From a long list of unique crypto trading exchanges, picking out an exchange that caters to your needs is an extremely complicated task. Since we are talking about unique exchanges, how can we forget to mention about Uniswap exchange?
Well, this exchange is very much unique in its own way as it is not simply an exchange where you can trade with crypto it is a trading protocol that runs on the Ethereum blockchain allowing users to swap ERC-20 tokens through an Automated Market Maker protocol (AMM). Sounds complicated? Read through the following sections to learn more about Uniswap exchange, how to use and get started with it, or how to use this exchange to swap cryptos.
What is Uniswap Exchange?
If you are someone who is looking for an exchange that allows you to maintain complete anonymity, then Uniswap is definitely the right exchange for you. On this exchange, users can easily trade or swap different crypto pairs without having to find someone to initiate the exchange. Uniswap exchange provides users with liquidity pools. This “pool” allows users to move their funds to and fro from it. Released in the year 2018, this exchange or its programs are still under progress, therefore using it has its downsides as well.
A stepwise tutorial to use Uniswap exchange
To begin using this exchange and trading on this exchange, you first need to make sure that you are having ETH or any other ERC-20 tokens. The best place from where you can get your hands on one of these tokens is through the “MetaMask” which is basically a browser extension. Now, the question is why you should give preference to choosing MetaMask despite other available wallets. Well, the answer is pretty straightforward; the MetaMask wallet allows us to have an easy interaction with the dApps. With that known, let us now move ahead with learning how to get started with using Uniswap exchange:
Step 1- Buy Ethereum
Since you can trade via Ethereum blockchain on Uniswap exchange, therefore it is a must that you should already make a purchase for ETH or any ERC-20 token of your choice.
Step 2- Send the purchases tokens to a trusted wallet
Now, your next step would be to choose a wallet service where you can send your purchased crypto tokens to. After selecting a compatible wallet service, you need to make sure that you send all your ETHs to this wallet.
Step 3- Now connect your wallet to the Uniswap exchange
At this stage, you should be connecting your wallet to Uniswap so that you can use its services. To do so, you need to begin with downloading and opening the Uniswap app on your device. After this, you simply have to click on the option connect your wallet and this option is available at the top-right corner. From the page that opens, choose your wallet and log in to it.
Step 4- You can now begin trading
To begin trading on this exchange, we have given the complete details in the next section.
How to trade on Uniswap.org?
Make sure you have followed the correct steps from the section above that too in the correct sequence before initiating the procedure given below. Once you are sure you have completed each step, follow through the listed steps:
- At first, go to the official website or Uniswap- https://uniswap.org/
- Otherwise, launch the Uniswap application on your device
- Next up, navigate to the “Swap” section available on the main screen
- Choose one of the available ERC-20 tokens in the “From” and “To” fields
- Review and customize the settings by tapping on the “Settings” icon at the top
- After this, you simply need to click on the “Swap” option
- Now, review the complete order and confirm it
- Follow through the remaining prompts one by one to complete the process
How to use the “Liquidity feature” on Uniswap?
Well, one of the biggest advantages of using Uniswap exchange is that you can put your money into a liquidity pool. Doing this ensures that your identity is completely anonymous from the trader at the other end. So, let us now learn how to use the liquidity pool of Uniswap to earn great benefits:
- To begin the procedure, begin by going to the “Pool” tab
- Now, select the option to “Add Liquidity”
- After this, you have to choose the option that you’d like to add liquidity to
- After selecting the tokens, select the number of tokens you want to add
- Review the details and click “Add liquidity”
- Adjust the gas fee and other settings and then click the option to add it
- Confirm the transaction by taking the necessary steps
Now that you have added your funds to the liquidity pool, you might be interested to know how to withdraw your funds from the liquidity pool. If that is the case with you, here is what you can do.
Withdrawing funds from Uniswap liquidity pool
Go to the main page of Uniswap exchange through the website or the app and follow the steps that are given below:
- To begin the procedure, go to the “Pool” tab on the Uniswap exchange
- Now, click on the token pair that you want to withdraw
- Thereafter, choose the option labeled as “Remove liquidity”
- Then, confirm your decision by tapping on the relevant option
- Finally, the Uniswap protocol will take action to complete the withdrawal
In this post, we have given a deep insight on how to use Uniswap exchange and make the best use of the “liquidity pool” feature available on it. If you follow the details furnished here in the correct sequence, you will be able to successfully swap supported cryptos on it. The users who have already gone through this post can start their trading journey on one of the most decentralized exchanges i.e. Uniswap exchange.