How to buy SushiSwap online
The guide will give you the knowledge you need to invest in SushiSwap. We explore the history of SushiSwap, the best platforms to buy SUSHI, and the exchange’s outlook for the future.
Compare where to buy SushiSwap, and open an account
If you are already comfortable with SushiSwap and want to invest immediately, follow one of the links below to a recommended broker. For more information on cryptocurrencies, check out our courses. Read on for more information about SushiSwap.
What is SushiSwap?
SushiSwap is a cryptocurrency exchange and SUSHI is its native token. Users can exchange tokens on the Ethereum blockchain (ERC20) by using the platform’s liquidity pools: individual pools of cryptocurrency pairs. Conventional exchanges use an order book model, which requires market makers to produce a huge number of orders and cancellations so buyers and sellers can meet in the middle. Ethereum can only process 12-15 transactions per second and has a 10-19 second block time, so an order book would be ineffective.
Created in 2020 by an anonymous Twitter account, Chef Nomi, the Japan-based exchange makes sure that trades between cryptocurrencies can always be facilitated because the coins are already sitting in the pools. Other exchanges have tried to provide similar solutions, such as Loopring’s second-layer scaling strategy, but liquidity issues persist.
SushiSwap was created when $830m in assets was migrated over to it from another cryptocurrency exchange, Uniswap, and it uses almost identical technology. Like most cryptocurrency platforms, holders of SUSHI tokens can vote democratically on key governance decisions.
How does SushiSwap work?
Liquidity pools allow the SushiSwap exchange to function without an order book. They are individual pools full of cryptocurrency pairs in an equal value ratio. Those who lend into these pools and fill them up are called liquidity providers; they receive SushiSwap Liquidity Pool (SLP) tokens whenever users make a trade using a pool they have contributed to.
SLP tokens are created from a 0.25% transaction fee that is applied by SushiSwap to all trades that use pools. Providers receive a number of tokens based on their level of contribution to the particular pool. Once in possession of SLP tokens, providers can ‘burn’ them in exchange for a proportion of the 0.25% fee and their lended asset back.
Interestingly, SushiSwap’s flat transaction fee is slightly higher, standing at 0.30%. The 0.05% that isn’t paid to liquidity providers is converted to SUSHI tokens and paid to holders of SUSHI tokens. SUSHI can be purchased on the open market or earned through mining, similar to Bitcoin hardware mining. Holders of SUSHI can speculate on price fluctuations and long-term growth and also have voting rights on development decisions.
During the initial migration period from Uniswap, SushiSwap payouts were 10 times greater than usual. This established SushiSwap as one of the most rewarding exchanges for liquidity providers, SUSHI token holders and ERC20 traders. It has managed to maintain liquidity thanks to liquidity pools and its automated technology.
How to buy SushiSwap online – a step-by-step guide
Step 1. Find an exchange to buy SUSHI
If you want to know where to buy SUSHI, the easiest way is from a crypto exchange. SUSHI is increasing in popularity, so an increasing number of exchanges support it. Below are two of the best exchanges to buy SushiSwap.
- Changehero: SUSHI can easily be exchanged at Changehero. The interface is clean and simple, and it is powerful too. Get started today and open an account to buy SUSHI with ChangeHero >
- ChangeNOW: Established in 2017 and registered in the Seychelles, ChangeNOW supports more than 200 crypto coins, including SUSHI, and it also supports 30,000 trading pairs. Open an account with ChangeNOW and start buying SUSHI today >
Step 2. Sign up and fund your account
When using cryptocurrency exchanges, it is common that you will have to sign up for an account before funding any trades. This is straightforward and usually involves an ID verification check that can vary from platform to platform. Generally, you will need to provide a copy of your photo ID. Many exchanges now accept fiat currency as a payment method, but you can also use cryptocurrencies like Bitcoin or Ethereum.
Step 3. Buy SUSHI
Once your account is set up and funded, you are ready to exchange the funds in the account for SUSHI. If your account is loaded USD, look up the price of SUSHI in the SUSHI/USD pair, or if you are using Bitcoin, look at the exchange and check the current price of SUSHI in the SUSHI/BTC cryptocurrency pair. You can then buy SUSHI tokens.
Step 4. (Optional) Get a suitable wallet
To enhance the security of your tokens, you might want to consider opening a personal wallet to store your SUSHI in. This step isn’t mandatory because the majority of exchanges will allow you to store your SUSHI in an account. You should only really seriously consider a wallet if you are planning to buy and hold a significant amount of SUSHI for the long term to speculate on price increases. Here are two of the best SUSHI wallets.
- Freewallet: Supporting SUSHI and over 100 other cryptos, Freewallet is a popular cryptocurrency wallet and is a good choice if you want to hold SUSHI. Store your SUSHI in a Freewallet today >
- Infinito Wallet: Infinito is a strong option for storing your SUSHI. Its team of over 20 blockchain experts has created a platform that is secure and accessible. Open an Infinito Wallet for your SUSHI now >
How to trade SushiSwap – a step-by-step guide
Step 1. Find a broker
If you want to trade SUSHI, you need to open and close positions quickly to take advantage of market movements. Brokers allow you to do this easily. Before you sign up to a broker, it is of paramount importance to check that the online broker supports SUSHI trading. Brokers offer access to a variety of assets, but not every broker will provide SUSHI trading services. If any broker is likely to support SUSHI, it will be one of the largest like Plus500 or eToro.
