Back to DeFi Practical Guide
DeFi Tutorial

How to Use Uniswap and PancakeSwap: Complete Beginner's Guide

7 min read
Published: October 15, 2025

How to Use Uniswap and PancakeSwap: Complete Beginner's Guide

UniswapPancakeSwapDEXToken SwapDeFiEthereumBSC

How to Use Uniswap and PancakeSwap: Complete Beginner's Guide

Decentralized exchanges (DEXs) like Uniswap and PancakeSwap have revolutionized how we trade cryptocurrencies. Unlike centralized exchanges, DEXs allow you to trade directly from your wallet without creating an account or going through KYC procedures.

What Are Uniswap and PancakeSwap?

Uniswap is the leading decentralized exchange on Ethereum, allowing users to swap ERC-20 tokens directly from their wallets. PancakeSwap serves the same purpose but operates on Binance Smart Chain (BSC), offering faster transactions and lower fees.

Key Benefits of DEX Trading:

  • No Registration Required: Trade directly from your wallet
  • Full Control: You maintain custody of your funds
  • 24/7 Access: No downtime or maintenance windows
  • Global Access: Available worldwide without restrictions
  • Privacy: No KYC requirements for basic trading

Prerequisites: What You'll Need

Before you start trading on DEXs, ensure you have:

  1. A Compatible Wallet:

    • MetaMask (most popular)
    • Trust Wallet
    • WalletConnect-compatible wallets

  2. Network Tokens for Gas Fees:

    • ETH for Uniswap (Ethereum network)
    • BNB for PancakeSwap (BSC network)

  3. Tokens to Trade: The tokens you want to swap

Step-by-Step Guide: Using Uniswap

Step 1: Set Up Your Wallet

  1. Install MetaMask from the official website
  2. Create a new wallet or import an existing one
  3. Add the Ethereum network (usually pre-configured)
  4. Fund your wallet with ETH and the tokens you want to trade

Step 2: Connect to Uniswap

  1. Visit app.uniswap.org (always verify the URL)
  2. Click "Connect Wallet" in the top-right corner
  3. Select MetaMask from the wallet options
  4. Approve the connection in your MetaMask popup

Step 3: Make Your First Swap

  1. Select the tokens you want to swap:

    • "From" token (what you're selling)
    • "To" token (what you're buying)

  2. Enter the amount you want to swap

  3. Review the swap details:

    • Exchange rate
    • Price impact
    • Minimum received (after slippage)
    • Gas fees

  4. Adjust slippage tolerance if needed (usually 0.5-3%)

  5. Click "Swap" and confirm the transaction in MetaMask

Step 4: Monitor Your Transaction

  • Check the transaction status in MetaMask
  • View details on Etherscan using the transaction hash
  • Wait for confirmation (usually 1-3 minutes)

Step-by-Step Guide: Using PancakeSwap

Step 1: Configure BSC Network

  1. Add Binance Smart Chain to MetaMask:

Step 2: Get BNB for Gas Fees

  1. Buy BNB on a centralized exchange
  2. Withdraw to your MetaMask BSC address
  3. Ensure you have at least $5-10 worth of BNB for gas fees

Step 3: Connect to PancakeSwap

  1. Visit pancakeswap.finance
  2. Connect your wallet (same process as Uniswap)
  3. Switch to BSC network in MetaMask if prompted

Step 4: Execute Your Trade

The trading process is identical to Uniswap:

  1. Select tokens to swap
  2. Enter amount
  3. Review details
  4. Confirm transaction

Understanding Key Concepts

Slippage Tolerance

Slippage is the difference between expected and actual trade prices due to market movement during transaction processing.

  • Low slippage (0.1-0.5%): For stable pairs, may fail during high volatility
  • Medium slippage (1-3%): Good for most trades
  • High slippage (5%+): For volatile or low-liquidity tokens

Price Impact

Price Impact shows how much your trade will move the token price. Large trades in small liquidity pools can have significant price impact.

