The decentralized finance or DeFi movement has been heating up faster than the surface of the sun as of late, with one of the more popular protocols being Uniswap. A lot of people, understandably, aren't keen on missing out on another potential unicorn. So you, the reader, might just be asking the same question; what do you need to know on how to buy Uniswap, and why does it matter?
Let's answer the latter question right off the bat first, shall we? Uniswap is one of the most popular DeFi protocols at the moment and is certainly the largest among those built on and powered by the Ethereum blockchain. Uniswap is a decentralized exchange, whereas the name suggests – you can swap or exchange from a choice of over 8,000 different trading pairs – and it does this in a completely decentralized manner.
Unlike centralized cryptocurrency exchanges that we might've become used to, there's no central authority to keep hold of your tokens or to control the exchange itself. Everything is governed by the blockchain, without even an old-fashioned order book to trade against. For a whole new economy created over the principles of decentralization, it looks like Uniswap will have a huge part to play in it. So, read more on our how to buy Uniswap guide here to learn exactly how to do so.
Where to Buy Uniswap – Top 5 Exchanges
Naturally, the best possible place to buy Uniswap's UNI tokens is through its own decentralized exchange platform. It is both easy to use and has good liquidity for its native tokens, albeit the trading there is more volatile. However, at the time of writing this how to buy Uniswap guide, they do not yet support the easy purchasing of cryptocurrencies using fiat and instead require you to deposit from a select number of digital tokens.
This can make it harder for more casual users or newcomers to buy into Uniswap's UNI tokens on their decentralized exchange. This is especially true if they've not yet become accustomed to cryptocurrency trading or know how Uniswap's automated market maker (AMM) system works. However, Uniswap's native cryptocurrency is highly popular and is thus easy to acquire at some of the more mainstream marketplaces.
They might be centralized, but they are very popular and are the world's most widely used cryptocurrency exchanges. Moreover, these exchanges allow you to easily make deposits and purchases easily using regular fiat currencies through easy options such as using your credit or debit card. You can always use sites like CoinMarketCap, or CoinGecko to find a comprehensive list of all the cryptocurrency exchanges that list Uniswap's UNI tokens.
However, to better help you along with our how to buy Uniswap guide, we've listed the top five exchanges that we highlyr ecommend, based on their ease of use, security, liquidity, features, and overall experience.
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A Step-By-Step Guide on how to Buy Uniswap
Now that we've taken a peek at some of the most popular exchanges that have listed Uniswap's UNI tokens, it's time that we guide you more precisely on the step-by-step methods that you need to go through in order to buy UNI. Of course, there are a wide variety of ways on how to buy Uniswap, and each path depends entirely on the exchange you're choosing, the deposit or payment methods you've preferred, and so on.
For today's how to buy Uniswap guide, however, we're going to make our demonstration using Binance. This is simply due to Binance's status as the world's most popular and widely used cryptocurrency exchange. It has many features and options for exchanging fiat into cryptocurrencies, such as Uniswap. Moreover, it has a high amount of liquidity for Uniswap's native crypto, accounting for more than 10% of the global trading volume for UNI tokens.
We hope that our example here using Binance will help give you a better idea of how to buy Uniswap, regardless of whichever exchange you're using.
Step 1: Registering and Setting up an Account on Binance
The first hurdle to get through before we can buy, or do anything on Binance, is registering for an account. It starts by heading over to Binance's website. Here, we need to make sure that you are properly logged onto the correct URL for Binance's exchange, as there are many malicious actors that often try to emulate legitimate sites. Fake sites can often look very similar, if not identical, to a legitimate site.
The easiest tell-tale sign that a site is not legitimate is simply by checking the URL for any spelling errors. If it says “binnance.com” or any other such minor and peculiar variation, then you know that this site is not the real Binance. You can very easily use the links we've provided earlier during our comparison for the top five exchanges on how to buy Uniswap. Now, simply click on the yellow ‘Register' button along the top right-hand side.
