How to Invest in Uniswap 2021

Last Updated July 23rd 2021
21 Min Read

Investing in Uniswap is easier than beginners might think - all you need is an online account to get started.

The decentralized finance (DeFi) sector has experienced significant growth over the past few months. Naturally, popular DeFi coins like Uniswap have been garnering a lot of attention from crypto investors. 

Uniswap released its native UNI token as recently as September 2020 - as a way to strengthen and govern its ecosystem. 

According to CoinMarketCap, this digital coin has evolved to become the number one DeFi token in terms of market capitalization. 

In our How to Invest in Uniswap Guide, we will walk you through the step-by-step process of how you can capitalize on this digital currency. We will also explain how you can choose a trustworthy online crypto broker and what risks you need to consider before investing in UNI. 

If you want to invest in Uniswap quickly and easily, with 0% commission, check out eToro Exchange!

Contents:

How to Invest in Uniswap in 5 Easy Steps

To invest in Uniswap, the first step is to open an accout with a regulated exchange, depost funds, select UNI from the platform list, and lastly confirm that the coins have added to your Wallet.

If you are already confident about investing your money in Uniswap, you might not want to read through our entire guide. For those in a hurry, we have outlined five simple steps that you can follow to invest in UNI in a few minutes. 

Step 1: Set up an account with a regulated cryptocurrency exchange

Step 2: Add money to your account 

Step 3: Select the amount of Uniswap you want to purchase. 

Step 4: Verify and confirm the investment amount. 

Step 5: Store your Uniswap in a crypto-wallet

As you can see, with a regulated platform such as eToro - investing in Uniswap is fast, convenient, and safe. 

What is Uniswap?

Uniswap is a DeFi platform that aims to tackle some of the common problems currently present in the financial sector. It is fundamentally a decentralized protocol that was built on the Ethereum blockchain - which functions as a cryptocurrency exchange for swapping ERC-20 tokens. 

As a DeFi platform, Uniswap is not owned or regulated by a central entity. On the contrary, it is an open-source ecosystem - meaning anyone can gain access to its underlying code. 

In practice, Uniswap eliminates the need for you to go through the cumbersome practice of identity verifications or paying hefty fees to exchange your digital tokens. 

Founded in November 2018, Uniswap has grown alongside the rest of the DeFi industry. Today, it is one of the leading DeFi platforms built on the Ethereum network. When you buy the UNI token- you are investing in the Uniswap protocol and its future ventures. 

Moreover, holding Uniswap can also give you access to voting rights on its DeFi platform - which includes policies and upgrades to the protocol. 

At the time of writing, the UNI token is priced at $42.68. Since the onset of the year, this Defi coin has increased by over 750% in value. Undoubtedly, this translates to a dramatic rise from a profit perspective. 

Read Also: A Brief Guide To DeFi

How Does the Invest in Uniswap Process Work?

Uniswap UNI

If you are already familiar with other tradable assets such as stocks and forex, you will have no difficulties in understanding the process of how to invest in Uniswap. 

In simple terms, when you invest in Uniswap, you are hoping that it will increase in value. Therefore, when you get around to cashing out the coins - you will make capital gains. 

That said, whether Uniswap will actually rise in value or not is completely reliant on the supply and demand of the coin in the market. For instance, if the majority of investors are buying Uniswap - this will be reflected in an increase in price. 

On the other hand, if the market forces towards Uniswap are negative, it will result in the digital coin going down in value. 

To show you how investing in Uniswap works in practice, we have outlined an example for you here:

  • Let us suppose that you invest $5,000 into Uniswap. 
  • At the time of your investment, the price of UNI stands at $40.00
  • You opt for a long-term 'buy and hold' strategy - where you store the Uniswap coins in your crypto wallet for a few years. 
  • After three years, the price of Uniswap increases to $100.00 per coin. 
  • This translates to an increase of 150%. 
  • You decide to cash out your Uniswap coins and withdraw the returns to your bank account. 

As this example highlights, investing in Uniswap can be extremely lucrative; that is, if you are able to correctly time the market. 

For instance, as you can see from the above - you invested $5,000 in Uniswap and in a matter of three years, you are able to make a profit of $7,500. 

Although it might seem as if returns of such a magnitude are unlikely - in the case of cryptocurrencies, it is not entirely impossible. 

Let us explain why Uniswap investors might be able to make significantly larger gains using the 'buy and hold' strategy. 

Check Out: Is It Worth Investing in Uniswap?

Why Should you Invest in Uniswap?

