Trustless, permissionless and immutable cryptocurrency exchanges are gaining popularity on Ethereum’s network. These exchanges are referred to as DEXs, or decentralized exchanges. Instead of being controlled by a centralized entity like Coinbase or Robinhood, SushiSwap uses code on Ethereum’s blockchain to facilitate cryptocurrency trading. Learn how to buy SushiSwap tokens (SUSHI) now.
What is SushiSwap?
SushiSwap is an automated market maker (AMM) based on Uniswap’s exchange. SushiSwap has taken marketshare from Uniswap, as the platform provides more incentives for liquidity providers through its SushiSwap token. Automated market makers don’t use order books. Instead, smart contracts hold cryptocurrencies in liquidity pools to provide liquidity for traders on the platform.
Let’s take a look at how smart contracts are used on DEXs like SushiSwap. Investors send their cryptocurrency tokens into a liquidity pool, which is the smart contract that holds crypto assets for liquidity. For example, an investor can provide liquidity to the Sushi-Eth smart contract. The investor would need to send 50% Ethereum tokens and 50% SushiSwap tokens to the smart contract, and the liquidity pool will do the rest.
The liquidity pool calculates the price of each crypto asset using mathematical formulas. When someone trades on the platform, they must pay a 0.3% transaction fee. This fee is paid directly to the liquidity providers, proportionally to the amount of liquidity they provide.
Brief History of SushiSwap
SushiSwap came about from forking Uniswap’s protocol. This means that the program is essentially the same as Uniswap, but it has a few minor differences.
The Sushi token is used more actively for governance, allowing token holders to vote on upgrades to the program. Also, Sushi tokens are used as rewards for liquidity providers, incentivizing investors to stake their crypto assets with SushiSwap rather than Uniswap.
SushiSwap began trading in August 2020, and it quickly appreciated to over $10 per token. Since then, the token stabilized under $1 before picking back up with the crypto bull market in 2021. SushiSwap is currently trading just under $15, and it has a market capitalization of nearly $1.5 billion.
How to Buy SushiSwap (SUSHI)
- Open an online account.
There are many ways to buy SushiSwap, but the easiest way is through a centralized exchange. You can buy and sell Sushi tokens on Coinbase and Binance, so if you already have an account with either of these cryptocurrency exchanges you’re good to go.
To make an account with Coinbase or Binance, you’ll need to verify your identity before you begin investing in crypto. Exchanges must verify U.S. citizens for tax purposes, so be ready to provide your Social Security number, driver’s license and home address.
- Buy a wallet (optional).
Although Coinbase is regarded as one of the most secure exchanges to use for cryptocurrency, it’s a good idea to store your crypto in a dedicated cryptocurrency wallet. Crypto exchanges have been hacked many times in the past, leaving investors with nothing.
To mitigate the risk of a security breach, you should consider storing your crypto assets in a software or hardware wallet. Software wallets encrypt your cryptocurrency with a set of public and private keys, and they’re almost always free to use.
If you want to store your crypto in the most secure way possible, then you should consider using a hardware wallet. Hardware wallets store your cryptocurrencies offline on a physical device, making it impossible for online hackers to steal your assets.
- Make your purchase.
To buy SushiSwap, you can place your order as a market or limit buy order. Market orders will instantly purchase your SushiSwap tokens at market price, while limit orders will only purchase SushiSwap if the price of the token reaches the price you set your limit order at.
Binance also gives you the option to buy Sushi tokens with Bitcoin, which some crypto investors prefer. Through using the SUSHI-BTC pair, you’re able to track your investment relative to Bitcoin’s price rather than USD.
Bonus section: With altcoins like SushiSwap being highly volatile, many investors like to average their buy-in price. To do so, you’ll need to gradually buy your position in SushiSwap, rather than making your entire investment all at once.
Best Crypto Exchanges for SushiSwap
Best For
Crypto Investing
1 Minute Review
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
Best For
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
Pros
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
Cons
- Higher fees than competitors
1 Minute Review
Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.
Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader.
In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.
Best For
- New investors looking for a simple mobile and web app
- Experienced investors who need a more advanced platform with more tools
- Users looking for a 1-stop-shop to buy, sell and store all of their coins
Pros
- Easy and quick signups — can get started in as little as a few minutes
- Multitude of platforms to accommodate traders of all skill levels
- Hot wallets include insurance to protect your from theft and hacking attempts
Cons
- Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
Best Crypto Wallet for SushiSwap
Best Hardware Wallet: Ledger Nano S
Ledger has been selling cryptocurrency wallets to the masses since 2014. The hardware wallet supports over 1,000 different cryptocurrencies, so it’s likely the only hardware wallet you’ll ever need. The Ledger Nano S is an affordable option for most crypto investors, coming in at just over $50 on Amazon.
Commissions
0.50% per sale
Best Software Wallet: Coinbase
Coinbase has its own dedicated wallet for storing cryptocurrencies, making it easy to secure your assets from hackers. Coinbase Wallet supports a multitude of assets, including non fungible tokens (NFTs), Bitcoin and Ethereum. Since the wallet can connect to DeFi applications, you also have the option to convert your crypto into other assets directly from your wallet.
Trade, Sell or Convert your Sushi Tokens
When you want to sell your SushiSwap tokens, you’ll need to send them from your cryptocurrency wallet to your cryptocurrency exchange. If you use Coinbase Wallet, you can directly convert your SushiSwap tokens to any other cryptocurrency supported by the wallet.
Current Crypto Prices
The cryptocurrency market has been in a bull market, and there’s been a lot of attention on DeFi protocols like SushiSwap and Uniswap. These platforms offer several benefits over centralized exchanges, such as anonymous trading and added security.
While Bitcoin has appreciated about 100% in the past few months, DeFi tokens like Uniswap and SushiSwap have seen 1,000% gains in the same timeframe.
Is SushiSwap a Good Investment?
With Uniswap V3 released in early May, SushiSwap may have trouble competing with Uniswap’s new features. Uniswap has long been the go-to DEX on Ethereum, and without additional incentives it may be hard for SushiSwap to take market share from its largest competitor.
SushiSwap is set up to perform well during the bull market, as there’s been increasing attention on DeFi. It’s worth looking into an investment in SushiSwap today.
Gemini builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can buy bitcoin and crypto instantly and access all the tools you need to understand the crypto market and start investing, all through one clear, attractive interface. Gemini Crypto Platform offers excellent account management options. You can manage your account at a glance, view your account balance 24-hour changes and percent changes. Get started with Gemini now.