PancakeSwap is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. PancakeSwap uses an automated market maker (AMM) model where users trade against a liquidity pool. Such pools are filled with users’ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees.
What is PanCakeSwap (CAKE)?
1. Who Controls PanCakeSwap (CAKE)?
PancakeSwap is a decentralized cryptocurrency exchange for swapping BEP-20 tokens. If you’re familiar with Uniswap or SushiSwap, then you’ll know how PancakeSwap works. Each works in almost exactly the same manner.
The PancakeSwap exchange doesn’t use order books like traditional exchanges. Instead, it uses an automated market maker (AMM) model which matches buy and sell orders directly with others in a liquidity pool. User deposits maintain liquidity pools. By providing liquidity to such a pool, users can earn trading fees and liquidity provider (LP) tokens. LP tokes are redeemable for the initial capital deposited, plus any fees earned, minus any impermanent loss. Furthermore, LP tokens can then be staked, farmed, and traded!
Cloning or copying open source code from a popular decentralized application (dApp) is not uncommon. Particularly in DeFi, many new projects are based on existing protocols, with tweaks made to the original code. Simply make a few adjustments to a popular open-source code, create a new token, name it after your favorite snack, and presto – you’ve got yourself a freshly baked DeFi clone!
Regardless of whether you think cloning is a good thing or a bad thing, it happens a lot in crypto. For example, SushiSwap is a clone of Uniswap. Therefore, it should come as no surprise that PancakeSwap appears to work in a very similar way to SushiSwap, with a familiar layout and user interface.
However, PancakeSwap is flipping the yield farming model on its head, introducing a range of new features that provide an all-in-one yield optimization platform built around the Pancake token (CAKE). Furthermore, PancakeSwap benefits from the security of Binance Smart Chain (BSC), which could help convert some DeFi skeptics.
2. Who Created PanCakeSwap (CAKE)?
Pancakeswap started off as a pale imitation of SushiSwap. Pancakeswap’s use case was straightforward: Users provided liquidity to the platform (receiving FLIP tokens in return) and farmed SYRUP, the platform’s governance token.
This arrangement was similar to the many peer-to-peer exchanges that popped up in 2020 offering big “yields” to users becoming liquidity providers and the chance to govern the platform. However, newer products like a lottery service and a non-fungible token (NFT) art platform have furthered Pancakeswap’s use cases.
3. PanCakeSwap (CAKE) Pros and Cons
PanCakeSwap (CAKE) Pros:
- High APR/APY returns
- Low transaction costs compared to Uniswap
- Swap, Yield Farming, Staking, Lottery, IFO and Prediction products
- More daily transactions than Uniswap
- Active developers and community
PanCakeSwap (CAKE) Cons:
- Impermanent loss in liquidity pools
- Prediction can result in losing funds quickly (gambling)
- Network can get congested because of popularity
- Potential for scams
4. The Difference Between PanCakeSwap (CAKE) and Traditional Currencies
The main difference between them is, the traditional currency is a centralized system and bitcoins are decentralized one and peer-peer systems. Hence there are no central authorities to regulate rules and regulations on a bitcoin transaction. But a traditional currency is strictly regulated by the governmental authorities. Both the bitcoins and fiat currency have values which can be used for buying and selling of goods in the market.
- Flexibility
With traditional currency functioning for five days a week and die to transaction restriction, there is a chance of freezing of currency. There is no limit in the number of currencies, being printed, and hence when there is inadequate currency, it will affect the buyers and sellers, resulting in inflation.
- No Fraudulent Activity
If you want to transact with a traditional currency system, the users have to provide personal details like name, address, phone number, and lots more. So, with the internet technology, the malicious user will be able to hack the account details of the traditional currency system easily. Traditional currency can suffer from double-spending, where the same money is used for more than one transaction.
- Reduced Cost
In a traditional banking system, for making a national transaction, it will take 2-3 working days, and the transaction fees will be high. In the case of international transactions, the transaction fee will be very higher, and it will take 15 days to complete the transaction. In a Cryptocurrency system like bitcoins, there is no transaction fee for making a national transaction. The transaction will also take place in seconds or within 24 hours.
5. Is It Safe To Use PanCakeSwap (CAKE)?
PancakeSwap has been audited by CertiK. Does that mean it’s completely safe to use? No. Depositing funds into a smart contract always carries the risk of bugs, even for audited and highly reputable projects. Never deposit more than you can afford to lose.
How Does PanCakeSwap (CAKE) Work?
For those unfamiliar with the workings of decentralized exchanges, they use a special system known as an automated market maker (AMM) so the entire process does not require order books or a single, intermediary company to facilitate trading.
In essence, there is no need for an order matching system since traders trade against liquidity pools instead of counterparties. A liquidity pool in this context refers to funds deposited by investors – which can be anyone from around the world – into smart contracts for the aim of providing liquidity to traders.
