Buy UMA in Canada
UMA made simple
Everything you need to know about UMA and how to start investing in it.
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- $1.87 - $1.99
UMA is an acronym standing for Universal Market Access, and it’s a protocol that lets you create synthetic assets on the Ethereum blockchain. These synthetic assets are cryptocurrency tokens that represent other things; they are derivatives of something else.
This includes things like synthetic foreign exchange markets, where you trade stablecoins: cryptocurrencies that represent fiat currencies. It also includes synthetic tokens that track the price of gold or shares in Tesla.
But these examples are just the tip of the iceberg. On UMA, you can create synthetic assets for any market you please: more creative applications track exotic statistics, like the number of downloads of a certain Chrome extension or the weather in Peru. With UMA, you can turn anything at all into a tradable market.
In practice, this makes UMA a powerful but complicated protocol. On the one hand, UMA is very useful for replicating traditional financial markets in the crypto economy, plus any other markets that traditional finance has not accommodated for. But on the other, UMA also opens the door for its users to take on high levels of risk by tracking unpredictable statistics.
A token called UMA backs this whole thing. A little like how the Bitcoin blockchain rewards computers for verifying transactions, UMA’s protocol pays out UMA tokens to people who can identify positions that are under-collateralized—that’s when a synthetic derivative needs a bit more money to function safely. UMA is also a governance token, meaning that holders can use it to vote on the future of the UMA protocol.
Why Wealthsimple Crypto?
Wealthsimple Crypto lets you buy and sell cryptocurrencies all in one easy-to-use app. And as Canada’s first regulated crypto platform, you can trust that your coins are in good hands. How simple is it?
- Sign up in minutes right from your phone or laptop
- Start trading crypto with as little as $1
- No account minimums
- No clunky dashboards — just one super simple app
- Best of all: you don’t need to be an expert in crypto or blockchain to get started
What can you do with Uma?
UMA is an ERC-20 token, meaning you can spend it in the growing network of Ethereum’s decentralized finance smart contracts. You can also hold it for speculative purposes, or use it as a voting chip to decide how the UMA protocol should work. Lastly, you can try and earn UMA by identifying undercollateralized assets on the network.
Is UMA a smart investment?
Crypto carries risks — but generally speaking, our advice (regardless of whether you’re investing in UMA or stocks) is: never invest what you can’t afford to lose. The smartest way to grow your money long term is with a diversified, low-cost portfolio that tracks the market.
How we keep your UMA safe
As Canada’s first regulated crypto trading platform, we’re required to meet certain requirements — like using only qualified custodians (like Coinbase Custody) for cold storage.
FYI: Wealthsimple Crypto is not an exchange itself. Instead, we work with multiple exchanges to give you the best UMA prices.
And to make sure your coins are extra protected, we’ve partnered with Coincover for an extra layer of security.
If you’re holding crypto outside of Wealthsimple, that’s no problem. You can safely transfer your UMA to your Wealthsimple account in just a few taps.
Other cryptos to explore
More info about UMA
Want to take a deeper dive? Check out these articles about UMA and the world of crypto.
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Ready to get started?
Download the Wealthsimple Trade app, create your account, and start trading UMA with just $1. It’s that simple.
UMA is a protocol for creating synthetic derivatives on the Ethereum blockchain. You can use UMA to create a market for anything you want, like an index token that tracks the dominance of Bitcoin over the cryptocurrency market, or a token that tracks the top stocks mentioned on r/WallStreetBets, the subreddit that sent Gamestop stock flying. UMA has an eponymous token that powers these assets. It’s also a governance token
As of November 1, 2021, there are 63,648,165 UMA tokens in circulation out of a total supply of 100 million UMA. The founders reserved 48.5 million UMA tokens for themselves, then sold 2 million in an initial coin offering (ICO). Another 35 million tokens were earmarked for paying developers, and 14.5 million tokens were designated for future sales. Whenever there’s a vote in UMA’s governance proposal, 0.05% of the token’s supply UMA tokens are given out to active voters.
You can spend UMA within the protocol as ‘voting chips’ to help determine whether proposals to upgrade the UMA network should pass. The token is also used within the protocol to settle disputes about the prices of synthetic assets. But aside from the UMA-specific stuff, it’s a regular Ethereum token that you can stake in any decentralized finance smart contract that’ll allow it. As always, you can trade it as a speculative asset to your heart’s content.
Yep! When you open a Wealthsimple Crypto account, you can get started with anywhere from $1 to $1,500 instantly.
Generally speaking, the CRA treats cryptocurrencies as a commodity. Here’s what they say:
Any income from transactions involving cryptocurrency is generally treated as business income or as a capital gain, depending on the circumstances. Similarly, if earnings qualify as business income or as a capital gain then any losses are treated as business losses or capital losses.
Always keep solid records of any UMA transactions. If you use Wealthsimple Crypto to buy or sell cryptocurrencies, we’ll generate some of those tax documents for you.
UMA’s current market cap is 226,107,897.
The current price for UMA in Canadian dollars is $1.91.
Buying UMA with Wealthsimple is, well, simple. The first thing you need to do is open and fund a Crypto account in the Wealthsimple Trade app. You can connect your bank account and add up to $1,500 instantly.
From there, follow these steps: 1. Tap the magnifying glass icon in the top right corner of your screen 2. Type in UMA 3. Tap Buy 4. Enter the dollar value of cryptocurrency you'd like to buy and tap Continue 5. Review the order details and tap Confirm order
You can choose between two different order types when buying UMA. A market order lets you buy or sell crypto immediately at the best available price at the time. A limit order lets you buy or sell crypto at a specific price or better.
You can withdraw funds from the cash balance in your Crypto account and move those funds to your bank account. Withdrawals typically take around 2 - 3 business days.
A crypto wallet — often called a “hot wallet” — is a location for holding crypto “on-chain” (i.e. linked to the blockchain versus off-chain cold storage.) Many users use wallet applications to help them manage their blockchain addresses, since each chain uses its own addresses.