Instructions on how to use Uniswap V2 . floor

In the previous article, you learned what Uniswap is and the information related to it. In today’s article we will dive into learning how to use Uniswap V2.

In this article we will learn about 3 main parts:

  • How to Swap Tokens (buy and sell) on Uniswap V2.
  • How to provide liquidity on Uniswap V2.
  • How to remove liquidity on Uniswap V2.

What is Uniswap and Uniswap V2?

Before starting to learn how to use Uniswap V2, I will talk a little bit about Uniswap and Uniswap V2.

Uniswap

Uniswap is a protocol built on Ethereum, allowing users to Swap ERC20 Tokens on the Ethereum network quickly without intermediaries (Permissionless, Trustless, Transparency).

Uniswap V2

Uniswap V2 is a decentralized exchange (DEX) using Uniswap Protocol built on the Ethereum Blockchain that allows users to:

  • Swap ERC20 Tokens fast and easy.
  • Contribute to liquidity pools for any ERC20 Token and get commission in the form of Fee Swap.

What to prepare to use Uniswap V2

To use Uniswap floor, you need to prepare a few things in advance:

  • Install and login to the wallet Techtipsnreview Extension Wallet on chrome or use Techtipsnreview Mobile Wallet
  • Always keep some ETH in your wallet to pay GAS fees.

Read more: Instructions for installing and using Techtipsnreview Extension Wallet

How to Swap (buy or sell) tokens on uniswap V2

First you need to access Uniswap V2 (the default interface can be pink or black).

Connect using Techtipsnreview Super App

First, log in to Uniswap’s interface and follow these instructions:

Step 1: Choose Connect to a wallet

See more:  The most detailed guide to using the Ubeswap floor (2021)

Step 2: Choose WalletConnectthen you will see the QR code appear on the screen

Step 3: Login to Techtipsnreview Mobile Wallet and press Connect then scan the code in step 2

Step 4: A message is displayed showing that you are connecting to Uniswap. Brother click Connect done.

Connect using Techtipsnreview Extension

Step 1: Access the Uniswap platform and select Connect to a wallet

Step 3: Click Injected → then select Connect in the connection message

So you have connected your Techtipsnreview Wallet with Uniswap V2, the rest is to choose Coin to trade. I will take an example for you to visually follow the operation steps.

I want to Swap from 0.5 ETH to USDT.

In the “Swap” interface, you fill in the parameters as shown, then click “Swap”.

Some parameters you need to pay attention to here:

  • “From” and “To”: the number of Tokens you swap and the number of Tokens you will receive.
  • Price impact: the difference between the market price and the estimated order execution price.
  • Liquidity Provider Fee: The amount you will pay for Uniswap, currently 0.3%.

Then you just need to confirm the transaction and wait for the transaction to be confirmed on the Ethereum Blockchain, your 0.5 ETH will be Swap to 204.8 USDT.

Please note that in the “Details” section is the transaction information of the transaction. GAS FEE, you simply understand that the transaction fee and this fee are in ETH, that’s why I have noted for you that you have to leave a little ETH for transaction fees.

Because the Ethereum network is currently overloaded, the GAS FEE team is very high (ranging from 5 – 20 USD/transaction), so you should consider this point before trading on Uniswap V2.

How to provide liquidity on Uniswap V2

In addition to the fast Swap upgrade that I have just instructed you above, Uniswap V2 also allows you to provide liquidity for trading pairs. In return for that effort, you will enjoy Liquidity provider Fee (0.3%). Of course, the actual profit will be affected by many other factors, you should learn carefully before making an investment decision. You can refer to this article.

I will take an example for you to visually monitor the operation steps, I have a total of 100 USDT and want to use this USDT to Add Liquidity to ETH and USDT trading pairs.

See more:  Detailed and easy to understand BlackHoleSwap V2 user manual

First you need to know that you need to deposit both Ethereum and USDT that you want to Add Liquidity.

So, if you want to use 100 USDT to Add Liquidity to ETH and USDT trading pairs, you must use 50 USDT Swap via ETH.

