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Frequently asked questions

UNI is traded on exchanges which determine its price by matching buying and selling orders. If there are more buyers than sellers, the UNI price will rise.

That said, all cryptocurrencies are correlated fairly strongly. This is especially the case with UNI, whose function relies on the desirability and mainstream appeal of the crypto market. If more people are using crypto, then more people will be using the Uniswap network to do so. In theory, this makes governance decisions on the platform more significant, and therefore pushes up the demand for, and price of, the UNI token.

You can sell Uniswaü's governance token UNI on so-called crypto exchanges.

A crypto exchange (or cryptocurrency exchange) is a marketplace where buyers and sellers trade cryptocurrencies. Just like regular stock exchanges, a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.

The Uniswap token is like every other cryptocurrency, in that it is exceptionally volatile and prone to speculative bubbles. While your aim should always be to sell when the price is at its peak, and to buy when the price is low, getting the timing right requires luck.

When you’re selling your UNI tokens, you should be aware that you’ll lose your right to vote on the future trajectory of the Uniswap platform. Aside from that, you should ensure that you’ve accounted for all of the costs associated with selling, like the fees charged by the platform, and the taxes you’ll incur.

The way you get paid will depend on the exchange you’re using. Some will insist on bank transfers, others will provide a range of options. You can use Cryptoradar to filter exchanges by payout method.

In most countries, UNI is considered a digital asset. Buy investing in Uniswap and then later selling it, you’ll expose yourself to capital gains tax. Do your research and make sure you’re on the right side of the tax authorities in your native country. Crypto tax software can help you calculate how much tax you are liable.

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