How to Buy Uniswap (UNI)
Beginner’s Guide
What Is Uniswap (UNI)?
Uniswap is a popular decentralized trading protocol, known for its role in facilitating automated trading of decentralized finance (DeFi) tokens.
An example of an automated market maker (AMM), Uniswap launched in November 2018, but has gained considerable popularity this year thanks to the DeFi phenomenon and associated surge in token trading.
Uniswap aims to keep token trading automated and completely open to anyone who holds tokens, while improving the efficiency of trading versus that on traditional exchanges.
Uniswap creates more efficiency by solving liquidity issues with automated solutions, avoiding the problems which plagued the first decentralized exchanges.
In September 2020, Uniswap went a step further by creating and awarding its own governance token, UNI, to past users of the protocol. This added both profitability potential and the ability for users to shape its future — an attractive aspect of decentralized entities.
How to Buy Uniswap Summary
- Get a Uniswap wallet (e.g. Ledger, Trezor , Exodus, Guarda, AtomicWallet)
- Find an exchange that sells Uniswap (e.g. Crypto.com, Binance , Coinbase , Bitfinex , Kucoin)
- Deposit money and make the trade
- Withdraw the Uniswap to your wallet
Buying Uniswap in 3 Simple Steps
Step 1 – Get a UNI wallet
Uniswap Hardware Wallets
Uniswap is a decentralized cryptocurrency exchange that allows users to trade cryptocurrencies without the need for a centralized authority. It operates on the Ethereum blockchain and is one of the most popular decentralized exchanges.
Hardware wallets are physical devices used to store cryptocurrencies securely. They are considered to be the most secure way of storing cryptocurrencies as they are not connected to the internet and cannot be hacked remotely.
It is recommended to use a hardware wallet when trading on Uniswap or any other decentralized exchange. By using a hardware wallet, you can keep your private keys offline and away from potential hackers.
There are several hardware wallets that support Ethereum and ERC-20 tokens, which are the types of tokens that are traded on Uniswap. Some of the most popular hardware wallets include:
- Ledger Nano S and Ledger Nano X
- Trezor Model T
- KeepKey
- BitBox02
To use a hardware wallet with Uniswap, you need to connect your wallet to a compatible web3 wallet such as MetaMask or MyEtherWallet. Once connected, you can access your funds on Uniswap and trade cryptocurrencies securely.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
Uniswap Software Wallets
Uniswap is a decentralized cryptocurrency exchange that allows users to trade cryptocurrencies without the need for a centralized authority. It operates on the Ethereum blockchain and is one of the most popular decentralized exchanges.
Software wallets are digital wallets that store your cryptocurrencies and are accessed through software applications. They are convenient and easy to use, but they are considered less secure than hardware wallets.
There are several software wallets that support Ethereum and ERC-20 tokens, which are the types of tokens that are traded on Uniswap. Some of the most popular software wallets include:
- MetaMask
- MyEtherWallet
- Trust Wallet
- Coinbase Wallet
- Exodus Wallet
To use a software wallet with Uniswap, you need to connect your wallet to a compatible web3 wallet such as MetaMask or MyEtherWallet. Once connected, you can access your funds on Uniswap and trade cryptocurrencies securely. However, it is important to note that software wallets are more susceptible to hacking and security breaches, so it is recommended to only store small amounts of cryptocurrencies in software wallets and to always keep your private keys safe and secure.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Uniswap software wallets to get started with are undoubtedly Exodus, Atomic Wallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Step 2 – Find an Uniswap (UNI) Exchange
Buy Uniswap through Crypto.com
- Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos. The company was initially founded in Hong Kong by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in 2016 as “Monaco”. In 2018, the company was renamed as Crypto.com following a purchase of a domain owned by cryptography researcher and professor Matt Blaze. Domain sellers valued the domain at US$5–10 million.
