How to Buy Uniswap (UNI): Step-by-Step Guide for Beginners
Uniswap is one of the best-known decentralized exchanges, and UNI is its governance token. We explain how the project works, what makes the token risky and how to buy it step by step.
What Are Uniswap and UNI?
Uniswap is a decentralized exchange (DEX) built on smart contracts on Ethereum and several other networks. There's no order book: tokens are swapped through liquidity pools, and the price is calculated by a formula. This setup is called an automated market maker (AMM).
The UNI token launched in 2020, and some of the coins were given away to past users of the exchange. UNI is a governance token: holders vote on changes to the protocol. It is not a share in a company and gives no right to the exchange's profits.
To learn more about how services like this work, read DeFi in plain words.
What Makes UNI Risky
- The price isn't tied to the exchange's trading volume. Uniswap can be popular while the token is falling.
- Competition. There are many DEXs, and users move to wherever it's cheaper.
- Regulators. New rules for DeFi could hit the token.
- Volatility. Like most altcoins, UNI can lose tens of percent in a short time.
How to Buy Uniswap (UNI): Step by Step
- Step 1. Choose an exchange. Use a major exchange that lists the UNI/USDT pair. To set up an account, see how to open a crypto exchange account.
- Step 2. Secure your account. Complete KYC verification and turn on 2FA with an authenticator app right away.
- Step 3. Get USDT into your balance. The easiest way is to buy USDT from another user: see how to fund your account via P2P. Why exchanges price things in it: what is USDT.
- Step 4. Place an order. Go to Spot → UNI/USDT → a limit order at your price. More on this: limit vs. market orders.
- Step 5. Stop-loss. If you're buying to trade a price move rather than to hold for years, set your exit level in advance. Aspiro Trade has ready-made levels: signals on 45 assets with an entry, take-profit and stop-loss (the list is in the app).
- Step 6. Storage. For long-term holding, you can withdraw UNI to your own wallet. It's an ERC-20 token: when withdrawing, choose the Ethereum network (or another one if both the exchange and the wallet support it) and keep a little ETH for fees.
Where to Store UNI
| Option | Best for | Keep in mind |
|---|---|---|
| Exchange spot account | Active trading and small amounts | The exchange holds the keys; 2FA is a must |
| Software wallet (an Ethereum-compatible wallet) | Holding and using the network's apps | Seed phrase on paper only, never on your phone |
| Hardware wallet | Large amounts held long term | Make sure it supports the coin's network |
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- Buy UNI on the spot market with USDT, using a limit order.
- KYC and 2FA come before your first deposit.
- When trading, a stop-loss is mandatory on every trade.
- When withdrawing, double-check the network and the memo, if one is needed.
Frequently Asked Questions
How is UNI different from the Uniswap exchange itself?
Uniswap is a protocol for swapping tokens. UNI is a token that gives the right to vote on changes to the protocol. You can use the exchange without UNI.
Can I buy UNI directly on Uniswap?
Yes, but you need your own wallet with ETH and an understanding of network fees. For a beginner, it's easier to buy UNI on a centralized exchange with USDT.
Does UNI pay any income?
Not by itself. It's a governance token: the only way to gain is from a change in price, and the price can go down as well as up.
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