Uniswap is one of the few emerging decentralized cryptocurrency exchanges (DEX) that operate on the Ethereum blockchain and facilitate token swaps. Founded in 2018, the exchange relies on a new trading model known as an Automated Market Maker (AMM). Since the exchange uses the Ethereum blockchain, it ensures compatibility with all ERC-20 coins as well as software applications including wallets.
Just like any other exchange blockchain project, Uniswap also has its own native governance token, UNI. At the time of writing this guide, the UNI coin is trading at $28.24 with a market capitalization of close to $16 billion.
Since Uniswap has been performing well in the last few months, we decided to create a comprehensive guide that highlights where and how to buy Uniswap tokens. If you are new to crypto trading, go through the entire guide to develop a basic understanding.
If you are bullish on Uniswap’s vision, you could buy the UNI coins and hold them for a long time. In this case, you should look at buying UNI coins from cryptocurrency exchanges. The crypto exchanges allow you to purchase the actual UNI coins. You can store them in your exchange wallet or transfer them to another private wallet for safekeeping.
On the other hand, if you are only interested in profiting from UNI’s short-term price performance, you can invest or trade it using cryptocurrency brokers. Unlike the crypto exchanges, brokers allow you to gain exposure to the cryptocurrency without buying the actual coins. They allow you to profit from UNI’s price performance without worrying about where to store the coins.
The primary place to buy UNI tokens is on crypto exchanges. Cryptocurrency exchanges have the highest liquidity for most cryptocurrencies, and they allow you to buy and hold the actual UNI tokens. As with brokers, we recommend using the services of reliable and regulated crypto exchanges. This class of exchanges offers security as well as excellent trading, deposit, and withdrawal fees.
UNI is an Ethereum-based token, which means you can set up an Ethereum wallet that supports it. It takes only a few minutes to set up an Ethereum wallet that supports UNI.
As emphasised earlier, the safety of your UNI tokens should be your number one priority. This is why we advise using cold storage wallets for saving your UNI tokens. You should also add extra layers of security in your wallet, like the 2-factor authentication. Your wallet security needs to be strong, and you should store your private keys in a secure location, away from hackers and thieves.
There are thousands of cryptocurrencies out there, and a single exchange can’t list them all. Hence, you have to find crypto exchanges that support the UNI tokens. As the twelfth-largest cryptocurrency by market cap, UNI is available on various centralised and decentralised exchanges. You can find UNI trading pairs on top exchanges, including Binance, Coinbase, Poloniex, and CEX. Analyse and compare the features of the exchanges and go with the one that offers the best features for you.
After choosing a crypto exchange and opening an account with them, it is time to select your preferred payment method to fund the account. There are various options available, and each has conditions. Debit and credit cards are very popular and available on almost all crypto exchanges, allowing you to fund your account within minutes. However, they have higher transaction fees.
Bank transfer and PayPal and the low-fee options, but bank transfers take a few days for the transaction to be completed, while PayPal is not readily available on all platforms or in all countries. The deposited funds can be used to purchase UNI coins using fiat currencies or other major cryptocurrencies.
The deposited funds can be used to place a Buy Order for UNI on cryptocurrency exchanges. For exchanges that support the direct swap between fiat currencies such as USD and UNI, you can go ahead to buy the token directly. However, some exchanges will require you to buy top coins like BTC, ETH, BNB, or USDT, and use them to purchase the UNI token. Ensure you check the available UNI pairs on a crypto exchange before you start trading with a crypto exchange.
After purchasing the UNI tokens from a crypto exchange, you can transfer them to a cold storage wallet or any private wallet of your choice. Storing the coins in a private wallet is important if you wish to hold UNI for a long time. Cold storage wallets are the best because they provide maximum security for your coins. Meanwhile, if you intend to trade with the UNI tokens, you can leave them in your exchange wallet and use them for trading against other cryptocurrencies.
Your UNI tokens will remain in your cold storage wallet until you are ready to move them. To transfer them to other external wallets, you will need to use the wallet’s public key. You will also need the recipient’s address and the amount of UNI tokens you intend to transfer.
You cannot engage in Uniswap trading if you haven’t researched and done your homework on all trading aspects. You have to make yourself aware of the variables that can affect your trading so you can reduce your trading risk.
While there are different payment methods available, their accessibility depends on the country you live in and your chosen cryptocurrency broker or exchange platform. Since there are dozens of payment modes, we cannot talk about them all in this guide. However, the most crucial factors that you need to take into account include security, speed, and convenience.
When you are planning to go for a long-term investment strategy that requires you to hold onto your Uniswap tokens for months or even years, we recommend that you get a crypto wallet for secure storage. The wallets that are built into crypto platforms are reasonably secure but don’t have adequate security for long-term storage. They can be vulnerable to cyberattacks and that’s why it is suggested that you use a wallet to minimise your risk. If you don’t want anything to do with setting up and managing crypto wallets, then go for short-term trading.
