Uniswap Tutorial 2021: How to use Uniswap exchange to buy and sell Ethereum coins & tokens

Uniswap is the most popular Decentralized 
Exchange to buy and sell Ethereum based tokens. On centralized exchanges like 
Coinbase, Binance, or Kraken or   anywhere where you create an account and 
you have to verify your identity to trade   cryptocurrency – you are at their mercy to accept 
you in their system, enable your account and give   you access to their system. Everything 
is centralized under that one company. But with Uniswap you have none of that. You just 
hop on the website, you don't need an account,   just a wallet with some Ethereum 
and you start buying and selling. Anyone can trade on Uniswap because there are 
no restrictions. No matter where you are in the   world, no matter how much crypto you have, you 
don't have to verify your identity to anyone.

While there are a lot of positive things about 
that, there are some negative ones as well.   For example, there's no support team to ask for 
help. Also, the fees are higher because you are   interacting directly with the blockchain so there 
will be considerable fees for every transaction. In the following minutes, I'm 
going to explain everything   so you know exactly how to use Uniswap like Pro. 
Watch until the end for the tips and tricks. To get started get to Uniswap.org  Here you'll find out more about 
the project and how it works. Since the dark mode was invented,   that's my go-to choice on all my 
devices. It's so much easier on the eyes! Click on Launch App and you'll 
be redirected straight to the   Exchange platform on app.uniswap.org  Always make sure you are on the right 
website when using crypto services.

What you see here is the whole interface we are   going to work with. No fancy 
charts, no crowded numbers. Let's say I want to exchange 1 ETH for 
the DPI token which I covered in one of   my previous videos. That was a good pick, 
by the way, it already doubled in price. To select the token I want to buy I'll click 
on Select a token and then search for it.   Remember you won't find Bitcoin here, Polkadot,   Cardano or anything else that's not 
on the Ethereum blockchain. Well,   you can find Bitcoin but only as Wrapped BTC, 
which is an Ethereum token pegged by BTC.

Anyway, I can find LINK, 
BAND, or CEL. But not DPI.  That's because not all Ethereum coins are 
listed here. You can actually change the list   of tokens that appears in the search feature 
and choose something else. Like CoinGecko,   for example. Now you can see that CoinGecko covers 
the DPI token so it will appear on the list. But some really new coins won't appear either 
way. So the safest way to find the coin you   are looking for is to paste the official 
contract list of that particular token.   This is very important because 
since Uniswap is open to everyone,   there are a lot of scam tokens out there so you 
must be sure you are trading the correct one. What I usually do to find the correct 
contract address is this. I go to CoinGecko.   I search for the token I'm interested in 
and copy the contract address from here. To be extra safe you can click on Etherescan and   you can see the same contract address 
directly on the blockchain explorer.

Copy that and go back to Uniswap and 
paste in the address you just copied.  It will find your token by address 
and you just have to click on Add. Click on the token and 
you'll be able to swap to it. But before we continue, the 
button will say 'Connect Wallet'. Like I said in the beginning, all you 
need to have to use this exchange is a   wallet with some Ethereum. You 
can have other tokens as well,   but you'll need Ethereum to 
pay for the network gas fees. So go ahead and click on 'Connect Wallet'. 
You can also click on 'Connect to a wallet'   in the top right corner of the website.

The most popular wallet used with 
Uniswap is Metamask. But you can   connect other wallets as well, like Trust 
Wallet and Atomic Wallet via WalletConnect,   or a Coinbase Wallet. Remember, the 
Coinbase Wallet and Coinbase app   are 2 different applications. You will need 
the Coinbase Wallet to connect with Uniswap. You can also connect your hardware wallet 
so you can swap between coins without your   funds ever leaving your hardware device. 
That's possible through MetaMask and I'm   going to link to my MetaMask guide in the 
description and at the end of this video. I'm going to continue by 
connecting my MetaMask wallet.  A popup opened up and I'm going to select 
one of the accounts I was to use on Uniswap.  I'm going to allow the 
permissions and click on Connect. Now the button says Insufficient 
ETH balance because I don't have 1 ETH in my wallet and I can only trade what I own. When I click on MAX it will fill in the 
box with the maximum amount I can trade.  Also, you can see how much 
DPI I will get in return. Below the Swap button, you can see 
what's the minimum amount of DPI   I can receive based on my settings.

The price is 
not guaranteed, because of the price volatility,   but you know what's the minimum 
amount you are going to receive. For some tokens, there isn't 
a dedicated pair on Uniswap,   or not enough tokens to provide the best price,   so Uniswap will try to find the best swaps for 
you to get the coins at the price you agreed on.

To go on with the transaction you 
will click on the button that says   'Swap' then Confirm Swap on the popup.
Remember that the output amount is only   an estimation, but there's a minimum you will 
receive otherwise the transaction will revert. If everything looks fine, click on Confirm 
Swap and a MetaMask popup will appear. I told you in the beginning that there are 
negative sides of these decentralized exchanges   that are working on the Ethereum blockchain. 
For example, the fees.

