Even though Uniswap is definitely the number 1 DEX in the world in terms of the number of pairs offered and the number of users of the protocol, it still needs a lot of improvements to become perfect. One of the biggest problems with Uniswap is the lack of limit orders, which are buy and sell orders at predetermined prices. Because of this shortcoming, there are risks of losing a lot of money while sleeping or failing to complete a buy or sell order in time since there are always many front-running bots ready to buy the dip and immediately sell the pump. What can we do to solve this HUGE problem affecting Uniswap? Use alternative products!
How to place limit orders on Uniswap
1InchExchange: The first method to execute Limit Orders on Uniswap is to use 1InchExchange, which is definitely the best DEX aggregator around and has recently launched its own token: 1INCH (airdropping it to old 1inch protocol users, just like Uniswap did in the past).
Simply open the 1inch.exchange website (beware of fake addresses, there are plenty of them) and connect your wallet (MetaMask or others) to access the various swaps. Then choose Limit Order instead of Market Order and place your orders. For each order, you need to sign the transaction with a simple click. To cancel the order you will have to pay a small fee, which is about $6-10 these days. Warning: if you have 10-20-30-100 limit orders in process and you want to remove them all, instead of cancelling them one at a time and paying the fee each time, click on cancel all and remove them all by paying the fee only once. The website is really well done and intuitive and also allows us to save on fees thanks to the CHI token, the GAS Fee token invented by 1InchExchange. Keep in mind that in order to execute orders and outperform other users of the protocol or the various bots you might have to try to place low orders, so you can buy the ‘DIP’ of the tokens you are following. If for example you are doing a limit order consisting of a lot of ether on a token with low liquidity, the bots will surely beat you as they usually execute smaller orders and can get their orders through at any price.
Matcha.xyz: this is another great product for executing Limit Orders on Uniswap. It works in the same way as 1Inch.Exchange as it uses the same protocol for this type of order: 0x protocol. Connect your Ethereum wallet and choose the desired Pair and then sign the order and wait for it to be executed. Smaller orders are more likely to be executed than larger orders so always try to place multiple but smaller orders. For example, instead of buying 1,000 tokens at the price of $10, you might buy 100 tokens at $9.8, 100 at $9.7, 100 at $9.6 and so on. This way, the chances of the trade being executed are much higher.
Also, buy WETH to launch limit orders as it seems only this pair gets executed. I did some testing with USDT and my orders did not go through on either 1Inch or Matcha. These two products are excellent until Uniswap V3 comes out, a version that will perhaps solve this unfortunate shortcoming.
Surely there are many other protocols that do the same thing but for now these two seem the most reliable, so don’t take too many risks and trust products created by solid brands or that have been in operation for a long time. Happy trading and good luck!