Decentralized Finance is a major topic in cryptocurrency, with decentralized exchanges cropping up on nearly every blockchain network. PancakeSwap Crypto came in September 2020 on the Binance Smart Chain as a low-cost, high-speed alternative to Uniswap Exchange.
While it began as a carbon duplicate of Uniswap on a different blockchain, PancakeSwap Exchange has developed a number of features that have resulted in it being utilized more frequently than Uniswap.
With a comprehensive set of features and opportunities for users to make passive income, the platform now has a higher Total Value Locked than Uniswap. If you’re looking for a decentralized exchange with cheap fees and transaction charges, our PancakeSwap crypto review can help you decide if it’s the best fit for you.
Here we will discuss the procedure of buying PancakeSwap Crypto in detail.
Pros and Cons of Pancake Crypto
Pros
- Pools and farms can earn a high APR/APY.
- Pancake crypto transaction expenses are lower than with Uniswap.
- Daily transaction volume is higher in case of PancakeSwap crypto than Uniswap, and the community and developers are more active.
Cons
- Liquidity pool loss.
- Prediction and lottery might result in a rapid loss of wealth (gambling).
- Due to its popularity, the network may become congested.
What Is Unique About PancakeSwap Crypto?
PancakeSwap crypto operates on an automated market maker approach, which eliminates the need for order books in favour of liquidity pools. A user can earn money by being a liquidity provider; by contributing their tokens to the liquidity pool, they can farm LP tokens and receive rewards by staking their CAKE. Additionally, they can test their luck with lotteries and non-fungible tokens.
CAKE is a BEP20 coin that debuted on Binance Smart Chain. Its primary purpose is to incentivize liquidity providers to the PancakeSwap crypto platform.
Users can earn rewards by depositing and locking their Liquidity Provider tokens. This is referred to as farming, and the system rewards you with CAKE tokens. The tokens can be un-staked immediately. PancakeSwap crypto enables users to invest and earn higher profits in the future, but it comes with hazards.
CAKE can be used to enter a PancakeSwap lottery. Each session of the lottery lasts six hours. A single ticket costs ten CAKE and contains a random combination of four numbers ranging from 1 to 14, like as 8-6-4-13. To win the jackpot, which is equivalent to 50% of the total lottery pool, your ticket’s numbers must match all four of the winning numbers on the winning ticket.
January 19th 2022 Update: The market capitalization of CAKE reached $2.72 billion which make it to rank the 51st largest cryptocurrency as per reports of CoinMarketCap.
PancakeSwap Crypto Trading commissions?
When it comes to centralized exchanges, a large number of them levy what we refer to as taker fees from takers and maker fees from makers. Takers remove liquidity from the order book by accepting previously placed orders, whereas makers place those orders. The primary alternative is to impose “flat” fees. The term “flat fees” refers to the exchange charging the same fee to both the taker and the manufacturer.
There are many decentralized exchanges that charges zero trading fee. Indeed, this is one of the primary justifications used by DEX proponents to explain why centralized exchanges are on the decline.
PancakeSwap is not a free exchange. Instead, it deducts 0.20 percent for each transaction regardless of whether you are a maker or a taker. These costs are higher than the industry norm for DEXs in general.
PancakeSwap Crypto Fees for Withdrawals
PancakeSwap Exchange, like the majority of decentralized exchanges, does not charge any transfer or withdrawal fees other than network fees. The network fees are paid to the miners of the underlying cryptocurrency/blockchain, not to the exchange. Network fees fluctuate daily based on network pressure.
In general, having to pay merely network costs should be deemed lower than the global industry average for crypto withdrawal fees (if you include all exchanges, both DEXs and CEXs in the data set).
January 4th 2022 Update: Bonfi token is now available on the blockchain of CAKE.
Where You can Buy CAKE?
Binance
Pros:
- There are over 365 cryptocurrencies available for trading globally.
- Fees are minimal.
- Numerous trading choices and order types are available.
Cons:
- There is no built-in digital wallet.
Binance is the world’s largest cryptocurrency trading platform. It is not especially user-friendly due to the breadth of its trading options and capabilities. Binance is anticipated to have a high learning curve for investors.
Binance provides a plethora of trading capabilities via its desktop or mobile dashboards, including an excellent range of market charts and hundreds of cryptocurrencies. Additionally, users have access to a range of trading alternatives, including futures and options, as well as a variety of order forms.
Along with its tools and services, it provides a complete learning platform, a non-financial trading platform, and more.
CoinSpot
Pros:
- Over 330+ cryptocurrencies available for purchase, sale, and trading.