And for this transaction,   the fee is almost $12. The fee is not based on 
what swap you make or the amount of cryptocurrency   you are trading. It's based on the price 
of Ethereum and how busy the network is. Sometimes the network is less 
crowded and it will cost less.   Other times it will be busier 
and it will cost much more. In this case, I said I want to 
trade my whole amount of Ethereum   so I can't cover the fees. I will 
have to go back and lower the ETH   amount so that there's still some 
in my wallet to pay the gas fee. I am able to lower the gas fee to whatever 
amount I want. I do that by clicking on EDIT   in the MetaMask popup and there are 3 options 
presented to me: Slow, Average, and Fast. If I pick Slow there's a big chance 
my transaction won't go through   and my swap will fail. If that happens, you will 
receive your funds back, except for the amount   you paid for fees. In this case, I will lose up 
to $12 if the transaction doesn't go through.

If your transaction fails it 
will look something like this.  In this case, the fee was too low to 
be confirmed in time on the blockchain   so it expired. Luckily the fee on 
this transaction was only $0.43 If you select Average, that should be 
good enough. The Fast option should   confirm the transaction right away. 
But if you are in a rush and want   top priority you would go on a site like 
ethgas.watch and check the latest gas price.

Pick the instant Gwei amount, even bump 
it up 10% and then go to the Advanced   tab in MetaMask. Right down your desired Gwei 
price and click Save. This will increase the   maximum fee that you are going to pay for the 
transaction, but you will have top priority. When you're ready click confirm and wait 
for the transaction to be confirmed on the   blockchain.

If you chose a high transaction 
fee this should happen almost instantly. There are a few tweaks that you can make for 
your Uniswap transactions. For that, you'll   have to click on the cogwheel in the top-right 
corner and this settings box will show up. The slippage tolerance is how much of a price 
change you are willing to accept while your   transaction gets confirmed. If it's set to 
0.5%, then if the price goes up more than 0.5%   and your transaction is not yet confirmed,   then it will be canceled. I like to set this 
to at least 2%, but it's your personal choice. In case you want to buy a token 
that was just released on Uniswap   and everyone wants to buy it at the same 
time, changing this to 10%, 20% even 49%   is not uncommon. That means you are 
willing to buy the token no matter what,   even if the price goes 49% higher while 
your transaction is still being confirmed. This setting, along with an increased 
transaction fee should guarantee that   your transaction doesn't fail even if there are 
thousands of people buying at the same time. But for most swaps, anything between 
0.5% and 2% should be more than enough.

On the other hand, if you want to cut on fees, 
but still want to make a swap, you can change   the Transaction deadline. By default, this is 
set to 20 minutes. If the transaction doesn't   go through in 20 minutes it will be canceled 
and you will lose the gas fee that was paid. But if you are not in a rush and want to set 
a slow transaction fee, you can set this to   60 or more minutes.

But I'll have to repeat 
myself, if the transaction fee is too low and   it's still not confirmed until the deadline, 
it will fail and you'll lose the gas fee paid. The expert mode will allow you to 
bypass any confirmation popups and   allows high slippage trades and 
should be used at your own risk. And you can also turn Dark 
mode On and Off from here. I'll set a high slippage tolerance to see how that 
looks like on the swap interface. If I set it to   49%, there's a warning saying that the transaction 
may be front-run. This means there could be an   automatic bot watching my transaction and profit 
from it by forcing me to buy at the worst price.   It's a possibility, but there's always a higher 
risk when buying with a higher slippage tolerance. You can see now on the swap interface 
that my slippage tolerance setting   appeared above the swap button. Also, below the 
button, you can see the minimum received. Since   I agreed on a high slippage tolerance, the 
minimum received is now down to 0.4166 DPI.

It means that for this transaction I would 
receive anything between 0.4166 and 0.62 DPI  But I'll set my slippage to 2%. Every time you want to trade a token 
that you didn't trade before on Uniswap,   you will have to approve trading it 
first. Instead of the Swap button,   you'll have the Approve button which you'll have 
to click in order to go through with the swap. A new MetaMask popup will appear which will 
ask for permission, to allow trades with that   token on Uniswap. This is subject to network fees 
that you can edit just like I showed you before. You won't be able to make transactions with 
the token until you submit this for approval. After your approval transaction is confirmed, 
your Swap button will appear as normal. In this case, the swap button appears 
in red and says 'Swap Anyway'.  That's because of the high Price Impact. The 
SOLVE/ETH pool is not big enough on Uniswap,   so to complete my transaction, I will have to accept a 12.37% loss. If I'm ok with that,   I'll click on Swap Anyway.
Otherwise, I can just lower   the amount I want to swap and 
the Price Impact will go down.

We can make all these swaps here on Uniswap 
because people from all over the world   are providing liquidity. Since 
this exchange is decentralized,   it means that everyone can contribute with their 
own tokens and earn their share of the fees paid   by the users of the platform. You'll have to 
lock your own tokens on Uniswap and for that,   you'll earn a 0.3% fee on all trades 
proportional to your share of the tokens. I'll cover this functionality in another video 
and I will add the link in the description below   when that's done. But until then you should 
watch this video on how to use MetaMask safely   and how to use your hardware wallet 
on Uniswap. I'll see you there..

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