Invest in Uniswap – How To Invest In Uniswap For Beginners

Uniswap (UNI) stands out in the cryptocurrency market for its role in facilitating the trading of decentralized finance (Defi) tokens. The protocol is an automated market maker (AMM) – which ensures it provides a convenient way to invest in different tokens by addressing liquidity issues.

You might want to understand how to invest in Uniswap before deciding on whether to buy the token or otherwise. In this guide, we have covered all the important aspects involved in buying and selling Uniswap, from the best brokers to the required step-by-step walkthrough.

#1 Broker to Invest in Uniswap – eToro

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How to Invest in Uniswap – Choose a Broker

The quality of the broker you choose when investing in Uniswap will determine your experience. Therefore, it’s crucial to know which Uniswap brokers offer a great trading service for this purpose.

These are the top 5 brokers for you to invest in Uniswap in the US.

  • eToro – Overall Best Broker to Invest in Uniswap
  • Coinbase – Credible Broker to Invest in Uniswap as a Beginner
  • Binance – Crypto Exchange with a US-Dedicated Platform to Invest in Uniswap
  • Coinmama – User-Friendly Broker to Invest in Uniswap
  • Kraken – Great Place to Invest in Uniswap Online

For each of these brokers that made it to our list, we assessed the platform on important parameters such as supported markets, regulation, investment tools, ease of use, and more. These are the key metrics that determine the level of satisfaction a user will get from utilizing a broker to invest in Uniswap. As you go on with this guide, you’ll find our detailed discussion of each Uniswap broker and its features.

How to Invest in Uniswap – A Quick Guide For 2021

Although further in this guide you’ll find a comprehensive explanation on how to invest in Uniswap, we have provided a quick walkthrough for those of you that are looking to get started immediately.

Simply follow the steps below to invest in Uniswap in just a few minutes.

  • Step 1: Open an Account with eToro – There are many reasons for suggesting this broker, but the most important is that the platform is heavily regulated. You can get started with the platform by visiting its website and clicking on the ‘Join Now’ button. Then, provide your personal information when prompted.
  • Step 2: Upload Your ID – As an SEC-regulated broker, eToro will not allow you to invest in Uniswap until you’ve verified your identity. Here, you’ll have to provide a valid ID.
  • Step 3: Add Funds – Although eToro allows you to invest in Uniswap from just $25, you first need to deposit funds into your account. In this regard, all you need to do is to make the required minimum deposit of $50, which you can do through your debit /credit card or online banking.
  • Step 4: Invest in Uniswap – After completing the steps above, the last thing to do is to buy your UNI tokens. To do this, click the search box and input ‘Uniswap’ to find the correct market. Then hit the ‘Trade’ button beside the token to proceed to the next step. There, you’ll input your stake and complete your Uniswap investment by click on the ‘Open Trade’ button.

On the order page, you can adjust your stake based on the amount you’re looking to invest in Uniswap. Meaning, while $25 might be the lowest, you can increase this amount to any stake of your choosing.

Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.

Where to Buy Uniswap – Full Broker Reviews

This is the section where you will gain insights into what each broker has to offer you in the process of investing in Uniswap. Some of the factors we considered when assessing these brokers include regulation, available markets to trade, investment tools, fee structure, and supported payment methods.

Based on these metrics, here are the best brokers for you to invest in Uniswap in the US.

1. eToro – Overall Best Broker to Invest in Uniswap

bitcoin today

Based on our market research, numerous reasons exist as to why eToro is the overall best broker for you to invest in Uniswap. In terms of security, eToro is a heavily regulated broker with approval from the SEC and FINRA in the US. In jurisdictions outside the US, the broker is equally regulated by ASIC, CySEC, and the FCA. The implication of this is that the broker offers you regulatory protection while investing in Uniswap — since the platform is approved on multiple fronts.

We consider regulation a significant factor because a broker that enjoys the approval of financial bodies will allow you to invest in Uniswap with US dollars. On eToro, you can make a deposit into your account using online banking, debit/credit cards, or ACH. When you use your debit/credit card to make payments on eToro, the platform charges you no fees whatsoever. We argue this is a great perk because you can incur up to 4% for the same service on other platforms. Additionally, since you’re investing in Uniswap from the US, the minimum deposit you’re required to make is just $50.

When you’re considering a broker, you should check which markets are offered to know whether you have sufficient options if you want to diversify your investment. eToro ticks the box in this regard, as the broker provides you with more than 30 other crypto markets asides from Uniswap. This includes Bitcoin, Ethereum, EOS, Chainlink, Tezos, as well as Defi tokens such as MANA and AAVE. For all these listed markets, you can begin your investment with as little as $25, which is perfect for you if you’re looking to start with minimal risk.