- Market Orders incur a cost of only 0.1 percent.
Cons:
- Fiat currency deposits are only for citizens of Australia.
CoinSpot has developed an extremely user-friendly interface that enables even the most inexperienced user to purchase and sell any crypto directly from AUD. The UI is straightforward on both the desktop website and the mobile application. The Live Chat help with a real person is a wonderful addition for any new user.
Cointree
Pros:
- It’s simple to create a cointree account.
- Numerous cryptocurrencies are currently available.
Cons:
- Verification takes more than 24 hours.
Cointree is a cryptocurrency exchange based in Australia that enables customers to purchase Bitcoin and other cryptocurrencies using their local cash. The exchange is a well-known and popular digital currency marketplace in Australia. Cointree’s features, user interface, and trading expenses will all be discussed in detail in this review. While we make every effort to provide you with accurate information, we encourage that you periodically check their website for updates.
Cointree was founded in 2013 in Australia with the primary goal of increasing the accessibility of blockchain technologies and digital currencies to the general public. It is currently one of Australia’s most well-known cryptocurrency exchanges, having captured a sizable portion of the country’s cryptocurrency market.
FTX
Pros:
- User-friendly UI and mobile application.
- A diverse range of trading products.
Cons:
- There is no demo account available.
FTX is a decentralized digital exchange platform for trading cryptocurrencies and crypto derivatives. The platform is compatible with a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Chainlink, and Ripple.
If you’re looking for a trading platform that supports both retail and institutional accounts, FTX is your best bet. Apart from offering a diverse range of innovative trading solutions, FTX also caters to professional high-stakes traders.
Additionally, the FTX technology supports a concurrent OTC service. This enables you to make cryptocurrency purchases in any amount you like. The ability to trade in big volumes of cryptocurrency whenever you want using the FTX mobile app was once every trader’s dream.
How to Buy Pancake-Swap Crypto?
(Here we have taken the example of Coinbase on How to Buy PancakeSwap crypto)
Step 1: Create an account on Coinbase
To invest in PancakeSwap crypto, first you must buy one of the major cryptocurrencies, typically Bitcoin (BTC) or Ethereum (ETH). Coinbase will be used in this example because it is one of the largest cryptocurrency exchanges that accepts fiat deposits.
Enter your email address and click ‘Begin’. Ensure that you submit your true name, as Coinbase will require it to verify your account.
You will receive an email confirmation with a link included within. Click on that link and then you will be prompted to enter a valid mobile number for activating two-factor authentication. This adds another layer of security to your account and it is highly advised to enable it.
All these methods may seem onerous, especially if you are waiting to buy an asset, but Coinbase, like other financial institutions, is regulated in the majority of countries, including the United States and the European Union. This might be viewed as a trade-off for selecting a reputable platform to buy your initial cryptocurrency. The good news is that the entire Know-Your-Customers (KYC) process is now completely automated and should take no longer than 15 minutes to complete.
Step 2: Buy Coins using Fiat Currency
Once the KYC process is complete. You’ll be prompted to enter a payment method. Here, you can either use a credit or debit card or a bank transfer to complete the transaction.
When you use a credit card, you will be charged a greater fee, but you will also make an instant transaction. While a bank transfer is less expensive but takes longer, depending on your country of residence, some countries, such as some European countries, offer fast cash deposits with low costs, such as iDeal.
Now that you’re ready, click the ‘Trade’ icon, select the currency you wish to buy, and confirm your transaction.
Step 3: Transfer Your Cryptos to Another Cryptocurrency Exchange
However, because CAKE is an altcoin, we must transfer our coins to an exchange where PancakeSwap crypto can be traded; in this case, we will utilize Binance. It is a prominent exchange for trading cryptocurrencies, with a significant variety of altcoin pairs available for trading.
Following a similar procedure to what we did previously with Coinbase, you will be urged to set up 2FA authentication as well. Complete this step since it adds additional protection to your account.
Step 4: Make a BTC Deposit to the Exchange
Depending on the policies of the exchange you can be forced to go through another KYC process. This should normally take you from 30 minutes to possibly a few days maximum to have full access to your exchange wallet.
If this is your first time making a cryptocurrency deposit, the process may appear a little frightening. However, do not be alarmed; it is essentially the same as making a bank transfer. On the right of Binance app, you’ll notice a string of random numbers labelled ‘BTC address’. This is the public address for your Binance Bitcoin wallet, and you can receive Bitcoin by providing it to the person sending you the funds. Given that we are now moving bitcoin purchased on Coinbase to this wallet, click on ‘Copy Address’ or right-click on the whole address and select copy to copy it to your clipboard.