Buy Uniswap through Binance
- Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
Buy Uniswap through Coinbase
- Coinbase is a convenient and cheap way to buy Ethereum and the platform is open to 200+ countries). Coinbase will sell you CRO for a variable fee that depends on your payment method (credit cards have a higher fee than wire transfers), order size and market volatility. Here’s how you buy Ethereum on Coinbase: Open a Coinbase account Add your payment method (Credit card or bank account) Go to “Buy/Sell” and select the amount of Ethereum you desire Click “Buy Cronos”
Buy Uniswap through Bitfinex
- Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc registered in the British Virgin Islands.Their customers’ money has been stolen or lost in several incidents, and they have been unable to secure normal banking relationships. Bitfinex was founded in December 2012 as a peer-to-peer Bitcoin exchange, offering digital asset trading services to users around the world. Bitfinex initially started as a P2P margin lending platform for Bitcoin and later added support for more cryptocurrencies.
Buy Uniswap through Kucoin
- Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.
Step 3 – Withdraw Your Uniswap
Once you decide on an exchange, open an account and buy your Uniswap . Make sure to withdraw the Uniswap from the exchange to your personal wallet.
Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past) and always double check address before send coins because you can send the coins to wrong address .
Overview
Who Are the Founders of Uniswap?
Uniswap came about as a plan to introduce AMMs on Ethereum to a wider audience. The platform’s creator is Ethereum developer Hayden Adams.
Adams worked in various projects while finalizing Uniswap, and his work was informed directly by Ethereum creator Vitalik Buterin. Buterin even ended up giving the protocol its name — it was originally known as Unipeg.
Adams has also said that the original inspiration for the Uniswap platform came from one of Buterin’s own blog posts. His original idea to focus on Ethereum came after a friend convinced him to begin researching and understanding the protocol in 2017.
Uniswap DAO
The Uniswap DAO has over 310,000 members that can vote over the $1.6B treasury, governance and roadmap of the DEX by holding UNI governance tokens. Any UNI holders can submit a proposal, however it must garner up to 25,000 yes-votes before it can be eligible for further deliberation. The next phase is the consensus check, where the proposer has to highlight the core changes and garner at least 50,000 yes-votes. Finally, the governance phase has to attract 40M yes-votes for the proposal to be adopted. Uniswap was the most dominant DEX in 2021 in terms of trading volume, and the top ranked DAO in terms of the amount held in the treasury. However, it is currently ranked second, behind BitDAO — a DAO focused on funding and investing in emerging crypto projects. Check out our deep dive on Uniswap DAO and other top DAOs and how their governance systems work.
What Makes Uniswap Unique?
Uniswap is a decentralized cryptocurrency exchange that operates on the Ethereum blockchain. It has gained significant popularity due to its unique features, which differentiate it from traditional centralized exchanges and other decentralized exchanges. Here are some of the key factors that make Uniswap unique:
Decentralized: Uniswap is a fully decentralized exchange, which means that it operates without the need for a central authority. This makes it censorship-resistant, transparent, and open to anyone with an internet connection.
Automated Market Maker (AMM) Model: Uniswap uses an AMM model, which means that there is no order book or central matching engine. Instead, liquidity providers deposit funds into a pool and earn a portion of the trading fees based on their share of the pool. This creates a constant and automated market for traders to exchange cryptocurrencies.
Permissionless: Uniswap is permissionless, which means that anyone can create a new market for any ERC-20 token without seeking approval from a central authority.
Gas Efficiency: Uniswap is designed to be more gas-efficient than other decentralized exchanges. This is achieved by using a constant product formula for determining the price of assets in a liquidity pool, which reduces the number of transactions needed to trade.
Community Governance: Uniswap is governed by its community of users who hold UNI tokens. These token holders have the power to vote on proposals and changes to the protocol, making it a truly decentralized and community-driven platform.
Overall, Uniswap’s decentralized, permissionless, and community-driven approach, combined with its innovative AMM model and gas efficiency, has made it one of the most popular and unique cryptocurrency exchanges in the world.
Uniswap Acquires NFT Aggregator Genie
Uniswap are preparing to take the next step in their journey to become a one-stop shop. The recent acquisition of NFT aggregator and marketplace Genie — through Uniswap Labs — aims to help the exchange’s users unlock universal ownership. Integrating non-fungible tokens into the Uniswap product line could be seen as an intriguing development. Users will see this feature roll out in the web application, with developer APIs and widgets to follow later.
