How to buy UMA online
The page will explain the key things you need to understand before you invest in UMA. We start by explaining what UMA is and how it works, before taking a detailed look at how to buy UMA and where to buy UMA.
Compare where to buy UMA, and open an account
If UMA is a project you are already familiar with, and you want to invest in UMA right now, follow one of the links below to reach a trusted and reliable broker. However, if you need to learn more about UMA before getting involved, keep scrolling through this page.
What is UMA?
UMA stands for universal market access, and it is a project built on Ethereum that is designed to allow any user to trade whatever asset they want to, regardless of their geographical location. The platform’s native token, UMA, is key to achieving its aim of providing market freedom to all and is used to fulfill price requests.
The focus is on derivatives: contracts between two or more parties about a particular assets price movements, which are advantageous because investors can gain exposure to the price of an asset without having to own it outright. Due to complex legal regulations and frameworks, derivatives have traditionally been inaccessible to retail investors, instead being restricted to institutional investors. However, UMA opens up the over $500 trillion derivatives market to the decentralised world.
Users are able to create synthetic assets that represent real-world assets like commodities, fiat currencies, and stocks. Investors can gain exposure to centralised assets with a decentralised investment: an innovative way of approaching market access that attempts to level the investment playing field for all parties. This gives UMA a distinct first-mover advantage.
How does UMA work?
UMA works by using Ethereum’s blockchain technology to allow synthetic tokens that represent real-world assets to be created and validated by any user once they have posted collateral. Though UMA has not yet achieved this in its entirely, the end goal is for users to be able to create synthetic assets that represent absolutely anything. Users can then use these tokens to create a smart contract, taking up long and short positions against relevant real-world assets and gaining exposure to the asset without owning it outright.
The platform is similar to Synthetix but varies in a few key ways. UMA validates its smart contracts by incentivising its users with UMA tokens to ensure that token issuers are sufficiently collateralised, whereas Synthetix relies on something called price oracles to track prices in real-time. In addition, UMA allows users to post collateral in almost any cryptocurrency, whereas Synthetix requires users to post SNX tokens. However, despite these differences, both platforms have the same primary aim: using crypto to make investing equally accessible for all.
Because of its innovative approach to investing and first-mover advantage, many new developers have focussed their attention on UMA as a go-to platform. It will be interesting to see how the total supply of 100 million UMA tokens is used to influence governance decisions, especially after the over 48 million UMA tokens allocated to founders are used for voting in 2021. Users who got in early have already returned over 100 times their initial investment with UMA, and further growth could see this trend continue.
How to buy UMA online – step-by-step guide
Step 1. Find an exchange to buy UMA
If you want to know where to buy UMA, the immediate answer is clear: a reputable cryptocurrency exchange. 2% of UMA’s total supply was originally available on crpyto exchange, Uniswap, and many of our recommended services also support UMA. To save you some time, we have listed two of the best crypto exchanges that support UMA below.
- Binance: Most individuals who are involved in the cryptocurrency space will have heard of Binance, and that is because it has established itself as one of the leading cryptocurrency exchanges. Open a Binance account and buy UMA today >
- ChangeHero: ChangeHero has an aesthetically-pleasing interface that is accessible for investors with all levels of experience. The platform also supports UMA, making it a good candidate for you to buy UMA with. If you are ready to invest in UMA, start a ChangeHero account and buy UMA tokens right now >
Step 2. Sign up and fund your account
Once you have chosen an exchange, you may need to sign up. If this is the case, keep a copy of your photo ID on hand because you may need to pass an identity verification check. When funding your account to buy UMA tokens, most exchanges will accept payment in the form of fiat currencies but you can also use cryptocurrencies like Bitcoin.
Step 3. Buy UMA
If your account has been correctly set up and funded, it is ready to buy UMA. If you are using fiat money like USD, look on the exchange for the UMA/USD pair. If you are using crypto like Bitcoin, use the UMA/BTC pair. Once you have chosen the amount you want to exchange, lock in your transaction and execute it. You now own UMA tokens.
Step 4. (Optional) Get a suitable wallet
To enhance the security of your UMA, consider storing them in a cryptocurrency wallet. If you’re unsure how crypto wallets work, check out our page on Bitcoin wallets. They can take the form of hardware or software, and you can transfer your funds from your exchange account into them for an added layer of encryption. The wallets below support a variety of cryptos, including Ripple’s XRP, AAVE, and indeed UMA.
