How to buy UMA online

UMA is a project designed to make markets universally accessible, and UMA is its governance token. Find out how UMA works and the origins of the platform and what the investment outlook for UMA is.
By: Charlie Hancox
Charlie Hancox
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player,… read more.
Updated: May 13, 2021
Tip: our preferred broker is, eToro: visit & create account

The page explains 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 coin.

Compare where to buy UMA, and open an account

If you are ready to invest and want to know where to buy UMA coin online, we have got you covered. Click on any of the links below to sign up to one of the best online brokers. Otherwise, to learn more about UMA, simply scroll down this page.

1
Min. Deposit
$50
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Our score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start Trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
2
Min. Deposit
$1
Exclusive promotion
Our score
9.3
The world's largest cryptocurrency exchange with over 2bn daily users
Innovative trading platform offering enormous range of crypto coins
Supports over 60 methods of payment including PayPal
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Description:
Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.
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Cryptocurrencies
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3
Min. Deposit
$20
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Our score
8.7
Margin Trading with full legal compliance
Cryptocurrency staking
Various Payment options
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Description:
Cex.io offers exchange of fiat currency for Bitcoin Ethereum, Tether, and 23 other cryptocurrencies, as well as Bitcoin/Ethereum trading against the USD.
Payment Methods
Credit Card, Debit Card, Wire Transfer, Cryptocurrencies, Skrill
Full regulations list:

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

The best place to buy UMA is on a reputable cryptocurrency exchange. 2% of UMA’s total supply was originally available on crypto exchange, Uniswap, and many of our recommended services also support UMA.

Check out two of the top options below:

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, most exchanges accept payment in the form of fiat currencies but you can also use cryptocurrencies like Bitcoin.

Step 3. Purchase

If your account has been correctly set up and funded, you are ready to get started. 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.

1
Min. Deposit
$1
Exclusive promotion
Our score
10
The world's largest cryptocurrency exchange with over 2bn daily users
Innovative trading platform offering enormous range of crypto coins
Supports over 60 methods of payment including PayPal
Start Trading
Payment Methods:
Cryptocurrencies
Full Regulations:

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 own outright. However, while 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.

1
Min. Deposit
$50
Exclusive promotion
Our score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start Trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA

Still undecided?

Before you decide to invest, you have plenty of information to process. To help you reach your decision, here are the pros and cons of UMA as a platform.

Pros

  • 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

Cons

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 make your entry.

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 price has skyrocketed from $10.8 above $45 since the beginning of February, and the current price stands around $25. UMA was one of the best performers on the cryptocurrency market this year, and despite a current correction, there is no signal of the trend reversal. Fundamental analysis: UMA is…
UMA (UMA) price has gained about 60% today to trade over 300% in February. Fundamental analysis: Bitcoin’s status keeps improving CME Group managing director Bluford Putnam said he believes Bitcoin is an “emerging competitor” to gold. He believes gold’s ongoing production is expected to rise this year, as…
The cryptocurrency market is losing its value; Bitcoin’s price went below $37000 support, and the price of UMA is also under pressure. This cryptocurrency price can weaken even more in the upcoming days, and maybe it is not the best moment to invest in UMA. Fundamental analysis: It is not…

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:

The cryptocurrency market remains under pressure, the price of Bitcoin is still not able to stabilize above $40000 resistance, and the risk of further declines is still not over. UMA has weakened from $32.25 below $10 since 10th May, and the current price stands around $14.6. Fundamental analysis: It is…
The total value of all cryptocurrencies has exceeded the $1 trillion threshold Wednesday, according to the TradingView data.  Fundamental analysis: Bitcoin leads the way  In less than a week, the market capitalization of the crypto market soared by over 35% to $1.048 trillion. Bitcoin’s (BTC) impressive bullish run is…

3. Do you want to hold UMA for the long term?

Holding UMA 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 and sign up to a trusted broker. If you can spot trends, anticipate price movements and read charts efficiently, trading UMA could be a strong short-term investment strategy.


Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Charlie Hancox
Financial writer
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player, and as a budding film director, has… read more.