How do you create a MetaMask wallet and trade on DEX's like Uniswap?
How do you create a MetaMask wallet and trade on DEX's like Uniswap?
Decentralized exchanges, or DEXs, often facilitate trading for a wide variety of different cryptocurrencies.
Using such a platform means trading with other participants via blockchain transactions through a site you visit online. Popular DEXs include Uniswap, 1inch and SushiSwap.
Unlike using centralized platforms such as Coinbase or Binance, using a DEX requires no login or password. You do, however, need to connect a wallet. Multiple wallet options exist, including hardware wallets such as Ledger, and software wallets such as MetaMask. This article walks you through setting up a MetaMask wallet and using it with Uniswap.
CoinMarketCap has an extensive list of DEXs.
DEXs often list new assets fairly quickly so DEXs can be a great way to buy into tokens before they are listed on other exchanges, such as Coinbase, which can lead to associated price rallies.
Security tip: Make sure you double check your URLs when initially visiting exchanges or setting up wallets to avoid phishing or other hacking efforts. And NEVER CLICK on a link sent to you via an email — there is a good chance that this is a ‘phishing’ attack meant to steal your tokens.
Always go directly to the DEX site via your URL bar, and please check that the small padlock in the URL bar shows a valid certificate (for more information check this Google Chrome article or this from Apple on Safari. Similar articles are available for other browsers.)
Bookmarking pages can also leave less room for error.
For more on security, CLICK HERE
Setting up MetaMask
MetaMask is a software wallet built into a browser extension for easy use with DEXs. Brave, Firefox, Google Chrome and Edge browsers work with MetaMask. Software wallets are not generally advisable for holding assets on a longer-term basis, but can be useful for various other activities in the crypto world.
- Go to metamask.io (check the URL carefully!)
- Click “Download now.”
- Choose your browser, then click “Install MetaMask for [your browser name].” You will be redirected to the Chrome Web Store.
- Click “Add to [browser name].” A pop-up will ask about allowing the extension to interact with your data.
- Click “Add extension” on the pop-up and you will be redirected to a separate page.
- Click “Get Started” on that page.
From there, you will be asked if you would like to set up a new wallet, or import an existing wallet. If you would like to import an existing wallet into MetaMask, follow the instructions on MetaMask’s help site, linked here. Be on the lookout for phishing attacks, however. Always exercise caution and check the security certificate!
- To set up a new wallet, click “Create a Wallet.”
- Create a strong password when prompted, then read and agree to the terms and conditions. You will then be taken to a page for seed backup.
- Click the lock symbol to reveal your seed, but make sure you are alone, or that no one around you can see your seed phrase. Your seed is the key to all the funds you will store on this wallet. Do not store your seed backup anywhere online or on any device. Write the phrase down physically, and store it in a safe place. Never share it with anyone.
After writing down your seed, the site will take you to a place that will confirm that you wrote it down correctly. Once confirmed, click “All Done” on the subsequent page.
To access your wallet at any point, click the puzzle piece in the top right corner of your browser next to the website address bar. You should see MetaMask under extensions. Clicking on the wallet pulls up a window showing your wallet. You will interact with this window when using DEXs such as Uniswap.
Source: Brave Browser/MetaMask Extension
Your wallet address appears near the top of the app, circled in red in the image below. You can only send Ethereum (ETH) and Ethereum-based tokens to this address.
Ethereum-based tokens do not have their own addresses. Just send them to your main Ethereum address. Do not send non-compatible assets to this wallet.
Copy / paste the address, as manual errors are common.
Source: Brave Browser/MetaMask Extension
Getting started on Uniswap
Now that your MetaMask wallet is up and running, you are ready to try out Uniswap. First, type app.uniswap.org into your browser and bookmark the page for future use.
The trading process from here is fairly straightforward.
- Choose the amount of Ethereum you want to trade for any asset listed in the pulldown menu in the second search bar.
- Select the asset for which you want to trade your ETH. Once you choose an asset, the system will automatically calculate how much you will receive for the amount of ETH you type in the box above. You can also type in how much of the asset you want to buy and the system will automatically calculate its cost in ETH.
- The price per token you will pay is listed below the second box. Hitting the icon next to the token’s price switches between showing the asset’s price per token in ETH, and the amount of that token you can buy with one whole ETH.
Additional data is also available below the “Connect Wallet” box. “Minimum received” is the least amount of the asset you will receive after the trade is complete. The prices shown are based on a price span, filling your order if the prices of both assets remain within a specific range from where you placed your order. If the market price moves too much during trade confirmation, your order will be cancelled.
Clicking on “view pair analytics” takes you to a separate page where you can see various data on the asset pair, such as 24-hour volume.
- When you decide on a trade, click “Connect Wallet.”
Source: Uniswap
- Choose MetaMask from the list.
Source: Uniswap
- When prompted, click “Next” on your MetaMask wallet, followed by clicking “Connect.”
Source: Uniswap
- To carry out the trade, click “Swap” in the center of the screen after the wallet connects.
You can swap directly between any two assets on the platform, although you must own at least one of the two assets involved in each trade.Make sure you have enough Ethereum to pay gas fees, even if ETH is not part of a trade. If you are unable to click the ‘CONFIRM’ button on a trade, check that you have enough ETH available in your wallet to transact.
You can change various transaction settings by clicking the wheel in the top right corner of the swap box.
Changing the slippage tolerance alters the window in which you agree to accept trades. As mentioned above, depending on the price action of the two assets you are trading, your order may fill at a level different than the price you put in. This setting adjusts how much price fluctuation you will allow. If prices move outside your specified window, the order will cancel. Transaction deadline is the amount of time you give an order to confirm.
Source: Uniswap
To remove your MetaMask wallet’s connection to Uniswap, click the puzzle piece in your browser, then tap on your wallet. Click the stack of dots to the right of your ETH address, choose “Connected Sites” from the pulldown menu, and click on the garbage can next to the MetaMask item on the list.
Source: Brave Browser/MetaMask Extension
For further reference on Uniswap, Binance Academy has a comprehensive article you might find useful, click here (noting that this is an external site, and we have no control over its contents).
DEXs are a new financial innovation, and United States law is currently unclear on DEX usage. If you are a U.S. person, please check local regulations and be aware that the regulatory landscape can change rapidly. Please also be aware that the information provided here is not intended to represent financial or legal advice, and that you use these products at your own risk. Neither Cointelegraph nor its partners or affiliates are responsible for losses stemming from the use of any products or services described here, and we strongly advise you to consult a financial advisor before making any investment decisions. For full terms and conditions, see https://cointelegraph.com/terms
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