How to Make Purchases of Tokens with Uniswap

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by Andy Watson · 4 min read
How to Make Purchases of Tokens with Uniswap
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As long as you have Ether (ETH) in your wallet or available on another Ethereum-based cryptocurrency exchange, purchasing ERC20 tokens with Uniswap will not pose a problem at all.

The Uniswap platform is a decentralized ERC20 token exchange. It was created to offer an alternative for users who want to buy and sell tokens in a simple, fast and secure manner. The process of purchasing tokens on the Uniswap platform is very easy and straightforward. In this article, we’re going to go over how you can purchase tokens using the platform.

To purchase tokens using Uniswap, you’ll need to own Ether (ETH). If you’ve already got some in your wallet, great. Otherwise, make sure that you sign up for an Ethereum based cryptocurrency exchange and buy ETH. Next, we’re going to go over the steps involved when purchasing a token with Uniswap.

The first thing you’ll do is visit the Uniswap website and choose a token to purchase. In this example, we’re going to be purchasing Digix Gold tokens (DGX). On the next page, you can select from three different markets: ETH/PRIXY, DGX/ETH or DOT/ETH. The first two options will allow you to buy DGX tokens with Ether, while the third option allows you to purchase DOT (the Uniswap token) using ETH or Digix Gold Tokens.

At this point, we’re going to choose “ETH/PRIXY” as our market because it’s a very straightforward way to purchase DGX tokens with Ether. Next, you can choose the token that’s being offered by clicking on “DGX” under the “ETH/PRIXY” market window.

For example purposes, we’re going to select 100 DGX tokens to make our transaction easier to complete. Once again, this is just for example purposes. You can choose as many or as few tokens as you want.

Once your transaction is complete, the platform will confirm it and notify you of how much Ether (ETH) has been transferred to Uniswap in exchange for DGX tokens.  Next, click on “Uniswap Market” at the top of the page to expand it.

Scroll down until you see “Uniswap Market” and click on it. Our next step is to check our transaction history for this particular purchase so that we can make sure that everything went smoothly! If there are any issues with your order or if something looks wrong, it’s a good idea to contact the Uniswap team for assistance.

To see your transaction history on Uniswap, click on “Transaction History” in the top section of the screen. This will bring you to a new page that contains your transaction history from this particular purchase.

Advantages of Using Uniswap for Token Purchases

  • Uniswap is a decentralized Ethereum token exchange.
  • It’s fast and secure.
  • It’s very easy to use.
  • It has low transaction fees.
  • It doesn’t require registration or identification.
  • It’s an ERC20 token exchange.
  • It has a user-friendly interface.

Disadvantages of Using Uniswap for Token Purchases

You need Ether (ETH) to purchase tokens on the platform (or other ERC20 coins).  If you don’t already own ETH, transferring it from an exchange can take a bit longer than usual. There are also several Ethereum based cryptocurrency exchanges where you can buy ETH without creating another account. We recommend Coinbase and Kraken as good alternatives if you want to avoid creating accounts at more traditional online currency exchanges like Bitfinex or Binance.

Uniswap does not currently support ERC20 token sales at this time. If someone offers an ERC20 sale within their ICO, it will be necessary for them to create smart contracts in order to accept those funds! This means that they’ll have access to your Ether (ETH) beforehand and can simply refund you if anything goes wrong with the transaction process or project itself. So make sure that you do thorough research before sending any ETH.

If you’re looking for an easy way to purchase ERC20 tokens without any hassle, then Uniswap, a front-run bot trading system is definitely the platform that you should be using/ It’s fast, secure and very user-friendly. As long as you have Ether (ETH) in your wallet or available on another Ethereum-based cryptocurrency exchange, purchasing ERC20 tokens with Uniswap will not pose a problem at all.

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Andy Watson
Author Andy Watson

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