Step 2. Deposit money
Brokers usually allow users to fund their accounts using fiat currency (such as GBP, EUR and USD), but some also allow you to use cryptocurrencies. Once your funds are loaded into your account, you can use this currency to trade crypto. Just make sure you are aware of the trading fees before using these services, because they can quickly accumulate.
Step 3. Decide how you’d like to trade
Two common methods of trading are contracts for difference (CFDs) and spread betting. Your trading strategy will be largely dictated by technical indicators, such as bases. Make sure you have a clear plan in mind before you start trading.
Step 4. Start trading
Before you start trading, we recommend using a demo account to help you learn the ropes before risking real money. This will allow you to learn about how the market works safely and in your own time.
When trading SUSHI, you can go long or short. Both positions can be profitable if used correctly. A long position is when you invest in the belief that an asset will rise in value. Going short, also known as shorting, is when you invest your money into the belief that an asset will fall in value.
Traders can also trade with leverage when using online brokers. Leverage allows users to make large trades with a smaller amount of trade value. However, we advise against beginner traders using leverage because it significantly increases the risks of losing large amounts of money if the market goes against you.
Still undecided?
Make sure you take your time to consider SUSHI as an investment. Here is a summary of the pros and cons of SushiSwap along with some key questions to explore.
Pros
- Strong exchange security due to regular audits
- SUSHI yield farming remains in practice, unlike UNI yield farming. Rewards can be as high as 80% APY
- Streamlined and easy-to-use interface
- 0.05% paid to SUSHI holders
Cons
- Lower fees paid to liquidity providers than Uniswap (0.25% v.s. 0.3%)
- Uniswap interface is more refined and established
- A chequered history of ownership
If you remain undecided about investing in SushiSwap, here are 3 key questions along with some considerations.
1.) Is now a good time to invest in SUSHI?
If you intend to use SUSHI to swap between ERC20 currencies, it can always be a good time to get involved, but the answer to this question is primarily determined by your own investment strategy.
If you want to invest buy SUSHI and hold it for the long term, SushiSwap’s rapid growth could continue to drive the value of your tokens up, and new innovations could offer accelerated moments of growth.
However, a new platform there are potential risks. Shortly after it launched, creator and former owner, Chef Nomi, sold $14m of Ethereum from a developer fund. These funds were quickly repaid, but investors will hope it isn’t a sign of things to come. It is worth noting that SushiSwap is now controlled by Sam Bankman-Fried of SBF Alameda. To succeed in the long term, SushiSwap must successfully compete with other cryptocurrency exchanges like Uniswap and Curve Finance.
If you want to trade SUSHI for short-term profit, the long-term vision of SushiSwap is less important. You should focus on technical indicators so you can buy SUSHI low and sell high. Paying attention to the small details can results
To read our latest analyses about SushiSwap and SUSHI tokens, click on one of the articles below:
Zilliqa, Algorand, Sushiswap price analysis roundup
SushiSwap (SUSHI) could advance even more in the ongoing bull market, but the risk remains high
2.) What problem does SushiSwap solve, and what are the coin’s investment prospects?
SushiSwap makes cryptocurrency exchanges more accessible and easier to use. Individuals can now exchange tokens on demand rather than dealing with a protracted order book process, and this is consistent with the autonomous thematic of cryptocurrencies in general. Put simply, SushiSwap brings convenience to crypto.
SushiSwap has rivals like Uniswap, but there is more than enough room for multiple cryptocurrency exchanges in a rapidly growing market. It will be interesting to see how SushiSwap can further differentiate itself from Uniswap with more innovations. The existence of SUSHI yield farming currently stands out as an obvious difference.
Find out the latest news about SushiSwap by going to one of the links below:
THORChain (RUNE) listing on SushiSwap results in a 35% price surge
3.) Do you want to hold SUSHI for the long term?
Establish your own investment criteria. Do you want to trade SUSHI aggressively to make a rapid profit, or do you want to hold onto it for a long period of time to speculate on future price increases?
Both strategies can be effective with SUSHI. It is growing at a rapid pace and its popularity is flourishing, so volatility could help you generate trading opportunities in the short term. The long-term SUSHI thesis also appears to be compelling; as adoption continues to increase and further innovations are made, the price of SUSHI could increase further.
Considerations for a long term investment strategy
If you believe SUSHI has a promising future, and you plan to get in early, we encourage you to sign up for a reliable cryptocurrency exchange and acquire SUSHI tokens. A personal wallet could also come in handy for added security. In this instance, fundamental analysis is your key to success.
Considerations for a short term trading strategy
If you want to trade SUSHI quickly and make a near-term profit from price fluctuations, the fundamentals are less important. Focus on mastering technical analysis and signing up to a broker with low trading fees. By anticipating price movements and understanding charts, you can become a successful SUSHI trader.
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