Follow along with the simple on-screen instructions, and sign up using your email or phone number. It's very easy, and we recommend using a strong password. You can register for an account on Binance using either their website or their mobile applications for Android and iOS. Another thing to note; unlike opening an account at a bank that requires a small deposit, Binance – or any other cryptocurrency exchange – is free to set up an account.
Step 2: Complete Registration Process and Account Set-Up on Binance
After going through the initial set-up process, Binance will require you to verify your identity simply by sending over an authentication link to your email address. Clicking on that link should complete the set-up for your account on the Binance exchange. Before we carry on with our how-to buy Uniswap guide, we highly recommend that you go to your account settings and have 2-factor authentication (2FA) turned on.
You can then use authenticator apps, such as Google's Authenticator, to easily set-up 2FA with Binance. Although this is an optional step, it is essential to protect your account and to lock it down to ensure that it's harder for third parties such as hackers to break into and steal your cryptocurrency holdings. You'll then be prompted to use 2FA for actions such as logging into your Binance account or withdrawing funds.
This makes sure that you and only you can approve that these actions take place. Another option would be to get your account verified by sending over personal details, such as your personal ID or driver's license. This is only necessary if you're planning to gain additional access to other services within Binance or if you're planning to trade large volumes. For our how to buy Uniswap guide, this is not a necessary step.
Step 3: Deposit Funds into your Binance Account Wallet
Next up in our how to buy Uniswap guide, we now need to start depositing some funds into your Binance account. This is made to be done just as easily as trying to deposit money into your bank account. Binance offers a wide variety of deposit options, bank transfers, using your credit or debit card, PayPal, Western Union, or simply deposit other cryptocurrencies.
For our how to buy Uniswap step-by-step review on Binance, we'll be taking a look at two of the more popular deposit options. Firstly, we'll be looking at how to deposit fiat currencies and turn them into cryptocurrencies. Then, we'll look into how to deposit cryptocurrencies straight into Binance.
Step 4: Deposit Fiat Currencies into your Binance Account
As of the time of writing this how to buy Uniswap guide, Binance does not yet have support for the immediate or direct purchase of UniSwap cryptocurrency tokens using fiat. So, this means that we have to first buy a different cryptocurrency using the available fiat currency options. Then, we'll have to convert those cryptocurrencies into Uniswap.
Firstly, log into your Binance exchange account, and hover your cursor over the ‘Buy Crypto' tab on the top left-hand side. Under the option that says, ‘Pay With,' you can cycle between a select number of supported fiat currencies, such as the USD, EUR, GBP, and more. This is important, as the type of fiat currency you choose will determine what options are made available to you in order to buy cryptocurrencies.
You can also make deposits from the ‘Wallet' page on your Binance account. For example, if you choose to deposit with US Dollars (USD), then you can choose a SWIFT bank transfer. Or, you could use your VISA or Mastercard credit or debit card. There are also other options, such as peer-to-peer cryptocurrency trading. This means that you will be trading directly with other persons on the Binance network.
Those options will allow you to use fiat currencies to directly make a purchase of a select number of cryptocurrency tokens, which you'll then exchange for Uniswap. This includes well-known tokens such as Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), or stablecoins like Tether. Although, if your intentions are to immediately swap all those tokens for Uniswap's UNI, then it's safer to use a non-volatile stablecoin such as Tether (USDT).
Step 5: Deposit Cryptocurrency Tokens into your Binance Account
Instead of using fiat currencies, maybe you'd prefer to cut down on the hassle and choose to deposit with cryptocurrencies into your Binance wallet. This is a much simpler solution, and cheaper too, as you won't be needing to pay fees when buying a cryptocurrency using fiat. Log into your Binance account, hover over the ‘Wallet' tab on the top right-hand side, and click on ‘Overview.'
