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Although UNI – the primary token for Uniswap – has fallen in price over the past year, it is still one of the top 25 cryptocurrencies by market cap.
Crypto enthusiasts invest in Uniswap because it allows them to diversify their investments and get access to crypto assets. Learn how to invest in Uniswap to get started.
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Uniswap in the digital economy
Uniswap is a trusted decentralized financial exchange (DEX) that allows users to participate in the financial transaction of Ethereum-based tokens, ERC-20 tokens. It aims to provide users with permission-free access to financial services.
This crypto is based on the Ethereum (ETH) blockchain and uses smart contracts. Uniswap uses algorithms to create liquidity pools, pairs of ETH and ERC-20 tokens, which are then swapped and exchanged by traders.
Uniswap is primarily intended to facilitate trading in digital assets. Popular liquidity pools are ETH and Dai (DAI), ETH and Tether (USDT) or ETH and USD Coin (USDC). Participants who provide liquidity receive a share of the transaction fee for their contribution.
“Uniswap is the most successful decentralized exchange in the world, recently surpassing $1 trillion in cumulative trading volume,” said Dion Guillaume, global head of public relations and communications at Gate.io.
UNI, Uniswap’s native currency, was launched as a governance token. If you own UNI tokens, you can have a say in how the protocol runs and you can vote on network upgrades and policies.
“Owning UNI tokens gives you governance rights on the platform, which is another great benefit,” said Guillaume.
Where can I buy UNI?
UNI is widely used and can be purchased on various cryptocurrency exchanges. Here are some examples of places where you can trade US dollars or other fiat currencies for UNI:
Some exchanges list trading pairs: assets that can be traded against each other on an exchange. If you want to buy and trade UNI with Tether, a popular stablecoin, here are some exchanges that pair USDT with UNI:
How to buy Uniswap
Once you have weighed the pros and cons of investing in Uniswap and decided that you want to proceed with buying UNI, you can start buying tokens in just three steps:
1. Choose a crypto exchange
You can buy UNI with other cryptocurrencies through the Uniswap platform.
If you have never invested in cryptocurrencies or want to invest with fiat currency, you need to choose a cryptocurrency exchange. Exchanges are platforms that facilitate trading between users, and platforms can vary in terms of fees and features.
2. Buy UNI
Once you’ve decided on an exchange, you can add a payment method to fund your account. Most let you buy cryptocurrency with a bank account or debit card, and some even let you use credit cards.
Although you can buy UNI with a credit card, we strongly advise against it. That’s because credit card transaction fees on crypto exchanges are often high. Generally, when you use a credit card to purchase cryptocurrency, it qualifies as a cash advance and is subject to a higher interest rate than you pay for normal fees.
To buy Uniswap, go to the exchange’s trading platform and enter the ticker symbol UNI. Enter how many tokens you want to buy or enter the amount of money you want to invest.
You can usually choose between market orders and limit orders. Market orders are executed instantly at the best available price, while limit orders are only processed when the cryptocurrency hits a price you set.
3. Keep your UNI
If you buy UNI – or any other cryptocurrency – you need to conserve your holdings. Uniswap is decentralized and non-custodial, so you are responsible for storing and protecting your private keys. UNI can be stored in different ways:
- hardware wallets. Hardware wallets are physical devices that are disconnected from the internet or network and store your private keys offline.
- paper wallets. With a paper wallet, you can write down the keys or use an app to get a printed QR code to access your cryptocurrency.
- software wallets. Software or web wallets are connected to the internet but give you quick access to your cryptocurrencies.
- crypto exchanges. Some cryptocurrency exchanges like Coinbase store your cryptocurrency. However, they are generally less secure, so it is recommended to only store cryptocurrencies on them for a short time or a small amount.
Should you invest in UNI?
Although UNI is a popular form of cryptocurrency, you should proceed with caution. All cryptocurrencies are subject to volatility and you risk losing money.
“Because it’s a crypto asset, newbies who aren’t used to volatility shouldn’t invest more than they can afford,” Guillaume said.
Another way to get involved with cryptocurrency or blockchain technology is to invest in exchange-traded funds (ETFs), which invest in blockchain companies.
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