Investing your hard-earned money into any asset is a serious decision that should be carefully considered. 

As such, when thinking of how to invest in Uniswap - it is crucial that you are aware of the market forces that might influence the price of the digital coin in the future. 

Monumental Returns Since the Beginning of 2021

Although Uniswap launched UNI in late 2020 - the price of the coin remained more or less the same until the turn of 2021. 

When UNI entered the market in 2020, the coin was priced only at $0.48. After a rapid upward swing, its price continued to fluctuate between $2.00 to $4.00 for the rest of the year. On January 1st, 2021 - a single UNI token was valued at $4.97. 

Since then, the price of this digital asset has been on a parabolic rise. In a matter of four months, the coin has gained over 750% in value. In other words, if you had invested in Uniswap when the year started, you would be looking at huge gains at this moment in time. 

For instance, if you had put just $2,000 into Uniswap in January, your investment would now be equal to $15,000. In fact, the price of Uniswap has not gone through any major drops at all since the beginning of 2021. 

DeFi Sector Is on the Rise

The decentralized finance (DeFi) market has been exploding over the past few months. The idea of decentralizing the financial sector has been a prospect welcomed by cryptocurrency traders and investors.

Uniswap is one of the best DeFi platforms to benefit from this increasing interest. In fact, it is considered one of the most popular DEX’s which is powered by an Automated Market Maker system to ensure liquidity. 

Its decentralized nature intends to reduce the power of centralized exchanges - encouraging more and more cryptocurrency traders to shift to DeFi services. At the time of writing, Uniswap leads the DeFi arena with a market cap of over $21 billion. 

With the rise of decentralized platforms, Uniswap might also be able to garner more attention, thus increasing value over time. 

Voting Rights on the Protocol 

UNI was introduced by Uniswap as its governance token. Meaning, holders of this digital asset will also have the responsibility to govern the protocol. 

The developers of Uniswap will not be participating directly in governance. Instead, it will be up to UNI holders to vote for decisions that involve compliance of the protocol with regulations and more. 

If you believe in the cause of the DeFi ecosystem or particularly, Uniswap - then owning UNI tokens is one of the best ways to get involved in the process. 

The Price of Uniswap is Low 

Given the above factors, the market suggests that the DeFi sector is only starting to flourish. In other words, the price of Uniswap might see a considerable increase in the future. 

With this in mind, the current market might be considered an optimal opportunity to invest in Uniswap. At the moment, there is no need to risk large amounts of money in order to get your hands on UNI tokens. In fact, on regulated broker eToro - you only need $25 to start buying Uniswap. 

The UNI token is already home to large trading volumes. In fact, more than $1 billion worth of activity has taken place in the past 24 hours alone. 

Ultimately, if you are thinking of investing in this digital asset, now could be a great time whilst the project is still in its infancy. 

Read More: Is Uniswap A Good Investment?

How to Invest in Uniswap - Various Options Available

One of the prime considerations when putting your money into any digital asset is the safety of your funds. As such, the most efficient way to do this is via a regulated online broker - like eToro

That said, since Uniswap is a cryptocurrency - you also have the option of buying it via a crypto ATM. 

In this section of our How to Invest in Uniswap Guide, we will consider which of these methods will be more suitable for investors - in terms of safety, convenience, and fees. 

Uniswap ATMs

If you do not want to open an investment account online, then you might be able to benefit from cryptocurrency ATMs.  Currently, there are close to 20,000 crypto ATMs spread across the world. Most of these machines are located in the US, Canada, and Europe. 

Initially, cryptocurrency ATMs could be used only to purchase Bitcoin. But today, many of these machines also offer support for a large number of other digital currencies - including Uniswap. 

In case you are able to find a Uniswap ATM near your location, this is how the process would work:

  • Locate your nearest cryptocurrency Uniswap ATM, and follow the on-screen instructions.
  • You can begin the process by selecting Uniswap from the available cryptocurrencies. 
  • Specify the amount you wish to invest in Uniswap. 
  • Let's say you want to invest $500 in UNI tokens.
  • The ATM will let you know how much Uniswap you will receive and the amount of fees involved. 
  • For example, if the ATM charges you a 15% fee - you will receive $425 worth of Uniswap, and the rest will be accounted for as fees and commissions. 
  • Insert the $500 into the ATM.
  • The ATM will instantly print your receipt - which will contain the details of the Uniswap wallet for you to claim your coins. 

At first glance, it might appear as if buying Uniswap through an ATM is an entirely hassle-free process. However, if you take a closer look - you will notice that there are a few drawbacks to this method.

