UMA Coin has been expanding as a new cryptocurrency in the last few years. However, not everyone knows what UMA coin is, how it works or which are its main characteristics. This is why we have decided to create this unique guide about UMA and how this virtual currency could become one of the largest in the coming years.
In the next sections, we will go through what UMA coin is, how UMA coin price evolved over the last months and why we should care about this virtual currency, among other things.
What is UMA Coin?
UMA, also known as Universal Market Access is a cryptocurrency that was released in 2018 and that aims at changing the way in which people engage with financial products. The goal is to offer investors the possibility to get access to derivatives products.
Nowadays, the derivatives market has a valuation that surpasses the $500 trillion dollars but it could go even higher. This shows that investors could eventually find new ways to generate money and get exposure to some of the largest financial markets in the world.
The project has been built on top of the Ethereum (ETH) network, making it possible for users to purchase UMA tokens directly from the Uniswap cryptocurrency exchange. Indeed, the project was launched through a decentralized exchange offering (DEO). This is also one of the things that show that UMA Coin is a revolutionary cryptocurrency.
The project aims at helping users and investors create synthetic assets that would run on the Ethereum network. These synthetic creations would represent other types of assets that would make it easy for users to get exposure to some of the most traded and demanded assets in the world.
It is worth mentioning that the UMA coin project was created by Hart Lambur and Allison Lu, working on Goldman Sachs. Both of them have been working at different companies and institutions.
Basically, these two experts were searching for a way to make the whole financial market more decentralized. Thanks to blockchain technology and decentralized finance they are now able to create one of the most promising projects in the crypto space.
Synthetic tokens are very important to understand the way in which UMA Coin works and how the network aims at bringing new users and providing solutions to crypto investors. As we mentioned before, UMA Coin wants to enable anyone in the world to build decentralized financial products. And this is literally what the project is doing.
There are several firms and initiatives already running on top of this protocol enjoying the fast, flexible and secure way to create different decentralized financial products. One of these projects is called Perlinx.
The goal of this project is to democratize the trading of real-world assets through decentralized liquidity pools and synthetic asset generation. PerlinX liquidity pools work by using the Balancer Protocol creating and stimulating deep liquidity in the PerlinX ecosystem. Furthermore, thanks to UMA Coin, PerlinX becomes the interface for creating some of the most advanced synthetic assets in the world.
When we talk about synthetic assets, we make reference to tokens that are created as ERC-20 tokens and that provide information about an underlying asset, for example, a stock, commodities and many other things.
All these synthetic tokens require users (projects) to provide collateralization for them to remain open. Usually, the crypto market works with overcollateralized positions, in this case, the standard is close to 120% of the value of the tokens that are issued.
Rather than relying on oracles to gather data and information from outside Ethereum, they use a unique Data Verification mechanism (DVM) that enables the network to control the collateral on the contracts created. In this way, users are incentivized to control the collateral on the assets they have created.
UMA Crypto Price and Token Information
Just to be clear, the UMA Coin is the cryptocurrency that would be used as the governance token of the Universal Market Access protocol. Rather than being a utility token, it would work as the governance token, giving investors and holders the right to vote and propose different network and protocol changes.
The creators of the UMA cryptocurrency token launched 100 million tokens. However, 62.7 million UMA coins are currently in circulation. This shows that yet there could be some coins released to the market (which could create some selling pressure).
Let’s now focus on its price and how this virtual currency behaved over the last months and years. The first thing to take into consideration is that the digital currency experienced a first price spike in the third quarter of 2020 when it surged to $24 per coin. However, this pump moment lasted for just some weeks and in early October it was already traded below $8 per coin.
Between October 2020, and February 2021, the coin experienced a lateral movement that ended with a massive price spike that pushed the price of the virtual currency to $32 per coin. However, this movement didn’t end as fast as the previous one and the price collateralized between $20 and $32 until May when the entire cryptocurrency market fell. At that time, Bitcoin dropped from above $64,000 to $30,000 per coin.
Since then, UMA cannot recover in terms of price. At the time of writing, the digital asset is being traded close to $13 per coin and with low volumes compared to previous periods. At the moment UMA is the 110 largest virtual currency in the world. UMA Coin has clear potential, nonetheless, it might require time for it to develop further and avoid pump and dumps.
Where to buy UMA Crypto?
There are different platforms where to buy UMA Coin. Several exchanges have already added support to this virtual currency and many others could do so in the future. Thus, there is enough liquidity in the market for most of the investors that want to trade this virtual currency.
The following is a list of some of the exchanges that support UMA Coin. You can always trade, buy or sell UMA Coin using other platforms. Everything depends on your personal experience and preferences.
