Uniswap Guide: How to Swap Crypto, Fees and Risks
What Uniswap is, how an automated market maker works, pool fees in v2, v3 and v4, network fees, slippage and safe first steps when swapping tokens.
In short: Uniswap is a decentralized exchange where you swap tokens from your wallet against liquidity pools. The pool fee is 0.30% on v2, normally 0.05%, 0.30% or 1% on v3, and on v4 a pool creator can choose any fee. You also pay a network fee. The main risks are fake tokens, token approvals and slippage.
What Uniswap is
Uniswap is one of the best-known decentralized exchanges. It has no order book but liquidity pools: providers deposit a pair of tokens into a pool and traders swap against it. A formula sets the price from the ratio of tokens in the pool, and providers earn part of the fees.
Fees
| Version | Pool fee |
|---|---|
| v2 | a flat 0.30% |
| v3 | standard 0.05%, 0.30% and 1% (a 0.01% tier also exists) |
| v4 | any fee from 0% to 100%, can be dynamic |
These figures come from Uniswap's official developer documentation. On v4, always check the fee of the specific pool before confirming. The documentation also says that after the December 2025 UNIfication proposal protocol fees are active on all v2 pools and selected v3 pools, initially about one sixth of the swap fee. For you as a trader the pool fee does not change; what changes is how it is split between liquidity providers and the protocol.
On top of the pool fee you pay a network (gas) fee. On Ethereum it can exceed the value of a small trade, so many people use layer-2 networks with lower fees. Check the fees shown in the interface before confirming.
How to swap, step by step
- Prepare a wallet holding the token you want to swap and crypto for the network fee. Keep the seed phrase offline (glossary).
- Open the official Uniswap interface by typing the address. Do not search through ads.
- Connect the wallet and choose the network.
- Select the tokens. Verify the destination token's contract address on the project's official site or a trusted aggregator. The same name can belong to a fake token.
- Enter the amount and review the price estimate, pool fee, network fee and slippage.
- Approve the token and confirm the swap. An approval lets a contract move your token; revoke approvals you do not need.
- Check the result in your wallet.
Slippage and protection
Slippage is the gap between the expected and the executed price when the price changes between sending and execution. It can be large on thinly traded tokens. Set a low tolerance and do not swap large amounts in small pools.
Risks
- Fake tokens and rug pulls. See how to spot a crypto scam.
- Fake websites and phishing.
- Irreversibility. Nobody can reverse a mistaken transaction.
- Illiquid pools with high slippage.
A hardware wallet adds safety when signing, see Trezor vs Ledger.
Taxes
Swapping tokens has tax consequences that depend on your country. Keep your transaction history.
Frequently asked questions
How much does a Uniswap swap cost?
You pay a pool fee (for example 0.05%, 0.30% or 1% on v3) and a network fee. The interface shows the exact amounts before you confirm.
Do I need an account?
No, a wallet is enough. Availability can differ by country.
Is Uniswap safe?
The protocol has been used for a long time, but risks remain: fake tokens, fake websites and your own mistakes.
Not investment advice. Using a DEX is risky and losses are often irreversible.
