How to Use Pancakeswap: Beginner’s Guide
Decentralized platforms provide users with the opportunity of managing their digital and crypto assets without the need for an intermediary.
This opportunity equals to having full control of your funds like never before, all thanks to decentralized exchanges where true ownership is the common rule.
The PancakeSwap decentralized exchange has proven to be one of the most reliable and popular DEXs of them all.
Thus, it’s important to learn how to use it in order to take advantage of its amazing features.
In today’s blog post, we’ll be talking about the PancakeSwap exchange.
Fasten your seatbelts and let’s fly into this new chapter in your crypto journey!
Keep reading to learn more about:
- How to use PancakeSwap;
- What is Pancake Swap exactly;
- What can you do in PancakeSwap?
What is PancakeSwap?
PancakeSwap is a decentralized exchange built in Binance Smart Chain.
Being essentially decentralized, users have full control of their cryptocurrency assets at all times.
PancakeSwap uses an Automated Market Maker model for trades, and it also integrates smart contracts within its limits.
There are other rival exchanges that are also capable of doing this, such as UniSwap.
Still, with a remarkable trading volume and overall operations of more than 31 million in one month, Pancake Swap is definitely one of the most popular DEXes out there.
What Can You Use PancakeSwap For?
So, what is PancakeSwap for? Evidently, there are big differences between centralized exchanges, such as Binance, and decentralized exchanges.
Even though your crypto portfolio can be similarly managed in both types of platforms, there are some punctual features that PancakeSwap offers that might be of your interest.
1. Stake LP Tokens
An LP token, or a Liquidity Provider Token, is meant to, well, provide liquidity in liquidity pools.
As confusing as it might sound, the process is actually pretty simple: staking certain tokens at a locked price in a liquidity pool allows users to win rewards over time.
Providing liquidity is an essential part of decentralized tokens, since when users add liquidity, operations can be performed efficiently.
Liquidity providers are granted with the reward token of the liquidity pools.
IFO tokens, FLIP tokens, and other tokens can be stacked on the platform.
Pro Tip: If you are facing the “ Insufficient Liquidity for This Trade” pop-up window error in PancakeSwap, then you’ll probably need to increase your slippage tolerance.
This is exactly why adding liquidity is so important for you and other users.
Stake Cake Tokens in a Syrup Pool
The CAKE Token is the real star of the show in the PancakeSwap exchange.
New tokens are created every day, but PancakeSwap encourages their users to stake CAKE using BNB from their connected wallet.
The CAKE / BNB liquidity pool is called Syrup Pools.
The more Cake you stake, the more rewards you’ll earn.
You can check how much CAKE you have earned by simply checking your profile.
Since liquidity provider tokens work similarly to each other, earning rewards is pretty straightforward, thanks to PancakeSwap’s features.
Learn more about LP Tokens by clicking here.).
2. Swap Tokens in a Decentralized Environment
You can convert ERC-20 to BEP-20, Buy SafeMoon on Trust Wallet, use the swap button for a specific token pair in PancakeSwap.
Since PancakeSwap is a decentralized platform, you can’t use fiat money in it.
Therefore, Token swaps between two tokens are performed converting their equal value from one to the other.
For instance, $10 worth of Binance Smart Chain Coin will turn into $10 in Cake.
Make sure to perform your own research before you click “Confirm Supply” so your funds are protected at all times.
3. Initial Farm Offering (IFO)
Community governance is the main goal of PancakeSwap.
Yield farming is different from staking, so make sure not to mix things up.
Basically, you can join a PancakeSwap Farm that requires a certain deposit in order to get CAKE farm earnings.
These farms are divided into different token pairs, and the rewards can later be transferred to your Trust Wallet address if you please.
Learn more about farms by clicking on the previously mentioned link.
How To Use PancakeSwap
Now that you know all the possibilities that PancakeSwap offers, now it’s time to get started.
Firstly, it is safe to mention that there are different ways to get started in PancakeSwap, but for practical purposes, we are going to focus on the most standardized one.
This method consists of setting up Trust Wallet, acquiring BNB, and then connecting Trust Wallet to PancakeSwap so you can use all the features of this decentralized exchange.
Continue reading to know how to achieve this.
Step 1: Buy BNB Tokens
Cake, BNB, LP tokens - they are all meant to be together! Pancake Swap revolves around BNB and Cake tokens, so you’ll surely want to purchase some BNB.
You can easily purchase BNB in Binance, and since Trust Wallet belongs to the same company, you won’t have major problems moving your funds from your Binance Wallet to your Trust App.
Keep in mind that gas fees and trading fees will take place when you acquire BNB in Binance, so consider this expense depending on your goals (staking, swapping, or farming).
Step 2: Convert BNB from Your Binance Chain Wallet to Binance Smart Chain in Trust Wallet
When you send BNB to Trust Wallet, before paying for the gas fee and transaction fee, you are basically converting the BNB coins to the Binance Smart Chain.
Then, these Smart Chain tokens are the ones that will power up all your operations in PancakeSwap, but they need to be on your wallet first.
PancakeSwap is a DApp (decentralized application) which means that you must Enable DApp Browser in Trust Wallet in order to download it.
If you own an Android device, just go to the DApp Browser next to the settings icon in Trust Wallet and look for PancakeSwap.
On the other hand, if you own an iOs device, the process will be a little trickier.
Make sure to read our related blog post to learn how to do it.
Step 3: Connect Trust Wallet to Pancake Swap
Once the DApp browser is successfully enabled, you need to connect your wallet to the decentralized exchange.
The process is pretty simple and it consists of three steps:
- Open PancakeSwap on your phone;
- Look for the “Connect” option at the top right corner;
- Here, instead of selecting Trust Wallet, select “Wallet Connect.” Click connect and you’ll be good to go!
Read Also: Are you having problems while trying to Connect Trust Wallet to PancakeSwap?
Do not despair - we have written a complete guide that shows you this process in its entirety - go check it out!
Step 4: Convert Tokens and Use PancakeSwap’s Features!
You are now ready to use PancakeSwap at your will!
You’ll be presented with two main options: Exchange and Liquidity.
At the bottom of the screen you’ll find five more options:
- Trade, where you can swap tokens;
- Earn, that shows you the Farms and Pools options;
- Win, which provides you with Lottery, Competitions, and more;
- NFTs, where you can check hundreds of collections;
- And Settings.
We hope that you liked this guide! You are now ready to get fully started in the PancakeSwap world.
For more useful PancakeSwap and crypto information, you can always rely on GrowFollowing.
How to Use Pancakeswap FAQ
Can I Connect MetaMask Wallet to PancakeSwap?
Yes, you can do so as well. Nonetheless, using Trust Wallet is way simpler since it’s already integrated with the app.
Don’t let anything stop you from using PancakeSwap, though - learn the differences of these wallets in our MetaMask vs. Trust Wallet blog post.
What is PancakeSwap Lottery?
Lottery tickets can be purchased inside PancakeSwap in order to earn sweet prize pots of thousands of dollars.
Learn more about PancakeSwap Lottery Tickets here.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.