Uniswap is a decentralized exchange (DEX) based on the Ethereum blockchain. Decentralized exchanges allow direct peer-to-peer trading of tokens on a blockchain. There is no central company that oversees the transaction like there is with a centralized exchange (CEX).
Uniswap can be a useful tool to stake and trade funds without needing to trust anybody or ask for permissions.
Step 1: Buy Ethereum from an exchange (optional)
If you do not have any Ether on your Ethereum wallet you need to get some Ether first. One of the easiest ways of buying ETH is by using exchanges like Kucoin, Coinbase or Binance. After you have purchased ETH you will need to send it to your Ethereum wallet.
Step 2: Connect your wallet to Uniswap
Once you have an Ethereum wallet with Ether you can go to the Uniswap App. You will then need to connect your wallet by clicking the 'Connect Wallet' in the top right corner.
Uniswap supports Metamask, WalletConnect, Coinbase Wallet, Fortmatic and Portis.
Step 3: Select a token
Once you have connected your Ethereum wallet you can click on 'Select a token' and choose a cryptocurrency that is already listed. You can also import a contract address but please make sure to check that it is the right one. Always copy a contract address from official sources.
Step 4: Make your trade
Enter the amount of ETH you want to trade for another token and also make sure you have enough funds to cover the gas fees. Then click on 'Swap'.
The confirmation of your transaction will take some minutes. Once the transaction is done you have successfully swapped ETH for another token on the Ethereum blockchain via Uniswap.