With this system, buyers do not have to wait to be matched with sellers, or vice versa. Whenever someone wants to trade one token for another, they simply deposit the token they have into the pool and withdraw the other token they wish to receive.
For instance, if you want to change a particular BEP20-based token, say ALPHA to BNB on PancakeSwap, all you need to do is find an ALPHA/BNB pool that has sufficient liquidity (meaning there’s enough tokens inside the pool to facilitate your trade).
Then, you would need to deposit your ALPHA tokens and automatically receive an amount of BNB based on the most recent exchange rate.
That said, PancakeSwap is not just for traders. You can also take up the role of a liquidity provider (that is, you can deposit tokens in a liquidity pool for the chance of earning a share of trading fees paid by those trading against the pool in question).
Yield Farming is another income-generating opportunity available on PancakeSwap. With this, you can farm for a token called CAKE (more on this later).
There is also the possibility of winning the lottery when you accurately guess a winning set of numbers. We will take a look at all of these services and features in the next section.
How to Make Money with PanCakeSwap (CAKE)?
Here are quite a few approaches for us to make money with PanCakeSwap (CAKE), such as Mining, Buying & Hold Bitcoins, Accept Payments in PanCakeSwap (CAKE), Earning PanCakeSwap (CAKE) by turning into an Affiliate, Lending PanCakeSwap (CAKE), and Micro Earnings, and Trading.
- PanCakeSwap (CAKE) Mining
- Buy & Hold PanCakeSwap (CAKE)
- Accept Payments in PanCakeSwap (CAKE)
- Determine how you’ll use PanCakeSwap (CAKE)
- Find a PanCakeSwap (CAKE) wallet
- Find a PanCakeSwap (CAKE) payment processor
- Accept PanCakeSwap (CAKE) payments
- Becoming an Affiliate
- Lending PanCakeSwap (CAKE)
- Micro PanCakeSwap (CAKE) Earnings (Faucets, Offer Wall, Short Links, Surf Ads……)
- PanCakeSwap (CAKE) Games
- Micro PanCakeSwap (CAKE) Tasks
- Trade PanCakeSwap (CAKE)
How to Buy PanCakeSwap (CAKE)?
1. Things To Know Before You Buy PanCakeSwap (CAKE)
Buying PanCakeSwap (CAKE) and holding onto it in hopes it will appreciate in value, is the most common form of “investing”. As with all investing, you should never invest more than you are willing/able to lose. This is especially true with PanCakeSwap (CAKE), since it’s still a very risky investment.
The most important thing to keep in mind when buying PanCakeSwap (CAKE) is to make sure to buy only from exchanges that have proven their reputation.
Another key tip is to make sure you don’t buy all of your PanCakeSwap (CAKE)s in one trade. Instead use a dollar cost averaging method—buy a fixed amount every month, week or even day throughout the year. This ensures that you buy the most PanCakeSwap (CAKE) when it’s on the rise, and less when it’s going down in price.
2. How to Buy PanCakeSwap (CAKE) on a Crypto Exchange
- Coinbase – Secure online platform for buying, selling, transferring, and storing cryptocurrency.
- eToro – Trade and invest in a diversified portfolio, starting at $10, or practise risk-free with a virtual portfolio.
- Bitfinex – Digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.
- Binance – Low trading fees, a generously wide range of leverage, and high liquidity.
- KuCoin – A large cryptocurrency exchange offering the ability to buy, sell, and trade cryptocurrencies
3. How to Buy PanCakeSwap (CAKE) with Cash
- Find a seller in your area who accepts cash.
- Select amount of coins and place an order.
- Receive account number from the seller.
- Deposit cash into the seller’s account.
- Upload your receipt to prove you made the deposit/trade.
- Receive PanCakeSwap (CAKE)!
4. How to Buy PanCakeSwap (CAKE) with Credit Card
Not all platforms will allow you to use a credit card to make your PanCakeSwap (CAKE) purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.
5. How to Buy PanCakeSwap (CAKE) with Paypal
- Login to Paypal and Select Cryptocurrency
- Select ‘PanCakeSwap (CAKE)’
- Select ‘Buy’
- Choose How Much You Want to Buy
- Select Payment Method
- Hit the ‘Buy’ button
6. Should I Buy PanCakeSwap (CAKE) In 2022?
Currently, CAKE holds 77th place on CoinMarketCap. But will the latest upgrades, development, and changes in the CAKE blockchain help the cryptocurrency price to reach higher? Let’s proceed to the charts in this PancakeSwap price prediction article.
The Relative Strength Index (RSI) measures the relative momentum in the magnitude of recent price changes so as to deduce oversold or overbought assets. The RSI value of 1-day chart is 39.33. This shows that CAKE is showing a weak trend since it is between 30 and 50. This value might trigger a bullish run soon since it seems that more buyers are repositioning as the value is moving towards the 30 RSI value which is the oversold region.