Then you choose “General capital” and “Add liquidity” as shown below.

Then you click “Approve USDT” and “Confirm” and confirm the transaction in Metamask is completed.

When completed, you can see your Pool similar to the image below.

How to remove liquidity on Uniswap V2

When you don’t want to lock your Token anymore, you can Remove that Liquidity by:

In the “Your Liquidity” section, you choose the Pool you want to Remove, then select the % of capital you want to withdraw.

Then click “Remove”, the system will give you an information table of how many Tokens you get back after Remove. Please check again and then click “Confirm” and confirm the transaction in Metamask is completed.

Tips and tricks for using Uniswap V2

Here are some tips and tricks you need to know when using Uniswap v2.

How to increase transaction speed on Uniswap V2?

Basically to speed up transactions on Uniswap you need to pay more Gas FEE than other competitors who are trying to process the same transaction.

In the “Detail” section, click “Edit”, select “Fast” and click “save”.

You can see that the transaction time is very different from each other, fast is within 30 seconds, slow is about 15-20 minutes, in exchange if you want to be fast, you have to pay $8 more in Gas Fee when compared to choosing a transaction. slow.

How to avoid buying “Fake” Coins by mistake on Uniswap V2?

You should know that anyone can list Coins on Uniswap by themselves and Uniswap is not responsible when you are deceived and mistakenly bought fake Tokens. This is also one of the unique points of Defi, you should read the article on Techtipsnreview about Defi to better understand it.

See more:  What is Yobit Exchange? Yobit Exchange Reviews & Manuals (2022)

Transactions on Blockchain like Ethereum are almost immutable, so if you send your money to buy scam Tokens, almost 100% of you have lost your money.

To avoid this situation, you need to determine the correct information about that coin, it is best to detect that coin through Contract.

Why do trades again or fail when the price is fluctuating strongly?

Recently, I saw some brothers responding when “I saw that Hakka’s price was beautiful, I wanted to buy it quickly but the transaction failed, click again, the price is no longer good…”.

The reason may be due to the default configuration of Uniswap V2 about Slippage tolerance, when you use it for the first time, Uniswap v2 will default to 0.5%.

You can understand the slippage in a trade that occurs when the price at which the order was last executed does not match the price at the time you confirm the trade. When trading on Uniswap V2, this is called “Slippage tolerance” and is expressed as a percentage.

For Tokens that are in flux, there can be a lot of competition to process the transaction and get that Token at an attractive price.

In that case, you can increase your chances of matching by increasing GAS fees and increasing Slippage tolerance.

To adjust the Slippage tolerance, click on the gear icon located in the top right corner.

The transaction fee on uniswap V2 is quite high, is there any way to reduce it?

The transaction fee on Uniswap V2 consists of 2 parts, the GAS fee of the Ethereum Blockchain and the Liquidity Provider Fee.

  • Liquidity Provider Fee is currently 0.3% and cannot be reduced (unless the Uniswap Dev decides otherwise), so consider this as a fixed fee when you Swap Tokens on Uniswap V2.
  • GAS FEE: Is a Transaction Fee on Ethereum Blockchain, this fee will fluctuate depending on the status of the Ethereum network when you transact, you can adjust it a bit by Editing GAS FEE when transacting, but basically show now GAS FEE is still quite high because the Ethereum network is overloaded, this is a sore problem for Ethereum.

Is trading on Uniswap V2 safe?

Uniswap is considered a highly secure decentralized exchange that is safe to trade, as they do not require holding funds on the exchange. Smart Contract Uniswap has been audited by Consensys.

Summary

Uniswap is emerging as a force in DEX exchanges with Trend Defi growing rapidly, with simple usage I think in the future DEXs may grow even stronger.

Hope this article can help you understand how to use the important features of Uniswap V2 exchange such as Swap, Add liquidity, Remove liquidity and some notes when using them.

I’m Vinh and I’ll see you guys in the next posts!

Source: Instructions on how to use Uniswap V2 . floor
– TechtipsnReview

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