Before buying Uniswap (UNI), it is important to understand the blockchain project that it is associated with. In this article, we will take a look at the Uniswap decentralized exchange and later demonstrate how to buy the UNI token.
Exploring Uniswap
Uniswap is one of the leading decentralized exchanges (DEXs) on Ethereum. While centralized exchanges use order books, DEXs like Uniswap adopt the concept of Automated Market Makers, which ensure that users trade directly with each other.
Like many decentralized exchanges, Uniswap has its own native token, UNI. It serves as a governance and a reward token.
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Crypto company Uniswap Labs created the DEX. However, since Uniswap is completely decentralized, the firm no longer has control over the protocol.
How Do You Use Uniswap to Swap Tokens
When trading on Uniswap, you only interact with smart contracts of the tokens and not other traders. This makes the process of swapping tokens trustless and secure. Uniswap supports the trading of all ERC-20 tokens. Moreover, it lets anyone list their tokens. Many bad actors use this freedom to list their scam tokens, so you should do your due diligence on a particular digital currency before trading it.
How Do You Provide Liquidity on Uniswap?
To provide liquidity on Uniswap, you need to pick a trading pair, for example, ETH/USDT, and then deposit the two tokens in their liquidity pool. You will receive liquidity pool rewards in the form of UNI tokens.
Which Blockchains Do Uniswap Run on?
Although Uniswap is popular among Ethereum users, the decentralized exchange also has a presence on leading blockchains like Optimism, Polygon, Celo, Base, Avalanche, Binance Smart Chain, and Arbitrum.
How Does Uniswap Compare Against Other DEXs?
Uniswap vs. Pancakeswap
The big difference between Uniswap and Pancakeswap is their native tokens. Uniswap’s UNI was built using the ERC-20 token standard, while Pancakeswap’s CAKE follows the BEP-20 token standard.
Uniswap vs. SushiSwap
SushiSwap was initially a hard fork of Uniswap. However, the DEX has since adopted its own code, and is now available on over 25 blockchains. By comparison, Uniswap only lives on eight.
Uniswap’s Ecosystem
Uniswap isn’t just a platform for swapping fungible tokens. The DEX also has an NFT marketplace that lets users trade some of the leading NFT collections like Pudgy Penguins and BAYC.
UNI Wallets
The UNI token is supported by several crypto wallets, including Ledger Nano X, Trust Wallet, and MetaMask.
Where to Purchase Uniswap (UNI)
Binance
Buying UNI on Binance is seamless, given the centralized exchange’s high liquidity. With Binance, you are sure that you will purchase UNI at an expected price since the platform boasts zero price slippage issues.
Coinbase
Coinbase is highly recommended to crypto users in the United States. The platform’s simple user interface makes it easy for you to buy UNI. Moreover, Coinbase has several educational resources to help beginners learn how to purchase tokens.
Kraken
Like Binance, Kraken boasts deep liquidity. The centralized exchange is ideal for institutional investors. Additionally, Kraken’s emphasis on security makes the platform attractive to traders who value the safety of their data and funds.
eToro
eToro is largely known for its copy trading service. But along with that, it also lets users trade cryptocurrencies like UNI. The brokerage firm supports numerous payment methods, making the buying process seamless.
How to Buy UNI
In this article, we will show you how to purchase UNI on eToro. Here are the steps to follow:
Step 1: Fund your eToro account using any of the supported payment methods.
Step 2: After that, click “Discover” and search for “Uniswap.”
Step 3: Once you find UNI, press the “Trade” button and then enter the USD amount you want to spend on UNI.
Step 4: Hit “Buy” and review the transaction details.
Step 5: Next, click “Confirm” to complete your UNI purchase.
UNI’s Price Prediction
As of February 5th, 2024, UNI is valued at $6.08 with a market cap of $4.53 billion. Crypto analysts at Be(in)Crypto expect the token to hit $100 in the next four years. However, it is advisable to do your own research before buying UNI and not investing in the token based on this prediction since it might never come true.