www.banklesstimes.com

Invest in Uniswap in 2022

Last updated 22nd Sep 2022
Disclosure

Since reaching all-time highs in 2021, the price of 1 UNI coin to the USD has declined significantly. Nonetheless, it remains a proposition for people looking to invest in alternative cryptocurrencies.

In this guide, we’ll show you the different ways you can purchase Uniswap. You’ll discover the pros and cons, plus whether or not it’s currently safe to buy UNI.

Best Way to Invest in Uniswap in 2022

When you begin looking for places to invest in Uniswap, you’ll have a larger range of options than is possible with other cryptocurrencies. Below is a table of the best providers to save you time researching.

1
eToro
Minimum Deposit
$10
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

What is Uniswap - Quick Overview

Name and ticker Uniswap (UIN)

Date launched September 2020

Circulating supply | max supply: 627,321,718 | 1,000,000,000

Blockchain network Ethereum blockchain

Creators Hayden Adams

Use-cases Altcoin, exchanging cryptocurrencies

Social media Twitter | GitHub | Discord | Reddit

Uniswap is a cryptocurrency that is native to the namesake cryptocurrency exchange. It’s a relatively new coin, having been around since late 2020; the exchange itself launched in November 2018.

Since the token launched, it has taken a market cap that has surpassed $4 billion pretty substantially. At the time of writing in January 2022, it’s the 29th-largest cryptocurrency in the world in this respect.

Uniswap currently takes up 0.29% of the overall cryptocurrency market. This is some way off current leader Bitcoin, which has 39.4% of the share.

What is Uniswap - Explained

The Early Days of Uniswap

The Uniswap Exchange was built using the Ethereum blockchain. Hayden Adams, who previously worked for the tech giant Siemens, decided to create a decentralized platform – and almost two years after it launched, the UNI token followed suit.

Use Cases

These days, you can use cryptocurrencies for several reasons. Many people buy and hold them to make a profit, but the original reason they were brought into the world isn’t necessarily for that reason. Some aim to lower transaction costs, whereas others have the primary objective of addressing scalability issues.

The Uniswap cryptocurrency is primarily used for trading with other cryptocurrencies. Although it’s primarily available on this particular exchange, other platforms have chosen to let others purchase it.

Famous Backers

Many celebrities are well and truly on the cryptocurrency bandwagon. Elon Musk is a well-known advocate of certain currencies, such as Dogecoin. Meanwhile, the likes of Snoop Dogg, Jack Dorsey, and Mike Tyson have all shown support for cryptocurrencies in the past.

In terms of high-profile individuals, Uniswap doesn’t have the same level of backers as the likes of Bitcoin and Ethereum.

Social Media Followings

Uniswap has a broad range of social media channels, and fans can connect with each other on Discord, Reddit, and more.

The Uniswap subreddit has over 60,000 members at the time of writing in January 2022. You’ll also find several daily posts on Reddit that you can sift through.

Uniswap is also present on Twitter, and it has a pretty significant following. As of 24th January 2022, the official account has more than 821,000 followers. Meanwhile, the founder Hayden Adams has built up a large community himself; over 200,000 people follow him.

How To Buy Uniswap

When buying Uniswap, you can choose whether you want to own the coins outright or if you’d prefer to trade with derivatives.

To buy UNI, the process is relatively straightforward and doesn’t differ much depending on where you go. You’ll need to create an account and pass the know-your-customer (KYC) checks, which are important for anti-money-laundering and legislative compliance.

Once your account is verified, you can choose to deposit money into your account. Alternatively, you can go to the “buy” page for the particular currency – and purchase from there directly.

Payment methods will vary depending on the platform you use, and you’ll need to remember that different fees are also involved. The most widespread payment methods are debit and credit cards, along with bank transfers.

Cryptocurrency Exchanges

If you decide to buy UNI and own the tokens, you’ll most likely use a cryptocurrency exchange. Besides Uniswap, you can do this on Binance – which is the world’s largest platform of this kind at the time of writing.