How to Sell PanCakeSwap (CAKE)?
1. Things to Know Before You Sell PanCakeSwap (CAKE)
To get started with PanCakeSwap (CAKE), you’re going to need three things: an exchange, a wallet and the knowledge of how to buy the cryptocurrency. This last one is easy with our guide on how to buy PanCakeSwap (CAKE), but the other two are still important. The exchange allows you to buy PanCakeSwap (CAKE) from sellers, and the wallet gives you somewhere to store it long term.
When choosing an exchange, you should look for one with many users, good customer support and low fees. Three particularly popular exchanges with newcomers are Coinbase, Robinhood and Binance. However, there’s nothing really tying you to a specific exchange, so you can try new ones and quickly change at any time.
On the other hand, wallets can be much more complex. “Cold wallets” — physical devices holding cryptocurrencies offline — come with a steep up-front cost, but “hot wallets” — pieces of software that hold your coins on a computer — are often less secure. However, since hot wallets are fine for short-term storage and free to set up, it’s a good idea to start with them.
2. Sell PanCakeSwap (CAKE) in Cryptocurrency Exchanges
- Step 1: Set up an exchange account
- Step 2: Transfer your PanCakeSwap (CAKE) to your exchange wallet
- Step 3: Place a sell order
3. Sell PanCakeSwap (CAKE) in P2P Trading
- Step 1: Go to the P2P Trading Page
- Step 2: Choose to Sell and Set Your Currencies
- Step 3: Find a Buyer
- Step 4: Choose How Much You Want to Sell
- Step 5: Send the Offer
- Step 6: Confirm the Release
4. Sell PanCakeSwap (CAKE) in PanCakeSwap (CAKE) ATMs
- Step 1: Choose withdraw cash
- Step 2: Choose PanCakeSwap (CAKE) (these machines normally may support other cryptocurrencies)
- Step 3: Choose amount to withdraw
- Step 4: Send PanCakeSwap (CAKE) to given address QR code
- Step 5: Receive cash immediately as PanCakeSwap (CAKE) transaction is propagated on the network
How to Get Free PanCakeSwap (CAKE)?
Most genuine websites that allow you to earn free PanCakeSwap (CAKE) require you to spend money on other things like buying cloud computer mining power, connecting your CPU for mining, playing a game, or completing micro-tasks.
In other words, they offer free PanCakeSwap (CAKE)s as an advertisement for their services. Otherwise, it takes time and effort to get free PanCakeSwap (CAKE) given its current high value.
- PanCakeSwap (CAKE) Faucet
- PanCakeSwap (CAKE) PTC Sites
- PanCakeSwap (CAKE) Airdrop
- PanCakeSwap (CAKE) GameFi
- PanCakeSwap (CAKE) Bounties
- Learning About PanCakeSwap (CAKE)
- Shopping Reward
- PanCakeSwap (CAKE) Interest
- Owning a PanCakeSwap (CAKE) Faucet
- Write about PanCakeSwap (CAKE)
- PanCakeSwap (CAKE) Affiliate Program
- Free PanCakeSwap (CAKE) Cloud Mining
What is a PanCakeSwap (CAKE) Wallet?
1. PanCakeSwap (CAKE) Wallets for Beginners
Ledger Nano S
- Ledger Nano S Live Crypto Wallet
- Easy to set up and has a friendly trading interface.
- Allows use on desktops and laptops
- Lightweight and Portable too
- Has been designed to Support most blockchains and a wide range of (ERC-20) tokens
- Has many trading languages.
- Designed by a well-established company found in 2014 with great chip security
- It is not expensive but can be acquired at affordable price
Ledger Nano X
- Ledger Nano x Live Crypto Wallet
- It made with a more advanced and secure element chip (ST33) than Ledger Nano S
- Has an easy design that allows the use on desktop or laptop, or even smartphone and tablet through Bluetooth connection.
- Also Lightweight and Portable and has a built-in rechargeable battery
- Has a Larger screen
- Comes with more storage space compared toLedger Nano S
- It supports most blockchains and wide range of (ERC-20) tokens
- Provides several languages for every customer
- It was designed by a famous company found in 2014 with great chip security
- Can be obtained at an affordable price
2. How To Make A PanCakeSwap (CAKE) Paper Wallet?
Although there are ways to manually generate a private key, the vast majority of paper wallet creators use a private key generator. Once a private and public key have been created, you are able to print a paper wallet, which because it’s not online doubles as a cold storage wallet. This will include the public and private key you’ve generated, usually as both a string of characters and QR codes.
