How to Buy Uniswap - Where to Purchase Uni?
Uniswap is one of the few emerging decentralised 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 blockchain project, Uniswap also has its own native token, UNI. At the time of writing this guide, the UNI coin is trading at $28.24 with a market capitalisation 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 how you can buy or trade UNI tokens. If you are new to crypto trading, go through the entire guide to develop a basic understanding.
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Why Trade rather than Buy Uniswap for Cheap and Fast Returns?
Crypto Wallet isn’t Needed:
When you trade Uniswap through a broker, you don't have to buy the cryptocurrency. What you do is speculate on the price. That's why you don't need to set up and manage a crypto wallet.
Support for Many Payment Methods:
Since the majority of the trading is done through cryptocurrency brokers, they offer a wide range of payment methods so you can choose the one that's best suited for you.
Quickly Place Buy and Sell Orders:
Since you aren't purchasing and storing tokens but simply betting on the price, you can open and close your trade orders in a quick and convenient manner.
What is the Easiest and Best Way to Buy? Compare the Top Uniswap Brokers
Before you can invest in Uniswap tokens, your first initiative should be to evaluate different broker platforms as they provide the quickest way to trade UNI coins. With a brokerage website, you can open and close your trades in a matter of minutes which gives you multiple opportunities to earn potential profit. But it is essential to assess the features of the broker so you can identify the one that meets your trading needs.
5 Things to Consider if you Want to Buy Uniswap
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.
1. Carefully choose your preferred secure payment method
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.
2. Will you need to set up your own wallet?
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.
3. Comparing costs
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.
4. Safety and security
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 decentralisation and peer-to-peer networking, which mean that your funds can’t be accessed or controlled by any single central authority.
5. Can you understand and navigate the platform?
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 buy 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.
Ultimate Beginner’s Guide to Trading Uniswap
What is a Uniswap Broker?
The cryptocurrency websites that enable you to speculate on the price of Uniswap coins or any other digital currency are called brokers or trading sites. As trading has become more and more popular all across the globe, broker services are being used everywhere to buy and trade UNI coins.
Although Uniswap is relatively a new digital currency, there are many brokers who offer the token. However, there are still some platforms where you cannot find Uniswap. That's why it is necessary for you to check whether your selected broker or exchange offers UNI trading or not.
What is a Uniswap CFD?
A contract for difference, more commonly known as CFD, is a derivative product that allows traders to bet on the price of Uniswap without buying the digital currency. With Uniswap CFDs, you can capitalise on short-term price volatility by opening and closing trade orders in a matter of just minutes or even seconds to generate profits.
The major advantage of trading Uniswap coins using CFDs is that they empower you to make a profit whether the price of the coin is going up or down. If you have bought UNI coins, you have no choice but to wait for the price to increase to earn financial gains. On the other hand, through CFDs, you can speculate that the price is going to increase or decrease, and the trade doesn’t require you to take custody of any actual cryptocurrency tokens. If your prediction turns out to be true, you earn a profit.
What is the Benefit of Uniswap Regulation?
Now that digital currency trading has gone mainstream and millions of people are getting into crypto, governments, as well as regulatory authorities around the world, are now implementing regulations to ensure consumer safety. While these regulations make you go through a few additional steps before you can trade, they also help brokers and exchanges secure your digital funds and personal information. The security afforded by regulations such as KYC (Know Your Customer) protocols is well worth the loss of privacy that is required.
What is the Best Payment Method for Buying Uniswap?
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 transfer 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.
The Verification Process for Trading Uniswap
When you are going to buy or trade Uniswap tokens, the first step will involve signing up on a broker or exchange website. This is where you will be asked to verify your identity. Brokers and crypto exchanges add this requirement to adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. You can use any government-issued documentation to verify your identity including your passport or driver's license. This may appear to be a bit inconvenient at first, but this step will also ensure the safety of your personal information and funds.
Uniswap: Long vs Short Term Investment
When we talk about short-term strategy, we are basically talking about trading. This is done by capitalising on the price volatility of UNI tokens and your trade orders don't last more than a few minutes. This provides you with a quick way to earn profits but it can also be quite risky. The advantages of trading or short-term strategy are that you don't necessarily have to buy physical tokens and you can bet on the price using CFDs, Options, and Futures. You are also not required to deal with a wallet.
A long-term strategy or investment is completely different from the short-term method. This involves buying physical Uniswap tokens in the form of private and public keys and storing them in your crypto wallet. When you have bought the coins, you wait for weeks, months, or even years to make a substantial profit on your initial investment. Needless to say, this strategy requires you to be quite familiar with the project you are investing in and the financial markets. The benefit of long-term investment is that you own the UNI coins and you can sell, spend, or store them the way you want.
Why Buy Uniswap rather than Trade?
Many traders who have just gotten into trading cryptocurrencies wonder if trading is more profitable or buying UNI coins. It is often a challenge for them to figure out which strategy would be more suitable for them. You have to remember that both buying and trading can be profitable but when you buy Uniswap coins, you have a few advantages as compared to trading.
One of the major benefits of buying Uniswap coins is that you actually own the private and public keys of those tokens and you can store, sell, and spend them the way you want at any time. This is usually done by long-term investors who hold their tokens for a period that can range from a few weeks to a few years.
Buying the coins outright also minimises the risk that comes with price volatility. When you are trading, quick price surges and dips can lead to substantial losses and you have no choice but to close the order to ensure you don't lose more. However, when you own the coins, you can simply wait for a time such that the price bounces back.
When you have Uniswap tokens in your own custody, you can exercise complete control over your funds. It wouldn't be truthful to say that broker and exchange wallets are insecure, however, they are far more vulnerable to data breaches and cyberattacks than your own software or hardware wallet. On the same note, sudden price surges and dips can result in poor accessibility to your coins. But if you have stored them in your own crypto wallet, you can get them any time you want.
What Fees are involved in Buying Uniswap?
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 fee, commissions, deposit fee, 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 fee may also charge withdrawal fee 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.
Safely Storing Your Uniswap
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 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 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 prioritise 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.
What Other Coins Can I Trade or Use to Buy Uniswap?
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.
What’s the Smallest and Largest Amount of Uniswap I Can Buy?
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.
Can I Buy Uniswap Anonymously with no ID? Is it Safe and Legal to Buy Uniswap?
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 buy Uniswap coins anonymously, we recommend that you assess your chosen crypto platform comprehensively to ensure they are a legitimate business. This way you can minimise 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.
Will Buying Uniswap Make Me Money?
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 reading 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.
How to Spend your Uniswap
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.
How to Sell your Uniswap
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.
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Frequently Asked Questions
Uniswap was created by Hayden Adams who is one of the leading Ethereum developers.
Uniswap is a project with a real-life application. It exists to provide liquidity to users to empower decentralised finance (DeFi). That’s why there is definitely a lot of upside potential.
Unfortunately, no. You can only buy Uniswap or trade tokens using a broker or exchange.
Uniswap is governed by the contributors who stake their UNI tokens.
This depends on the country of your residence. Before you invest in any digital currency including Uniswap, we recommend that you check your country’s laws.
Just like any other digital currency, Uniswap is also impacted by market dynamics, for instance changing supply and demand.
The main objective of the Uniswap network is to deliver liquidity to DeFi users. That’s why it’s not aiming to become a major payment network.
Once again, this also depends on the tax laws of the country you live in. Check with your local financial and/or fiscal authorities.