Our review of Uniswap Exchange: 2/5

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Uniswap in brief

Our opinion of Uniswap

Uniswap is a fully decentralized exchange (DEX) built on the Ethereum blockchain, allowing users to trade ERC-20 tokens without relying on a centralized intermediary. We liked that Uniswap offers direct wallet-to-wallet trading, eliminating the need for account creation or KYC verification. The sheer number of tokens available is impressive, providing access to thousands of ERC-20 assets, including some that are not listed on major centralized exchanges.

However, we would have liked to see a more beginner-friendly interface. The platform assumes users are already familiar with decentralized finance (DeFi) and does not provide much guidance for newcomers. High gas fees were also a major drawback during our test. While Uniswap’s 0.3% trading fee is reasonable, Ethereum network fees can make transactions unaffordable for smaller traders, especially during periods of congestion.

Security-wise, Uniswap benefits from being non-custodial, meaning users retain control over their funds at all times. However, we found that scam tokens and fraudulent projects are a serious risk, as anyone can create and list a token on the platform. Unlike centralized exchanges that perform due diligence on listed assets, Uniswap leaves it entirely up to the trader to verify the legitimacy of tokens.

We also tested the liquidity provision feature, which allows users to earn fees by supplying assets to liquidity pools. While this can generate returns, impermanent loss is a significant risk, and there are no safeguards or support if users experience unexpected losses. We would have liked to see more risk management tools to help users make informed decisions.

Who is Uniswap best for?

Uniswap is best suited to experienced DeFi traders who prioritize decentralization and access to a wide range of ERC-20 tokens. However, high gas fees, lack of support, and security risks associated with unverified tokens make it a difficult platform for beginners or casual traders.

Before you zero in on Uniswap, compare Canada's best crypto trading platforms:

Let's find out more about our test results on Uniswap.

Reliability and Security 2/5

Uniswap was launched in 2018 as one of the first decentralized exchanges (DEXs) on the Ethereum blockchain. Since its inception, it has grown significantly, with millions of users worldwide and a daily trading volume often exceeding $1 billion. Unlike centralized exchanges, Uniswap operates without a company managing funds or approving trades, making it a key player in decentralized finance (DeFi).

Despite its popularity, Uniswap has not won any major industry awards. It is recognized as a pioneer in automated market-making (AMM) but remains a highly controversial platform due to its lack of regulation, high transaction costs, and security risks associated with fraudulent tokens.

Uniswap is not regulated by any Canadian financial authority, including FINTRAC, the OSC (Ontario Securities Commission), BCSC (British Columbia Securities Commission), ASC (Alberta Securities Commission), or IIROC. This means it operates outside Canada’s legal framework, offering no regulatory protection for traders. While decentralization provides freedom, it also exposes users to scams, smart contract vulnerabilities, and irreversible transactions.

Risk Management Features

Since Uniswap does not hold user funds, it eliminates the risk of exchange hacks or insolvency, which has affected centralized platforms in the past. However, the lack of oversight means users must conduct their own due diligence when trading. There are no built-in fraud prevention tools, and no customer support is available in case of issues. Additionally, gas fees on the Ethereum network can lead to failed transactions, with users still having to pay fees even if a trade does not go through.

Cryptocurrencies Available 4.5/5

Uniswap is known for offering one of the largest selections of ERC-20 tokens, giving traders access to thousands of assets that are often unavailable on centralized exchanges. Unlike traditional platforms that carefully curate their listings, Uniswap allows anyone to create and trade tokens, significantly increasing its asset diversity. However, the downside is a high risk of scam tokens and unverified projects, making it more difficult for users to distinguish between legitimate and fraudulent assets.

Below is a comparison of Uniswap’s crypto asset diversity against the market average:

Our opinion on Uniswap's offerings

Uniswap provides unparalleled access to ERC-20 tokens, far exceeding the selection of centralized exchanges. However, it does not support non-Ethereum-based assets, and the presence of scam tokens reduces overall reliability. For experienced DeFi traders, its asset diversity is an advantage, but beginners may struggle with the lack of curation and security measures.

Services and Tools 2.5/5

Uniswap is a decentralized exchange (DEX) focused on token swaps and liquidity provision, but it lacks many of the financial services offered by centralized exchanges. Below is a breakdown of its key features:

• Token Swapping – The core function of Uniswap, allowing users to trade ERC-20 tokens directly from their wallets using an automated market maker (AMM) model.
• Liquidity Provision – Users can provide assets to liquidity pools and earn a portion of the trading fees generated by swaps. However, impermanent loss is a risk, and returns depend on pool activity.
• NFT Trading (via integrations) – While Uniswap does not have a native NFT marketplace, it has integrated with OpenSea and other platforms, allowing users to trade NFTs using Ethereum-based liquidity.

Missing Services

• No Crypto Card – Unlike platforms like Binance or Crypto.com, Uniswap does not offer a crypto debit card, meaning users cannot spend their holdings directly.
• No Staking or Lending – While some DeFi platforms allow staking or lending services, Uniswap does not provide built-in options for earning passive income outside of liquidity pools.
• No Derivatives or Margin Trading – There is no leverage, futures, or margin trading, limiting Uniswap’s appeal for traders looking for advanced strategies.

Fees and Commissions 2/5

Uniswap positions itself as a decentralized, non-custodial exchange, but its fee structure is one of its biggest drawbacks. While the platform charges a flat 0.3% trading fee for most token swaps, the Ethereum gas fees significantly increase the cost of transactions, especially during periods of network congestion. Compared to centralized exchanges that offer lower trading fees and free deposits/withdrawals, Uniswap’s fees make it one of the most expensive options for small traders.

Below is a comparison of Uniswap’s trading fees with the market average:

Other Fees

• Gas Fees: Transactions require Ethereum gas fees, which can range from a few dollars to over $50 per swap depending on network congestion.
• Deposit/Withdrawal Fees: Since Uniswap is non-custodial, there are no platform deposit or withdrawal fees, but gas fees still apply when moving assets between wallets.
• Conversion Fees: Swapping between tokens incurs a 0.3% trading fee, plus additional slippage depending on liquidity.
• Inactivity Fees: No inactivity fees since Uniswap does not manage user accounts.

Our opinion on Uniswap's fees and commissions

Uniswap’s 0.3% trading fee is competitive, but gas fees make transactions excessively costly, especially for smaller trades. While the lack of deposit and withdrawal fees is a plus, high transaction costs and lack of fee discounts for frequent traders put Uniswap at a disadvantage compared to centralized exchanges. Traders looking for cost-effective swaps may find better alternatives elsewhere.

Customer Reviews 1.1/5

Uniswap has a Trustpilot rating of 1.1/5 from 821 reviews, reflecting widespread dissatisfaction among users. Many complaints focus on high transaction fees, failed swaps, scam tokens, and the lack of customer support.

Here are some recent reviews from Canadian users:

• Alex T (January 15, 2025): "I tried using Uniswap to swap some Ethereum for a smaller token, and I ended up paying nearly $70 in gas fees for a $200 trade. The worst part? The transaction failed due to slippage, but I still lost my gas fees with no refund. The platform has zero support, so you’re on your own if something goes wrong. Definitely not beginner-friendly."
• Sarah M (December 8, 2024): "Uniswap has a great selection of tokens, but you really have to be careful. I unknowingly bought a fake version of a token that looked exactly like the real one, and there was no way to reverse it. Since there’s no oversight on what gets listed, anyone can create scam tokens, and once you send your money, it’s gone forever. There should be some security measures in place."
• Daniel S (November 22, 2024): "I used Uniswap thinking it would be cheaper than a centralized exchange, but I was completely wrong. The 0.3% fee isn’t bad, but the gas fees make trading on this platform ridiculous. I ended up moving my funds to a centralized exchange where I don’t have to worry about paying $50 just to make a simple swap. Unless you’re trading huge amounts, Uniswap is not worth it."

How does Uniswap compare to other Crypto brokers?

Uniswap offers a unique decentralized trading experience, but compared to other platforms, it lacks several essential features, including regulation, lower fees, and fiat support. Below is a comparison with three competing brokers:

Conclusion of our analysis of Uniswap

This platform provides a completely decentralized and permissionless way to trade tokens, but the lack of regulatory oversight, fiat support, and high transaction fees make it less competitive for Canadian traders looking for cost-effective trading solutions.

While it offers a massive selection of ERC-20 tokens, users must be cautious of scams, failed transactions, and high gas fees. Without built-in support, security checks, or financial services beyond token swaps, many traders will find alternative platforms to be more practical and user-friendly.

Before opening an account on Uniswap, compare the best crypto brokers and platforms in Canada:

What types of accounts are available with Uniswap?

Uniswap operates as a decentralized exchange (DEX), meaning it does not offer traditional account types like centralized brokers. Instead, users interact with the platform through self-custodial wallets, with no need for registration or KYC verification. The level of access depends entirely on the wallet used and the trader's knowledge of DeFi protocols.

Below is a comparison of the different account experiences based on user engagement levels:

Basic Wallet User

This is the simplest way to use Uniswap, requiring only a self-custodial Ethereum-compatible wallet such as MetaMask or Trust Wallet. Users can swap tokens instantly but must pay Ethereum gas fees on every transaction. There are no earning opportunities, no support for fiat deposits, and no security protections beyond what the user provides themselves.

