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I am having a hard time understanding how UNISWAP works. I went to their site and it gives you the option to trade all ERC tokens. So you want to buy certain coin with Ethereum, does that mean that coin is there in some pool, or how does it work?

Yes. As far as i have understood uniswapn is an automated market making service so pooled liquidity is there for most tokens that you can trade. Without liquidity pool there is no way to buy or sell on uniswap. Due to returns most tokens are available in the pool as hodlers park there to get returns for hodling.

Yesm you have so called liquidity pools, where you leverage your token and offer them to be traded for lets say ETH. So if anyone really wants that token, they buy it from your liquidity pool.
There's also an incentive for this, as all the poolers receive a % of the fee for pooling

I could now start explaining you the functioning of Uniswap, but why should I when there is a really good explanation available already (and from where I've learned to understand it :) ). Therefore I recommend to read [1] that gives you an very good understanding. If you then still have specific questions don't hesitate to ask. It is easier to answer those specific questions.

[1] https://docs.ethhub.io/guides/graphical-guide-for-understanding-uniswap/

Almost right. Liquidity pools are provided for the community by the community members and they're granted with liquidity provider fees for that.
It is true for most of tokens that are listed on uniswap, thus service is indeed decentralized and somewhat secured

You can find out the business model applied by Uniswap and also the transaction mechanism at Uniswap by reading the official Whitepaper . (https://hackmd.io/C-DvwDSfSxuh-Gd4WKE_ig)

And you can discuss with friends on one frequency in this thread : Uniswap discussion (https://bitcointalk.org/index.php?topic=5268409.0), the chances of getting answers to your questions will be easier to find by discussing each other

Although uniswap is a quality platform and has become very popular definitely it solves major trading problems and traders like the instant swaps but at the same time i really like the traditional dex platforms as well. So i think we should continue to support them and trade there as well.

Look on YouTube there are many good videos, they describe all the nuances of trading on uniswap, and how to lock liquidity, and how to use LP tokens to get extra earnings.

The pool is there for swapping your tokens, e.g ETH to DAI.
The pool providers earn reward when you swap your Erc tokens which is 0.3% fee for every single transaction on Uniswap. The large the amount provided on the pool, the more shares you get for every transaction.
They do so in 50:50, it may differ in other decentralized exchange as they all gave difference protocol mechanisms.

I have never done anything there either, but if we see what is written on their official site is Uniswap is a decentralized protocol for providing automatic liquidity on Ethereum, meaning that all the tokens there are instantly on the ERC20 platform, that's according to what I understand mate.

The coins and liquidity are getting locked inside the pool and it's just like a hot wallet that can interact with any tx that has already made by the users who will be swapping or buy the coins.

The simple explanation should be it's just like a hot wallet that user can sell or buy through it.

When you use you use Uniswap to buy any tokens or provide liquidity to their pool, you don't need to give out your private key at all? You can still have your own custody when you interact with Uniswap?

Obviously, because the private key is something that does not have to be published, because the name alone is very clear, namely the "private key" so it is clear that it is not to be given to others but to be kept private.

Have you ever watched on youtube how does Uniswap works? Better check this out!
https://www.youtube.com/watch?v=ovbs8LT8wIg

Basically, Uniswap is just a minimal exchange. Example: I have 1 eth and I want to have TRX, using Uniswap, I'll just connect my metamask with it and and input my desired amount to be swapped to TRX. Then Metamask would have some prompt in how much gas fee you need then you would confirm it afterwards. It was all described further in the video, hope it helps!


You can use Metamask with Uniswap to access your wallet, hence you don't need to give them your private keys. And yes, you have the full control of your money, wallet, and holdings with the uniswap.

So basically you put your coins on the liquidity pool, they will stay locked there into a smart contract, then for each swap other user does you will earn a percentage of that fee, there is something called impermanent loss that is more complex and i dont fully understand, you better do your research because thanks to this impermanent loss you can end up losing money, also you should avoid coins that seems scams

As far as I know Uniswap is decentralized exchange which works on smart contract. It`s fully automated and I think that all tokens are holded on definite addresses, which are connected with smart contract which regulate exchange work. It`s quite interesting to see new products in cryptocurrency sphere like Uniswap. Hope there will be more and more such projects

Uniswap’s design is simple, elegant, and self-contained, meaning the protocol doesn’t have a wide attack surface. However, Uniswap isn’t totally free from risk, either. Namely, Uniswap bears the technical risk that comes with any smart contract-based project, i.e. contracts being attacked or otherwise obstructed.  Uniswap doesn’t appear extensively exposed to technical risk, as the project has been repeatedly audited and the protocol has proven itself in the wild for some time now.

