*** ![UNI cover.png](https://cdn.steemitimages.com/DQmZw9kG8JJy3EsM3i5CvxYmtLxALrXXpbFrjJgPhWRsPrw/UNI%20cover.png) _{Designed on Canva} **** Hello steemians, I would love to join Prof. @reminiscence01 to welcome each and everyone of us to week one of the crypto academy trading competition. Today, I will be trading UNI/USDT pairs on spots trading to make some good profits. If you reach the requirements, you could join me to do same by reading up the competition rules on this [link](https://steemit.com/hive-108451/@reminiscence01/crypto-academy-trading-competition-s6t4-or-team-reminane).
![ve_crop_1644247074738.gif](https://cdn.steemitimages.com/DQmY5HGLzCDL8uFkEJy91xwKYJy6EywH3Sog764k7sWffAz/ve_crop_1644247074738.gif) ### Introduction to UNI ![line2.jpg](https://cdn.steemitimages.com/DQmamoWwUKXG72UdCEbd7FqGkrsBNXdSomtYC88fny8YZcc/line2.jpg)
UNI is an exchange token to the Uniswap platform. Uniswap is the seventh largest DeFi protocol according to [Defillama.com](https://defillama.com/). We all know what is done on exchanges, exchanges are platforms which provides a market for buyers and sellers of cryptocurrencies around the world. Uniswap was one of the first of these Decentralised exchanges and was launched in 2020 on the Ethereum network. Every market needs liquidity and in traditional exchanges like Binance, liquidity is provided with the **order book**, where market makers create limit orders, stating a specific price they would love their tokens to be sold or bought at. On Uniswap, the mechanism for liquidity production is quite different and this is because decntralised platform are not really so popular at the moment so there won't be enough traders available to fill an order book. The uniswap platform was invented with a spectacular feature called the Automatic Money Maker (AMM). Holders of cryptocurrencies called **Liquidity Providers** can deposit their funds into a shared pool and at a certain period, Uniswap rewards them with some incentives for doing so. Tokens deposited has to be in a trading pair, meaning, if a liquidity provider wants to deposit for the ETH/USDT pairs, he will need to deposit his ETH with an equivalent value of USDT. There is this saying that when your coins are on centralised exchanges, there aren't really yours. This is because the centralised exchanges holds the keys to your wallet, while you use a verification process and a password to access your funds. This makes your funds unsafe and in the mercy of a central body. Uniswap was built to solve this problem and allows you to trade with all your funds in a wallet of your choice and you being the holder of the keys. Although uniswap was built on the Ethereum network, it operates using a POS consensus mechanism. Holders will have to stake their tokens to become a validator or participate in on chain governance operations. Currently, there are three versions of uniswap on the Ethereum network and traders can choose to use any of them, depending on which has more liquidity at the moment. Uniswap is a good project and the future of centralised exchanges. *** ![hayden adams.jpg](https://cdn.steemitimages.com/DQmVwSenb6XGXbVxiXLyYANbhR5MPfusTUdbDKXz1GPsLMG/hayden%20adams.jpg) _{[Founder](http://tokensummit.com/speaker/adams-hayden/): Hayden Adams} *** *** ![ve_crop_1644247074738.gif](https://cdn.steemitimages.com/DQmY5HGLzCDL8uFkEJy91xwKYJy6EywH3Sog764k7sWffAz/ve_crop_1644247074738.gif) *** **Tokenomics of UNI** *** ![uni coinmar.png](https://cdn.steemitimages.com/DQmNf1SbsDRrrvdwuAxqGMvmQokU17ZeBzZx6WWnCmf2mHW/uni%20coinmar.png) _{[coinmarketcap](https://coinmarketcap.com/currencies/uniswap/)} *** UNI is ranked 24th with a market cap of **$8,075,309,961** and a circulating supply of **689,033,313.19 UNI**. It’s current price is $11.72 and if we look at the above image, in the last year, ALGO has attained a high of $44.97 and a low of $7.59
*** **Exchanges UNI can be traded on** *** UNI can be traded on the following exchanges. 1) Binance 2) Huobi Pro 3) Coinbase 4) Uniswap
![ve_crop_1644247074738.gif](https://cdn.steemitimages.com/DQmY5HGLzCDL8uFkEJy91xwKYJy6EywH3Sog764k7sWffAz/ve_crop_1644247074738.gif) *** **Why are you optimistic about this Token today, and how long do you think it can rise?** *** UNI is the exchange token of one of the largest decentralised exchanges in the world. Which means it has potentials. For now, I highlighted some patterns on the chart which you will see below and at breakout I decided to enter the market.
