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Even though UNI – Uniswap’s main token – has fallen in price over the past year, it remains one of the top 25 cryptocurrencies based on market capitalization.

Crypto enthusiasts invest in Uniswap because it allows them to diversify their investments and gain exposure to crypto assets. Learn how to invest in Uniswap to get started.

Uniswap in the digital economy

Uniswap is a trustless decentralized financial exchange (DEX) that allows users to participate in the financial transaction of Ethereum-based tokens, ERC-20 tokens. It aims to give users permissionless access to financial services.

This crypto is built on the Ethereum (ETH) blockchain, using smart contracts. Uniswap creates pools of liquidity, ETH and ERC-20 token pairs via algorithms, which are then exchanged and traded by traders.

Uniswap primarily aims to facilitate the trading of digital assets. Popular liquidity pools include ETH and Dai (DAI), ETH and Tether (USDT), or ETH and USD Coin (USDC). Participants who provide liquidity earn a portion of the transaction fees for their contribution.

“Uniswap is the most successful decentralized exchange in the world and has recently achieved over $1 trillion in cumulative trade volume,” says Dion Guillaume, Global Head of PR and Communications at Gate.io.

UNI, the native currency of Uniswap, was launched as a governance token. If you own UNI tokens, you have a voice in how the protocol is run and you can vote on network upgrades and policies.
“Owning UNI tokens gives you governance rights on the platform, which is another major benefit,” Guillaume said.

Where can I buy UNI?

UNI is widely available and can be purchased on various cryptocurrency exchanges. Here are some examples of where you can exchange US dollars or other fiat currencies for UNI:

Some exchanges list trading pairs: assets that can be traded against each other on an exchange. If you are looking to buy and trade UNI with Tether, a popular stablecoin, here are some exchanges that pair USDT with UNI:

How to buy Uniswap

If you have weighed the pros and cons of investing in Uniswap and have decided to continue buying UNI, you can start buying tokens in just three steps:

1. Choose a crypto exchange

You can buy UNI with other cryptocurrencies through the Uniswap platform.

If you have never invested in cryptocurrencies before or want to invest with fiat currency, you will need to choose a cryptocurrency exchange. Exchanges are platforms that facilitate trading between users, and platforms can vary in terms of fees and features.

2. Buy UNI

If you chose an exchange, you can add a payment method to fund your account. Most let you buy cryptocurrency with a bank account or debit card, and some even let you use credit cards.

Although you can buy UNI with a credit card, we strongly advise against it. This is because credit card transaction fees on crypto exchanges are often high. If you use a credit card to buy cryptocurrency, it will generally count as a cash advance and be subject to a higher interest rate than what you pay on regular fees.

To buy Uniswap, go to the exchange’s trading platform and enter the stock symbol UNI. Type in the number of tokens you want to buy, or you can enter the amount of money you want to invest.

You can usually choose between market orders and limit orders. Market orders are executed immediately at the best available price, while limit orders are only processed if the cryptocurrency reaches a price you set.

3. Store your UNI

When you buy UNI – or any other cryptocurrency – you must store your holdings. Uniswap is decentralized and non-custodial, so you are responsible for storing and protecting your private keys. UNI can be stored in several different ways:

  • Hardware wallets. Hardware wallets are physical devices disconnected from the internet or networks that store your private keys offline.
  • Paper wallets. With a paper wallet, you can write down the keys or use an app to get a printed QR code to access your cryptocurrency.
  • Software wallets. Software or web wallets are connected to the internet but give you quick access to your cryptocurrencies.
  • Crypto exchanges. Some cryptocurrency exchanges, such as Coinbase, will store your cryptocurrency. However, they are generally less secure, so it is recommended that you only store cryptocurrency for a short time or a small amount.

Should you invest in UNI?

Although UNI is a popular form of cryptocurrency, proceed with caution. All cryptocurrencies are subject to volatility and you risk losing money.

“Since this is a crypto asset, novice traders not used to volatility should not invest more than they can afford,” Guillaume said.

Another way to gain exposure to cryptocurrency or blockchain technology is to invest through exchange-traded funds (ETFs) that invest in blockchain companies.