SushiSwap cryptocurrency
SushiSwap is a DEX where anyone can buy and sell cryptocurrencies based on Ethereum blockchain (you can learn what blockchain is from our article by following this link). No registration, as well as reliability of use, are among the main features.
At the moment of exchange, funds "leave" the user's wallet for just a couple of moments, after which they "come back" in exchange for the coins purchased. That is, assets will remain in your wallet most of the time even with active trading through SushiSwap. That means no one can block them, and you won't lose money even if the exchange stops working.
SUSHI is the project's own cryptocurrency. We will analyze in this article its prospects and more about why this coin is needed. Additionally, we'll consider SUSHI price forecasts from experts to understand if it is worth investing your money.
How SushiSwap works
SushiSwap was launched by the developers of Uniswap, another well-known exchange. The project has taken the best of its predecessor and received a number of improvements. Therefore, it has become popular, and is actively used by participants in the cryptocurrency market.
We’ll consider some features of SushiSwap that have influenced the price of SUSHI - the platform's token:
- Only tokens launched on the Ethereum blockchain are traded. You cannot buy any cryptocurrency on SushiSwap. However, the choice of coins is large - both popular assets like Ethereum and less well-known ones like ZRX are available.
- The development of the project is determined by the community. Holders of SUSHI crypto can vote on certain innovations. It is users who decide in what direction the exchange will develop, and developers only implement the tasks set in reality.
- Anyone can become a liquidity provider and earn money on this. This is the name given to users who temporarily lock their assets in SushiSwap. This is necessary for the exchange to use the coins received from the liquidity providers to give other users the opportunity to make exchanges.
Let's look more closely at the last point. SushiSwap, just like other DEXs, has no assets of its own. So when a user makes an exchange, the coins they give away go into the liquidity pool. Those assets he buys are credited to his wallet from the same liquidity pool.
Consider an example:
- SushiSwap exchange has a trading pair ETH/USDT. ETH is a popular cryptocurrency called Ethereum. USDT is stablecoin, which is a currency that is pegged to the dollar.
- Users wishing to become liquidity providers for this trading pair transfer their ETH and USDT to the exchange's liquidity pool.
- When the user enters the exchange to buy ETH for USDT, his USDT coins are transferred to the liquidity pool, and from there the user receives ETH to his wallet in return. Reverse transactions are also possible.
- Thus, market participants are able to exchange their assets due to the liquidity pools and liquidity providers that provide their assets for the exchanges.
- The exchange charges a commission for each exchange, a part of which is given to liquidity providers and a part of which is retained to spend on the further development of the project.
Thanks to this system, everyone wins. Liquidity providers earn on commissions, and users have the opportunity to make quick and anonymous exchanges with no need to register and deposit their funds on centralized exchanges.
SUSHI Cryptocurrency Prospects
SUSHI is a cryptocurrency with price predictions from experts ranging widely. However, most experts agree that the rate of the asset will only increase in the long term. DEXs are actively used by market participants, and as the crypto industry evolves, the volume of trading on them will grow. This means that the price of SUSHI will also grow.
However, it is important to be prepared for possible price declines as well. For example, the price of cryptocurrency SUSHI exceeded $20 per coin in March and May 2021, but then began to decline, and in December 2021 is trading at around $5.5 per coin. Nevertheless, the rate is much higher now than at the beginning of the year, when the price of SUSHI crypto was around $3.
That's why if you want to invest for a short period of time, you have to do it carefully and calculate possible risks thoroughly. The situation is much better if you plan to buy Sushi cryptocurrency for a long period of time. Then, you will probably be able to sell the asset for much more than you spent on the purchase in the future.
Where to buy SUSHI cryptocurrency
If your own forecast for SUSHI cryptocurrency coincides with expert opinions, and you expect the rate to rise in the future, you are probably already thinking about where to buy this asset. You should take a responsible approach to choosing a platform for exchanging your funds for digital assets - otherwise, there is a risk of running into a fraudulent platform.
A great choice to buy SUSHI crypto is to use Broex exchanger. It' launched by a company with an official license issued by the Estonian regulator. This means that the platform works absolutely legally, and there is no doubt in its reliability.
In addition, the Broex exchanger has many other advantages:
- Custodial wallet. It's not enough to just buy SUSHI or other cryptocurrency - assets also need to be stored somewhere. With Broex, the problem is solved automatically. The company will take care of the safe storage of digital coins, and you'll be able to access them at any time from your account.
- The minimum deposit is 1500 rubles. You can buy SUSHI crypto even for a small amount.
- Instant deposit crediting. Money is transferred to the account in the personal cabinet immediately after the transfer. The deposit can be made either with a bank card or through AdvCash.
- Simple interface. Both the website and the mobile app are made as easy to use as possible. It will take you literally a couple of minutes to understand how to buy SUSHI or other cryptocurrency with Broex.
Also, Broex has 24/7 tech support and low commissions. These advantages make this exchanger a great choice for both beginners in the cryptocurrency market and experienced users.