Yes, it works like forkdelta, idex or Binance Dex but it is more easy that those. You just need to connect your wallet with uniswap and here you can trade (swap) with your ethereum to others erc20 tokens or your erc20 tokens to ethereum. It is now a fantastic swap exchange to me and now it is on top talked matter in the last few days.

yes uniswap talked on most social media . much of people talked about uni airdrop that give them alot of money. swab token in uniswap was very easy to do, only waiting approved in uniswap network we will able to swab. unfortunately uniswap also has diadvantages , high fee become problem most of investors.

Apart from those explanations and descriptions given to you OP. I only want to give you a reminder that there are copy-cat projects that are starting to imitate Uniswap, hoping that they'll get some investors misleading them into their platforms and buy their imitation token.
It is what you need to remember too just in case you're too attracted to Uniswap and you're liking it because of its trend.

if what you say is true then uniswap tokens should not have this high price because if you can see that many altcoins have less supply than uniswap but the price can't be this expensive, hopefully UNI won't make many traders disappointed and really have developments good so that it can give a lot of profit.

The uniswap pool works as a decentralized protocol for exchanging Ethereum and tokens for each other.
Read this article to understand how pooling works.
https://bitcointalk.org/index.php?topic=5276515
The price ratio on the pool is regulated by sellers and buyers.

they have high price right now because they are enjoying the hype. so for those UNI holders you need to be alert for what's to come in the next coming months. when most of these defi projects are already in their grave, and a lot of those tokens in uniswap have no more value.
 and that's right, a lot of fake projects are being created. just look at all those Y projects suddenly sprouting like mushrooms. they can easily create similar projects and list then in uniswap without too much effort from their end. so stay vigilant!

To place the project tokens on uniswap, you need to create a pool, and for this you will need to invest 50-100 thousand dollars.
Every day 20-40 new projects appear on uniswap, but most of them do not find anyone willing to purchase their tokens.
Huge commissions of $ 25-50 for one token transfer discourage buying anything.

If they are in demand, price will definitely appreciate and that's unstoppable if the mass is with them. But as their demand increases, there are also the opportunity takers which are copying the names of these projects but theirs is entirely different if you'll check the whole details about their project. It's just a reminder for those lovers of Uniswap or any token that you want to trade there. Be careful because if you are not, you may fall to the wrong type of token which has almost similar name.

Copying the allmost the same name of a certain project can lead to these scenarios 1. Make the project a copycat in the appeal of investors 2. Make some people confused on which on both original and copied names is their target project 3. Label them as a copy-cat project even they have different concept. There are many possible scenarios that can be positive and negative effect to the project, I think it's not necessary to have a project name that is close to others.

you should learn from any tutorial how uniswap working, there are many tutorial in youtube channel. uniswap was easy to operate f, you can trade there or even add your liquidity . this exchange provide many feature, except its gas transaction that complained by traders.

They really are confusing many investors as they are misleading them to the project that they've made as the copycat from the actual project that these investors want to invest.
It's the trick that they're doing and that's the same with what we experienced for having bitcoin. A lot of forks for bitcoin was made and one of their goal is to attract investors of bitcoin to invest with the forks that they have. Luckily, many are aware of that but here they are again, going with the new trend of projects.

All that you ask has long been available both on the Internet and on our forum. View these topics zasad@ (https://bitcointalk.org/index.php?action=profile;u=2654005):
(GUIDE) How to trade on uniswap correctly (https://bitcointalk.org/index.php?topic=5270415.msg55038528#msg55038528)
Swaps list (https://bitcointalk.org/index.php?topic=5276937.msg55225896#msg55225896)
They will be interesting and I hope will help you learn how to trade on the exchange Uniswap.