  • <1%: Minimal impact, good trade size
  • 1-3%: Moderate impact, acceptable for most trades
  • >5%: High impact, consider splitting into smaller trades

Gas Fees

Gas fees are transaction costs paid to network validators:

  • Ethereum: Higher fees ($10-100+ during congestion)
  • BSC: Lower fees ($0.20-2.00 typically)
  • Timing matters: Fees vary by network congestion

Common Mistakes to Avoid

1. Insufficient Gas Fees

Always keep extra ETH/BNB for gas fees. Failed transactions still consume gas.

2. Wrong Network

Double-check you're on the correct network before trading. Tokens exist on multiple chains.

3. Fake Tokens

Verify token contracts on official websites. Scammers create fake tokens with similar names.

4. High Slippage

Don't set unnecessarily high slippage. You might get a worse price than expected.

5. FOMO Trading

Research tokens before buying. Don't chase pumps without understanding the project.

Advanced Tips for Better Trading

1. Use Token Lists

Stick to verified token lists to avoid scam tokens:

  • Uniswap Default List
  • CoinGecko Token List
  • Project official lists

2. Check Liquidity

Higher liquidity means:

  • Lower price impact
  • Tighter spreads
  • Easier to buy/sell large amounts

3. Monitor Gas Prices

Use tools like GasTracker to time your transactions during lower gas periods.

4. Set Realistic Slippage

Start with 0.5% and increase only if transactions fail.

Security Best Practices

Wallet Security

  • Never share your seed phrase
  • Use hardware wallets for large amounts
  • Keep software updated
  • Verify all transaction details before confirming

Website Safety

  • Always use official URLs
  • Bookmark legitimate sites
  • Be wary of social media links
  • Check SSL certificates

Transaction Safety

  • Start with small amounts
  • Double-check recipient addresses
  • Verify token contracts
  • Understand what you're signing

Troubleshooting Common Issues

Transaction Failed

  • Insufficient gas: Increase gas limit
  • Slippage too low: Increase slippage tolerance
  • Network congestion: Wait and retry

Can't Find Token

  • Wrong network: Switch to correct blockchain
  • Not listed: Import token using contract address
  • Scam token: Verify legitimacy before trading

High Fees

  • Network congestion: Trade during off-peak hours
  • Wrong network: Consider using BSC instead of Ethereum
  • Gas settings: Adjust gas price (advanced users)

Cost Comparison: Uniswap vs PancakeSwap

Feature Uniswap (Ethereum) PancakeSwap (BSC)
Gas Fees $10-100+ $0.20-2.00
Transaction Speed 1-3 minutes 3-5 seconds
Token Variety Highest High
Liquidity Highest High
Security Highest High

Next Steps: Expanding Your DeFi Journey

Once you're comfortable with basic swapping:

  1. Learn about liquidity provision to earn fees
  2. Explore yield farming opportunities
  3. Understand impermanent loss before providing liquidity
  4. Research other DEXs like SushiSwap, 1inch
  5. Consider layer 2 solutions like Polygon, Arbitrum

Tools and Resources

Essential Tools

  • DeFiPulse: Track DeFi protocols and TVL
  • DexTools: Advanced DEX analytics
  • GasTracker: Monitor Ethereum gas prices
  • CoinGecko: Token research and prices

Educational Resources

  • Uniswap Documentation
  • PancakeSwap Academy
  • DeFi safety guides
  • Community forums and Discord

Conclusion

Uniswap and PancakeSwap open up a world of decentralized trading possibilities. Start small, practice with test amounts, and gradually increase your trading size as you become more comfortable.

Remember: DeFi puts you in complete control, which means you're also completely responsible for your funds. Take time to understand each step, verify all details, and never rush into trades.

Ready to start trading? Use our exchange comparison tool to find the best rates for funding your wallet, and check our fee calculator to optimize your trading costs.

This guide is for educational purposes only and does not constitute financial advice. Always do your own research and never invest more than you can afford to lose.