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Due to high Ethereum transaction fees driven by demand and congestion, investors are seeking cheaper alternatives for decentralized exchanges (DEXs). With gas fees often exceeding $100 and sometimes reaching hundreds of dollars, trading becomes costly, especially for smaller amounts. As a result, many traders are exploring Layer 2 solutions, other blockchain ecosystems, or DEXs on networks with lower fees to engage more affordably in decentralized finance (DeFi).
Binance Smart Chain (BSC) offers a cost-effective alternative for transactions, allowing users to trade for less than a dollar. Although it has drawbacks in decentralization and security, it appeals to retail investors seeking lower fees than Ethereum platforms like Uniswap. PancakeSwap, the leading DEX on BSC, attracts users with its lower transaction costs and user-friendly experience. This makes BSC a popular choice in the DeFi landscape.
Want to add PancakeSwap (CAKE) to your portfolio? Our easy-to-follow guide covers everything you need to know about buying CAKE safely and efficiently. Get started now!
How to Buy PancakeSwap (CAKE)
Follow these simple steps to purchase PancakeSwap (CAKE).
1. Open an Online Account
In order to buy CAKE tokens, you’ll need to make an account your chosen platform. To sign up or register, visit the website or download the mobile app and follow the prompts to create your account. You'll be required to provide your email address, which will be used for account verification and communication. To abide by the U.S. Securities and Exchange Commission (SEC) Know Your Consumer (KYC) regulations, you’ll need to verify your identity to begin trading.
2. Fund Your Account
Many platforms facilitate seamless transactions by allowing users to link their bank accounts for direct deposits or wire transfers. This makes it easy to transfer fiat currencies like USD or EUR. While this integration simplifies the funding process, users should be aware that funding accounts through credit or debit card transactions often incurs higher fees. Additionally, platforms that accept payments from third-party services such as PayPal provide added flexibility and convenience for users.
The best way to fund your account is with cryptocurrency. Transferring digital assets into an exchange wallet is straightforward. Users simply need to generate a deposit address from the cryptocurrency exchange and send their assets directly to that address.
3. Make Your Purchase
Once your account is verified and funded, you’re ready to make your purchase. Navigate to the trading section and search for CAKE. Place a buy order for the desired amount. Ensure that all information is accurate before confirming the transaction.
What Is PancakeSwap?
PancakeSwap is a leader in the decentralized finance (DeFi) industry. DeFi replaces the need for financial intermediaries like lenders, exchanges, insurance and even investment funds. These intermediaries can be replaced with smart contracts: code uploaded to the blockchain to perform financial transactions.
While most of the DeFi industry is built on Ethereum’s network, more developers are choosing alternative blockchains, such as BSC, because of the significantly lower transaction and development costs.
PancakeSwap is the leading DEX on Binance Smart Chain. The platform lets investors trade cryptocurrencies through smart contracts, so there’s no need to trust a 3rd party to have custody of your funds. Also, trading on a DEX is anonymous, since you only need to connect your cryptocurrency wallet to trade crypto –– there’s no need to make an account with DEXs.
Because PancakeSwap is decentralized, it can’t provide its own liquidity for investors to buy and sell crypto. Instead, investors can stake their cryptocurrencies in smart contracts to earn passive income from the exchange’s transaction fees.
Brief History of PancakeSwap
The founders of PancakeSwap are anonymous, which may concern some investors. However, the DEX’s code has been audited, and it’s likely safe to use. CAKE, the native token on PancakeSwap, began trading when the DEX launched in September 2020. At the time, the token was trading below $1. In December 2021, CAKE was trading for around $12 per token. The crypto crash of 2022, however, hit every crypto project, and by September of 2022, CAKE was sitting around $4.50. At the time of writing, CAKE is trading for $1.85 with a market capitalization of $484 million.
PancakeSwap is a fork, or copy, of Uniswap. Uniswap is the leading DEX on Ethereum’s network, and the platform exchanges more volume on its network than Bitcoin’s network. However, PancakeSwap has some advantages over Uniswap. Namely, the fees on Binance Smart Chain are less than 1% of the fees on Uniswap, making it viable to use with small amounts of capital.
PancakeSwap also offers CAKE tokens to liquidity providers to incentivize investors to stake their crypto for interest. These rewards can be sold at market price, or you can use them to enter PancakeSwap lotteries.
Where to Buy PancakeSwap (CAKE)
The best trading platform depends on the needs of the investor. Here's a few of the most popular and reputable exchanges to begin trading CAKE.
How to Store PancakeSwap (CAKE) Safely
Investors should not keep their cryptocurrency on exchanges due to security risks from potential hacks. Hardware wallets, which store crypto offline, are the safest option, while software wallets offer a free alternative for secure storage.
- Best Hardware Wallet: SafePal S1
The SafePal S1 is a hardware wallet that enhances the security of cryptocurrency holdings. It is a multicurrency wallet, and it can support over 10,000 different cryptocurrencies including PancakeSwap tokens. It provides a secure storage solution to protect assets from online vulnerabilities and supports a variety of cryptocurrencies. Its compatibility with PancakeSwap allows users to trade and swap tokens securely, making it a great choice for those prioritizing security in their investments.
- Best Software Wallet: Trust Wallet
Trust Wallet is a multicurrency wallet which supports Binance Smart Chain tokens. The wallet is free to download on iOS and Android, making it an extremely accessible option for new or experienced crypto investors. Trust Wallet can also connect to PancakeSwap, allowing you to trade crypto directly from your wallet.
Trade, Sell or Convert Your CAKE Tokens
If you’re using Trust Wallet to store your CAKE tokens, then you’re able to trade your crypto directly from your cryptocurrency wallet. Just connect your Trust Wallet to PancakeSwap.finance and you can start trading.
When you want to cash out of your investment, just send your crypto from your Trust Wallet to a crypto exchange that’s connected to your bank account.
Current Crypto Prices
Cryptocurrency prices are highly volatile and affected by market demand, news, and technology. Bitcoin dominates the market, while Ethereum is notable for its smart contracts. Altcoins like Ripple and Litecoin can fluctuate significantly due to speculation, making real-time data essential for investors drawn to this evolving market of both retail and institutional interest.
Is PancakeSwap a Good Investment?
Historically speaking, PancakeSwap has been a great investment. The token increased over 46% in the past year, providing a significant return on investment to early investors.
If Ethereum’s blockchain isn’t able to scale soon, it’s likely that PancakeSwap will continue to see an increase in adoption. However, if Ethereum does solve its scaling problems, then users may opt to use Ethereum’s robust network over the Binance Smart Chain.
Frequently Asked Questions
How can I use the PancakeSwap DEX?
For more on using the PancakeSwap exchange please visit here.
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