Return to Coinbase, navigate to the Portfolio page, click on Bitcoin in the asset list, and then click ‘Send’ on the right.
Paste the wallet address from your clipboard into the Recipient column; for security reasons, you should always verify that both addresses match. It is well-known that certain types of computer virus will convert the contents of your clipboard to another wallet address, thus delivering cash to another individual.
To proceed, click ‘Send’; you should immediately receive a confirmation email; click on the confirmation link in the email to send your coins to Binance.
Return to Binance and navigate to your exchange wallets; do not be alarmed if you do not see your deposit here. It is probably still being validated on the blockchain network, and your coins should appear within a few minutes. Depending on the state of the Bitcoin network’s traffic, it may take much longer during busy periods.
Binance should send you a confirmation email after your deposit has been received. After that you will be ready to purchase PancakeSwap crypto.
Step 5: Trade CAKE
Return to Binance and click ‘Exchange’.
The right column contains a search bar; ensure that “BTC” is chosen, as we are trading BTC for altcoins. By clicking on it and typing in “CAKE”, you should see CAKE/BTC. By selecting that pair, you should see a PancakeSwap price chart in the centre of the page.
Below is a box with a green “Buy CAKE” button; within the box, select the “Market” tab, which is the most straightforward sort of buying order. You can either enter in your desired amount or select a percentage of your BTC deposit to spend on purchases by clicking on the percentage buttons. When you’re satisfied with everything, click “Buy CAKE” to acquire PancakeSwap crypto.
Apart from the exchange(s) mentioned previously, there are a few other notable cryptocurrency exchanges with respectable daily trading volumes and a sizable user base. This ensures that you can sell your coins at any moment and that the fees are typically reduced. It is recommended that you register on those exchanges as well, since once CAKE is listed there, it will receive a significant amount of trading volume from the exchange’s customers.
Will PancakeSwap Price Reach $100?
The PancakeSwap crypto had reached a $44 new all-time high in past few months. Though there has been a decrease of about 15% which brings the price at $37 due to early profits taken by few traders, CAKE token recently gained more than 5600 percent YTD. This shows it is performing well in the crypto market.
It is predicted by Digital Coin Price Predictions that PancakeSwap crypto price will reach $100 in the year 2023. If it continues to maintain the current momentum, soon the price will increase. CAKE will have to rise 170% from the present level to reach $100. If the market goes bullish with no further drop of price, there is a chance of PancakeSwap crypto to hit $100.
January 21st 2022 Update: PancakeSwap’s stock price has decreased 27.68 percent in the previous 24 hours.
Is it Worth to Purchase PancakeSwap Crypto?
Among several other initiatives, PancakeSwap crypto has played a critical part in the DeFi industry, with consumers discovering innovative DeFi startups that utilize cutting-edge technology to differentiate themselves from their competitors.
PancakeSwap, in collaboration with Binance, strives to meet and exceed users’ expectations for the DeFi space by providing a diverse ecosystem with unique features, a variety of exciting rewards, and an overall improved, reputable performance, as well as the potential for future developments and expansions.
Additionally, PancakeSwap crypto aims to resolve a range of difficulties that may arise for other cryptocurrency market participants and blockchains. One such issue is centralization, and despite the fact that the DeFi revolution began on the Ethereum blockchain and that 9 percent of tokens are based on the ERC20 standard, there are issues with transaction delays, excessive fees, and congested networks.
This is addressed by initiatives like PancakeSwap, which leverages better consensus processes to make them faster, more efficient, and truly decentralized. PancakeSwap crypto’s attractiveness to investors stems from the fact that it streamlines activities and operations, giving users with a more cost-effective alternative.
January 22nd 2022 Update: PancakeSwap will join hands with Phantom Protocol to list $PHM on decentralized exchange of BSC.
Conclusion
PancakeSwap crypto is one of the largest AMM initiatives based on the BSC, with millions of daily active users. Since its inception in 2020, the protocol has seen a tremendous growth in popularity and activity, with trade volumes exceeding 800 million.
It enables users to deposit a variety of tokens to the BSC chain via a robust set of deposit capabilities. Additionally, through a partnership with Binance, users gain access to new, high-profile ventures on the market.
Therefore, if you are thinking to invest in PancakeSwap crypto, it might be profitable. Follow the above procedure and make your first purchase.
At Solutiontales we make it easy to understand the throes of cryptocurrencies, but our words should not be taken as a financial advice. Remember, a wise investor can make money in a bull or bear market when given the right data.