Genie is an NFT marketplace aggregator helping users discover, buy and sell non-fungible tokens (NFTs) across multiple marketplaces. Additionally, users can buy NFTs across multiple marketplaces through one transaction, significantly reducing their gas fees.
There are plans of Uniswap to offer a USDC airdrop to early adopters of the Genie platform, slated to take place in August 2022. Any user who used Genie at least once — or owned a Genie Genesis NFT by April 15 — should be eligible for this upcoming airdrop. This airdrop will last for 12 months, giving eligible users ample time to claim their rewards.
Furthermore, the Genie platform will remain accessible to users until the Uniswap NFT experience rolls out. Uniswap’s team acknowledges that NFTs remain an “important web3 gateway” for crypto enthusiasts and mainstream users. Applying their DeFi knowledge to NFTs can potentially help bring digital ownership and value to a bigger audience.
It is not Uniswap’s first venture into the NFT space, either. In 2019, the team launched the limited-edition Unisocks collection, providing NFT liquidity pools backed by real-world assets. Additionally, Uniswap Labs continues to work on Uniswap v3 NFT positions to further advance on-chain generative SVGs.
How Many Uniswap (UNI) Coins Are There In Circulation?
The total supply of Uniswap’s governance token, UNI, is 1 billion units. These will become available over the course of four years, after which Uniswap will introduce a “perpetual inflation rate” of 2% to maintain network participation.
Token distribution currently consists of the following: 60% to Uniswap community members, i.e. users, 21.51% to team members, 17.8% to investors and 0.69% to advisors. The latter three distributions will occur according to a four-year vesting schedule.
Out of the majority set to go to users, 15% can be claimed by those who used Uniswap prior to Sep. 1, 2020. These even include users who submitted transactions which were never successful — they are eligible for 400 UNI.
The UNI token serves the purpose of enabling shared community ownership in the growth and development of the decentralized protocol. This allows UNI holders to participate in the governance of the Uniswap protocol and wider ecosystem, in a neutral and trustless manner. The success and adoption of Uniswap products will positively impact Uniswap price, hence incentivizing token holders to contribute to the self-sustaining development of the ecosystem.
Four years after the UNI token launch, in September 2024, a perpetual inflation rate of 2% annually will take effect. This is to ensure that participation in the Uniswap ecosystem continues, by disincentivizing passive holders.
How Is the Uniswap Network Secured?
Uniswap is a decentralized protocol for trading, and UNI is its in-house governance token. UNI is an ERC-20 token, meaning it requires Ethereum to function.
ERC-20 merely defines a set of rules for tokens, as well as security considerations mainly related to the strength of the Ethereum network. For example, congestion can hike the price of gas needed to perform transactions, leading to delays and abnormally high transaction fees, which impact all participants.
Separately, smart contracts can cause security issues that could lead to DeFi traders losing funds; in fact, hackers have already succeeded in stealing millions of dollars in DeFi’s short lifetime as of September 2021.
Where Can You Buy Uniswap (UNI)?
Uniswap (UNI) is a cryptocurrency that can be bought and sold on various cryptocurrency exchanges. Here are some of the most popular exchanges where you can buy UNI:
Binance: Binance is one of the largest cryptocurrency exchanges in the world and offers a wide range of trading pairs, including UNI/BTC, UNI/ETH, UNI/USDT, and UNI/BUSD.
Coinbase: Coinbase is a popular cryptocurrency exchange in the United States that offers UNI trading pairs, including UNI/USD and UNI/BTC.
Kraken: Kraken is a popular cryptocurrency exchange that offers UNI trading pairs, including UNI/BTC, UNI/ETH, and UNI/USD.
Huobi: Huobi is a popular cryptocurrency exchange that offers UNI trading pairs, including UNI/BTC, UNI/ETH, UNI/USDT, and UNI/HUSD.
Bitfinex: Bitfinex is a cryptocurrency exchange that offers UNI trading pairs, including UNI/BTC, UNI/USD, and UNI/ETH.
It’s important to note that the availability of UNI trading pairs may vary from one exchange to another, so it’s important to research and compare different exchanges before making a purchase. Additionally, it’s important to always store your UNI tokens in a secure wallet, either a hardware wallet or a software wallet that you control the private keys to.