This guide mainly explains, how to use Uniswap exchange in the Right way for beginners. Currently, Uniswap exchange is one of the leading decentralized exchanges in the DeFi sector therefore, a lot of users are trying to use Uniswap exchange daily basis.
According to DeFi Pulse, Uniswap exchange is top USD locked Dex comparet to Kyber, Bancor, Loopring.
Normally, Crypto beginners are facing difficulties to use Uniswap exchange and other decentralized exchanges due to lack of experience. So, through this guide, you will learn how to swap tokens each other, How to swap and send tokens, and earn interest via pooling the available tokens.
Also, at the end of the article, you will learn the basics of the Uniswap protocol and other related products that are using the Uniswap protocol.
Let’s dive into the guide, how to use Uniswap exchange in RIGHT way.
How to connect your wallet with Uniswap exchange interface?
To interact with the Uniswap exchange interface, you have to create the Uniswap supported wallet. In case, you have many options to select the one wallet. Currently, Uniswap exchange supports Metamask, Fortmatic, Portis, Torus, WalletConnect, Coinbase Wallet.
If you don’t know, how to create a Metamask wallet, look at the article that explains step by step creating a Metamask wallet.
After creating the wallet, you are ready to connect the wallet with the Unsiwap exchange interface.
First, go to the Uniswap exchange interface, then navigate and click on the “Connect to a Wallet” button locates in the top right corner.
Then, the pop-up screen will appear and select the relevant wallet that you are going to use. In case, select the “Metamask” wallet.
Then, Metamask new window will appear and enter the password first then, you will see the Uniswap connect request. To confirm the wallet connection, click on the “Connect” button at the bottom of the window.
That’s it, now you are ready to interact with the Uniswap exchange Right way.
If you seriously want to swap some ERC 20 tokens, you have to send some Ethereum into the newly created Metamask or any other wallet.
So, If you don’t know, how to buy Ethereum, please refer to the article, that explains how to buy Ethereum instantly or look table below, to buy Ethereum in exchange suit to you.
How to Swap Ethereum & ERC 20 tokens on Uniswap?
Let’s take a look at, how to exchange Ethereum & ERC 20 tokens each other on Uniswap exchange using a “Swap” feature.
So, as an example, let’s try to exchange ETH to Chainlink(LINK). First, head over to exchange form in the middle of the exchange interface. Then, click on the “Swap” tab from the three tabs.
In the “From” field, select the “ETH” from the drop-down menu on the right side. After selecting the Ethereum, you will see the Ethereum “Balance” top of the ETH ticker.
Type the amount of Ethereum, you are willing to exchange to Chainlink(LINK) token or click on the “Max” button to use the entire ETH balance.
Next, head over to the “To” field below the “From” field. Then, click on the “Select a token” button. Then, it will show up the screen with search form, in the search field, type the “LINK or Chainlink”, then it will show the LINK token and select the token right away.
Next, Uniswap will show Chainlink amount under the current exchange rate where the exchange rate can be found below the “To” field.
Next, head over to the “Show Advanced” drop-down menu, below the “Swap” button, and click on it. Then, it will show you the “Price slippage”, “Swap deadline”, and “Route “.
In this case, you should let the suggested price slippage, otherwise, your transaction can be failed, if there is sudden market movement. The swap deadline is time taking to exchange ETH to LINK token. Let the default value that will give the best value of the transaction.
Next, click on the “Swap” button. Then, it will show the “Confirm Swap” pop-up screen and click on the “Confirm Swap” button.
Next, the Metamask confirmation window will appear. As you can see the Gas fee + total amount in that window. If you are satisfying the transaction, then, click on the “Confirm” button in the Metamask window.
Then, you will see pending transactions appear on the top right side of the exchange interface. So, it will take a few minutes to validate the transaction on the Ethereum blockchain.
If you want to check the LINK balance, you will be able to view that either in Your wallet or in the Uniswap exchange interface.
Lets take a look at how to send tokens,
How to Send tokens from your wallet with Uniswap exchange interface?
Using the Uniswap send feature, you can send connected wallet’s tokens into exchanges, or another wallet.
