UniSwap (UNI) is a decentralized exchange (DEX) that allows investors to easily “swap” Ethereum (ETH) for other cryptocurrencies.

For those who have issues creating accounts with certain exchanges because of where they live, UniSwap offers an alternative option for buying cryptocurrencies.

You don’t have to become an expert at the inner workings of UniSwap, but it’s always good to know as much information as possible about the services you are using.

UniSwap 101

UniSwap is the largest decentralized exchange protocol on the entire Ethereum network. The UniSwap protocol is also open-source, and it utilizes the programmed liquidity protocol.

UniSwap provides users with a technique that maintains transactions moving on a centralized exchange called liquidity.

This illustration shows the automated Liquidity Pool developed by Uniswap. The Automated Market Maker (AMM) depends on numerical formulas to charge holdings.

AAM decentralized exchanges above are categorized with the Total Value locked (TVL) within complex smart contracts.

Here are some of the features and benefits of using UniSwap:

Token Swap

The output token is being exchanged by the input token.

Select the amount of input tokens that you would like to swap.

Next, let’s look at liquidity pools.

Every swapping pair has a Liquidity Pool as previously mentioned. The Liquidity Provider is the title of the person that provides liquidity.

Now, let’s put all of this into action.

How to Use UniSwap

Step 1. Connect Your Wallet

Go to UniSwap and select Connect Wallet in the top-right corner.

Step 2. Select Your Wallet

You will be provided with a vast selection of wallet options.

How to Swap Crypto

Once the wallet connection is complete, it is time to begin swapping tokens.

Choose the token you want to swap.

If you are uncertain about which token to choose, you can go look up the crypto by name.

Then, enter the amount of crypto you want to swap.

Uniswap will do the conversion for the crypto for you; be mindful that crypto prices vary throughout the day.

Then, review everything and confirm it is correct.

As you accept the amount that you chose to receive, select Swap, then you will notice a brand-new image so you can verify the results from your swap.

Once verified, select Confirm Swap to move forward with the process. Once the transaction is verified, you will see your asset total.

That’s the basics on how to utilize UniSwap to swap one cryptocurrency for another.

UniSwap also has advanced features for users to earn passive income.

As always, do your own research (DYOR) and make sure you understand what you are doing before using the advanced features to earn passive income.

Passive Income on UniSwap

Select the tokens for liquidity mining to get started.

Locate Pool then select New Position to choose the swap trading pair to enter for liquidity.

Then, select the amount of your choice for liquidity mining.

Now choose the quantity you would like to add to the liquidity pool. You must submit the equal ratio for every pairing to process.

Then, review and confirm the supply.

Once the transaction is done, you will have verified it and will pay the transaction fees.

Select supply, and then you will acquire the tokens in your liquidity pool.

In Summary:

  • We covered how Uniswap works.
  • How to use UniSwap and how to attach your MetaMask wallet to UniSwap.
  • What a liquidity pool is and how you can make passive income from liquidity mining.

We hope this guide has helped, and you can access even more of our free guides on this page.

To your investing success,

The American Institute for Crypto Investors Research Team


Notify of
Inline Feedbacks
View all comments