Are you just getting started in cryptocurrency trading?
If so, you’re among the 31,590 individual dApp users in DeFi this past summer. Most of them were using Uniswap for trading their tokens.
That statistic is only six months old, but it’s already not outdated. Tools and companies like FlipsideCrypto’s chainwalking technology are reporting an average of 400,000 daily unique addresses using Ethereum, up 100,000 addresses from summer.
Are you wondering how you can get in the game? Keep reading to find out how to get into Uniswap trading and more!
What Should I Do With Crypto Once I’ve Got It?
Once they’ve bought some ETH from an on-ramp central exchange or trading app, a lot of people are confused by what to do with it once they’ve got it.
One thing you can do is hold the asset— or “HODL,” as the popular acronym goes in the cryptocurrency world. In that case, it’s like grabbing a stock and sitting on it for long-term investment.
Countless investors and speculators are currently doing this with PayPal now that they’ve allowed their users to buy Bitcoin and Ethereum (but do nothing else with it).
More often than not, people use cryptocurrencies and tokens as instruments for yield-farming and earning ROI (Return On Investment). Sure, you can make a quick buck trying to predict the next new coin’s rise and fall – or you can invest in a concrete project’s token and help a developer out.
The truth is that there are thousands of tokens out there for a variety of reasons. Some are trying to be a viable stablecoin, alternative to ETH or Bitcoin, a utility token for a project, a collectible, or even an outright scam. For every token, there’s a reason for obtaining/using it or holding onto it.
At some point, you’re going to want to swap it out for another, though. That’s where Uniswap comes in.
Things to Do on Uniswap
Using Uniswap and other tools to track token pairs, people are performing arbitrage to take advantage of inefficiencies and discrepancies between markets or liquidity pools
Another tactic people are using to make asset gains is adding to a liquidity pool as a liquidity provider and earning fees. Something to be careful about here is “slippage” which can cause impermanent loss.
Slippage occurs in traditional markets as well but can be accentuated in a smaller pool. Basically, the price tends to shift quite far from your origin point on the x*y curve.
Fortunately, this impermanent loss only occurs when you pull your assets out of the liquidity pool, and until you do you’re still making trading fees.
Should I Use Uniswap for Trading?
When deciding what trading environment to swap your cryptocurrencies, HODL, or invest in as a liquidity provider, there are a few things to consider and questions to ask – before getting to the technical aspect.
Here’s a list of questions you should have asked yourself, first:
- Is the exchange reliable?
- Is the development team continuing to add features, smooth things out, and create value?
- Is it private?
- Is it secure?
- Does it swap directly token-for-token, or does it use an intermediary?
- Is there a large community willing to help, if I’m confused?
Uniswap V2 smart contracts will be there and operational as long as there is an Ethereum network. The proven track record speaks for itself. In this case, yes, Uniswap is very reliable and will always operate without any further human input.
Not only has Uniswap V2 been vetted and audited to find bugs before launch and fix them, but the development team also continues to make smart decisions on community growth.
Many of the functions Uniswap performs behind the scenes allow it to be more versatile than many other AMMs (Automated Market Makers and DEXes (Decentralized Exchanges) that are currently trying to keep up.
As far as the community goes, Uniswap holds 33% of DeFi market share by DEX, according to DeFi Pulse. That’s ahead of SushiSwap and Curve Finance. SushiSwap itself is an unaudited, vampire mining clone of Uniswap with many a problem to cover.
As far as privacy is concerned, you’re as exposed as you make yourself – in DeFi. With Uniswap, there’s no KYC (Know-Your-Customer) process like at Coinbase or Binance, two of the leading CEXes (Centralized Exchanges).
How to Do Well in the Crypto Market
“Doing well” in the crypto market can mean a lot of things to a lot of people, including not losing thousands upon thousands of dollars on a mistake.
Predicting DeFi is like predicting a particle’s location in quantum mechanics. You can either measure a particle’s exact momentum or exact position, but not both. In DeFi, it can easily be the case that you’ve verified a token as real, the project is sound, but so has everyone else.
Or the opposite could be true and you have decided to invest over a thousand dollars in a dud or scam.
A few scams to research and avoid falling prey to tend to be variations on “rug pull” tactics. Some can be elaborate and others quite simple, but they all result in the loss of your ETH. Since many old ICOs don’t build in a “burn” command in their code, the tokens will remain in some form on the Ethereum network forever.
One failed rug pull in the guise of a “founder’s fee”, which is also fairly dubious, was that of SushiSwap, a clone of Uniswap. SushiSwap’s “founder” ChefNomi decided it would be a good idea to run off with an accumulated $14 million in developer funds, but gave it back under severe pressure from the community.
In the end, the way to “do well” in crypto is to be smart, do research, and be on the watch for scams and scammers.
How to Get Ahead in the Crypto Market
Getting ahead is much easier to define than “doing well.” Being able to define it, however, doesn’t make it easier to do.
To get ahead, you’ll need to use tools like Etherscan.io, pools.fyi, DeFi Pulse, CoinGecko, FlipsideCrypto, EthGasStation.info, Uniswap’s built-in charts, among others. That’s a lot of tabs, a lot of windows, and maybe even multiple monitors.
Just like day-trading, you need to have a gameplan going in and a lot of research under your belt. Many traders of traditional markets follow formulas to predict buyer and seller psychology related to news, with a sprinkle of corporate innovation.
Predicting DeFi is all that, multiplied by a hundred – without a closing bell. All your hard research and planning can be wasted by a rug-pull executed while you were asleep.
Truth be told, it can be extremely overwhelming. To overcome this, you’ll need a cool head and professional-level tools in an easy-to-manage format. Fortunately, you have Swapfolio.
Uniswap is a great dApp, which was created specifically to be easy-to-use when making swaps. Uniswap’s construction also accounted for users or development teams to make tools to extend its functionality and
that’s exactly what the Swapfolio team has done
Uniswap Trading With Swapfolio
Swapfolio becomes your one-stop-shop for verifying token pairs, setting up trading options, and more. The best part is that you can see it all on one screen, in one window.
The SWFL token gives you access to all these professional tools and a lot more, all in an easy-to-use interface. Your portfolio and trading history, best trading token pairs, and metrics.
Simply connect your MetaMask wallet to Swapfolio and enjoy more secure Uniswap trading instantly. Enjoy limit-orders, stop-loss, and take-profit orders, along with slippage control.
Checking Uniswap trading volume and token pairs, along with a secure link to a verified trading pool, takes all the guesswork out of using Uniswap.
Want more? Staking in the SWFL token gives you a chance to earn profits from our advertising revenue share program. Earning passive ad income has never been easier, as 50% of all revenue generated through our in-app advertising will be distributed to SWFL stakers.
Enjoy these profits, rather than a rug pull, while you’re sleeping.
Getting Ahead in Crypto Has Never Been Easier
Let’s be honest; Uniswap trading can be a little complicated. Swapfolio is about building and educating the Uniswap/crypto community, as well as our own group of enthusiasts.
Our goal is to bring Uniswap to you in the best way possible, manage your cryptocurrency portfolio, make safe trades with verified tokens, and produce some of the best knowledge available, for FREE.
Forget feeling that fear of missing out! There’s never been a better time than now to get into crypto!
Join the Uniswap community today with Swapfolio!