Understanding The Basics About Pancakeswap
PancakeSwap is among one of the largest DEX platforms in the entire crypto world, launched by Binance Smart Chain (BSC). This DEX platform is designed to provide an easy and safe experience for users looking to set decentralized exchanges on the BSC network. Just like Uniswap, the leader DEX in the crypto world, the functioning of PancakeSwap is also the same.
However, in this race to offer the best services, PancakeSwap is a bit ahead of the game by offering some additional features. It integrates with the Automatic Market Maker (AMM) system, which allows different liquidity providers to inject direct liquidity into different online pools. This leads to the creation and functioning of different decentralized exchanges on the web. The platform offers rewards for each trade of liquidity injected into any pool.
The deployment systems of top platforms like Uniswap, SushiSwap, and AAVE are also the basic system of PancakeSwap. The internal mechanics of all these platforms are almost identical except for the respective networks on which they operate. The high demand for such a system by BSC users made PancakeSwap choose BSC as their network.
Low transaction costs, fast-paced transactions, and transfer from centralized Binance network to the decentralized world with PancakeSwap attracts more users. Binance has also shown its support by launching Binance Bridge, which helps wrap around or tokenize major cryptocurrencies. You can easily trade BTC, ADA, or ETH in an easy method from Binance to the BSC network. From here, you can trade these tokens on PancakeSwap and some other DeFi and DEX platforms deployed by BSC.
Services To Make Money On PancakeSwap
There are different types of highly rewarding services that offer great investment options for users of PancakeSwap. Different services on this platform have different levels of incentives. Every service on PancakeSwap is designed to offer the best results to its users. Take a look at a few such investment options on this platform to make money:
1. Liquidity Pools
You may start by creating your pool of liquidity, making money with the trading fees earned by all the trades in this pool. Profits are derived from high volume trades and transaction fees on Binance Smart Chain.
The simple idea of a liquidity pool starts with building it around a simple, smart contract by using the DEX. Then, this pool can bring close two different cryptocurrencies and set them up as an exchange pair in DEX.
When someone looking to participate in the pool injects liquidity, they enter with more cryptocurrencies set in pairs. This injected liquidity will make some specific changes in that pool. For each change made in the pool, the system rewards the person injecting these liquidities. These rewards can be both re-injected or withdrawn from the liquidity pool system.
PancakeSwap uses this system to provide liquidity during making exchanges, and this system here is the main source of monetization at this platform. The reward offered by this platform for liquidity providers is a crypto token called FLIP. This FLIP token can be used to either inject more liquidity into the pool or trade them on any other platform service. This LP service of PancakeSwap is named Syrup.
2. Yield Farming
In this service, you will be rewarded for trading into different pools of liquidity. The reward is paid to pool participants once a day in the form of FLIP or BSC. This service is termed Yield Farming, and it is one of the most earning services on PancakeSwap.
You get rewarded by the simple act of buying a Set fee per trade action made in any liquidity pool. This transaction fee is 0.01%, and it can be reinvested directly into the yield farming fund, which generates more profits over time.
The yield farming fund has been designed to provide revenues at a regular interval over time. Like the LP process, farmers of yield farming on this platform are offered CAKE tokens.
3. Lottery
The lottery is another trending service to make money on PancakeSwap. A pot is used to draw a lottery once every six hours with a price tag of around $100.000 to $200,000. Anyone can participate in this lottery with a ticket, and the amount of this ticket is 10 CAKE. The system will pay the prize to the winner of this pot. The tickets contain a unique four sets of different numbers.
Based on the results of the system-generated draw, the prizes are decided for different users. The main thing to look out for here is that the prize money offered is only 50% of the total CAKE token accumulated. The rest of this accumulated amount is burned to reduce the new issuance of CAKE tokens and add to its base value.
4. NFT Collectibles
NFT Collectibles is a tradable object offered by the system on different Altcoins for purchasing. You can buy NFTs in PancakeSwap for any tokens and then trade them on any other DEX platform on the BSC network.
Once you buy NFTs, you will be able to trade them at fair market prices, just like any other crypto coin traded by users. This service is termed Collectibles, and it also offers massive rewards. The reward fees are paid to the users once a day in FLIP or BSC.
Step By Step Guide to Buy on PancakeSwap
The process to become a part of PancakeSwap and enjoy these incredible services is quite easy. You can use secure wallets like MetaMask and TrustWallet that work efficiently by integrating with DEX networks.
Just go to the DApps section in your TrustWallet and search PancakeSwap. Then, just click on the results, and you will get your TrustWallet connected with PancakeSwap to get the best results. So now, you can easily operate this network on your TrustWallet app.
On the other hand, MetaMask users first need to go through their MetaMask wallet and BSC network. You can easily add this network to your wallet by going through Setting.
Open your wallet and open “Settings.” Now open the network options, and you will see an option of “Add Network.” Now a new form will open, and you can copy these details into it
· Network Name – Binance Smart Chain
· New RPC URL – https://bsc-dataseed.binance.org/
· ChainID – 56
· Symbol – BNB
· URL of Block Explorer – https://bscscan.com
Just hit “Save,” and you are all set to use your MetaMask wallet on your PancakeSwap platform. If you have decided to start using PancakeSwap, make sure to stay protected on this platform. It is always good to use secure hardware wallets like MetaMask and TrustWallet for additional security.
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Disclaimer: This content represents the authors personal perspective and is subject to changes in market conditions. Always do your own research before investing in cryptocurrencies. The author and the publication are not accountable for any financial losses you may face.
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