Where to Buy UBT?
Bittrex trading pairs:
This blog will be updated accordingly, but bittrex is one of the best exchanges to trade on. Not available to US residents yet though. The others in the good category are though
CoinMarketCap.com lists a total of 12 different exchanges to buy UBT tokens on.
Below I have ranked them from Good to Bad. I will explain the reasoning later. But your first impression should be that the "Good" exchanges are not necessarily the ones with the highest volume. This is because Liquidity is more important than volume, and also faked volume using wash trading is very common on some of these lesser known exchanges.
What makes an Exchange Good?
The three most important things when using an exchange should be Security, Liquidity and Usability (in that order!).
Good security means that you are less likely to have you funds stolen or lost. Liquidity means that you can buy and sell more easily, with less slippage. And Usability is the least important, but still worth considering.
When considering these three things, there are two "types" of exchange; a Centralised Exchange or Decentralised Exchange.
The biggest plus for Centralised exchanges is Usability. You do not need to manage your own wallet, look after your tokens, sign transactions. It is all managed by their systems. You can often get lots more options with regards to trading such as stop losses and margin trading and so forth. But, this does come at a cost. There are many well known examples of Centralised exchanges getting hacked, Cryptopia is one example. Another issue with Centralised Exchanges is that you are not in control of your money, so you cannot move them! A wallet can go down for maintenance, or an exchange could go offline, and then there is no way for you to get your funds! In worst case scenarios, these exchange shut down and take all your crypto and you never see it again... in summary, the key weakness of centralised exchanges is their security.
That is not to say that decentralised exchanges are 100% safe. But their exchanges are run on smart contracts, in a transparent way, and even if the exchange were to close down or go offline, then the smart contract will still be accessible and you can get your funds back eventually. This is a key difference. Exchanges do not hold your funds. They are run on smart contracts. In many ways, this is HOW cryptocurrency is meant to be! Trustless, you do not have to trust the exchange to execute your orders or withdraw your funds to your address, as it is all written in code and automated to just happen when you send the instruction. You, the user, are fully in control.
But, with this comes a cost to "usability". In order to use these decentralised exchanges, you will need your own Ethereum wallet, and you will need to know how to send and receive tokens, what gas is and how to sign transactions. Having to learn about this is a step too far for some investors, but the reality is that taking that step and managing your own wallet should bring you greater piece of mind when trading in general, not just on decentralised exchanges. The long term benefits are there, and the steps are actually easier than most initially think. Metamask, Ledger Nano and MyetherWallet are all great examples of desktop wallets you can use, but then there are now an increasing number of mobile wallets such as Trust Wallet and Coinbase Wallet. Decentralised exchanges bring an initial hurdle, but once you are over it then the doors it opens are numerous and you are now able to fully interact with your tokens in the way the developers intended.
Liquidity is important, but too often people mistake volume for liquidity. An exchange with $1m of volume is not necessarily a better place to buy tokens than an exchange with only $100k volume. You are much better looking at the actual order books than the reported volume on CMC. Buy orders and Spread are the important indicators. But which is better for this Centralised or Decentralised? Well, wash trading is becoming increasingly common on the centralised exchanges, as it is used to attract users to their exchanges. On decentralised exchanges wash trading is less common, but still occassionally happens. The fact that trading on decentralised exchanges often incurs a small gas fee means that wash trading can become very costly. The flipside is that the usability hurdle can often result in these decentralised exchanges having lower liquidity. So, in terms of liquidity, it is always important to look at the orderbook.
Which Exchange is the Best for trading UBT?
In terms of Liquidity, Security and Usability, Decentralised exchanges are currently the best places to buy Unibright Tokens. When you compare the orderbooks of say Hotbit and IDEX it is obvious fairly quickly that IDEX has significantly better spread and a much larger amount of buy orders. Uniswap and Kyber, there is no orderbook, as they use liquidity pools. "Slippage" is the key metric for these types of exchanges, which can be seen by inputting amounts and seeing what the exchange rate is for buying that amount of tokens. The liquidity pool for UBT tokens is rated as "High" by Uniswap, and means that slippage stays relatively low, as long as you are not looking to buy say 100 ETH worth of tokens in one go.
After much research, and having used IDEX, Hotbit, Uniswap and Kyber in the past I have come to the conclusion that the two best ways to buy UBT is to use either IDEX or 1inch.exchange. IDEX is a great dex as it allows you to set limit orders (e.g buy and sell at certain prices) whereas the swap exchanges you have to swap there an then. It also has very good liquidity, and the token is often one of the top traded on the exchange.
But, I have not spoken about 1inch.exchange until now. 1inch.exchange is an excellent option when looking to buy ERC20 tokens. It is a "DEX Aggregator", it will complete your swap by splitting you order across Uniswap, Kyber and Bancor in whichever way gives you the best rate. This gives you access to liquidity of three exchanges all at once.
DYOR and find out what works for you. For me it is IDEX and 1inch.exchange, as they tick the Security and Liquidity boxes, and now that I am familiar with how Ethereum wallets work, they are both very easy to use. Feel free to join the Unofficial Unibright Telegram if you want to find out more or ask questions!