Concerning fees and commissions, eToro also stands out as one of the best places in the cryptocurrency market for you to invest in Uniswap. The broker is a spread-only platform, meaning you don’t incur variable commissions as you may find on other platforms. Instead, you only need to cover the gap between the ‘buy’ and ‘sell’ price. Meaning, if the price to buy Uniswap is $26, but the sell quote is $27, you’d have to make a return of over $1 per token if you want to secure a profit from this investment. The good news with eToro here is that the broker has a super tight spread starting at just 0.75%.

etoro crypto

Furthermore, eToro provides you with a social platform through which you get to relate with different investors and exchange ideas. Additionally, the broker allows you to invest passively using the copy trading tool. With this tool, all you need to do is to choose an investor, then the broker will copy their trades and automatically mirror these positions in your portfolio. eToro also has a simple user interface that makes it convenient for you to invest in Uniswap as a beginner. In fact, you can even invest in Uniswap via the eToro app.

Pros

  • Invest in cryptocurrencies on a spread-only basis
  • Minimum investment per trade from just $25
  • Supports debit/credit cards, online banking, and local bank transfers
  • Regulated by the SEC, FCA, CySEC, and ASIC
  • Minimum deposit of $50 and no transaction fees for US citizens
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.

2. Coinbase – Credible Broker to Invest in Uniswap as a Beginner

Buy MANA at Coinbase

Coinbase’s user interface makes the broker an easy pick when it comes to platforms where you can invest in Uniswap. This might be the reason why the broker has acquired over 68 million verified users. Additionally, the broker has ecosystem partners across more than a 100 countries, indicating the trust and credibility the platform enjoys in the cryptocurrency market. So, if you’re a newbie and need a credible broker with a simple user interface, Coinbase is a potential consideration.

However, in terms of fees and commissions, Coinbase doesn’t have a great score from our assessment. When you invest in Uniswap through Coinbase, the broker will charge you about 4% of the purchase amount. This means that if you’re investing $2,000 into Uniswap using Coinbase, you’d be receiving $1,920. This puts Coinbase among other costly brokers with a high fee structure, so this might not be the best option for you if you’re just getting started. Nonetheless, Coinbase allows you to invest in Uniswap through different payment options – including debit/credit cards.

coinbase review

Lastly, concerning security, Coinbase shines bright among other brokers in the market. This is because Coinbase has been designed with an impressive security protocol. For instance, the bulk of your digital assets are stored in cold wallets to make them super secure and difficult to reach for hackers. The broker is also one of the best platforms for very high liquidity levels, meaning you have nothing to worry about when you’re ready to cash out your Uniswap investment.

Pros

  • One of the most popular cryptocurrency exchanges
  • More than 68 million users
  • Supports instant debit card purchases
  • Dozens of digital currencies to choose from
  • Institutional-grade security practices

Cons

  • Debit card deposits are expensive at 3.99%
  • You will pay a standard trading commission of 1.49%

at eToro, #1 Broker in the US

Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.

3. Binance – Crypto Exchange with a US-Dedicated Platform to Invest in Uniswap

Home to over 100 million users, Binance remains the largest cryptocurrency exchange in terms of trading volumes. If you’re looking for a place with numerous supported markets asides from Uniswap, Binance is a worthy consideration. More importantly, a notable feature of this exchange is that it has a platform dedicated to US investors to buy and sell digital assets in a secure manner. While the Binance US site doesn’t support as many tokens as the global platform, the exchange still provides you with up to 50 different markets.

These markets include tokens such as Ripple, Dogecoin, EOS, Ethereum, Chainlink, BNB, and of course – Uniswap. For all these tokens, you can begin your investment journey by simply signing up on Binance, verifying your identity through a valid ID, and buying the coin using a debit/credit card. When you make purchases through this payment option, the exchange will charge you a competitive fee of 0.5%.

binance review

Another perk that comes with using Binance is that you gain access to different charting options. These tools allow you to make informed decisions before deciding on whether or not to invest in Uniswap. A notable drawback with Binance, however, is that the exchange is not the best in terms of user-friendliness. Despite providing a robust set of tools, utilizing the platform can be a bit challenging for beginners — as the interface is not suitable for newbies with little understanding of how cryptocurrencies work.

Pros

  • Facilitates billions of dollars in daily trading volume
  • Supports hundreds of digital asset pairs
  • Near-instant deposits via debit/credit card
  • Trading commission starts at just 0.1% per slide
  • Offers crypto savings accounts
  • Ideal for both beginners and experienced traders alike

Cons

  • Not all supported cryptocurrencies can be purchased with a debit/credit card
  • No e-wallet deposits or withdrawals

at eToro, #1 Broker in the US

Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.

