A guide to use Uniswap:
When Cryptocurrencies are entering into a commercial space. More people want to invest in Crypto market. In the Bitcoin Evolution system, popularity and benefits of this currency are already overtaking other currencies. Now, people are keen to know about the ways to invest in cryptocurrency. We all know, crypto exchanges are one of those ways. There are many options available and one of them is Uniswap.
Uniswap is a decentralised exchange built on the Ethereum Blockchain. This is used to swap crypto tokens without involvement of any middlemen. Instead, Uniswap uses smart contracts for execution of trade. This feature makes this platform interesting and reliable to use. Using Uniswap is not any tough ball to track. There are many ways to use this DEX. So, let’s get to know these ways.
How does Uniswap function?
As mentioned earlier, Uniswap is a decentralised exchange(DEX) based on Ethereum and has an open source protocol. Many other exchanges like Sushiswap and pancake swap are available which are not related to this. Sushiswap launched vampire attack whereas latter one offers Non fungible tokens. Both of these features are not provided by Uniswap. So, what does Uniswap provides.
Unlike others this DEX is based on Automated market maker (AMM). AMM facilitates a constant product formula which uses liquidity pools with a constant market maker model. Uniswap has three versions V1, V2, and V3. With upgrading versions, your chances of not losing on the liquidity pool increases. With each upgrade, Uniswap has become more profitable and user worthy.
Now, it is the time to know about using this platform.
How to use Uniswap?
After understanding the concept and working of Uniswap. It is important to understand how it works. There are mainly three ways to use Uniswap. You can use Uniswap on your mobile phone through Metatask, Coinbase, and Trust wallet.
- Steps to use Uniswap with metatask:
To use Uniswap with metatask, first download metamask on your mobile phone. After downloading Metatask , you need to create your account. While creating an account on metamask, you get a secret recovery code. You should keep this code safe, if you don’t want to lose your money. Anyone with this code can easily sweep your account. Coming on to the next step, move to Uniswap. Org and you will get a pink launch button. After clicking on this, you can connect your metatask wallet to Uniswap. While pressing the launch button, make sure to check the address.
To swap your token choose the token you want to swap and then the desired token. After entering the amount, click on “swap”. After all this, your swapping is done. Now, you can transfer your token to the metatask wallet.
- Steps to use Uniswap with Coinbase:
You can also use Uniswap with the Coinbase app. For this, first download the app, make an account to finish the sign up process. After adding the payment, you can start trading. To trade with Uniswap. Using Uniswap with Coinbase is similar to other Coinbase uses. This step is quite popular in the US.
- Steps to use Uniswap with Trust wallet:
To use Uniswap with Trust wallet, similarly like other methods. First start with downloading the app from the store. After completing the sign up process. You can choose the Uniswap protocol from Dapps explorer.
Pros and Cons of using Uniswap
As everything comes with a set of advantages and disadvantages. Same applies to the use of Uniswap. It has more pros or cons than negligible. Biggest drawback of this decentralised exchange is that you will only be limited to coins based on Ethereum Blockchain. As this exchange is Ethereum based, you will be missing some other popular coins like Bitcon.
Apart from this Cons, it offers many advantages for the users. Uniswap is a decentralised network which makes it more safe and secure. While transacting through this, you will get complete transparency. With all this, you will also get many Etheruem based Crypto options. All these make Uniswap a good option to try.
Concluding notes
This is all about Decentralised exchange, Uniswap. You must have got all your answers related to its concept, working and uses. This exchange has some really good Ethereum based tokens. As it is based on Ethereum Blockchain, it is safe, secure and transparent to use.
