How To Buy UMA (UMA) | Best Crypto Exchange To Buy UMA 2020

Trading and investing in cryptocurrencies solely relies on how well you perceive the digital asset based on its market industry. First of all, this guide doesn’t give any investment advice. Given the fact that the market value of UMA’s native token UMA doesn’t satisfy others’ expectations. It is worth noting, however, that outside of these sometimes spectacular runs from low market cap coins, often see little gains. More often than not they stagnate for the majority of the market cycle, maintaining their price if not moving in a bearish trajectory. But it is this low valuation that allows for major gains, for those savvy enough.

Anthony Lynch
6 min readSep 6, 2020

Presently the crypto-currency space is undergoing something that is being identified as a DeFi period mainly. The subsequent release of DeFi protocols saw the space-locked total value surpass USD 9 billion.Although some of these protocols aren’t especially notable (or maybe even ridiculous straight up), others break the laws of conventional finance and incorporate new innovations that were considered impossible.

What is UMA?

Image from UMA

Basically, UMA is a decentralized financial contracts platform built to enable Universal Market Access (UMA). It’s one of the latest DeFi projects to hit the scene and might be one of the innovative projects to keep an eye on. The technology has two components: self-enforcing smart contract design templates and a provably honest oracle. Together, they enable liquidity providers to create synthetic asset tokens — trustless ERC20-compliant tokens that represent ownership in the price returns of any fiat or cross-chain crypto asset.

What’s the main problem that the project solves?

The UMA protocol can be used to build a wide array of innovative financial products from perpetual token swaps, tokenized yield curves, futures to private pension plans, insurance annuity products, and so much more. Derivative markets play an significant role in the global financial sector, whereby UMA reports the present value of existing OTC derivatives to be $540 trillion. Such platforms are typically restricted to institutional investors given the current counterparty risk for derivative issuers and high uncertainty for traders. Crypto derivatives are a fast-growing industry feature for retail and institutional investors as well as offering traders greater variance in market opportunities opposed to spot markets. While leading and unregulated derivative exchanges has dominated the scene over the past years, The purpose of UMA is to make the derivative markets more accessible beyond institutional investors, as well as reduce dependency on centralized exchanges with their associated risk of retention.

Furthermore, UMA has so far prioritized the introduction of its priceless synthetic assets — that are ERC-20 tokens reflecting an asset with its underlying collateral assessed by the value of a price marker, rather than relying on on-chain data from price oracles. To fix the oracle dilemma inside blockchain-based frameworks, where solutions are also being built for projects such as Chainlink, Augur and Oraclize. The UMA team released an oracle concept, called the Mechanism for Data Verification. At a high degree, this scheme aims to provide economic guarantees that facilitate correct data reporting to the derivative smart contract via a Schelling-Point voting mechanism by making manipulation of the data feed more costly than one might gain from the incorrect contract. A more detailed explanation can be found on UMA’s website here.

What are the main use cases of UMA?

According to the Whitepaper, UMA’s native token will primarily be used for two core purposes: In the first place, token holders can participate in community governance and collectively make decisions on the types of contracts that can access the platform, the asset types that the protocol should support, as well as future upgrades.

The second scenario is where token holders can make a difference pertains to the UMA price discovery system. UMA’s price oracle aims to minimize on-chain price requests. However, there will still be cases where a price is disputed. When this happens, token holders can come in and fulfill the price request via the Data Verification Mechanism (DVM) to somewhat file an accurate reporting.

Where can I buy UMA?

There are many exchanges that claim the title of “best” exchange. While this may all seem simple enough, however, in choosing the best crypto exchange to invest in, you’ll have to pay attention to a myriad of considerations like fees, reputation, security, verification processes, and geographical restrictions an exchange platform has to offer.

To better understand most of the exchanges, as well as some of them that are working actively towards this goal, first, we need to understand some several factors that these crypto exchanges are currently working on:

  • Security: Safety should always come first. A good exchange will place great emphasis on the security of their users’ accounts, personal information, and the system in general. The majority of the assets should be stored offline in a cold storage system. Also be on the lookout for additional security features such as Two-factor authentication, withdrawal confirmations, etc.
  • Reputation: A well established, long-standing exchange is a much safer option.
  • 24/7 Support: The support should be responsive, friendly, professional, and ideally reachable through several different channels. A call center is a big plus as it’s comforting to know you have the option to speak to someone in person.
  • Payment methods: Take into consideration which payment methods are available — do they support credit card purchases, p2p fiat trades, and other methods of payment.
  • Fees: Fees can vary substantially between different exchanges. The fee schedule has to be provided on the site.
  • Interface: The site should be easy to navigate, even for crypto beginners.
  • Geographical restrictions: Some exchanges are locally restricted and their service might not be available in your area.
  • Uptime: Avoid exchanges with lots of downtimes.
  • Verification: Even though some users find verification and KYC procedures a hassle, you should look at it from another perspective. They are done with the best intention to protect the exchange from money laundering and all sorts of scams.

Taking everything into consideration, KuCoin is one of the many cryptocurrency exchanges who explored the concept of what the future of cryptocurrency trading looks like. It is also a reputable exchange that adds high-quality projects, hence, where you can buy UMA.

Image from KuCoin

KuCoin has a highly trained research department that looks for top-quality projects throughout the crypto industry. The exchange has over 6 million registered users across 207 countries and regions around the world with 450+ trading pairs to date. KuCoin provides a highly secure and easy-to-use platform for users to engage in cryptocurrency trades and transactions efficiently and safely.

KuCoin also launched a series of other products in the past year designed to further help out crypto users, including futures markets, public chain, one-stop exchange solution, creating a platform for how your crypto can yield interest, as well as some upgrades to the main exchange to uphold its principle of security and transparency. KuCoin since its inception has insisted on taking the tech as its backbone to build a better trader relationship while constantly pushing for the sustainable development of the digital currency trading ecosystem as the ultimate goal.

The Best Crypto Exchange To Buy UMA 2020

There are several exchanges, in fact, catering to different requirements and varying in terms of safety and security, convenience, accessibility, and so on. But unlike most of them, KuCoin is unique in its approach. From their timely upgrades, reports, and recently introduced products & features like KuChain, Margin, KuCoin Futures, Soft Staking, and Pool-X is what I think helping them build a better ecosystem for us, traders. Significantly, the structure of Kucoin is utterly fascinating, which shows they are more interested in long term growth. I’d say with their competitive services and reputable brand, KuCoin is already one of the leading cryptocurrency exchanges today.