You cannot just go out there and start trading Uniswap tokens. You will need to keep your transaction costs in mind which can substantially reduce your profit margin. Some of the common expenses include network charges, transaction fees or commissions, withdrawal charges, deposit charges, and storage fees. You can reduce your expenses by using digital currencies to trade or buy UNI coins and using your own crypto wallet for storage.
Prior to investing in any cryptocurrency or blockchain project, you should ensure that it is safe to do so. When it comes to Uniswap, it has been developed on the Ethereum blockchain which offers high-level security in the form of cryptographic encryption of public and private keys. It means that if a hacker even gets hold of your keys, they won’t be able to decipher them.
Moreover, the Uniswap blockchain offers multiple other security features including decentralization and peer-to-peer networking, which mean that your funds can’t be accessed or controlled by any single central authority.
Uniswap isn’t just one more blockchain project which is attempting to become the next big digital currency. The project has unique objectives and real-world applications. Fundamentally, Uniswap facilitates liquidity through its technology and provides value for the DeFi or Decentralised Finance industry. That’s one of the reasons why the UNI coin has been doing so well in recent months.
If you want to get hold of Uniswap tokens, the best option you have is to go for a broker or exchange service. To increase your financial gains, we recommend that you make yourself familiar with the website or app of the platform you have selected and learn about all the features they offer.
There is no single best payment mode to buy UNI coins. It depends on your priorities and investment strategy. You have to remember that the availability of many payment methods is subject to the country you reside in along with your preferred broker or cryptocurrency exchange platform. That’s why we recommend you weigh different payment options to identify the one that aligns with your trading objectives.
Buying Uniswap with PayPal: PayPal is one of the leading payment methods for customers who shop online. Depending on the country you live in and your preferred crypto platform, you might have the ability to buy Uniswap tokens with PayPal. Before you purchase UNI coins using PayPal, keep in mind that there is a number of other payment methods that are more affordable. Due to the higher fees for smaller purchases, PayPal is only cost-effective when you have to buy UNI coins in bulk.
Apart from that, there are many countries where PayPal isn’t supported and the payment mode isn’t offered by many crypto platforms as well. Although PayPal is now actively investing in supporting cryptocurrencies, it will still take years for the payment mode to come close to the popularity of debit and credit cards.
Buying Uniswap with Cash: Paying with cash affords you anonymity with your purchases, as you will not have to complete KYC procedures, and you may also save on transaction fees when transacting directly with another individual.
Beware, however, as the price of this freedom and anonymity is reduced security. You will have little recourse if you are scammed, and you will struggle to get your cash returned to you once you have parted with it.
Buying Uniswap with Bank Transfer: If you want to keep your transaction costs at a bare minimum, the best option for you is to go for a bank transfer to purchase or trade UNI tokens. You can use bank transfers to send and receive your cryptocurrencies to and from different crypto platforms. The only disadvantage of buying with bank transfer is transaction speed as it can take from a couple of days to a week to process.
Buying Uniswap with Credit Cards or Debit Cards: If you don’t want long processing times and transaction charges are not a primary concern for you, then you should buy or trade UNI coins with your debit or credit card. While it will be expensive as compared to other payment methods, your transaction will be processed immediately.
When you are going to trade or invest in any token, including Uniswap, you will incur a multitude of expenses. These need to be taken into account so you can determine your real profit. Some of the primary expenses include network charges, transaction fees, commissions, deposit fees, and more. If you are using the web wallet that’s included in your crypto platform account, it is likely that you will pay the storage fee as well. You can save that money by using your own wallet.
Transaction Fees: Since you use the blockchain network to verify your transaction, resources are required to do this. There are contributors who stake their coins so the transactions can be validated. That’s why the network charges you 0.1% to 0.3% of the total amount so it can reward those who have validated your transaction using their computing power. It should be kept in mind that transaction fees change based on your preferred broker or exchange. That’s why it is essential to evaluate all the expenses before investing in Uniswap.
Deposit Fees: While many leading cryptocurrency brokers and exchanges do not charge any deposit fee, there are still a few that do. Make sure that you are choosing a crypto platform that doesn’t charge you any deposit fee since it can reduce your profit margin.
Withdrawal Fees: The same brokers and crypto exchanges that charge deposit fees may also charge withdrawal fees as well. Once again it is up to you to ensure that your chosen platform doesn’t require you to pay a withdrawal fee as it can also decrease your profit. Some of the most popular broker sites levy a $5 flat fee on all withdrawals.
If you are going for a long-term investment strategy, it is a smart idea for you to get a cryptocurrency wallet. These wallets come in different forms which you can choose from according to your trading requirements.
Web Wallet: The built-in crypto wallet that is included in your cryptocurrency broker or exchange account is called a web wallet. These types of wallets offer quick access to your Uniswap coins as you can trade them right away. That being said, these wallets are also far more likely to become a target of cyberattacks. One of the best web wallets for storing your UNI tokens is Coinbase.
