How To Buy SushiSwap (SUSHI)?
A common question you often see on social media from crypto beginners is “Where can I buy SushiSwap?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy SushiSwap on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports SushiSwap (SUSHI)
First, you will need to open an account on a cryptocurrency exchange that supports SushiSwap (SUSHI).
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase SushiSwap (SUSHI) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy SushiSwap (SUSHI)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for SushiSwap (SUSHI) or SushiSwap (SUSHI) trading pairs. Look for the section that will allow you to buy SushiSwap (SUSHI), and enter the amount of the cryptocurrency that you want to spend for SushiSwap (SUSHI) or the amount of fiat currency that you want to spend towards buying SushiSwap (SUSHI). The exchange will then calculate the equivalent amount of SushiSwap (SUSHI) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of SushiSwap (SUSHI) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What Is SushiSwap (SUSHI)?
SushiSwap is a decentralized exchange (or DEX, for short), and the first product by Sushi. SushiSwap is also non-custodial, which means that—unlike centralized exchanges—SushiSwap does not need to possess your tokens in order for you to be able to trade them. Instead, SushiSwap allows users to trade trustlessly, peer-to-peer, with liquidity that is supplied by other users. This means that new projects can easily connect to their desired markets as long as some entity is willing to provide the liquidity.
To be a liquidity provider, holders of any token need to supply equal parts liquidity for that token (sometimes called the quote token), and a second token (usually ETH, or a stable coin). In return, these holders receive SushiSwap liquidity provider (SLP) tokens that represent their share of the pooled liquidity for that token pair. The existence of this pooled liquidity gives other traders access to the underlying tokens in exchange for a small fee, which is distributed proportionately to all of the liquidity providers.
In this sense, SushiSwap is also an “automated market maker” (or AMM, for short). While a user’s underlying tokens remain in the pool, fluctuations in the price of the two underlying tokens automatically recalibrate the quantity of those tokens to conform to the equation x*y=k, where x and y are the quantities of the two paired tokens, and k is constant. This means that even though you supply equal parts of two tokens to the pool, the quantities you receive when you reclaim your liquidity will change relative to the difference in the change in price of the two tokens when you remove the liquidity. If the price of x token goes up, and y token goes down, you will have less of x and more of y, and vice versa. If the price of both tokens goes up, or the price of both goes down, you will nonetheless have relative quantities of each token proportionately to the difference in the change of the price of x and y.
How to Get Started on SushiSwap
Getting started on Sushi.com is extremely simple. Unlike some traditional finance services, you won’t need to create an account because all you need is a cryptocurrency wallet and some tokens, and/or Ethereum. To use SushiSwap, regardless of transaction, you will need Ethereum (ETH) to execute transactions, because ETH is used to pay gas fees. Please ensure that you have a balance of ETH in your digital or hardware wallet that you plan to use on Sushi.
Once you and your wallet are ready, go to sushi.com, enter the app and connect your wallet to get started!
What is Yield Farming?
Yield farming in crypto refers to the performance of a particular action for a platform or entity that justifies paying out an annualized percentage yield (APY). Often, this effort entails adding liquidity to a network, and then staking liquidity provider tokens, or adding liquidity to a market for borrowing and lending. Projects incentivize this behavior when it enables them to function more efficiently. Sushi has by and large the most effective system in DeFi for farming yield. This is in part because nearly every token on Sushi is natively yield bearing, which enables Sushi to function very efficiently. In Sushi’s case, adding liquidity to any branch of the platform allows the platform as a whole to be more efficient, and every type of market is available on Sushi. It has its own thriving exchange (SushiSwap), it’s own lending market (Kashi), and it has staking derivatives (xSUSHI). Sushi is able to deliver a compounded yield farming experience by “stacking” these three yields in simple procedures.
How do I stack yield?
There’s three types of yield on Sushi (and arguably three types of yield in DeFi) and therefore three types of yield you will see throughout Sushi. Since Sushi has expanded beyond SushiSwap and into yield farms and now into servicing leverage demand (Kashi), Sushi is arguably the only place where you can effectively stack these three yield types on top of each other. If you really want to understand the full scope of Sushi, you should try to understand how to stack these yields. Here is a description of the three types of yield:
- Protocol usage: Whenever someone makes a trade on SushiSwap, 0.25% swap fees are distributed among a liquidity providers (https://app.sushi.com/pool), and 0.05% of all swaps on all chains are accrued by xSUSHI holders (https://app.sushi.com/stake).
- Network tokens: KMP tokens and SLP tokens are given rewards (https://app.sushi.com/yield), and these rewards further optimize your impermanent gain (yields earned through volume and volatility).
- Leverage demand: this can be expressed as the interest rate for lenders on Kashi (https://app.sushi.com/bento/kashi/lend). Demand for leverage in crypto markets drives increased borrowing.
What Makes SushiSwap Unique?
SushiSwap primarily exists as an AMM, through which automated trading liquidity is set up between any two cryptocurrency assets. Its main audience is DeFi traders and associated entities looking to capitalize on the boom in project tokens and create liquidity. AMMs do away with order books entirely while avoiding problems such as liquidity issues, which hamper traditional decentralized exchanges.
SushiSwap aims to improve on the offerings of its parent, Uniswap, by increasing the impact users can have on its operations and future.The platform takes a 0.3% cut from transactions occurring in its liquidity pools, while its SUSHI token is used to reward users portions of those fees. SUSHI also entitles users to governance rights.
Sushiswap development updates in 2023
Sushiswap has undergone several notable developments in 2023. Here’s a summary of the key updates:
- Financial Performance: Sushiswap’s chief chef, Jared Grey, reported that the platform burns approximately $5 million annually. Despite this, Sushiswap holds around $30.6 million worth of various assets, including Ethereum, Wrapped BTC, and stablecoins. About 33% of their treasury is in SUSHI, the native governance token of the DEX. With the implementation of a new fee model, Sushiswap expects to earn around $14 million annually, aiming for significant growth and positioning as a premier cross-chain DEX.
- Roadmap Adjustments: Matthew Lilley, Sushiswap’s chief technology officer, announced that the platform decided to de-prioritize Kashi, a lending platform, and MISO, a token launchpad, due to various challenges including design flaws and lack of resources. However, future iterations of these projects are planned once sufficient resources are available. For the time being, the main focus is on the DEX, particularly on delivering concentrated liquidity, which allows liquidity providers to set specific price ranges for providing liquidity. An interesting surprise and a new incentive structure are also teased for the exchange.
- Continued Development and Potential Rebranding: Despite a drop in Total Value Locked (TVL) from over $8.26 billion in late 2021 to $536 million in March 2023, Sushiswap remains operational and popular, especially on Ethereum and Arbitrum platforms. The development team is focused on continuing updates and is open to community feedback regarding potential rebranding.
These developments highlight Sushiswap’s ongoing efforts to enhance its platform and position in the decentralized finance (DeFi) space, addressing financial sustainability while innovating in its service offerings.
Official website: https://sushi.com/
Best cryptocurrency wallet for SushiSwap (SUSHI)
There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.
HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for SushiSwap (SUSHI)?
Deciding which type of wallet to use depends on a variety of factors, including:
- How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades.
- What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
- Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
- How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
- What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.
For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.
Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).
Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).
Coinmarketcap will be your cryptocurrency go-to for just about everything. Here you can see the following: