Decentralized Finance or Defi has been a buzzword in the crypto space, with decentralized exchanges gaining attention on every blockchain network. One example of a decentralized exchange is the PancakeSwap exchange. It laid its establishment two years ago in September on the Binance Smart Chain. This decentralized exchange was launched as a substitute AMM (automated market maker) in competition to Uniswap Exchange having minimum transaction costs and higher speeds.
Beginning of PancakeSwap exchange
Although it began as identical to Uniswap on the alternate blockchain, PancakeSwap came up with more developed features and overshadowed Uniswap when being used more often. Acquainted with multiple characteristics, and an opportunity to earn passive income for users. PancakeSwap exchange now has much Total Value Locked in comparison to its competitor Uniswap.
Hence if you are searching for a decentralized exchange having minimum fees and transaction costs. So join the article and read the review of the PancakeSwap exchange that would make you decide whether it appeals to your needs.
Advantages of PancakeSwap
After knowing the brief introduction of PancakeSwap exchange, now let us get to know some of the merits it provided:
- Contrary to the competitor decentralized exchange Uniswap, PancakeSwap exchange offers a minimum price on the transaction.
- Comprise range of products on a wider scale.
- More active transactional activities with developers and community in comparison to Uniswap.
- PancakeSwap provides higher Annual Percentage Rate/Annual Percentage Yield returns regarding farms and pools.
Disadvantages of PancakeSwap
Besides the above-mentioned advantages, there are some downsides of PancakeSwap exchange that are given below:
- One of the major demerits with PancakeSwap is it is prone to scams.
- Possible expectations of quick fund loss in gambling by lottery.
- There can be loss in liquidity pools if not permanent but temporary.
- Due to popularity, it can lead to congestion of the network.
Which of the wallets are supported by PancakeSwap?
There is a wide range of crypto wallets that are supported by PancakeSwap exchange. These are:
- TokenPocket
- MathWallet
- MetaMask
- SafePal
- Ciub98
- WalletConnect Wallets
- Trust Wallet
- Binance Chain Wallet
Linking wallet to PancakeSwap exchange
When it comes to linking your chosen wallet with PancakeSwap exchange, then there are some steps to be followed below:
- The first step, to begin with, is to visit the official website of PancakeSwap.
- And then you will see an option of ‘Connect Wallet’ that you have to click. This option will be seen on the top right side.
- You have to make the selection of the wallet whosoever you want to go with.
- After this step, you have to go for verification of your chosen wallet that you want to connect with PancakeSwap.
- Finally, it is done. You can begin exploring the use of PancakeSwap exchange.
What cryptocurrencies are available for buying on PancakeSwap?
Now the question comes is which are those cryptocurrencies that are available on the PancakeSwap exchange. Here are they:
- Binance Coin (BNB)
- Tron (TRX)
- Cardano (ADA)
- USD Coin (USDC)
- Bitcoin (BTC)
- Filecoin (FIL)
- Chainlink (LINK)
- Ethereum (ETH)
- Tether (USDT)
And of course the native token of PancakeSwap exchange, CAKE.
Is it safe to refer PancakeSwap?
The main query that comes to mind whenever one chooses a cryptocurrency exchange is not just the features that it provides, but security. Now since we are discussing on PancakeSwap exchange, so definitely one would like to know whether it would be safe to refer to this decentralized exchange or not?
Well, the answer is yes, you can bet on this exchange, as it does guarantee safety to its users. And what more evidence we can give you is this decentralized exchange does not have a hacking past. The only downside of PancakeSwap is it carries the risk of temporary loss in farms and is prone to scams.
Explaining the risk of temporary loss
You must have stuck with the term temporary loss while mentioning the downside of the PancakeSwap exchange. This is the situation when liquidity is provided by you to the liquidity pool and then there is a change in the deposited price of assets in comparison to what has been deposited on them by you.
There must be equal balance in the pair with one swinging up or down in quantity for the creation of value parity. Your returns can alleviate this loss, depending on if you experience a temporary loss with ten percent, but at the same time APR with twenty percent.
CAKE
Sounds catchy! it is the native token of the PancakeSwap exchange. It is staked in Syrup Pools for returns in the latter token or other assets. This cryptocurrency can be purchased on the cryptocurrency exchanges including PancakeSwap of course, Binance, OpenOcean, Crypto.Com, and KuCoin. Ranked at 51, $7.59 is the current price of CAKE.
Final words
So this is all the brief information about the PancakeSwap exchange. You might go for it, as this decentralized exchange does not have serious hacking past before. Only some downsides like temporary loss of liquidity pools and being prone to scams. However, if you are new to crypto trading please do the research and then proceed further. Also, log on to Cryptoknowmics to know about the right time to invest in Bitcoin.
