PancakeSwap – Complete Tutorial for Beginners =

The advantage of crypto and its open source nature is that anyone with technical knowledge can design a crypto currency in which anyone can invest. And of course this goes hand in hand with coming up with very original names, the crazier the better. This is also a marketing strategy that promotes the coin even better. The yummy PancakeSwap is a Binance Smart-Chain based DEX. A DEX is nothing more than a decentralized exchange. This was launched by anonymous designers with a clear preference for fluffy pancakes.

PancakeSwap started in the year 2021 with a value of $0.06 per token. Less than 2 months later, Cake reached an impressive all-time high of no less than $ 20.33. Enough reasons to take a closer look at PancakeSwap and how this token can make our crypto wallet sweeter!

Note: keep in mind that the following explanation about PancakeSwap and the explanation on it should not be taken as advice in any way. The choice for whether and how you want to trade (crypto) and which choices you make in terms of investment lie with you and you alone. We are not financial advisors.

Photo: WhiteBarbie/Shutterstock

View quickly

 

  • View quickly
  • The trend of food
  • What is Pancake Swap?
  • Pancake swap exchange
    • Liquid pool
    • Strike
    • Syrup polish
  • Lottery on PancakeSwap
  • Is PancakeSwap the new UniSwap?
  • Conclusion

The trend of food

We cannot deny that food-themed crypto is taking the world by storm, especially since they were introduced in quick succession. What do they have in common, besides their extremely original name? Often these are all projects where the background is as mysterious as the coin itself. Here is a small overview of which crypto is still based on delicacies:

  • Sushi Swap/ SUSHI
  • Burger Swap/ BURGER
  • BakeryToken/ BAKE
  • Hotdog.Swap/ HOTDOG
  • Yam Finance/ YAM
  • Pizza Swap/ PIZZA

What is Pancake Swap?

PancakeSwap is a decentralized exchange built on the Binance Smart-Chain. If you are familiar with UniSwap or SushiSwap, you will have no trouble understanding and mastering these PancakeSwap, which are very similar in design. The difference is that PancakeSwap is not built on the Ethereum network, but on the Binance Smart Chain (BSC) and thus trades BEP20 token instead of ERC20 tokens, which are built on the Ethereum network.

PancakeSwap uses an automated market maker (AMM) model. That means that while you can trade your digital assets on the platform, there is no order book where you will be matched with someone else. Instead, you trade against a liquidity pool.

In addition to the functionality of an exchange, it is also possible to earn with PancakeSwap token. This by making your own tokens available in the liquidity pools. This way you can start farming your LP (Liquidity Pool) tokens and get rewards for doing so.

Feel lucky? Then you can also participate in the lottery and NFTs of PancakeSwap. Curious about what all this means and how you can benefit from it? Let’s find out step by step!

Pancake swap exchange

STEVLTH/Shutterstock

 

  1. Before we can start with PancakeSwap, we must first connect a wallet. You immediately get a selection menu where you can choose your wallet. The choices are:
    • MetaMask
    • TrustWallet
    • MathWallet
    • TokenPocket
    • Wallet connect
    • BinanceChain Wallet
       
  2. After making the link, you will need BNB tokens. Why? This is a way to make (cheap) transactions on the Binance blockchain. Don’t have an account with Binance yet? Create your Binance account here and trade at very competitive rates. Send your tokens to the wallet by using the correct blockchain. After a successful transaction, your PancakeTokens will be on your own wallet. Ready to act!
     
  3. Are you curious about the status of your transaction? See a full overview on BscScan . The Binance BlockChain Explorer is an overview of all transactions on the Binance network, similar to EtherScan for all transactions on the ETH network.
  4. When you are ready to trade tokens, go to the trade screen. Indicate how many tokens you want to trade, for example BNB tokens to CAKE (UniSwap). You immediately see the estimated amount you will receive, but also the fees that must be paid to make the transaction possible. You can also see the price impact as a result of fluctuations in the liquidity pool. The price impact shown below is the difference between the market price and estimated price due to the trade price. After approval, you will also have to approve the transaction within the environment of your own wallet.

Liquid pool

By owning CAKE tokens and BNB tokens, you can make your tokens available for a liquidity pool. In the general dashboard of your exchange, you can choose liquidity. Here you can start earning extra tokens. When adding, you can also choose max. Then the maximum share of tokens will immediately be deployed in the liquidity pool. This is because everyone must make an equal share of the tokens available in the pool. Approving is done in the same way as your swap. Here too you pay a fee to participate in the liquidity pool.