![ve_crop_1644247074738.gif](https://cdn.steemitimages.com/DQmY5HGLzCDL8uFkEJy91xwKYJy6EywH3Sog764k7sWffAz/ve_crop_1644247074738.gif) *** **How to analyze the token?** *** ![UNI analy1.png](https://cdn.steemitimages.com/DQmWfvSCYDehjdYpHgWyG39FHKGQutTQ1v59AFC9CTPEpsd/UNI%20analy1.png) _{[UNI/USDT](https://www.tradingview.com/chart/zaJskMoT/?symbol=BINANCE%3AUNIUSDT)} *** From my analysis chart above, I used the support and resistance price action falling wedge technique with the parabolic SAR on a 15 mins chart. As you can see above, price formed a wedge pattern hitting the support and resistance level up to five times. During the fifth hit, price did not reverse into a downtrend rather it broke out from the falling wedge pattern. At this point, I waited for the parabolic SAR to confirm the bullish breakout. Once the parabolic SAR signaled a dot below price I filled a market buy order. *** ![UNI BUY.png](https://cdn.steemitimages.com/DQmcEsoFg3d11psfkds5nrCoVWmkLswBsaPHKSJcgbsHHiA/UNI%20BUY.png) _{The Binance App} *** * First, I made a buy trade at the market price on spot trading UNI/USDT. * I changed the trade type to a sell limit order. *** On the trade, Entry: $11.71 Take profit: $11.88 Stop loss: $11.64 *** ![uni analy2.png](https://cdn.steemitimages.com/DQmRYinGKELHsS4xfbyTcxNtZfjZCr6FicPNr3JZzkYnzpt/uni%20analy2.png) _{[UNI/USDT](https://www.tradingview.com/chart/zaJskMoT/?symbol=BINANCE%3AUNIUSDT)} *** ![UNI SELL CON.png](https://cdn.steemitimages.com/DQmTk52ZGr1ZUF5hizde42BWtSR4mm4W8doxG1JGQb6YaB1/UNI%20SELL%20CON.png) _{The Binance App} *** If you look at the chart above, price my take profit level and I made some profits.
![ve_crop_1644247074738.gif](https://cdn.steemitimages.com/DQmY5HGLzCDL8uFkEJy91xwKYJy6EywH3Sog764k7sWffAz/ve_crop_1644247074738.gif) *** **Do you recommend everyone to buy and the reasons for recommending/not recommending** *** Well, judging UNI's tokenomics, it's not a bad idea to hold the token. The UNI token has a fair amount of supply, it is not so large and from past prices, it managed to obtain an all time high of roughly $45. That was sometime in May last year and this means UNI still has the tendency to surpass that value since it still retains its place in the top ten largest DeFi protocol with a TVL of $7,995,248,933. The future of the internet is **web 3.0** which is a decentralised form of the internet. This means, there will be need for platform like Uniswap which operates in a seamless and trustless manner and less of centralised exchanges who only care about how they make their profit. FYI, since web 3.0 is the decentralised internet, there will be need for decentralised currencies. So basically, web 3.0 is a promotion of cryptocurrencies.
![ve_crop_1644247074738.gif](https://cdn.steemitimages.com/DQmY5HGLzCDL8uFkEJy91xwKYJy6EywH3Sog764k7sWffAz/ve_crop_1644247074738.gif) *** **Conclusion** *** Today, I made a buy trade on UNI/USDT trading pairs. I made some profits and learnt a lot today. I so much thank all the Profs for teaching me all I know CC: @reminiscence01 @nane15