- Trezor: If you are looking for an affordable hardware wallet to securely store your UMA tokens, Trezor is an increasingly popular option. See if Trezor can help you store SNX today >
- CoolWallet: Based in Taiwan, CoolWallet is a well-known hardware wallet solution that can be used to store your UMA tokens. Check out CoolWallet and store your SNX safely >
How to trade UMA – step-by-step guide
Step 1. Find a broker
To trade UMA effectively, you need to open and close positions quickly to capitalise on short-term market fluctuations, and brokers are a convenient service that makes these actions easy. We have reviewed most of the top online brokers, but as UMA is quite a niche crypto, not every broker supports it. We recommend that you check out Plus500 and eToro because they are two of the largest cryptocurrency brokers, so are most likely to support UMA.
Step 2. Deposit money
Fund your account using fiat currency like USD, GBP, or EUR. Once these funds are loaded into your account, you can trade crypto, but watch out for the trading fees because these can quickly add up if you aren’t paying attention.
Step 3. Decide how you’d like to trade
Your success when trading UMA will be determined by your trading strategy. Take your time familiarising yourself with technical indicators and form a strong technical trading strategy.
There are numerous different ways of seeking exposure to the price of UMA, such as CFDs, spread betting, and shorting. Whichever methods you opt for, make sure you know exactly how they work first.
Step 4. Start trading
Once your trading account has been set up and funded, you can start trading UMA straight away. However, if you want to achieve the best results, it may be worthwhile having a practice run with a demo account. This means you can learn how the market works before putting your money on the line.
UMA traders can use something called leverage, which allows them to gain exposure to more units of UNI than they buy outright. However, whilst this maximises potential returns, it equally maximises your exposure to risk. Steer clear of leverage if you are a beginner.
Trading UMA can be highly lucrative, but it is an inherently risky practice. Any trade you make should be undertaken with a certain amount of caution. Always remember, missing out on an opportunity is always better than losing your money, and new opportunities will be just around the corner.
Before you decide to buy UMA or trade UMA, you have plenty of information to process. To help you reach your decision, here are the pros and cons of UMA as a platform.
- First-mover advantage means UMA has enormous potential
- Team is comprised of former Goldman Sachs veterans and is more seasoned than rivals like Synthetix
- UMA remains a relatively undiscovered crypto, so prices remain low for now
- The system is priceless and doesn’t rely on price oracles that have previously been exploited
- 2% of UMA tokens were listed on Uniswap, which was viewed by some as an insult to the crypto community
- Pledge to not use founder tokens to vote on governance decisions isn’t a contractual obligation
Still not sure where you stand? Here are three more key considerations before you decide to invest in UMA.
1. Is now a good time to buy UMA?
This is dependent on your own investment prognosis. Are you long-term investors or a short-term trader. If the long term is your focus, UMA could take advantage of its first-mover status to secure a leading position as an exchange innovator, making cryptocurrency the means for all to acquire universal market access. If this kind of growth occurs, the price of UMA tokens will undoubtedly rise.
If trading UMA in the short term is more of interest, the long-term trajectory of the company is less significant. You should focus on technical indicators and market fluctuations to identify a good time to buy UMA low and sell high.
Either way, you need to stay up to date with the latest analysis concerning UMA. Invezz has you covered, and you can check out our latest UMA analysis in the links below:
UMA (UMA) price now up 300% in February
Uma (UMA) price analysis: A correction or end of the rally?
Uma (UMA), OMG Network (OMG) and Ocean Protocol (OCEAN) price analysis as total cryptocurrency market value exceeds $1 trillion
2. What problem does UMA solve, and what are its investment prospects?
UMA makes derivatives accessible to regular investors. Historically, accredited and institutional investors have held a monopoly in this regard, but by using synthetic assets, UMA has opened up derivatives to normal people allowing them to invest without relying on a central body like a bank. The day could eventually come when any asset could be represented by UMA in token form, and the possibilities really do seem endless.
The platform’s investment prospects appear strong, partly because of it first-mover advantage, and partly because many developers now see UMA as a great place to develop software. There are rivals, like Synthetix, but the ex-Goldman Sachs team at UMA will reel confident they can see off the competition.
If you want to hear about the latest news surrounding the UMA platform and UMA tokens, check out one of the links below:
3. Do you want to hold UMA for the long term?
Buying UMA and holding it for long periods of time to speculate on price increases has different considerations to trading UMA in a short timescale. Find out more about these considerations below.
Considerations for a long term investment strategy
If you believe that UMA is a cryptocurrency platform that will continue to grow, get in early by purchasing UMA through an exchange. A wallet may also come in handy, depending on how long you plan on holding your UMA for. Make sure you thoroughly review the business fundamentals of UMA before investing in the token.
Considerations for a short term trading strategy
If you would rather trade UMA quickly for an accelerated profit, UMA’s potential growth is not of primary interest. Instead, use technical analysis to effectively buy UMA through a trusted broker for a reduced price, before selling it for an increased price. If you can spot trends, anticipate price movements and read charts efficiently, trading UMA could be a strong short-term investment strategy.