Skip to content

Is Uniswap Easy To Use (Beginner’s Guide)

  • by

If you’re getting started on decentralized exchange platforms, you may have already run into Uniswap.

Uniswap is one of the largest DEX ecosystems, with over $1.1 Trillion in trade volumes since inception.

With so much value traded, is Uniswap good for beginners?

Read on to find answers to this question and more below.

Is Uniswap Easy To Use?

Uniswap is an easy-to-use decentralized exchange platform (DEX). To transact on Uniswap, all you need is an ERC20 token and a crypto wallet that supports them.

Your ideal wallet for Uniswap would either be MetaMask, Coinbase Wallet, Fortmatic or WalletConnect

What Is The Advantage Of Using Uniswap?

There are plenty of advantages if you want to use Uniswap. Let’s explore some of them.

Easy-to-Use Interface

Uniswaps excellent user interface propelled it to what it is today. Unlike most other DEXes , Uniswap provides an intuitive platform that most users get accustomed to easily. You can connect your crypto wallet and exchange tokens without much hassle.

Swaps all ERC-20 tokens

With Uniswap, you can trade and exchange many crypto assets. You can swap any token built on the Ethereum ecosystem and the ERC-20 standard. 

Learn more about how Uniswap and ERC-20 relate in our guide.

Great Liquidity

There’s plenty of liquidity on the Uniswap DEX. At the time of this writing, Uniswap has the largest liquidity pool per total value locked in crypto funds.

That allows you to participate on the Uniswap network as a trader, a liquidity provider or both. Since Uniswap is an Automated Market Maker, high liquidity means a larger volume of transactions at faster speeds.

Collect Rewards for Staking Cryptocurrency

Whenever you provide liquidity by staking your ETH and ERC20 tokens on Uniswap, you make it easy for other participants to transact. All investors staking tokens on Uniswap form a liquidity pool and receive rewards to encourage them to stake more. 

Learn more: Is Uniswap Proof Of Stake?

Multi-wallet Support

You can connect any Ethereum crypto wallet to the Uniswap platform. Examples of wallets you can connect to Uniswap include; Coinbase Wallet and MetaMask. 

Lack of KYC

Uniswap does not require you to create an account to trade, swap or stake your crypto assets. Its lack of a KYC keeps your transactions anonymous and safe from prying eyes.  

Uniswap is an excellent option for investors seeking anonymity.  

What Are The Downsides?

Like all technologies, Uniswap has a few disadvantages, including:

High Gas Fees

Since Ethereum hosts all ERC20 tokens, you may incur high gas fees across the platform when there’s high activity on the network.

Uniswap charges a small fee on transactions for its users. As gas fees increase, so does the cost of swapping. Some tokens on the Ethereum blockchain charge under 5%, while ETH can reach up to 30%. You’d need to trade a large number of tokes to make larger savings

Yet to Accept Fiat Currency

As of this writing, Uniswap only supports swapping crypto tokens. It also requires you to have cryptocurrency assets in your wallet before trading on their platform. That makes it impossible to buy crypto with fiat currency on the Uniswap network.

Exposure to Temporary Loss when Staking

Staking crypto on Uniswap gives excellent rewards from providing liquidity. But, cryptocurrencies are highly volatile assets.

Any slump in the market value of ETH or ERC20 tokens means your staked assets lose value also.

When Should You Use Uniswap?

Uniswap is an excellent DEX for trading, staking and swapping ERC20 tokens to compatible crypto wallets. Here are some reasons for using it:

Trade Cryptocurrency

The Uniswap platform offers a straightforward way to trade ERC20 tokens. It’s a great way to make an entry into the world of cryptocurrency.

You don’t need to create a new account to use it. A lack of KYC data lets you have a smooth time interacting with the Uniswap interface.

Diversification

Uniswap allows you to get into crypto trading without buying any specific token. You can also use Uniswap to change your initial token to a more valuable token.

If you want to spread your risk across different assets, you can buy the ETH token and switch it to any ERC-20 token.

Bulk Transaction

Uniswap isn’t just a tool for newbies. As a proficient crypto trader looking to trade large sums of cryptocurrency, you will find Uniswap useful. Today, you can move over $2000 worth of tokens at once with ease. 

Privacy

Although most crypto transactions are anonymous, Uniswap offers you extra privacy by letting you trade and swap tokens without leaving your data on the platform. 

How Do You Use Uniswap For The First Time?

There’s an independent Uniswap application in the market. And you can use the exchange via other wallets.

The most popular ways to use Uniswap are the MetaMask wallet, Coinbase wallet, and Trust Wallet. These wallets offer a mobile application, a browser extension, or both.

Let’s see how to use Uniswap.

How to Use Uniswap with Coinbase Wallet

  • Open your Coinbase account.
  • Connect your debit or credit card as your payment method.
  • Buy yourself some Ethereum token.

After acquiring your ETH, you can use either of the following two ways to connect your Coinbase wallet to Uniswap.

Mobile Application

  • Get the Coinbase Wallet app and the Coinbase app. You need both because Coinbase, as a centralized exchange, uses a separate app from its wallet app.
  • Go to the settings section.
  • Choose and click the ‘Connect to your Coinbase account.’
  • Open the Coinbase app after connecting to the Coinbase wallet app.
  • Pick among the ERC-20 token and trade, swap, or stake.

Desktop Application

  • Visit MetaMask‘s website.
  • Download the MetaMask browser extension
  • Click on the ‘Connect’ button on the Uniswap platform.
  • Take a copy of your wallet address.
  • Open a new tab of your Coinbase account and log in.
  • Choose your ETH wallet.
  • Set the crypto amount you wish to trade.
  • Paste the copy of your wallet address into the receiving address section.
  • After moving the ETH to your MetaMask wallet, you’re free to trade among the ERC-20 tokens.

As a crypto investor, you should know that Coinbase doesn’t let you control your wallet’s private keys.

You can use Enjin or MetaMask, which are more secure where you have full ownership of your private keys. 

Final Thoughts

Uniswap is easy to use, even for beginners. It supports both ETH and ERC20 tokens, which you can swap, trade or stake to provide liquidity to the Uniswap network. You don’t need to sign up or set up an account to get started.