You will be rewarded for adding your tokens to the liquidity pool using Liquidity Provider Tokens or LP Tokens. These keep track of your contribution to the pool. The rewards you get are directly proportional to your contribution to the pool, do you have more tokens? Then your reward is greater. Afterwards you can hold these LP tokens again to get CAKE tokens for this.

Strike

With the rewards you received earlier, the LP tokens, you can also start staking. You will be given an overview of the total liquidity and the costs you have to pay to complete this strike. The advantage is that this form of staking is flexible in nature, so you can make your tokens available again at any time and remove them from the staking process. You do this by clicking on the minus sign in the overview. Using the plus sign you will stake more LP tokens.

Syrup polish

You can go one step further by putting your CAKE tokens in the so-called syrup pools. We have already deposited some money to receive LP Tokens, which we then use to receive CAKE. You can also choose to bet in different staking pools.

Currently the bigger syrup pool is just for CAKE where you can bet your CAKE to earn even more CAKE. But there are several other tokens you can earn by staking CAKE as well.

Lottery on PancakeSwap

In the main screen of your PancakeSwap you can choose to participate in a lottery. A lottery session lasts six hours and a ticket will cost you 10 CAKE tokens. Here you get a random five-digit combination between one and 14. To win the jackpot, which is a whopping 50% of the entire lottery, the numbers in your ticket must match all four numbers of the winning ticket. If your numbers are only partially correct, you can also get a smaller reward.

While other investments are built on general and technical analysis, this form is merely a form of gambling. Given the now high price of one Cake token, it’s quite a big bet you have to make to participate.

 

Is PancakeSwap the new UniSwap?

We can all see that PancakeSwap has made a brilliant start in 2021 by the exponential price increase of the token, but does it also have the potential to become as big or even bigger than UniSwap?

The Binance Smart Chain is becoming increasingly important and due to the often sky-high Ethereum gas fee, the Binance Coin (BNB) has also increased in value, provided it is a means of payment for transactions on the BSC. It has even led to a turnaround in the DeFi market where PancakeSwap has generated greater trading volume than the market leader UniSwap.

The fact that DeFi operates on an Ethereum network that is currently struggling with very high gas costs has led traders to look for alternatives that are less expensive and at least as good. In this search, they quickly came across Binance’s blockchain: BSC. This naturally contributes to a rising market and value of both Binance token and Cake token.

However, some traders have reservations about this new blockchain, criticizing that it is not fully decentralized. They therefore predict that this popularity will only be short-term. They believe that if the Ethereum network succeeds in controlling the gas fees, then we will flock back to the Ethereum network.

 

How do I buy PancakeSwap?

Buying PancakeSwap on Binance is a piece of cake. With this explanation you will be the proud owner of CAKE within a few steps.

  1. Sign up for free at Binance here
  2. Login to your account
    Please note: keep your username and password safe!
  3. Press Buy Crypto at the top left and choose Bank Deposit
  4. Fiat tab instead of Crypto and check that it ‘s on Euro
  5. Choose iDEAL if you want the money directly on your account and Bank Transfer (SEPA) if you also like it if it takes a few days before the money is on your account
  6. Wait until your euros have been deposited into the Binance account
  7. Click on Trading at the top and select Classic
  8. You are now on the trading section of Binance. Click on FIAT on the right and select EUR
  9. A number of coins can be traded on Binance for euros. But, most of them are traded against Bitcoin. Look up the trading pair BTC/EUR and buy Bitcoin with your euros.
  10. BTC tab and look up PancakeSwap using its ticker CAKE
  11. You will now find the trading pair BTC/CAKE . By clicking on it, you can buy PancakeSwap
  12. Congratulations! You are in possession of your favorite cryptocurrency!

Conclusion

PancakeSwap has made a fantastic entry into the world of crypto and everyone is watching with anticipation if we will get fully saturated with this Cake token. With a sharp increase in recent days, it is exciting to wait and see whether he will continue to grow. Critical people claim that the success is short-lived and that they will switch back once the gas fees are less high on the Ethereum network. Nevertheless, we will keep a close eye on this token in the coming weeks and months!

Are you curious how many people actually use this PancakeSwap? Ask in our Facebook group and you might just find someone who won the Cake raffle!

 

 

 

 

 

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

© 2024 Cryptocoin Budisma.net