4. Coinmama – User-Friendly Broker to Invest in Uniswap

coinmama review

If you’re a newbie in the cryptocurrency space, a broker like Coinmama is a potential consideration when you want to invest in Uniswap. The broker is known for its simple user interface that makes it super convenient for beginners to buy and sell digital currencies. The broker also offers you different payment methods with which you can invest in UNI tokens. This includes using a debit/credit card, which is the fastest payment method for you to complete your investment.

However, although the broker is convenient to use, there are only a few markets listed on it. With just over 10 markets, this broker is not the best place for you if you’re concerned about diversifying your Uniswap investment. Furthermore, the broker has no in-built wallet, which is a significant challenge in terms of storing your tokens. In the absence of an in-built wallet, you have to transfer your Uniswap tokens to an external storage option. This transfer process makes your tokens vulnerable to attacks.

Lastly, we examined the broker in terms of fees and commissions. When you make deposits into your account through your debit/credit card, the broker will charge you a fee of 5%. Also, when you sell your Uniswap tokens, you’ll incur a fee of 3.90%. Based on this fee structure, it’s clear the broker is not your best option if you’re on a budget or just getting started. Nonetheless, Coinmama has great customer support, making it convenient for you to resolve any issue you might face when investing in Uniswap.

Pros

  • Easy to use platform
  • Buy crypto directly with a debit or credit card
  • KYC process is fairly simple
  • Plenty of supported digital tokens
  • Good reputation

Cons

  • Super expensive fees
  • Forced to withdraw crypto to a private wallet

at eToro, #1 Broker in the US

Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.

5. Kraken – Great Place to Invest in Uniswap Online

kraken review

Kraken stands out in the market for American investors for several key reasons. A significant factor here is the margin trading feature through which you can use your existing assets as collateral to borrow funds for new purchases. Many investors use this tool to target substantial gains in the market. However, you should understand this can go the other way, meaning you can equally incur huge losses using this feature.

The broker also supports numerous markets including fiat-to-crypto pairs and crypto-crosses, making Kraken a suitable platform if you want to diversify your Uniswap investment. The broker also has a beginner-friendly interface that makes it seamless to move across the different steps involved in buying Uniswap. In even better news, getting started with this broker is easy, as you can obtain its mobile application on both iOS and Android.

kraken review

Finally, the broker has a resource center to help beginners get up to speed in the digital currency space. The resource center contains cryptocurrency guides offering you insights, lessons, and the basics of investing in digital tokens. However, while Kraken stands out in terms of suitability for beginners, the broker’s fee structure is high. You’ll need to pay 0.26% commission per slide if your 30-day trading volume falls below $50k.

Pros

  • Popular cryptocurrency exchange and broker
  • Great selection of cryptocurrencies
  • Supports both crypto-cross and fiat-to-crypto pairs
  • Accepts debit/credit cards and bank transfers
  • Offers complex crypto instruments for experienced traders

Cons

  • Not all US states are supported
  • Fees are somewhat pricey

at eToro, #1 Broker in the US

Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.

How to Invest in Uniswap – Detailed & Explained in Full

As a newbie in the cryptocurrency space, you’ll need a detailed explanation of the steps involved when investing in Uniswap. With the steps below, you can invest in Uniswap tokens in under five minutes.

Step 1: Open an Account with eToro

On eToro’s website, you’ll find a ‘Join Now’ button where you can kickstart the process of signing up to the broker. During this process, you’ll need to provide some personal details. This includes your full name, home address, and more. The broker will also require you to choose a password with which you’ll use to log into your account.

how to join etoro

During this process, eToro will also ask you to indicate your investment experience. The broker uses this information to know the best way to categorize you as an investor.

Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.

Step 2: Upload a Valid ID

As an SEC-regulated broker, eToro requires you to upload a valid ID for identity verification. This standard procedure is generally called the Know Your Customer (KYC) process, which is mandatory for regulated brokers.

Asides from a valid ID, you’ll also need to provide a document containing your address. An easy choice here is to submit a bank statement or a utility bill. Once you verify your identity, eToro will allow you to access all of the features on its the platform. Then, you’ll be able to access the broker’s order page to invest in Uniswap.

Step 3: Add Funds

As with every investment you make, you must have funds to hand. In the same manner, to invest in Uniswap, you must start by making a deposit into your eToro account. Here, you have numerous payment options such as online banking or debit/credit cards. Once you decide on which method to use, you can proceed to add the $50 minimum required.