Also, you can send+swap together. Let’s think, you want to send some ETH into exchange but you don’t hold ETH. Think, you holding the LINK tokens in case, you can swap + send together using Uniswap exchange.
Let’s find out, how to use the Uniswap exchange send feature.
First, select the “Send” tab from the three tabs. Then, click on the token ticker and select the token from the drop-down list. Then, enter the amount, you want to send where you can click the “Input Max” button below the “Token ticker” to send the entire token balance.
Next, copy and paste the relevant receiver’s address in the field of “Wallet Address or ENS name”.
Next, then click the “Send” button. Then, a new screen will appear and click on the “Confirm send” button. Then, the Metamask window will appear, then confirm the transaction on that window.
If you want to use, send + swap feature, then, click on the “Add a swap” button below the LINK token ticker. Then, select the designated token by clicking on “Select a token” so, here selected the “BAT”. Then, automatically you will see the respected balance.
Then, follow the same steps explain above.
How to add & remove liquidity on Uniswap protocol?
Uniswap pooling is adding token liquidity into the Uniswap protocol to get a decent ROI of your tokens.
When you have added the token liquidity then, you will receive p tokens(also, called Pool tokens) that represent your position in that pool. In case, these p tokens, earn fees proportional to your pool share and it can be redeemed any time you want.
Also, you need equal two pairs of tokens to pool in the Uniswap exchange interface.
How to add token liquidity?
First, select the tab called “Pool” from the three tabs available. Then, click on the “Join a Pool” button. Then, it will show you many existing pool pairs in the Uniswap protocol.
Then, you can select the pool token pair that you are going to the pool, in case, here select the LINK/ETH pair. Then, click on the “Join” button next to the pair of the token ticker.
Next screen, click the “Max” button in the first “Input” field. Then, click on “Balance” above the token ticker in the second “Input” field.
After that, you will see the prices and pool share related to your transaction. Then, click on the “Supply” button.
Next, it will show a new pop up screen, then, click on the “Confirm supply” button. Then, confirm the transaction in the Metamask window. Then, click on the “Close” button.
Then, you will see the “Pending transaction” indication top right corner of the main Uniswap exchange interface. Let few minutes to validate the transaction on Ethereum blockchain.
How to remove token liquidity?
First, select the “Pool” tab from the three tabs. Then, you will the pooled token pairs under the “Your Pooled Liquidity”. Then, click on the drop-down icon where you want to remove the pool. As you can see the details related to your pool tokens.
Next, click on the “Remove” button. Then, you can adjust the liquidity removing percentage using a given slider or click on the “Max” button to remove completely. Then, click on the “Remove” button again.
Next, it will show the pop-up screen, first click on the “Approve” button then, it will show the Metamask window, then click on the “Sign” button in the Metamask window.
Next, click on the “Confirm” button next to the “Approve” button. Then, you have to confirm it on the Metamask window like before.
What is Uniswap Protocol?
Uniswap protocol is an automated liquidity protocol built on the Ethereum blockchain. In other words, the protocol can be used to swap ERC 20 tokens, send ERC 20 tokens away from the wallet, and it let to add token liquidity.
Uniswap protocol can be implemented in third-party applications and the automated liquidity can be used within their application easily. Also, Uniswap protocol enables anyone to create new markets, provide liquidity, and build financial applications that could not have existed before such as DefiSaver.
There are few products available to interact with the Uniswap protocol created by the Uniswap team, let’s take a look at,
Uniswap exchange interface – This is a very popular product by the Uniswap team that can be used as described above.
Uni Info – is a platform related to Uniswap protocol analytics and historical data where you can see the total liquidity, token volumes, and transaction details.
Unisocks– is a dynamically priced socks where you can buy and sell real socks with a digital currency that delivers on-demand worldwide.
Conclusion – how to Use Uniswap Exchange In the RIGHT way
In conclusion, throughout the article you have learned, how to use Uniswap exchange, to swap ERC 20 tokens each other, send tokens from your wallet to other places such as exchanges, wallets, and to earn decent interest from your ERC20 token holding by providing market liquidity.
Other helpful readings,
- How to create Metamask wallet step by step
- How to buy Ethereum instantly
- 18 Best Ethereum wallets to watch in 2020