{"id":397614,"date":"2022-01-22T12:00:00","date_gmt":"2022-01-22T09:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-to-use-uniswap-a-step-by-step-beginners-guide\/"},"modified":"2022-01-22T12:00:00","modified_gmt":"2022-01-22T09:00:00","slug":"how-to-use-uniswap-a-step-by-step-beginners-guide","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-to-use-uniswap-a-step-by-step-beginners-guide\/","title":{"rendered":"# How to use UniSwap: A step-by-step beginner&#8217;s guide"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a291ff76c816\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a291ff76c816\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-use-uniswap-a-step-by-step-beginners-guide\/#How_does_Uniswap_work\" >How does Uniswap work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-use-uniswap-a-step-by-step-beginners-guide\/#How_to_use_Uniswap\" >How to use Uniswap?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># How to use UniSwap: A step-by-step beginner&#8217;s guide  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>The Uniswap decentralized exchange (DEX) is the most popular DEX built on the Ethereum blockchain. For users wondering, &#8220;What is Uniswap?,&#8221; this article provides an overview of what it is and how it works as well as several ways users can get started using the Uniswap DEX.<\/p>\n<p>With Uniswap, users can swap crypto tokens without having to rely on an inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>ry. Not having to rely on a third party leads to next to no economic rents being collected. Instead, Uniswap relies on smart contracts to execute trades. Smart contracts are algorithms that self-execute once certain preset conditions are met. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_does_Uniswap_work\"><\/span>How does Uniswap work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Because Uniswap is an open-source protocol, many DEXs with the suffix &#8220;swap&#8221; have been released into the market. These protocols are essentially copies of the original Uniswap source code. Where they differ is in the graphical user interface (GUI) as well as in offer differentiation and positioning.<\/p>\n<p>The most famous\u2014and most controversial\u2014of these copycats is Sushiswap. Upon copying Uniswap&#8217;s source code, it proceeded to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/finematics.com\/vampire-attack-sushiswap-explained\/\">launch<\/a> a vampire attack. A vampire attack is where a DeFi protocol offers various incentives to liquidity providers. A vampire attack aims to draw liquidity away from the target protocol. <\/p>\n<p>How did Sushiswap achieve a successful vampire attack? The platform launched an aggressive marketing campaign. They also made it easy for Uniswap liquidity providers to switch over. Finally, they offered insanely lucrative rewards to make it worth their while. <\/p>\n<p>Another less controversial example is Pancakeswap. This DEX lives on the Binance Smart Chain. Pancakeswap offers nonfungible tokens (NFTs) and provides yield farming opportunities, which Uniswap does not.<\/p>\n<p>Uniswap, though, is the first DEX to rely on an automated market maker (AMM) model, rejecting the traditional open book model. The open book model is not as DEX-friendly due to, among other factors, liquidity issues. In contrast, the AMM model uses a liquidity pool with a constant product market maker model, and thus relies on the Constant Product Formula:<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/589040ac-db97-4178-9f43-081b0f3ccb52.png\"><\/figure>\n<p>It&#8217;s worth noting that in version 1 or v1 of Uniswap, liquidity pool providers were at risk of impermanent loss. In other words, it&#8217;s best to view v1 as a minimum viable product that was released for beta (or even alpha) testing. <\/p>\n<p>With each iteration, Uniswap presented considerable improvements for users. For instance, v2 introduced oracles and airdropped UNI tokens. UNI tokens are the official governance token of the Uniswap DEX. Uniswap users received these airdropped tokens if they used the platform before September 2020.