Deposit Funds

What makes eToro stands out in this regard is that you can make a deposit into your account without paying any fees. This is a notable perk in the cryptocurrency market specifically – with brokers like Coinbase charging nearly 4% for the same service.

Step 4: Search for Uniswap

The next step is to look for Uniswap. You can do this by inputting ‘Uniswap’ into the search box. From the result displayed, click on ‘Trade’ next to the ‘UNI’ option.

Uniswap search page

Once you hit the ‘Trade’ button, the broker will take you to the next step, which is where you buy Uniswap.

Step 5: Invest in Uniswap

Once you’re on the order page, you’re nearly done with investing in Uniswap. Here, all you have to do is to enter your stake. So, suppose you intend to invest $200 into Uniswap, simply adjust the amount in the order box by either increasing or decreasing it.

uniswap order page

Once you’ve arrived at your desired stake, hit the ‘Open Trade’ button to invest in Uniswap in the US. That’s it!

How to Sell Uniswap

When you enter the cryptocurrency market, you have one goal — to make a profit. Therefore, irrespective of the amount of time you spend learning how to invest in Uniswap, you must understand the process of selling the token as well. This is because, for you to secure your returns on a Uniswap investment, you have to sell the tokens.

For example, suppose you invest $2,000 in Uniswap and the token’s price increases by 10% shortly after. In this instance, your investment would now be worth $2,200. But this is still subject to market volatility until you secure the profit by selling your tokens. Interestingly, to do this, you need to learn just a few steps.

  • Login to your eToro investment account.
  • Go to your portfolio and hit the ‘Sell’ button.
  • Choose a market order so you can sell the tokens at the next best available price.
  • Once you confirm the order, eToro will execute it.
  • Following the sale of the tokens, you’ll receive the funds in your account.

Since you’re using eToro — a broker with different supported payment methods — you can choose any of the available options to withdraw your money. You do, however, need to withdraw at least the deposit amount back to the same method as per anti-money laundering regulations.

Ways to Invest in Uniswap

As you can imagine, there are several ways for you to invest in Uniswap in the US. This is because the cryptocurrency market is huge and investment platforms continue to emerge at a fast rate. However, if you want to obtain a great service when investing in Uniswap, you have to be careful about the platform you choose.

Many of the cryptocurrency investment platforms in the market will fall into two categories — brokers or exchanges. When making a choice, keep in mind that security is a crucial factor you must consider. To this end, we will discuss both Uniswap brokers and exchanges to help you further understand which is better.

Invest in Uniswap Using an Online Broker

There are various reasons for choosing a broker to invest in Uniswap. Perhaps the most important reason is that brokers tend to enjoy regulation from leading financial authorities. For example, eToro is regulated by the SEC in the US.

  • A broker like eToro is credible because of its regulation both within and outside the US.
  • With a regulated broker, you can invest in Uniswap with US dollars. This makes it possible to use a debit/credit card, which is a swift payment method.
  • Regulated brokers are mandated to be clear about the fees they charge and have a verified scope of operations.

When you choose a broker like eToro, you can add funds to your account for free. This is an impressive reason why you might want to invest in Uniswap via this top-rated brokerage.

Invest in Uniswap Using a Cryptocurrency Exchange

Our research team found that the main reason some investors find cryptocurrency exchanges attractive is that they typically offer extremely low commissions. Apart from this, you can invest on cryptocurrency exchanges without disclosing your identity. To some investors, this is an incentive.

uniswap markets

However, it only takes careful evaluation to understand that these perks are not so beneficial. First, unregulated exchanges are not secure, meaning you enjoy no protection over your funds. Additionally, since the platforms do not have the approval of financial bodies, you cannot invest in Uniswap using your debit/credit card.

On most cryptocurrency exchanges, you’ll have to invest in Uniswap using another digital token, For experts, this might be an easy process. However, as a beginner, this can be challenging and even frustrating, especially if the exchange doesn’t have a user-friendly interface.

Should I Invest in Uniswap?

As an investor, whether a beginner or an expert, you’ll always want to know if a token is a good buy. That way, you can decide on whether to invest in the token or choose another project. Therefore, you might find yourself asking if a Uniswap investment is the right choice for you.

When you’re confronted with this question, your best line of action is to research. This is one strategy that’s handy for all investors. However, you might not understand how to structure your research to achieve the desired results. So, we have discussed some key features of Uniswap in the sections below to help you make an informed decision.

