Frequently asked questions
Uniswap is a decentralised trading protocol. It links hundreds of different Decentralised Finance (DeFi) applications, thereby creating a high liquidity market for trading ERC-20 tokens.
The developers describe the technology as an ‘automated liquidity protocol’. In practice, this means that Uniswap allows users to swap crypto tokens simply through the power of smart contracts, and without the need of an order book, central arbiter or authority,
Uniswap is, therefore, different from traditional exchanges and eliminates liquidity problems. Every order is fulfilled, because there’s a pool of coins available for purchase at an algorithmically-set price.
Nevertheless, Uniswap tokens can still be purchased through traditional, established crypto exchanges. You can invest in Uniswap without necessarily knowing much about how it works.
UNI is the name of native token of the Uniswap network. On most exchanges, you will see Uniswap referenced through this abbreviation. Its symbol is a little unicorn.
UNI is traded on exchanges which determine its price by matching buying and selling orders. If there are more buyers than sellers, the UNI price will rise.
That said, all cryptocurrencies are correlated fairly strongly. This is especially the case with UNI, whose function relies on the desirability and mainstream appeal of the crypto market. If more people are using crypto, then more people will be using the Uniswap network to do so. In theory, this makes governance decisions on the platform more significant, and therefore pushes up the demand for, and price of, the UNI token.
Uniswap's price, or more specifically the price of the UNI token, is determined solely by supply and demand. In this sense, it is similar to the price in a public company like Apple or Tesla. Uniswap's price rises if there are more buyers than sellers, and falls if there are more sellers than buyers.
You can buy the Uniswap governance token on crypto exchanges. To do so, you need to open an account at an exchange, verify your identity, and deposit money.
A crypto exchange (or cryptocurrency exchange) is a marketplace where buyers and sellers trade cryptocurrencies. Just like regular stock exchanges, a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.
Is now a good time to buy UNI? Frankly, we don’t know.
But there are several strategies when it comes to crypto investing. One approach is to buy in when price slips. In the crypto community this strategy is known as "buying the dip" (BTD).
Another strategy is dollar-cost averaging: investing a certain amount of money on a set schedule, say $100 every Monday morning. Dollar-cost averaging seeks to average out the lows and highs over time.
No matter which strategy you choose, Cryptoradar’s price alerts help you to not miss a dip, and adhere to your investment schedule.
There are risks associated with any investment. Crypto markets are particularly volatile, with large upswings and downswings. Only invest as much as you can afford to lose.
When it comes to choosing a crypto exchange, there are also a couple of thinks to be wary of.
Before you can start trading, a crypto exchange will ask you to verify your identity. This is necessary because of anti-money-laundering laws. The verification process and time can differ significantly and take anywhere from minutes to weeks.
All crypto exchanges charge a fee or a spread to finance their operations. Fees can differ significantly among exchanges, so make sure to get a good deal.
Additionally, make sure that your preferred crypto exchange supports the payment methods of your choice, but be aware of any additional payment fees that may apply.
Last but not least, if you’re new to crypto, make sure that your chosen platform is easy to use and has good customer support. This helps you avoid making costly mistakes.
If you’re just going to buy Uniswap tokens through a traditional exchange, then your payment methods may vary. Some will allow a range of methods, others will insist on a bank transfer. You can compare your options using the Cryptoradar filter functions.
Getting started with crypto can be hard. Our detailed price comparisons and cryptocurrency guides have you covered.