What is Uniswap?
Recently, more and more people are interested in the stock market and investing in cryptocurrencies. It sounds suspicious and uncertain to many, but a large part of the society decides to invest. No wonder - an additional source of income is always welcome, and according to many assurances, thanks to the stock exchange you can earn a lot with little effort. However, using the stock exchange can cause us some problems. For some, understanding the rules that apply to it can be a bit confusing. In addition, the registration and verification process on the stock exchange can be tedious and complicated. Another problem is hacking attacks that often happen across platforms. So how do you find an exchange that is safe and easy to use? Uniswap comes to our aid. What is this? Is this platform worth taking a look at? What are its advantages? About it below.
What is Uniswap?
It is a decentralized cryptocurrency exchange. Currently, Uniswap is considered the most popular exchange for Ethereum ERC-20 tokens. The platform was founded by Hayden Adams in November 2018. Tens of thousands of users use it every day. The stock exchange is operated by open source software. Uniswap uses a liquidity pool, which greatly improves the performance and flexibility of the platform. The stock market does not use the order book to determine the price. The entire process is based on the proportion of tokens in the liquidity pools. The platform also uses oracles to average information about prices. This makes them more reliable and makes them more difficult to manipulate. The fee for each transaction on Uniswap is 0.3%.
What is Uniswap characterized by?
Giedła Uniswap stands out from other platforms. Many people believe that Uniswap is the easiest to use of all exchanges. First, the platform does not require registration or verification. The entire transaction process is carried out on the basis of a short form that must be completed by the user. Another advantage of Uniswap is that our funds will be kept in the user's wallet, making the exchange safe for everyone. You can also trade any tokens that are based on Ethereum on this platform. The user decides which token to choose and then places it in the liquidity pools that determine if they are on the platform. There is no listing process or fee collection on Uniswap. Of course, not all trading pairs are available on the exchange, but Uniswap boasts a very wide selection. In total, it offers over 2000 of them.
How to trade on Uniswap?
Using the Uniswap exchange is very simple. If we want to start trading, we have to start by visiting the platform. There you must log in with the Metamask wallet. Once we connect it to the stock exchange, we can move on to trading. The entire process is based on completing a simple, short form. We start by selecting the token for which we want to make a purchase. Later, we need to define the quantities of stocks with which to trade. You have to fill in one field yourself and the other will be completed automatically. It is worth mentioning that on Uniswap the securities are bought from the liquidity pool and not from another user. At this stage, we can verify whether the given market price is actually favorable. If we want to make a transaction, click the swap button. A window will appear in your Metamask wallet confirming the transaction. This means that the coins are our property.
Uniswap - is it worth it?
The answer to the question is: absolutely! On the Internet you can find many positive opinions from satisfied users who have used Uniswap. They appreciate the platform primarily for its simplicity and security. While it may seem that the cryptocurrency exchange is something complicated, it really only takes a few clicks a day to trade Ethereum ERC-20 tokens in a quick and fun way. This enables a quick and hassle-free profit. Uniswap attracts more and more new users every day who appreciate the many advantages of this platform.
How to avoid failure by using Uniswap?
Despite proven effectiveness and numerous positive reviews, some Uniswap transactions may fail. Such chances are not great, but it is worth protecting yourself and minimizing the risk. To make sure that our transaction will not be rejected, it is good to minimize the interval between the clicking of the transaction and its execution on the blockchain. Thanks to this, we will not only be more sure that our transaction will be successful, but also reduce the risk of a large exchange rate change. However, it is worth remembering that the platform uses the Limit additional price slippage option, which helps to prevent transactions when there are sudden changes in the rate on the stock exchange. What's more, we can independently determine the value of the exchange rate change. By default it is 1%.
Attention! The above article neither in whole nor in part constitutes a "recommendation" within the meaning of the provisions of the Act of July 29, 2005 on trading in financial instruments or the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of April 16, 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6 / EC of the European Parliament and of the Council and Commission Directives 2003/124 / EC, 2003/125 / EC and 2004/72 / EC and Commission Delegated Regulations (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65 / EU of the European Parliament and of the Council as regards organizational requirements and operating conditions for investment firms and defined terms for the purposes of this directive. The content contained on the website does not meet the requirements for recommendations within the meaning of the above-mentioned act, incl. do not contain a specific valuation of any financial instrument, do not rely on any valuation method, and do not identify investment risk.