To start with, it might not always be possible to find an ATM that offers Uniswap near your location. 

Secondly, and more importantly, cryptocurrency ATMs also have the reputation of charging hefty fees. The majority of the providers will charge you a minimum of 5% in commission. In fact, even a 20% commission rate is not unusual when it comes to Uniswap ATMs. 

In addition, the process of buying Uniswap does not end with the purchase at the ATM. You will then have to download a third-party wallet and then claim your coins. 

For those familiar with cryptocurrency wallets and private keys, this might not be of so much trouble. However, for an absolute beginner, this process can turn out to be quite difficult. 

At the other end of the spectrum, if you are to invest in Uniswap through an online broker - you will be able to do so from the comfort of your home. Moreover, with platforms such as eToro, you can also purchase cryptocurrencies without having to pay any commission. 

Uniswap Broker

As we mentioned before - if you are after the most convenient way to invest in Uniswap, then look no further than a regulated online broker. In fact, with the right brokerage platform, you can complete the process of investing in UNI tokens in less than 10 minutes. 

Moreover, regulated brokers also offer support for a variety of payment methods. You will have the option to fund your investment through a debit/credit card, bank transfer, or even through PayPal.

Most importantly, making your Uniswap purchase through a regulated broker will also ensure the safety of your money as well as your UNI coins. 

For instance, eToro is a reputable cryptocurrency broker in the online space. The platform has over 20 million verified users and allows you to buy crypto assets such as Uniswap on a completely commission-free basis. 

Perhaps, crucially, you also have the option to store the digital coins in the eToro wallet at no extra cost. When you are ready to cash out your Uniswap investment, you can simply sell the coins right from your eToro portfolio. 

As you can clearly see, choosing a regulated broker is undeniably safer and most convenient than buying your Uniswap coins through a crypto ATM. 

How to Choose a Platform to Invest in Uniswap

Having established that cryptocurrency brokers are the best way to invest in Uniswap, the next question is - how can you choose the right platform for your investment?

The cryptocurrency market has no shortage of online brokers. For the very same reason - it is crucial that you select the right platform that can cater to all your needs. 

In the following sections, we will look through some of the important elements that you need to assess when looking for an online crypto broker to invest in Uniswap.

Licensing and Reputation

There are dozens of cryptocurrency brokers online that allow you to invest in Uniswap. However, the lion's share of these platforms operate in unregulated spaces. This means that your funds might not be protected in case of any security threats. 

In contrast, regulated brokers are required to follow the guidelines of their respective authoritative bodies. This means that they are required to keep client funds separate from theirs and subject their books to regular audits. 

As such, it is in your best interest to set your focus on brokers that are licensed by at least one regulator. In the case of eToro, the platform holds licenses from the FCA (UK), ASIC (Australia), as well as CySEC(Cyprus). 

eToro also attends to the safety of US citizens through its registration with FINRA and the SEC. 

Fees to Invest in Uniswap

Regardless of which broker you choose, you will always have to pay some sort of fee when you invest in Uniswap. However, the extent of these fees will vary from one broker to another. 

For example, popular cryptocurrency exchange Coinbase charges you a commission of 1.49% to invest in Uniswap. You will be liable to pay this amount when you invest in the coins and once more, at the time of cashing out. 

In addition, you will also be liable to pay a 3.99% investment fee if you are paying for your Uniswap coins using a debit card. 

On the contrary, over at eToro - you will notice that all your cryptocurrency investments are 100% commission-free. The only charge involved would be a deposit fee of 0.5% - which is applicable if your payment method is denominated in a currency other than US dollars. 

Minimum Uniswap Investment and Payments

As we mentioned earlier, Uniswap has been in a bullish market over the past few months. However, in the world of investments - past performance cannot always be considered an indicator of future returns.

Additionally, the world of cryptocurrencies is also famous for its volatility. Given these considerations, it might be best for you to start investing in Uniswap in small amounts. 

However, the minimum amount you can put into UNI tokens will be determined by your chosen online broker. 

For instance, on eToro - you can start investing in Uniswap with as little as $25. Furthermore, no matter how small the investment is, you will not have to worry about commission either. 

Storage and Cashing Out

Finally, if you are going for a long-term investment strategy - it is important that you store your Uniswap coins safely. On many third-party exchanges, you will have to withdraw your coins and store them in an external digital wallet. 

In this case, you will have to perform research to find a wallet provider that can store your assets with maximum security. Moreover, you should also be aware of the ins and outs of using crypto wallets - including ensuring the safety of your private key. 

