Pancake Swap is one of the decentralized cryptocurrency exchanges powered by the Binance Smart Chain (BSC) blockchain. Here, you can swap cake to bnb, cash out cake and bnb tokens and make other multiple transactions. It has almost the same structure and principle of work as Uniswap, Sushiswap and other cryptocurrency exchange stations. So, if you are familiar with their interfaces, you will not face any problems with understanding the principles of Pancake Swap running. Essentially, their technologies are similar.
How does Pancake Swap work?
Pancake Swap exchange uses quite a simple model of an automated market maker (AMM). It means that during the process of the digital assets trading there is no order book on this platform. Hence, you will not be compared with other traders. Instead, you make a deal with an algorithm that manages the pool of liquidity and takes into account all transactions taking place within the exchange at the time of your exchange. To complete a transaction, you do not need a seller who wants to give you a token at a suitable price, but you should have the token you need in the right amount in the exchange liquidity pool. These pools are filled out with the users’ funds. Users deposit their funds to the liquidity pool and get some tokens in return from the liquidity provider (LP). These tokens can be used to return your share and receive a part of trading commissions. On this platform, you can trade your tokens or add liquidity and get some remuneration.
What are the types of LP tokens?
There are several types of LP tokens. When you add to the pool BUSD and BNB, then you will get in return BUSD-BNB LP tokens. When you add BETH and ETH to the liquid pool, then you get in return BETH-ETH LP tokens.
What is more, the Pancake Swap platform has created its own CAKE token, which is used to manage the project and reward project participants.
To use PancakeSwap, you need to attach a wallet to it. We recommend using MetaMask, it is convenient to install it as a plugin on Google Chrome or on a mobile phone.
By connecting the wallet to the exchange, you can use all its functions anonymously.
PancakeSwap functions:
- exchange of tokens in 250 pairs
- buying NFT collections
- participation in the CAKE lottery
- farming and staking
How to get passive income?
You can easily get a passive income from pharming by investing your tokens in the PancakeSwap exchange liquidity pool.
In order to get started you need:
- Connect a wallet, for example MetaMask
- Go to Trade – Liquidity section
- Add tokens available to you to the liquidity pool
- Get LP for using tokens when exchanging on the exchange
- Go to the Farms section and select the section corresponding to the received LP
- Confirm LP transfer for staking
- Get CAKE and sell it on an exchange convenient for you
- You can leave the received CAKE tokens on your PancakeSwap account and invest them in the Pools section to get even more tokens.
Conclusion
Along with other online crypto exchange platforms Pancake Swap, gives you a possibility to access tokens that are not available on centralized exchanges, pay less commission when exchanging them. You can also receive passive income by investing your tokens in the exchange liquidity pool.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsem*nt or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
FAQs
A very short answer to the question, “How to withdraw from PancakeSwap?” is to go to a liquidity pool and click the “Unstake” button. Do note that while there are several staking options on the platform (in the broad sense of the term), in this case, I'm talking specifically about withdrawing from PancakeSwap farms.
Can you sell crypto on PancakeSwap? ›
The PancakeSwap platform allows trading of any crypto on the Binance smartchain. PancakeSwap implements an automated market maker architecture, which relies upon user-supplied liquidity pools to support crypto swaps. That's why it offers users passive income for staking tokens.
Can you swap BNB on PancakeSwap? ›
Token swaps on PancakeSwap are a simple way to trade one token for another via automated liquidity pools on BNB Smart Chain, Ethereum and Aptos, and also with market makers when trading tokens on BNB Smart Chain and Ethereum.
Can you cash out tokens? ›
Once your tokens reach an exchange like Binance or Coinbase, you can easily swap them for your local currency (fiat) and withdraw the funds to your bank account.
How to transfer CAKE from PancakeSwap? ›
Go to the CAKE staking page
Navigate to https://pancakeswap.finance/cake-staking?chain=bsc and connect your wallet. Please note that veCAKE staking is only available on the BNB Chain. If you have an active, fixed-term CAKE staking position in the CAKE pool, you should see the option to migrate.
How do I sell my CAKE LP tokens? ›
You must go to Pancakeswap, find the LP token pair, and remove it in order to sell CAKE-LP tokens. Your LP tokens will then be changed back to the pairs you pooled.
How do I sell my BNB tokens? ›
How to sell Binance Coin (BNB)?
- Enter the amount of BNB that you wish to sell.
- Input the bank or card details where you'd like to receive your funds.
- Confirm the information to create your sell order.
- Send the exact amount of Binance Coin to the provided wallet address.
Secure. PancakeSwap has proven to be very secure. For one, it's a non-custodial DEX, meaning that the platform never holds your assets directly in large hot wallets. DEXs are much more secure than centralized exchanges for this reason.
Does PancakeSwap have its own wallet? ›
Wallets are available both on desktop computers and on smartphone devices. You'll need to choose the wallet that fits your needs best. When you're setting up a wallet, be sure to: ✅ Download and install only the latest version from an official source.
How long does a PancakeSwap transaction take? ›
All cross-chain transactions will take around 30 minutes to complete. It is because: Transactions have to be executed on both the farming blockchain (like Ethereum) and the BNB Chain. Delivering cross-chain messages takes time.
Key Points. PancakeSwap is a decentralized exchange built on the Binance Smart Chain (BSC) for swapping cryptocurrencies. It offers yield farming, staking, and lottery features, providing users with opportunities to earn rewards.
What network is PancakeSwap on? ›
PancakeSwap runs on BNB Smart Chain, a blockchain with much lower transaction costs than Ethereum or Bitcoin. Trading fees are lower than other top decentralized exchanges too, so that's a double win for you!
How do I cash out my ETH tokens? ›
You can send Ethereum to online exchanges, trade with others, use Ethereum cash machines, or spend with crypto debit cards.
- Transfer Ethereum via Crypto Exchange. ...
- Turn Ethereum into Cash via Crypto Card. ...
- Direct P2P Exchange. ...
- Withdraw Fiat to Your Bank Account.
In your Binance exchange account, go to the Withdraw Crypto section and select the coin you wish to withdraw. In the address field, paste your Ledger BNB address, make sure that the BEP20 (BNB) network is selected, and complete the withdrawal.