Makes it Convenient for Projects to Access Liquidity

An impressive use case of the Uniswap protocol is that projects can easily seed liquidity pool through the network. For this purpose, a developer will have to provide the token of their project alongside equivalent ETH – with which the pool will be started. With such a pool in place, new projects can launch directly into the market, reaching a wider audience.

uniswap chart

Invariably, this increase in liquidity also helps to address the challenge of high spreads concerning illiquid assets. Overall, since new projects can create liquidity pools using Uniswap, gaining the confidence of investors has been made easy. This has contributed to the increase in the number of new projects in the cryptocurrency market.

Liquidity Provider (LP) Rewards

Uniswap also offers token holders an opportunity to make some earnings on their coins by providing liquidity. All liquidity providers are entitled to a share of the generated trading fees. This will be shared in proportion to the liquidity provided.

This provides a means for Uniswap users to make passive income without selling their tokens. This is a use case that can impact the value of the Uniswap token in the market. Therefore, you might want to consider this feature when doing your personal research.

High Level of Decentralization

Another feature that makes Uniswap stand out in the market is that the protocol is censorship-resistant. There’s no central authority that moderates trading volume or prevents users from making investments.

uniswap price

By providing all users with unhindered access to trading, the protocol positions itself as a globally decentralized network. For many investors in the cryptocurrency market, this is an impressive perk since they can trade without central regulations.

Compatibility With Trading Tools

One thing that has created traction around Uniswap in the market is the protocol’s compatibility with external trading tools. Uniswap supports the integration of third-party applications – such as market management tools and trading bots.

These are tools that investors utilize to make smart trading choices. This compatibility makes it convenient for investors to use these third-party interfaces while on the Uniswap protocol.

What are the Risks of Investing in Uniswap?

The cryptocurrency industry is characterized by risks. When you’re investing Uniswap, you must understand the risks you may come across — as this is the best way to know how you can manage them.

Therefore, in this section, we shall discuss the risks you need to note while learning how to invest in Uniswap.

Competition in the Defi Space

There has been a rapid growth in the Defi space, as many DEX’s now operate in the sector. Uniswap faces competition from other DEX’s such as Sushiswap Curve, and Ox Native, all of which record billions of dollars in trading volume.

A bigger threat to Uniswap is Pancakeswap, which has grown to a market cap above $2 billion and offers lower transaction fees. The DEX has also briefly outdone Uniswap in terms of trading volume. Essentially, the presence of these other DEX’s indicates that competition might affect the value of the Uniswap token.

Volatility

In the cryptocurrency industry, token prices will always increase and fall.

  • This means that Uniswap’s price might rise impressively or drop significantly within a few seconds.
  • Therefore, it’s crucial to always prepare for the wildest possibilities when investing in a digital token like Uniswap.

More importantly, always contemplate price volatility in your investment plan – such that you have a response strategy if the market moves in the opposite direction.

Unregulated Exchanges

In this How to Invest in Uniswap Guide, we have established the deficiencies of cryptocurrency exchanges, with the most obvious one being the absence of security. Unregulated exchanges are not credible for investing in Uniswap – since these platforms aren’t audited by any financial body.

Additionally, since unregulated exchanges do not support debit/credit cards, you have to perform crypto-to-cyrpto exchanges, which is also risky – especially if you’re a beginner. The process involved is often complex and you might end up making costly mistakes.

How to Manage Your Risks

To manage the risks of investing in Uniswap, there are some strategies you can leverage.

  • Do your own personal research. If you want to be more informed about Uniswap, you must do suffient research to examine the project and its potential trajectory.
  • Invest in small but regular amounts. This is another way for you to hedge your risk, since you won’t be buying the token with all of your capital at once.

In addition, with a user-friendly and regulated broker like eToro, you can navigate your way across the investment steps conveniently. The broker is also designed with prompts to make investing in Uniswap seamless for you.

How Much Does it Cost to Invest in Uniswap?

The costs you incur when investing in Uniswap in the US is associated with the broker you choose.

  • Therefore, always consider cost-effective brokers like eToro – where you can make deposits into your account for free.
  • eToro also has tight spreads that starts at 0.75%. This is unlike some platforms where the spread might shoot over 2%.
  • You can also start investing in Uniswap on eToro from just $25.

Essentially, do not choose a broker with a high fee structure, as this will affect your potential returns on your Uniswap investment. Consider brokers with a low fee policy and transparent trading system.

How to Invest in Uniswap – Conclusion

In this How to Invest in Uniswap Guide, we have discussed in detail the steps you need to complete the process in under five minutes. We have also reviewed the best brokers that will offer you a great service when buying UNI tokens.

eToro stands out among these brokers for various reasons — some of which are strong regulation, supported markets, fee structure, suitability for beginners, and more. With these core benefits, eToro is the overall best place for you to invest in Uniswap in the US.

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.