Binance is the largest cryptocurrency exchange in the market. This platform has been operating since 2017 and it has offered users a wide range of solutions to engage with the virtual currency market.
Binance has offered support to UMA Coin and it has also attracted lots of investors that want to be connected to the decentralized finance market. If you are a trader that prefers to engage in different trading strategies, then this could be the best platform for you to buy and sell digital currencies.
Additionally, if you really care about other types of projects and initiatives, Binance is ready to offer them to you. What does it mean? That you could, for example, use Binance to get access to new tokens through their Binance Launchpad platform, stake your digital currencies or get access to DeFi solutions.
Thus, Binance could be one of the best platforms for you to get access to UMA Coin. You can also deposit funds using a wide range of payment options. This makes the whole experience even more seamless and simple for newcomers to the crypto market.
Coinbase is also one of the oldest and most recognized cryptocurrency exchanges in the world. This platform is known for being one of the best for newcomers that want to buy and sell virtual currencies in just seconds. If you want to buy UMA Coin using Coinbase, then the whole experience is going to be even better.
This exchange is regulated and it has a wide range of payment options for users. That makes it easier for everyone to deposit funds and buy the virtual currencies they want. Additionally, they have added support to PayPal in some regions, meaning that it is very easy to handle digital currencies using Coinbase.
The platform has also added other types of solutions such as staking. The goal is to offer users not only the possibility to buy UMA Coin, but also engage in different market activities in the crypto industry. Although this exchange does not offer as many solutions as Binance, it is definitely one of the best projects out there to buy UMA Coin or any other virtual currency that you want to buy.
CoinEx is an exchange that became very popular due to its low-fee policy. Users that trade on this platform would enjoy some of the lowest fees for users in the world. That means that traders would not have to be worried about paying trading or withdrawal fees as the exchange itself has been built to offer some of the lowest fees in the cryptocurrency market.
The trading system is very user friendly, it offers advanced trading options and it also has a finance section that allows users to generate a passive income on the coins that they have deposited on the platform.
Another thing that is worth taking into consideration is that CoinEx has added support to hundreds of trading pairs. Indeed, UMA Coin can be traded against Bitcoin, Ethereum or Tether. At the moment, CoinEx handles 0.23% of the total trading volume for the UMA Coin digital asset.
As it already happened with other exchanges, CoinEx is also accepting different payment methods. This makes it easier for users to get access to the virtual currencies they want and just in seconds.
Let’s finally move to KuCoin and how this platform became one of the favourites of thousands of users in the cryptocurrency market. As we knew, the crypto market expanded very fast over the last few years. However, not all the exchanges offered support to all the virtual currencies that were released to the market.
KuCoin, instead, was one of those platforms with a larger offering for users. That means that the exchange has a large number of trading pairs that make it possible for users to engage in unique trading activities not available on other platforms. Among these virtual currencies, users can purchase UMA Coin.
Additionally, KuCoin was one of the platforms to have implemented KYC checks and controls. That means that the exchange values users’ privacy and information. In the future, it might be possible for the exchange to bring new coins and tokens to its platform.
Right now, KuCoin is offering just one trading pair (UMA/USDT), representing 0.34% of the total trading volume for this virtual currency.
How to Hold UMA Coin?
There are different ways to hold UMA Coin. The easiest way is to do so using a cryptocurrency exchange after you purchase the virtual currency. Despite that, this is not the safest way to do so. Exchanges are certainly the target of hackers and attackers, this is why it is important to use a wallet to which you hold your private keys.
Software wallets are applications that can be downloaded to your smartphone or desktop computer that would let you hold, send and receive UMA Coin and other virtual currencies. There are several wallets that are currently supporting ERC-20 tokens such as UMA Coin. This is why you will be able to hold your private keys and also handle your coins.
Nonetheless, you should also know that software wallets are not the safest in the market. Despite having your private keys (using exchanges you don’t have this option), you must make sure that your smartphone or computer is free from viruses or malicious files.
If you open a file that contains a malicious program, it could attack your wallet and steal your funds. This is why you want to make sure that you only hold the necessary virtual currencies in your wallet.
Instead, if you are a long-term holder or a person that holds large amounts of UMA Coin or any other virtual currency, you could think of hardware wallets. You should know that these are the safest wallets in the market as the private keys do not have contact with the internet.
Malicious parties would not be able to get access to your coins unless you share the private key with them. Thus, they are extremely secure and could be used to hold a wide range of virtual currencies.
Despite that, these hardware wallets are paid and require users to confirm the transactions using a special device (similar to a pen drive). That means that the whole process of receiving, sending and holding digital currencies is somehow tedious and not so user-friendly as simple and easy-to-use software wallets in the market.