Anyone with a paper wallet’s public key can send crypto to it as often as they like. Using the corresponding private key, you can move the crypto balance of the paper wallet into a software wallet. This transfers the funds to a new private key on your software wallet.
3. Ways To Set Up a PanCakeSwap (CAKE) Wallet
There are many PanCakeSwap (CAKE) wallets out there, and all of them differ in their characteristics. Mobile software wallets are great for day-to-day use, while desktop software wallets bring about a great balance between convenience and security. Lightweight web wallets are the best choice for quick online transactions. Cold encrypted hardware wallets like Ledger or Trezor are the best for long-term storage of bitcoin. However, unlike other options, hardware wallets aren’t free and cost $50 or more.
Set up a PanCakeSwap (CAKE) Software Wallet
- Mycellium
- Bread (BRD) wallet
- Bitcoin wallet
- Electrum
- Samourai
Set up a PanCakeSwap (CAKE) Web Wallet
- Coinbase
- Blockchain.info
- BTC.com
- Rahakott
- BitGo
Set up a PanCakeSwap (CAKE) Hardware Wallet
- Ledger
- Trezor
- BitLox
- KeepKey
How to Buy and Sell PanCakeSwap (CAKE) In Different Area?
1. How to Buy and Sell PanCakeSwap (CAKE) in India?
You can get PanCakeSwap (CAKE) in India mainly through buying and mining. To buy it, you can use several online exchanges such as WazirX, Coinbase, BuyUcoin, and CoinDCX. Choosing the best online exchange is another task, but here are a few things you should keep in mind while buying the cryptocurrency in India.
- It’s best to go with an exchange that allows you to withdraw cryptocurrency in INR to your personal online wallet for safekeeping
- Make sure that the internet connection is secure. Also, don’t forget to use safe internet practices like two-factor authentication and unique and strong passwords.
- KYC aka Know Your Customer verification is a must, at least in India. For that, you can use a PAN card and valid address proof
- Now, add the bank account that is linked to your PAN card. Verification will take around 2-3 days
After the verification is complete, you can start trading PanCakeSwap (CAKE) in India. Money from your bank accounts can be transferred using NEFT, RTGS, and debit and credit cards. Currently, the value of one Bitcoin is around 27 lakh; however, you don’t have to buy a whole coin to begin investing. You can buy Bitcoin in parts, i.e. small investments for as low as Rs 500. That way, you will own a small percentage of the cryptocurrency.
2. How to Buy and Sell PanCakeSwap (CAKE) in Canada?
- Sign up and get KYC (Know-Your-Customer) verified on a Canadian crypto exchange like Bitbuy.
- Deposit CAD to the exchange directly from your bank account.
- Buy PanCakeSwap (CAKE).
- Store PanCakeSwap (CAKE) on your exchange account or transfer it to a wallet.
3. How To Buy and Sell PanCakeSwap (CAKE) In The UK?
- Create a Coinbase account.
- Complete identity verification to access fiat payment options.
- Navigate to the Accounts and select the GBP wallet.
- Fund your account using Bank Transfer or other methods.
- Once the deposit is complete, go to the Buy/Sell page and select GBP to PanCakeSwap (CAKE).
4. How To Buy PanCakeSwap (CAKE) in the United States?
The best way to buy and sell PanCakeSwap (CAKE) in the USA is through an exchange such as Coinbase, Kraken, Gemini, Coinmama, Binance, or Changelly. There is a plethora of options available, so it is best to look at each of the exchanges’ processes for deposits and withdrawals, fees, and transaction speeds to determine which is best for you.
PanCakeSwap (CAKE) History
History PancakeSwap was founded by a group of anonymous developers in September 2020. What made it different at the time of launch was that PancakeSwap was built on Binance Smart Chain (BSC), which offers faster and cheaper transactions compared to Ethereum. At the time of PancakeSwap’s launch, Ethereum was suffering from expensive and slow transactions as DeFi’s mainstream moment in 2020 drove massive demand for transactions. Almost all DeFi applications lived on Ethereum at the time.
Aside from cheaper network fees powered by BSC, PancakeSwap also offered a lower swap fee of 0.2% while the industry standard is 0.3%. On the back of its low-fee model, PancakeSwap saw rapid growth in both trading volume and total value locked (TVL). It became one of the industry’s largest decentralized exchanges by trading volume in February 2021, standing toe-to-toe with AMM pioneer and Ethereum darling Uniswap.
Users can farm rewards in the form of CAKE tokens by providing liquidity to the Liquidity Pools on PancakeSwap. PancakeSwap has several yield farms, all of which require you to stake two tokens to get the LP tokens that correspond to the exact farm. Each farm on PancakeSwap has its own yield rate and multiplier, so be sure to check out which farm you want to earn from before providing liquidity. For example, the CAKE-BNB farm has a 40x multiplier, which means that, for every block produced, it receives 40 CAKE.