most likely due to the increasing demand for the speed and efficiency offered by the Avalanche blockchain. It will be interesting to see how increasing popularity of Avalanche NFTs may or may not impact the price.
Uniswap Stock
When considering investing in any number of industries, investors usually try to find the best-performing companies and then simply purchase their stocks. However, the cryptocurrency market is somewhat different. In the case of Uniswap, instead of Uniswap stock, most people invest by purchasing the Uniswap token, UNI. Instead of a Uniswap stock chart, investors tend to utilize statistics provided by cryptocurrency exchanges such as Coinbase which provide price charts as well as other information for each token on their exchange.
According to a recent Uniswap exchange review, there are several advantages to the platform. For example, the exchange charges a low fee of only 0.3% for all swaps (16). The speed and ease of use for trading different cryptocurrencies are additional benefits to using Uniswap. One of the cons to using Uniswap is going to be the fees associated with using the Ethereum network. This is not a problem specifically with Uniswap itself but is a challenge for most applications built on the Ethereum blockchain.
The price of one UNI token is currently $10.15 (17). The market capitalization of the token is now $6.4 billion dollars (18). To understand the value of Uniswap, it may be worth looking at the Uniswap price prediction. According to experts, investing in Uniswap may be a good idea with some price predictions looking very positive looking to the next few years as Uniswap continues to improve on its already successful platform.
How Does Uniswap Work?
You may be wondering: how does Uniswap work exactly? Uniswap exchange, which was created in 2018 by Hayden Adams, a former mechanical engineer, is unique among crypto exchanges because it is completely decentralized, meaning that it is owned and controlled by its users. Basically, Uniswap is a series of programs built on the Ethereum blockchain that provides a way to take the middlemen out of cryptocurrency trading (19). Because it is decentralized, there is no order book or any centralized party required to oversee and facilitate trading. This makes the exchange nearly impossible to censor or restrict. The software itself is open-source and is available for everyone to study, re-work, and improve on the Uniswap GitHub (20).
Initially, the company rolled out Uniswap V1 which it has since termed a proof-of-concept (21). Although the initial version worked well for several use cases, there were flaws. Uniswap V2 has made several improvements, resolved problems, and added new features to the platform. With a decentralized platform like this, you may well wonder, how does Uniswap make money? Is Uniswap safe? The answer is that they are mainly able to generate income from the issuance of their UNI token through its increasing value. Cryptocurrency traders and investors can take advantage of Uniswap by creating an Ethereum wallet and accessing the Uniswap platform. In terms of answering the question of whether or not Uniswap is safe to use, the answer is simple. Yes. The software has all of the security advantages of the Ethereum blockchain itself, along with the added benefits of being decentralized.
AVAX Vs Solana
There are many cryptocurrencies today that are vying to unseat the reigning champions Bitcoin and Ethereum. These would include both Avalanche vs Solana. Solana has repeatedly been featured in financial reports as a crypto to watch and got into headlines again when the former First Lady of the United States, Melania Trump, announced her plans in December of 2021 to launch a non-fungible token. It was launched onto the front pages once more when $320 million in Solana currency was stolen when a bridge linking the Ethereum blockchains and the Solana blockchains was hacked (22). Both projects are open source and allow you to examine their code. One of the big differences between the two platforms is the fact that where AVAX relies on three different blockchains, SOL uses only one.
Resources
(1) https://www.fool.com/investing/2021/12/06/why-polygon-avalanche-and-uniswap-traded-higher-to/
(2) https://www.avax.network/
(3) https://www.stakingrewards.com/earn/avalanche/
(4) https://www.yahoo.com/video/avalanche-avax-price-prediction-2022-175010529.html#:~:text=Other%20forecasts%20for%20next%20year,the%20bullish%20sentiment%20will%20continue.
(5) https://www.coindesk.com/business/2021/02/04/what-is-uniswap-a-complete-beginners-guide/
(6) https://www.yahoo.com/video/avalanche-avax-price-prediction-2022-175010529.html#:~:text=Other%20forecasts%20for%20next%20year,the%20bullish%20sentiment%20will%20continue.
(7) https://www.securities.io/how-to-buy-avalanche-avax/
(8) https://uphold.com/assets/crypto/buy-avax?irclickid=QcbVrNyLuxyITKK0vGQCm3D%3AUkGRETyJw3%3AbxA0&irgwc=1&utm_source=impact&utm_medium=affiliates&utm_campaign=Securities.io&utm_content=Online%20Tracking%20Link&partner_id=2459529
(9) https://accounts.binance.com/en/register?ref=EE59L0QP
(10) https://www.gate.io/ref/491913
(11) https://www.coinbase.com/?clickId=RYmy2B3UYz5EUE21UNyrCW9cUkGUUbQSyy9ZTc0&utm_source=impact&utm_medium=growthp&utm_campaign=rt_p_m_w_d_acq_imp_gro_aff_Securities.io&utm_content=552039&utm_creative=Online%20Tracking%20Link&irgwc=1
(12) https://www.coinbase.com/how-to-buy/avalanche
(13) https://help.coinbase.com/en/coinbase/getting-started/crypto-education/avalanche
(14) https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-ava-labs-blockchain-state-local-government-natural-disaster-recovery.html
(15) https://www.cryptoglobe.com/latest/2022/01/avax-coin-bureau-explains-why-it-is-bullish-on-ethereum-rival-avalanche/
(16) https://www.cryptovantage.com/best-crypto-exchanges/uniswap/#:~:text=Wrapped%20Bitcoin%20(WBTC)-,Is%20Uniswap%20Safe%3F,gain%20access%20to%20users%27%20funds.
(17) https://www.coinbase.com/price/uniswap
(18) https://www.coinbase.com/price/uniswap
(19) https://academy.binance.com/en/articles/what-is-uniswap-and-how-does-it-work
(20) https://github.com/Uniswap
(21) https://uniswap.org/blog/uniswap-v2
(22) https://www.forbes.com/sites/jonathanponciano/2022/02/03/vc-backer-replaces-325-million-in-stolen-crypto-one-day-after-solanas-biggest-hack-ever/?sh=2c10424d6f42