This will direct you to a page that will show the overall view of your Binance wallet. Along the top of the overview page, you will see a yellow tab that says, ‘Deposit.' Click this, and Binance will prompt you on which cryptocurrency you'd like to deposit into your wallet. There are a few things to take note of here while you're depositing with cryptocurrencies – the type of cryptocurrency, the address, and additional tags.
For our how to buy Uniswap guide here today, let's take a Bitcoin deposit as an example. If you'd like to deposit Bitcoin into your Binance wallet, you'll be required to select ‘Bitcoin' under the cryptocurrencies options list. Be sure to double-check this. To receive a Bitcoin deposit into your Binance wallet, you will have to withdraw Bitcoin from another account elsewhere.
For example, if you withdraw Ethereum and deposit it into a Bitcoin address, that Ethereum might be lost and cannot be retrieved. Next, you'll need to get the deposit address correct. You can easily copy and paste the deposit address on Binance to your withdrawal procedures elsewhere on a different account or wallet. Cryptocurrency addresses are always long and comprise a mixture of letters, numbers, and symbols.
Double-check once you've copied the address over, as a single missing character could risk you losing your transfer. Or, to make things easier, you can use the QR code. For instance, if you are trying to deposit Bitcoin using a mobile wallet app on your phone, simply choose to withdraw using a QR code, and scan the QR code that you see on Binance.
You could also choose which blockchain network you might want the transfer to be verified with, and it will then vary in terms of how much fees you have to pay depending on congestion on those networks. This will also affect the confirmation times for you to receive your Bitcoin on Binance. The choices vary depending on which cryptocurrency you're planning to deposit with. Binance will make this clear to you on the deposit page.
There are other pieces of information that you need to get right, too. Depending on the cryptocurrency, you might need additional tags, such as a ‘MEMO' or Payment ID. Whenever you're trying to withdraw said cryptocurrency, it will prompt you, just as well as Binance, through its deposit page. The same process applies here; simply copy over the corresponding information and double-check. Now, wait until the transaction has been confirmed.
Step 6: Exchanging Cryptocurrencies for Uniswap
By now, you already have some cryptocurrencies in your Binance account wallet, either by having deposited tokens directly into your wallet or having purchased them with fiat currencies. In this step of our how to buy Uniswap guide, we can exchange those tokens with UNI. The process here is equally simple, and there are several options for you to proceed with. Go back to the main Binance homepage, and hover over the ‘Trade' tab on the top left-middle.
You can see five distinct options here; Convert, Classic, Advanced, Margin, and P2P. The easiest method for buying Uniswap is to ‘Convert' from one cryptocurrency to another, using Binance's specialized over-the-counter (OTC) service. This is the simplest and most hassle-free way to convert or swap tokens on Binance. The easy conversion service is only made available to a select number of cryptocurrencies at the time being.
Thankfully, Uniswap's UNI tokens are among those supported tokens. You don't have to worry about trading fees or matching your trade with the order books. However, you also do not have any control, as the whole process is done automatically and without needing much input from you. Luckily, Binance offers more comprehensive services where you can have more control.
The ‘Classic' tab will take you to a more traditional marketplace, where you can see graphs, charts, an order book, and a list of parameters that you can choose and set. Although you can easily buy UNI tokens using the Convert feature, the ‘Classic' trading service is an option if you'd like more control, such as setting your preferred buying price relative to the market. There are also options to buy automatically according to the market price, similar to how ‘Convert' works.
Best Wallets to Hold Uniswap
This concludes our step-by-step guide on how to buy Uniswap's UNI tokens on Binance. We hope that you've been able to learn more about how to buy Uniswap, regardless if you're using Binance or otherwise. Next up in our how to buy Uniswap guide, we'll also be helping you to understand more about the proper storage methods for your newly-bought UNI cryptocurrency tokens.