Mobile Wallet: If you want quick access to your Uniswap tokens along with better security, then mobile wallets are a good alternative. They are specially created for your smartphone and make it easier for you to trade on the go. Any of the popular ERC-20 mobile wallets, such as MetaMask or Trust Wallet, will easily store your UNI tokens.
Desktop Wallet: These are the types of crypto wallets that you can install on your computer and use like programs. They don’t provide quick accessibility like web and mobile wallets but are more feature-rich and are secured using two-factor authentication. You can use Atomic Wallet to store your Uniswap coins.
Hardware Wallet: When you have to hold your Uniswap tokens for months or years, you need to prioritize security over everything else. That’s when using hardware or a cold wallet makes the most sense. These are called cold wallets because they don’t have any hardware on board that allows network connectivity. You basically store the public and private keys associated with your tokens on a physical device. Trezor’s One and Ledger’s Nano S are a couple of the leading hardware wallets.
If you don’t want to use traditional currencies to buy Uniswap, you can always buy or trade the coins using digital currencies. Some of the major digital currencies that you can use to buy UNI tokens include ETH, BTC, and XRP. Using a cryptocurrency has other benefits as well, for instance, you don’t have to pay hefty payment processing fees which can reduce your profit margin.
Trading below $30 at the time of writing (June 2021), purchasing a whole UNI token is affordable for most people. You can, however, purchase a fraction of 1 UNI if you so desire, although most exchanges and brokers stipulate a minimum purchase amount of $10.
There is generally no upper limit imposed by brokers or exchanges as to how much UNI you can purchase, so here you can consider the only constraining factor to be the total sum of your capital.
It is highly recommended that you use a regulated crypto platform to buy or trade Uniswap tokens. Regulated platforms adhere to KYC and AML regulations which means that they are inherently more secure than the platforms that don’t ensure compliance.
That being said, if you still want to purchase Uniswap coins anonymously, we recommend that you assess your chosen crypto platform comprehensively to ensure they are a legitimate business. This way you can minimize your risk. You have to remember that since anonymous transactions cannot be traced, you cannot get back your funds if you lose them. You can alternatively use a peer-to-peer (P2P) exchange to transact discreetly with another individual; bear in mind that this will expose you to essentially the same risks as using an unregulated broker or exchange.
The answer is not that easy. It depends on multiple factors, the most important of which is your trading or investment strategy. If you are able to manage your risk and make smart decisions, there is always a potential to earn profits. We recommend that you only invest what you can afford to lose and always make yourself familiar with your selected crypto platform. It also helps to learn about the projects you are going to invest in and read analyses and opinions of market leaders. When you want to become a seasoned trader, learning how to read different types of charts and graphs can also help you in making potentially accurate predictions. Be sure to follow the Uniswap price here.
Since Uniswap is a blockchain that primarily aims to provide liquidity, it’s not going to be a major payment mode as far as online retail is concerned. What you can do is exchange your UNI tokens for BTC or ETH and then use them to make online purchases. Use an exchange to facilitate this initial transfer, and then use a payment processor such as BitPay to make your final purchase.
The best way to sell your Uniswap tokens is through an exchange or broker. You can simply close your order to sell your UNI tokens. This becomes a lot quicker and easier if you own Uniswap CFDs.
Short and long-term investments are two different things. If you are a long-term investor, it means you are buying the UNI tokens and holding for a long time to enjoy the profits sometime in the future. You can hold the tokens for months or years till you achieve the desired result. Crypto exchanges are the best platforms for buying UNI tokens if you intend to hold them for the long term. You can move the coins to a cold storage wallet for safekeeping afterwards.
Short-term investing is also great in a different way, as you only need to hold the tokens for a few weeks or months. This investment method is best suited to cryptocurrency brokers because they allow you to speculate on the price performance of UNI in the short term, and you don’t have to worry about buying and holding the actual coins.
We have gone through the various ways to buy UNI tokens. However, these tips will help you gain further clarity.
Always do some research on the cryptocurrency project you intend to invest in. Carrying out in-depth research will help you know if you will invest in the long-term or the short-term, or if you are bullish or bearish. Also, consult multiple sources to get adequate and in-depth information on the Uniswap project. This will ultimately help you identify favourable market opportunities and take advantage of them.
The trading costs on brokerage platforms and exchanges differ. You have to compare the transaction fees on the platforms and choose the most affordable one for you.
The third tip is always to take the security of your UNI tokens seriously. Ensure you pick a crypto platform that has implemented strict security protocols. Trading with a regulated and reputable broker ensures your funds are safe at all times. In case of a hack or security breach, the platforms can pay back the stolen funds.
There are other ways to buy UNI asides from the aforementioned methods. They include:
This cryptocurrency trading and investment guide provides the necessary information to help you enter the Uniswap market. However, you still need to conduct in-depth research to find the best UNI trading platforms. We have made the process easier for you by researching and choosing a few crypto exchanges and brokers that support the UNI coin. These platforms are very secure, regulated and very reliable.