However, on eToro - the broker will automatically assign a digital wallet to you for the safekeeping of your UNI tokens. As the platform is regulated, you can be sure that your coins will be stored safely and securely under the close watch of the broker’s license issuers.

Check Out: Could Uniswap (UNI) Be a Millionaire Maker Coin? 

How to Invest in Uniswap Today - Step-by-Step Walkthrough

If you have read our How to Invest in Uniswap Guide from start to finish - by now, you have a clear idea of how the process works. 

In order to help you get started, we have outlined step-by-step instructions on how you can make your first Uniswap investment online. 

We have used eToro as a guide to demonstrate how easy and convenient it can be to invest in Uniswap via a regulated broker. 

Step 1: Open an eToro Account

For the first step, you will be setting up your trading account on eToro. 

You can create your account using your email address and a username. You will also have to provide your full name, home address, contact details, and date of birth. 

eToro will also ask you a set of questions to establish whether you are a beginner or a professional investor. This is to help the platform understand which tools to recommend to you. 

Step 2: Upload Some ID

As eToro is regulated, you will also have to go through a Know Your Customer process to verify your account. You can complete this step by providing a copy of your passport or national identity card, along with a utility bill for proof of residence. 

Note that if you are not depositing over $2,250 right away, you have the option to attend to this step later. 

Step 3: Add Funds

eToro is one of the few online brokers that offer support for a wide range of payment methods. This includes a debit card, credit card, and bank transfer. 

In addition, you can also make payments through e-wallets such as PayPal, Skrill, or Neteller. 

If you are choosing a bank transfer, it might take up to seven business days for the transaction to be processed. 

Step 4: Search for Uniswap

When you have funded your account, you are fully equipped to invest in Uniswap. 

You can locate the cryptocurrency by entering 'Uniswap' into the top search bar. Once the result appears, click on the 'Trade' button to be redirected to the UNI token investment page. 

Step 5: Complete Uniswap Investment

On this page, you can enter the amount you wish to invest in Uniswap. 

The minimum investment is just $25. 

After cross-checking your order, proceed with the 'Open Trade' button. The Uniswap coins you purchased will be instantly available in your eToro portfolio. 

Step 6: Cash Out Your Uniswap Investment

As your Uniswap coins are stored on eToro, the process of selling them is also very easy. 

The broker allows you to cash out your Uniswap investment any time of the day - even over the weekend.  

All you need to do is to go over to your eToro portfolio, locate Uniswap and click on the 'Sell' button. 

eToro will instantly sell your coins at the current market price. Crucially, the entire investment process will be carried out on a commission-free basis. 

You can withdraw your profits to the same payment method you used to buy the coins. 

How to Invest in Uniswap - The Bottom Line

Uniswap is one of the best DeFi projects in the current market. Its underlying technology and decentralized ecosystem offer many applications that can significantly alter the current financial system. 

If you would like to capitalize on the surging interest in Uniswap, the safest and most cost-effective way to do so would be through a regulated broker such as eToro. 

This social trading platform will allow you to buy Uniswap on a commission-free basis and at a minimum of only $25. 

eToro – Top Exchange to Buy Uniswap

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

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FAQs

What is the minimum amount I can invest in Uniswap?

At the time of writing, Uniswap is priced at $42.68. If you want to buy one UNI coin, you will have to invest at least this amount. However, if you choose to invest in Uniswap through a regulated broker like eToro - you can start investing in Uniswap with as little as $25.

Is it the right time to invest in Uniswap in 2021?

Since the beginning of 2021 - the value of Uniswap has been steadily increasing. In a matter of five months, the coin has gained over 750% in value. If this upward market is to continue, UNI tokens could end up being much more valuable in the future. However, it is nearly impossible to correctly predict which direction the coin will take. As such, it is always suggested that you do thorough research and keep your Uniswap investments modest. 

Which is the best place to buy Uniswap?

The safest and most convenient way to buy Uniswap is via online broker eToro. The platform is regulated by the FCA, ASIC, and CySEC. Moreover, you will also be able to invest in Uniswap without paying any commission.

Will I be able to make money by investing in Uniswap?

If you are able to correctly speculate the nature of the market and Uniswap continues to rise in value - you will make money.  However, there is no guarantee that the value of UNI tokens will increase - so always consider the risks. 

Is it possible to lose money on Uniswap?

Yes, if the price of Uniswap drops after you have made the investment - you will end up losing money if you end up cashing out. 

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