<\/p>\n<p>For v3, the most notable improvement <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/docs.uniswap.org\/protocol\/concepts\/V3-overview\/concentrated-liquidity\">came<\/a> in the form of concentrated liquidity. This novel form of liquidity allowed liquidity providers to set the conditions for which they would receive their fees. <\/p>\n<p>Moreover, v3 of Uniswap was released on the Optimistic Ethereum network. Optimism is a layer two scaling solution that is vastly superior to Ethereum&#8217;s layer one. Its major benefits include reduced slippage and high gas fees as well as near-instant transaction speeds. <\/p>\n<p>So how do you buy coins at Uniswap? Before diving into how to use Uniswap, it&#8217;s important to answer the question: Is it safe to use Uniswap? Are smart contracts, blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> and Decentralized Finance (DeFi) secure? These are the technologies Uniswap is built on. <\/p>\n<p>The Ethereum blockchain is extremely secure, unless there are vulnerabilities open for exploitation. For instance, Uniswap suffered a bug exploit in the past with a reentrancy attack, but the bug has since been addressed (thus making Uniswap stronger in the long run). And since then, liquidity and trading volume have only surged, and considerably so. <\/p>\n<p>Now let&#8217;s take a look at how people can use the platform.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_use_Uniswap\"><\/span>How to use Uniswap?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Users who want to learn how to trade on Uniswap have many options at their disposal. This section covers how to use Uniswap with mobile and the Trust Wallet as well as the Coinbase wallet. <\/p>\n<p>But first, the steps on how to use the Uniswap protocol with Metamask are discussed. Afterward, this section presents the steps for the two-mobile friendly <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaches.<\/p>\n<p>Keep in mind, Metamask is just as user-friendly on mobile. Yet, as a web wallet that functions as a browser extension, its usability experience is impeccable on Desktop, with next to no competitors. This is the reason why, for Metamask, this article focuses on the desktop experience. <\/p>\n<p><strong>How to use Uniswap with Metamask?<\/strong><\/p>\n<p>Steps to use Uniswap with Metamask are listed in the figure below:<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/b8398f3d-c89b-461e-b5f6-aa7732d99e8f.png\"><\/figure>\n<p><strong>How to use Uniswap with Coinbase?<\/strong><\/p>\n<p>The Coinbase approach might be less intimidating for U.S. citizens who are already familiar with the platform. First-time users should start the steps below after successfully opening a Coinbase account. Those who already have an account can start with Step 1. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/03323235-4e34-41a1-a3c0-e488108724f0.png\"><\/figure>\n<p><strong>How to use Uniswap with Trust Wallet?<\/strong><\/p>\n<p>Trust Wallet is one of the most popular mobile wallets, and there&#8217;s a reason for that. Trust Wallet is easy to use, friendly and offers a range of tools for users. Below are the steps for using Uniswap with Trust Wallet.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/23cdd584-1e00-4e02-b375-b153185cdd93.png\"><\/figure>\n<p>One critical deterrent for new Uniswap users is the exorbitant Uniswap fees. Because Uniswap lives on the Ethereum blockchain, it relies on ETH for gas fees. Due to Ethereum&#8217;s design, greater congestion leads to higher gas fees because it fuels a bidding war between users competing to have their transactions inserted first into the next block. <\/p>\n<p>To circumvent failed transactions, please consider going into the Settings on Uniswap. (Users can do so by clicking the gear icon.) Before executing a transaction, users should adjust the slippage tolerance to roughly 12%.<\/p>\n<p>The slippage tolerance is simply the difference in price from when a transfer is confirmed to the price sellers are willing to accept. Adjusting slippage tolerance ensures that user transactions will be front run. Front running increases the chances that the transaction will be included in the next block. <\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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For users wondering, &#8220;What is Uniswap?,&#8221; this article provides an overview of what it is and how it works as well as several ways users can get started using the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":397615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvYTI1ZDI1MWMtZTg2OC00NWE5LThlNDAtZjYyZTZhN2FjYmVjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74863,74868,75554,76556,117,4965],"class_list":["post-397614","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cryptocurrencies","tag-defi","tag-dlt","tag-fintech","tag-business","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/397614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=397614"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/397614\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/397615"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=397614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=397614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=397614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}