History has taught us rather painfully that holding your cryptocurrencies online, stored openly on your exchange account, isn't the safest or smartest way to lock down your precious tokenized assets. According to a report by ZDNet, there has been a total of more than $3.8-billion worth of cryptocurrencies stolen in 2020 alone, across 122 separate cybertheft and hacking attempts.
Even state hackers sponsored by North Korea have also participated in stealing cryptocurrency holdings as a way of funding their nuclear weapons program. Therefore, it's best for us to learn from these mistakes and not add even more losses to the statistic or allowing for criminals to fatten up their pockets with our hard-earned money. The best way we can go about this is to set up a dedicated cryptocurrency wallet for your Uniswap UNI tokens.
These dedicated wallets are like vaults and are designed to be more robust against theft. The most popular types are software-based hot' wallets or hardware-based ”cold' wallets. Furthermore, some of these wallets even have extra features baked in, such as allowing you to stake tokens for earning passive rewards. For our how to buy Uniswap guide, we've chosen some of the best wallets to store your UNI cryptocurrencies safely with.
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|Atomic Wallet||Rating: |
More Information about Uniswap
Uniswap is among some of the older and original decentralized finance (DeFi) protocols in existence, having been founded in 2018. It was built on the Ethereum blockchain and had financial backing and developmental support from the Ethereum Foundation itself. Uniswap is a decentralized cryptocurrency exchange (DEX), allowing the non-custodial trading of cryptocurrency tokens using its own automated market maker (AMM).
Although Uniswap is not the first to have adopted the AMM model, it was responsible for bringing it to mass attention and has since seen massive growth along with Uniswap's continued adoption. At the time of writing this how to buy Uniswap guide, Uniswap's decentralized exchange has seen more than $100-billion worth of trading volume in its lifetime, powered by over 72,000 Liquidity Providers and with more than 29,000,000 total trades.
It remains to be a highly popular exchange for many DeFi protocols and users to swap and exchange various tokens. An automated market maker is different from a traditional order book exchange. Ordinarily, one will have to trade against an order book, thus having to match their buying or selling prices depending on those set and offered by other traders. With an AMM, there is no order book, and users will not have to trade against other users.
Instead, network participants can pool together their tokens for a selected trading pair. From here, the algorithmic model within Uniswap's automated market maker will select a pricing model automatically. This will vary depending on the supply, demand, and overall market volatility. This allows for an exchange to stamp out large spreads in buying or selling prices that often plague order book-type marketplaces, especially around more illiquid assets.
The pool that assets are traded with are called Liquidity Pools, and users who choose to pool their assets inside of a liquidity pool are called Liquidity Providers. Liquidity Providers (LP) can then earn a portion of the fees that are rewarded from the swapping of tokens from their respective liquidity pools. The native cryptocurrency token of the Uniswap network is UNI and is primarily used as a voting tool in order for holders to maintain governance over Uniswap.
Since its early inception in late 2020, UNI's price appreciation has seen a massive spike. As of this how to buy Uniswap guide, one UNI token is worth $20.96, which is a whopping 4,903.29% gain from its all-time low of $0.4190 in September 2020. It currently has a circulating supply of 301,233,344 UNI, out of a 1,000,000,000 UNI in total. This gives it a market cap value of $6,314,960,164, making Uniswap's UNI token the 15th-most valuable cryptocurrency.
How to Buy Uniswap – Conclusion
We've now come to the conclusion of our how to buy Uniswap guide, and we hope you've been able to learn the right methods of buying this awesome little cryptocurrency. We also hope that you've been able to learn more on the right ways of keeping your newly bought UNI tokens safe and have learned a thing or two about the Uniswap project as a whole. Overall, there's a very strong promise and a good future waiting for Uniswap.
There's always room for improvement, and the old way of doing things may not always last forever. Uniswap's decentralized exchange and its innovative automated market maker system are showing the way forward for how marketplaces will look in the years to come. With Uniswap and the wider DeFi revolution, you are the bank, and you control everything that you own. That, I'm sure, is a very good future to look forward to.