Uniswap (UNI) is well off its all-time highs from 2021, but it’s still one of the top 25 cryptocurrencies based on market capitalization. Crypto enthusiasts like Uniswap because it allows them to diversify their investments and get exposure to crypto assets via a decentralized platform.
Uniswap in the Digital Economy
Uniswap is a trustless, decentralized financial exchange (DEX) that allows users to participate in the financial transaction of Ethereum-based tokens, ERC-20 tokens. It’s aimed at giving users permissionless access to financial services.
This crypto is built on the Ethereum (ETH) blockchain, using smart contracts. Uniswap creates liquidity pools, pairs of ETH and ERC-20 tokens via algorithms, which are then swapped and exchanged by traders.
Uniswap is primarily to facilitate trading of digital assets. Popular liquidity pools include ETH and Dai (DAI), ETH and Tether (USDT), or ETH and USD Coin (USDC). Participants who provide liquidity earn a proportion of the transaction fee for their contribution.
“Uniswap is the most successful decentralized exchange in the world and recently finished over $1 trillion in cumulative trading volume,” says Dion Guillaume, global head of public relations and communications with Gate.io.
UNI, Uniswap’s native currency, was launched as a governance token. If you’re an owner of UNI tokens, you get a voice in how the protocol is run, and you can vote on network upgrades and policies.
“Owning UNI tokens gives you governance rights on the platform, which is another major advantage,” Guillaume said.
Where Can I Buy UNI?
UNI is widely available and can be purchased on various cryptocurrency exchanges. Here are some examples of places where you may trade Indian Rupees (INR) or other fiat currency for UNI:
Some exchanges list trading pairs: Assets that can be traded for one another on an exchange. If you’re looking to buy and trade UNI with Tether, a popular stablecoin, here are a few exchanges that pair USDT with UNI:
How to Buy Uniswap
If you’ve weighed the pros and cons of investing in Uniswap and have decided you want to proceed with buying UNI, you can start purchasing tokens in just three steps:
1. Choose a Crypto Exchange
You can purchase UNI with other cryptocurrencies through the Uniswap platform.
If you haven’t invested in cryptocurrencies before or want to invest with fiat currency, you’ll need to choose a cryptocurrency exchange. Exchanges are platforms that facilitate trades between users, and platforms can vary in terms of fees and features.
2. Buy UNI
If you’ve chosen an exchange, you can add a payment method to fund your account. Most allow you to purchase cryptocurrency with a bank account or debit card, and some even allow you to use credit cards.
While you may purchase UNI with a credit card, we strenuously advise against it. That’s because credit card transaction fees on crypto exchanges often run high. If you use a credit card to buy cryptocurrency, it generally will count as a cash advance and be subject to a higher interest rate than you pay on regular charges.
To purchase Uniswap, go to the exchange’s trading platform and enter the ticker symbol UNI. Type in how many tokens you want to purchase, or you can enter the amount of money you want to invest.
You can usually choose between market orders and limit orders. Market orders go through right away at the best available price, while limit orders are only processed if the cryptocurrency reaches a price you set.
3. Store Your UNI
When you purchase UNI—or any cryptocurrency—you have to store your holdings. Uniswap is decentralized and noncustodial, so you’re responsible for storing and protecting your private keys. UNI can be stored in several different ways:
- Hardware Wallets. Hardware wallets are physical devices disconnected from the internet or networks that 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, such as CoinDCX, will store your cryptocurrency. However, they’re generally less secure, so it’s recommended that you only store cryptocurrency on them for a short time or a small amount.
Should You Invest In UNI?
Although UNI is a popular form of cryptocurrency, proceed with caution. All cryptocurrencies are subject to volatility, and you risk losing money.
“Since it is a crypto asset, newbie traders not used to volatility shouldn’t invest more than they can afford,” Guillaume said.
Another way to get exposure to cryptocurrency or blockchain technology is investing through exchange-traded funds (ETFs) that invest in blockchain companies.
