Ethereum has grown from the humble beginnings of $128.72 on January 1, 2020, to a “scary” $666 in mid-December 2020. This came a day after Bitcoin hit $20,000 for the first time and broke through the ceiling.
These kinds of fantastic growth in Etheruem, and cryptocurrency at large, are just getting the network warmed up, though. The world is searching for new ways to do business, transfer money across borders securely, and all over digital platforms. COVID-19 has accelerated digital economy trends of society by several years (and, by extension, digital currencies) by some estimates.
From finding a way to buy Ethereum’s Ether currency to Uniswap trading apps, we’ve got you covered in this article. Please keep reading to find out how you can learn it all.
Finding an On-Ramp to Ethereum
Finding a suitable on-ramp for your needs can be tough sometimes. There are lists of on-ramp exchanges to trading fiat currencies for ETH other than mining ETH, though. These kinds of lists are essential for rating and cataloging the various centralized exchanges.
Though, make sure to have various ID forms such as driver’s license, passport, and so on ready when you try to join one.
Unfortunately, you will likely go through the KYC process on several exchanges before you can find one that takes the form of payment, country, and means of contact you have. Some require wires or escrow accounts only, and even proof of residence through scans of utility bills — we’re looking at you, Kraken and Etana.
It’s a high barrier to entry that almost everyone (except miners) have to go through to start trading in crypto.
On-ramp Plan B
Once you have your ETH, you also need to wait at least a week, in most cases, to remove your funds to another, noncustodial wallet. All too often, the first step is as far as most people get. Once you’ve finally transferred your tokens to a private wallet, like Trust Wallet or MetaMask, you can connect to Uniswap.
Hopefully, the future holds better ways to interact with the network with the rise of CBDCs. However, it’s unlikely that anything in the DeFi space, DEXes especially, will be able to manage that kind of service any time soon.
Even Vitalik Buterin decries the current necessity for centralized exchanges as an on-ramp to Ethereum for almost every current and future network user. However, there are other on-ramps, such as Wyre, which has partnered with MetaMask and MakerDAO. They send fees directly to miners, cutting out the CEX middleman.
Once you have your MetaMask wallet, you can click on “buy” to see options for loading your wallet. The primary option at this time being Wyre.
Figuring Out How Uniswap Works
At first glance, most people can’t see much of a difference between Uniswap and Coinbase, except that Coinbase has a fancy website and KYC rules for signing up. After all, what makes one exchange different from another?
Well, there are quite a few things that set Uniswap and other DEXes (decentralized exchanges) apart from Binance, Coinbase, eToro, and other CEXes (centralized exchanges).
Uniswap is an AMM, or automated market maker, based on the constant product market maker formula. The seemingly simple curve made by the x*y=k formula has launched DeFi into the stratosphere during the summer of 2020.
CEXes rely on an order-book method to facilitate their trades and off-chain control of the market in most cases. Binance, for example, runs its own internal blockchain to track trades on the exchange. Only inflows and outflows are sent to the Bitcoin or Ethereum network.
The order-book model means that a buyer wants to buy at a low price, and a seller wants to sell at a high price.
The exchange provides liquidity as a massive repository of wealth, buying and selling all orders in an acceptable spread and accumulating fees for every trade for the service of convenience.
On-chain, it would be nearly impossible to perform the order-book model’s mechanics as it works in traditional markets.
Uniswap is currently entirely on-chain, without a second-layer protocol. While this has its advantages and disadvantages as well, there is much lower overhead. This is important because the market maker in Uniswap is you.
You provide liquidity to a liquidity pool, which traders will use to exchange their tokens at a set price on the x*y curve.
How to Trade With Uniswap
That gets us to into how to trade with Uniswap. With Uniswap, you don’t have to be a liquidity provider to exchange coins. With Uniswap V1, the only way to exchange one token for another was a pitstop to ETH on the way. For example, Token A to ETH to Token B.
This created two transactions for one swap, which is not always ideal. In comes Uniswap V2 in May 2020 with Token-to-token trading. By July, DeFi as a sector exploded, with the new ease of trading ERC20 tokens for ERC20 tokens. You could also add an intermediary ERC20 token, or continue to use ETH as a passthrough.
A typical trade starts with connecting your wallet and selecting a pair of tokens to trade. First, set the token you have in your wallet and then the token you would like to trade it for. You can hit the settings button (the cog) in the top-right if you’re on your computer browser.
Here you can change settings for slippage and a timer on order. If a miner hasn’t scooped up the transaction in that time, then the transaction is returned. Similarly, if the price has changed beyond x% of slippage, the transaction will likewise be returned.
It used to require having multiple tabs and windows open to check the best possible trades — possibly even multiple monitors. Not only that, you needed to use many tools spread across a lot of different service providers built ontop of Uniswap, such as UniswapROI.
What Are Uniswap Trading Apps?
If you’re trying to figure out how to trade with Uniswap on-app, you’re not alone. Uniswap has an amazing development team working hard at making a dApp that serves the Ethereum network with a high-quality, high-reputation protocol for exchanging tokens.
They’ve made the protocol’s smart contracts nuts and bolts simplistic, which is not so easy to do and sometimes not human intuitive. That being said, there’s no official Uniswap “app” for download on iOS or Android.
This causes some confusion with those just entering DeFi. People often feel they need an app for Uniswap on their devices. But when you download a wallet such as MetaMask, you also get a dApp browser that you can use to reach Uniswap.
You can also use Chrome or Safari to get to the official app from the link.
You have to be very careful with using a “Uniswap app,” as an Australian cryptocurrency newsgroup found out when they lost $20,000 connecting their wallet to an unauthorized Android app claiming to be the official Uniswap app.
The Swapfolio Trading Terminal
This is why Swapfolio has taken special care to grow its community and build its dApp correctly. Swapfolio excels at bringing you a UI that is easy to use, simple to understand, and secure.
More and more people enter DeFi with little to no knowledge, lured in by promises of an easy cash grab of token offerings. They’re going to need education and a non-technical tool. However, that tool can also be powerful as these individuals new to DeFi gain experience and prowess in the DeFi realm.
Uniswap was built in such a way that other dApps could be laid on top of the protocol, as any good DEX should be. Swapfolio calls upon those smart contracts to help build its analytics capabilities, along with its own PRO features not available directly in Uniswap.
Some of those features include stop-loss, limit-orders, and profit-take. However, these tools operate a little differently than their analog traditional market counterparts.
Staking in the Swapfolio token, SWFL, will not only unlock the PRO features of the trading terminal. Included with staking the token comes passive income generated from spotlighted token pair listings advertised in-app.
Swapfolio for Your Uniswap Trading App
Swapfolio is the answer to the need for a Uniswap trading app that’s simple to use and intuitive.
Check gas fees, earn passive income, see it all on one screen, in one tab, on one monitor. Apps for trading on Uniswap can be a little bit of a gamble. Using Swapfolio doesn’t replace Uniswap, and uses Uniswap’s own smart contracts to make the orders.
Check out the Swapfolio litepaper and our Wiki articles to make sure it’s the terminal you need. We guarantee you’ll love our community, our principles. Once you start using Swapfolio, you won’t be able to live without it!
Join our community today!