Is Uniswap reaping people off

[poodle63]

That's how ETH network works and as the cost of transactions are higher due to higher gas fee in DEXs and now that's the area where centralized exchanges has advantage as the transaction fee is way too lower compared to DEX and to be honest most of the casual users or short term investors will prefer CEX over DEX for this particular reason and thus you will see most of those who do regular trading or smaller transactions do not use DEX but if you are trading huge amount and don't want any trouble of centralization then DEX is the best option. Unfortunately that's how it works.

honestly nowaday people can easily switch and use L2, just bridge over their asset to L2 then we get few cent fee for swapping which is a lot more inexpensive if compared with ethereum, the underlying problem is ethereum, the fee there is simply too high that I think its ridiculous for many people and the reason why L2 these days are created so many because it does indeed solve the problem relating with fee with still staying faithful with using ethereum as the coin for paying the gas fee.
but I guess if you still want to trade so frequently like basically every minutes then I guess using centralized exchange might indeed be a good thing since there's no fee for maker sometime and also no need to think about transaction confirmation since it happened almost instantly. at the end of the day it just up to personal preferences.

[dansus021]

ahhaha the answer already given by someone else but yeah when you swap on dex you need to pay gas fee every single transaction and those money goes directly to miner and not to uniswa. they do charge but fee is relative low just like the CEX

tho you can start trading on site like WooFi Dex that has feature with orderbook so you can skip the onchain fee

[GreatArkansas]

As others said,  they are correct, it's because of the Ethereum network.
Welcome to mainnet Ethereum.

That's why layer 2 networks are born, to fix this kind of issue, high transaction fees.

As you can see, there are 13 total networks that Uniswap has right now, most of the networks are layer-2 networks if you use some of them, you will extremely save a lot of transaction fees, even if you will only swap a few amounts.

[libert19]

On a centralised exchange, what you are conducting is an on-chain transaction where you don't need to pay any fee for such transactions to be completed; only the trading fee is to be charged, which is always not up to 1% of your trading amount.
 
But on Uniswap, you are interacting with the network. First, you need to approve the token for it to be available for swap on Uniswap. With that approval alone, you will be charged for the gas fee, which is on Eth. And after that, before you can confirm your swap on Uniswap, you also need to pay another fee in order for the transaction to be completed. You pay a two-time fee before you can complete a swap on Uniswap.

I'd like to add little here. You don't always have to make approve transaction if you have already approved before for that contract address. For example, if you have approved $500 before on Uniswap, then you won't have to approve again for next swap transactions worth less than or equal to $500.

One should never set unlimited approvals as, if dapp gets hacked your approved amounts will be drained, and if you approved 'unlimited' your all tokens will get drained.

I always suggest people to never approve more than requirement of that transaction but in case of chains like Ethereum, approving transactions for each trade can be expensive, especially when you make frequent trades, so for such times you can approve what you are comfortable with so you don't have to make approve transactions again and again and save some on gas fees.

In case you want to revoke, this approvals can be revoked using tools like revoke cash or etherscan revoke tool.


@op Uniswap can't rip people off cause Uniswap doesn't earn anything from trades, there is 0.3% trade fee which is distributed to liquidity providers and what you pay as gas fee goes to the ethereum validators as an incentive to validate and some is burned.

[EarnOnVictor]

I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?

Even the $3 charged by the exchange is high, well, it depends on the amount we are talking about, and I expected it to be much lower with the decentralised exchange. I always tell people, that the ease, comfort and low fee benefits, and even the business around the centralised exchange can't be achieved by the decentralised exchange, but they continue to argue, a lot more should be considered (Off and On-chain transactions).

I'm glad you are another person who proves this right, it is good to have your privacy but privacy is not everything, especially if you do not have anything to hide and are transacting with a few bucks. What the centralised will do for you, the decentralised will not do for you but I read differently online even though I knew it can't be entirely so. The network charges are another thing, they must be applied to all your exchanges and the coin/token we are talking about matters so much. Exchanging Bitcoin these days will make you suffer the same fate. Perhaps this will be different with other altcoins since they could probably have a low transaction fee. In other words, the service charges of DEX are still very low but the network it must pass through could have a high fee, which is a serious issue that can spoil plans.

[AakZaki]

This is precisely why CEX are more patronized than DEX, because centralized exchanges are more convenient and has cheaper transaction fees for smaller transactions than the decentralized exchanges, as is obvious from the OP unfavorable experience. People are advocating for DEX but with this Uniswap, being a reputable DEX high fees for small transactions it's not helpful, only favorable  for big transactions.

You also need to remember that CEX needs your privacy and that will not be in line with people who prioritize privacy, and you do not have full control over your assets, CEX has authority over your assets too. Whereas in DEX your key is your assets, only you have full control and without the need to implement KYC. So this is a choice about privacy and freedom of trading.

[milewilda]

I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?

In any centralized platforms or simply CEX if you do make out some direct on chain transaction on ETH to ETH then fees are less on which understandable, even if you do make out some deposits or transactions in between
non custodial wallets into other wallets then it is really that cheaper. Speaking about Uniswap where you are really that tending to make swaps into other coins then we do know that bridging transactions
on which it would really be that normal that they would be charging you about those trading fees,network fees etc...  Plus we do know that EVM transaction based are way too expensive when it comes
to gas, this is why its not really that shocking that you would really be paying up some premium whenever you do make out transactions.

This is why i do hate up and avoiding on making ETH transactions specially on hunting degens and meme coins because even making those simple swaps do really give out that kind of pain
when it comes to gas fees.Even if we do say about $3 per transactions or even that enabling that coin do really give out that fees which do really sucks. 

[Belarge]

You also need to remember that CEX needs your privacy and that will not be in line with people who prioritize privacy, and you do not have full control over your assets, CEX has authority over your assets too. Whereas in DEX your key is your assets, only you have full control and without the need to implement KYC. So this is a choice about privacy and freedom of trading.

We're traders who's innocent, wants the best for ourselves, we have a choice to make in the system, just stay consistent on a private track and continue reaping good profits. Freedom of trading is guaranteed and we ought to make good profits from the system, not letting down any chances of making good returns from the market, we just have to be more careful whenever we're in the space because the slightest opportunity can cause us to lose hugh profits. CEX provide us with the reuqire information we think we should have.