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 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:
The output token is being exchanged by the input token.
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
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.
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.
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.
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.
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.
- 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