How to Buy SushiSwap Tokens (SUSHI)

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Contributor, Benzinga
Updated: December 22, 2021

Want to jump straight to the answer? You can buy SushiSwap on Coinbase!

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)

  1. 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.

  2. 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.

  3. 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 Crypto Wallet for SushiSwap

Ledger Hardware Wallet
Best For
  • ERC-20 tokens
securely through Ledger Hardware Wallet's website

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.

Coinbase
Best For
  • Coinbase Learn

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.

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