Liquidity Provider

Users who wish to earn passive income can provide liquidity to Uniswap’s AMM pools. By depositing two tokens into a liquidity pool, they receive a share of the trading fees generated from that pool. However, this role comes with risks, including impermanent loss, where the value of deposited assets may change unfavorably due to price fluctuations. There is no guaranteed return, and users must monitor market conditions carefully.

Advanced DeFi Trader

For experienced users, Uniswap can be part of a broader DeFi strategy, incorporating external yield farming, lending, or borrowing platforms. These traders use multiple DeFi protocols to maximize returns but must also manage higher gas fees, slippage risks, and security vulnerabilities from interacting with third-party applications. This level of engagement requires technical knowledge and active portfolio management.

Watch out!

Since Uniswap does not offer account registration, customer support, or security protections, it is only suitable for users who are comfortable navigating decentralized finance. Those looking for a structured trading experience with customer assistance and fiat support will need to consider centralized exchanges instead.

How do deposits and withdrawals work with Uniswap?

Uniswap operates as a decentralized exchange (DEX), meaning there are no traditional deposit or withdrawal methods like bank transfers or credit cards. Instead, users interact with the platform through self-custodial wallets, transferring and swapping assets directly on the blockchain. Below is an overview of how transactions work on Uniswap:

Unlike centralized exchanges, Uniswap does not support fiat deposits or withdrawals, making it less accessible for beginners or users looking for a direct way to buy crypto. Transactions are fully on-chain, meaning users must always have enough ETH to pay gas fees, which can range from a few dollars to over $50 per trade depending on network congestion.

Compared to other exchanges that offer free or low-cost fiat deposits via bank transfer or Interac e-Transfer, Uniswap is far more expensive for casual users. Additionally, withdrawals from centralized platforms are typically fast and cost-effective, whereas Uniswap users must manage their own wallet security, gas fees, and transaction failures.

For experienced DeFi users, the self-custodial nature of Uniswap is an advantage, but for those who prioritize convenience, lower fees, and fiat integration, other platforms may be a better choice.

Does Uniswap offer crypto staking?

Uniswap does not offer traditional staking as seen on centralized exchanges. However, users can provide liquidity to earn fees from token swaps, which functions similarly to staking but comes with impermanent loss risks. Liquidity providers earn a percentage of trading fees from the pools they contribute to, but rewards fluctuate based on trading volume and market activity.

Below is an overview of estimated returns for liquidity providers on some of the most commonly used Uniswap pools:

Returns depend on pool activity and fees generated by traders, and impermanent loss can impact profits if token prices fluctuate significantly. Unlike staking, where rewards are fixed, liquidity provision is more unpredictable.

Uniswap does not offer lending services. Unlike platforms that allow users to lend assets for interest or take out crypto-backed loans, Uniswap focuses solely on decentralized trading and liquidity pools. Users looking for lending opportunities must integrate with third-party DeFi platforms like Aave or Compound, which are compatible with Uniswap but not directly available through its interface.

How are revenues generated by Uniswap taxed?

Taxation of Crypto Trading on Uniswap in Canada

Income generated from trading on Uniswap is subject to taxation under Canadian tax laws, as the Canada Revenue Agency (CRA) treats cryptocurrency as a taxable asset. The way earnings are taxed depends on whether they are classified as capital gains or business income.

• Casual traders: If you trade occasionally, profits from swaps are considered capital gains, meaning only 50% of the gain is taxable at your marginal tax rate.
• Frequent traders: If you trade actively, the CRA may classify your profits as business income, making 100% of your gains taxable.

How to declare your crypto income in Canada

• Keep Detailed Records: Maintain records of all trades, including transaction dates, token values in CAD at the time of the swap, and gas fees paid. Uniswap does not provide tax reports, so users must track their activity manually or use tax software.
• Calculate Gains and Losses: The taxable amount is based on the difference between the acquisition and disposal price of tokens. Gas fees incurred during trades can be deducted as transaction expenses.
• Report on Your Tax Return:
• Capital gains are reported on Schedule 3 of your T1 tax return.
• Business income is reported as self-employment income on the general tax form.
• Liquidity pool rewards may be classified as income at the time of receipt and taxed accordingly.

Watch out!

Since Uniswap operates without centralized reporting, it is the user’s responsibility to track all transactions and ensure compliance with CRA regulations. Failure to report crypto gains can result in penalties or audits. Using a tax professional or crypto tax software is recommended to simplify reporting.

Contact: How to contact Uniswap customer service?

Since Uniswap is a decentralized platform, there is no traditional customer support. Users rely on community forums, documentation, and social media for troubleshooting. Below is a summary of available contact points:

Keep in mind

Uniswap does not offer direct customer support, which can be a major disadvantage for users facing issues. Traders must rely on forums, developer channels, and self-help resources, making it less user-friendly compared to centralized exchanges.

FAQs

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.