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Of course, making a profit is not quite as easy as it sounds - especially in the world of cryptocurrency. Market volatility "drives" the price of UNI up and down and it rises and falls dramatically, without warning and for no apparent reason.
When you buy Uniswap, the amount that has passed a week worth €500 today may be worth €200 – or €50. This is one of the reasons why it is so difficult to make a profit in "spot" trading, discipline investment where investors make money by timing the right moment in the market.
“Spot” traders buy and sell coins based on their hunches, theories and predictions in connection with rapid changes in the Uniswap exchange rate. UNI's value rises to all-time highs and falls to record lows in accordance with the dynamics of the international money market, speculations about changes in government regulations, tweets by billionaires and celebrities and many other factors.
It is extremely difficult to determine the right moment in the market in the midst of all these influences. That's why almost everyone
daily traders lose money.
A special case
Uniswap was launched in November 2018 as a fully developed financial ecosystem based on blockchain.
Uniswap includes a decentralized cryptocurrency exchange (DEX), a protocol to build application for decentralized financing (DeFi) and other applications and cryptocurrency: Uniswap token or UNI. Within the Uniswap ecosystem, investors earn transaction returns by investing cryptocurrencies in liquidity funds.
Hundreds or thousands of crypto wallets, DeFi applications, Web3 tools, DEX aggregators and other decentralized applications are built on the Uniswap platform. Uniswap even includes a JavaScript software development kit that helps developers in creating Web3 applications using proven tools and approaches that they know from experience creation of desktop applications and web applications.
Uniswap is implemented as a suite of smart contracts and APIs on the Ethereum blockchain, which is the most used foundation for decentralized applications in the blockchain world. To increase performance, the protocol supports Ethereum level 2 blockchains, including Polygon, Optimism and Arbitrum.
UNI is the governing token of the Uniswap financial ecosystem. UNI owners vote on new ones projects, set priorities for ongoing development and refine Uniswap's long-term vision ecosystem. As this protocol grows in popularity, the UNI token gains in value.
The increasing importance of decentralized applications for DeFi and Web3 applications has made Uniswap and UNI attractive for investors.
Conclusion
The world is full of traders who can testify that it is not easy to predict the short term high and low prices in the crypto market.
There are too many factors that affect the Uniswap exchange rate numerous and obscure to be traced. That volatility has made life difficult for many traders who buy and sell cryptocurrencies every day. But its effects are small compared to long-term price trends Uniswap.
There is no such thing as a “sure thing” in investing in cryptocurrencies, but many are happy owners Uniswap achieved success by thinking of their crypto assets as long-term
investment.