Another major cryptocurrency exchange that sells Uniswap is Coinbase. You can also find tokens to purchase on Paybis.

When you buy your UNI from a cryptocurrency exchange, remember that you need to have a separate cryptocurrency wallet to store your tokens. Some countries don’t allow for buying and holding crypto, so you’ll need to ensure that you’re allowed to do so where you live.

Brokerages

Cryptocurrency brokers are an option if you’d rather trade with UNI derivatives. Doing so has several benefits, such as not needing to worry about creating and storing your coins in a crypto wallet.

Arguably the largest cryptocurrency brokerage you can buy Uniswap derivatives from is eToro. Another alternative is Eightcap.

When trading derivatives, it’s important to remember that some forms of trading – such as contracts for difference (CFDs) – aren’t allowed in certain jurisdictions. You’ll need to do additional research to ensure that you can do this legally.

How To Sell Uniswap

When you’re ready to sell Uniswap, the process is simple. If you used a cryptocurrency exchange, transfer the tokens from your wallet to your account. Then, go to your crypto exchange account. Choose the fiat currency that you’d like to receive in return and complete the transaction.

Alternative Ways to Invest in Uniswap

Cryptocurrency brokerages and exchanges are the two most conventional ways to invest in Uniswap. However, they’re not the only two options you have.

If you were to invest in larger cryptocurrencies, such as Bitcoin and Ethereum, you could invest in several ways. These include index funds, mutual funds, and trusts. None of these are available for Uniswap at the moment, but they’re good to keep in mind if you plan to expand your portfolio in the future.

As for UNI, below are the alternative ways you can invest in this cryptocurrency.

  • Uniswap wallets that have exchange/swap functionalities. Once you’ve opened a cryptocurrency wallet, you don’t necessarily need to remove your coins from it to make a profit. Some wallets have swapping functionalities, where you can exchange UNI directly for other cryptocurrencies – and vice versa.

  • Buying Uniswap from your friends. If you have friends currently holding Uniswap, or another cryptocurrency for that matter, you can invest in UNI by exchanging or purchasing from them. You can ask them to send the coins to your wallet for either crypto or fiat money.

  • Staking. Staking is available for several cryptocurrencies, and Uniswap is no different. This process involves verifying transactions, and you have the opportunity to passively earn money while doing it.

Is It Safe to Invest in Uniswap Right Now?

Before we continue, it’s important to remember that the cryptocurrency market is volatile. As a result, buying any coin carries significant risks. We should also note that in April 2020, an attacker attempted to hack the Uniswap platform – which resulted in the website being taken down temporarily until the issue was dealt with.

Having said that, some cryptocurrencies are safer than others. As such, the answer to this question depends on several factors. Although no platform is 100% foolproof, using a reputable one will dramatically decrease the risk of falling victim to scams, hacks, and so on.

If you’re worried about the Uniswap cryptocurrency being a scam, don’t worry – it’s perfectly safe and has a market cap worth billions of dollars. And in the 24 hours up to mid-afternoon on 24th January 2022, the trading volume was well over $345 million.

We believe that Uniswap is a very safe coin to invest in, and using one of the exchanges or brokers we mentioned in this article is your best option. However, you can take additional measures when investing in UNI – and we’ve included a list of these below.

  • Always enable two-factor authentication (2FA) on your wallets and exchange/broker accounts.

  • Never ask for help away from official websites.

  • Never click on links on third-party websites.

  • Always use reputable exchanges and websites.

  • Be careful that there are no typos in the address you type, and make sure that the site is secured.

  • Ignore, delete, and report all suspicious-looking emails.

  • Never pass on more than is necessary during KYC checks.

Danny Maiorca

Danny Maiorca

Danny is a freelance writer specialising in technology and finance. Prior to working for himself, he spent several years working within those sectors in London. Since then, Danny has relocated to Denmark.