How to Use Uniswap: Guide and Must-Read Risks Before Swapping

In a detailed guide on Uniswap, CryptoPotato went in-depth on the technicalities and functionalities of the protocol.

Quick Navigation

• What’s Uniswap and why is it so innovative?

• Starting: Few Things to Consider

• How to Trade – Buy and Sell – on Uniswap?

• What are the Risks of Using Uniswap?

New DeFi projects are appearing daily, and it does bring a certain 2017-like appeal to it. At the forefront of all, this is a protocol that also surged in popularity – Uniswap. Below, we’ll take a look at how to use Uniswap in a step-by-step manner.

What’s Uniswap and why is it so innovative?

In a detailed guide on Uniswap, CryptoPotato went in-depth on the technicalities and functionalities of the protocol.

To sum it up in Layman’s terms, Uniswap wallet is a protocol that enables buyers and sellers to swap ERC20 tokens without having to use an exchange or an order book. It uses an algorithmic equation that determines the swap rate based on the balances of both tokens and the actual demand for this swapping pair.

In essence, Uniswap brings forth a very user-friendly interface and allows traders to swap their tokens without having to worry about any KYC procedures or even having an account, for that matter.

Uniswap also brings forward automated liquidity provisioning, but for the technicalities on that, we’d recommend reading our What is Uniswap wallet in Simple Words guide.

Now, let’s get right into it and see how to use Uniswap.

Starting: Few Things to Consider

As we mentioned earlier, this is no regular exchange – there are no buy orders and no specific listings – anyone can add liquidity for a particular pair in Uniswap. They can just as quickly take that liquidity away, making it particularly hard for you to swap back your tokens. That’s why it’s essential to make sure that the liquidity for the pair you want to trade is locked.

There are two main domains that you will be entering into your explorer.