How To Buy PancakeSwap (CAKE)?
A common question you often see on social media from crypto beginners is “Where can I buy PancakeSwap?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process.
Step 1: Create an account on an exchange that supports PancakeSwap (CAKE)
First, you will need to open an account on a cryptocurrency exchange that supports PancakeSwap (CAKE).
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase PancakeSwap (CAKE) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy PancakeSwap (CAKE)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for PancakeSwap (CAKE) or PancakeSwap (CAKE) trading pairs. Look for the section that will allow you to buy PancakeSwap (CAKE), and enter the amount of the cryptocurrency that you want to spend for PancakeSwap (CAKE) or the amount of fiat currency that you want to spend towards buying PancakeSwap (CAKE). The exchange will then calculate the equivalent amount of PancakeSwap (CAKE) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of PancakeSwap (CAKE) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What Is PancakeSwap (CAKE)?
It launched in September 2020 and is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. PancakeSwap uses an automated market maker model where users trade against a liquidity pool. These pools are filled by users who deposit their funds into the pool and receive liquidity provider (LP) tokens in return.
These tokens can later be used to reclaim their share of the pool, as well as a portion of the trading fees. These LP tokens are known as FLIP. PancakeSwap also allows users to farm additional tokens such as CAKE and SYRUP. On the farm, users can deposit LP tokens and get rewarded with CAKE.
PancakeSwap allows users to trade BEP20 tokens, provide liquidity to the exchange and earn fees, stake LP tokens to earn CAKE, stake CAKE to earn more CAKE and stake CAKE to earn tokens of other projects.
Who Are the Founders of PancakeSwap?
PancakeSwap is a Binance Smart Chain-based decentralized exchange (DEX) that was launched by anonymous developers with an apparent passion for pancakes.
What Makes PancakeSwap Unique?
PancakeSwap uses an automated market maker model, meaning that there are no order books and liquidity pools are used instead. A user can earn income by becoming a liquidity provide; by adding their tokens to the liquidity pool they can farm LP tokens and stake their CAKE to earn rewards. They can also try their luck with the lotteries and non-fungible tokens.
The PancakeSwap token CAKE is a BEP20 token that originally launched on Binance Smart Chain. The main function of CAKE is to incentivize the liquidity provision to the PancakeSwap platform.
Users can stake their tokens to earn rewards, which is done by depositing Liquidity Provider tokens and locking them up. This is known as farming and is rewarded by the system with CAKE tokens. The tokens can be un-staked with zero holding time. CAKE gives users the opportunity to invest and increase returns in the future but comes with risks.
CAKE can be used to enter a lottery on PancakeSwap. Each lottery session takes 6 hours. A single ticket costs 10 CAKE and comes with a random combination of four numbers between 1 and 14, for example, 8-6-4-13. To win the jackpot, which equals 50% of the entire lottery pool, the numbers in your ticket need to match all four of the numbers in the winning ticket.
Users can also win non-fungible tokens that can be traded for CAKE or kept in a wallet.
Official website: https://pancakeswap.finance/
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