Launched in September 2020 by anonymous developers, PancakeSwap is a decentralised finance (DeFi) protocol that enables users to exchange tokens on the Binance Smart Chain (BSC). It also provides opportunities to participate in the system and earn rewards, such as the project’s utility token, CAKE.
This guide will show where and how to buy Pancakeswap and how easy it is to join the exciting, new DeFi movement.
If you’re looking for a simple way to buy PancakeSwap Token, all you need to do is sign up with a crypto exchange. You can access it online with a computer, smartphone, or tablet to quickly buy and sell PancakeSwap Token and a range of other cryptocurrencies. The best platforms are listed below as well as a quick step-by-step guide on purchasing PancakeSwap Token.
Selecting a platform that sells CAKE will be your first step towards purchasing it. There are quite a few to choose from but make sure to select one that you can navigate easily and provides all the features you need. You can start now with our recommended CAKE platforms, shown below.
Go to create an account, fill in the details requested, and provide any necessary documents such as a photo ID and proof of address. Your account should be verified shortly, after which you can fund it. Go to make a deposit and you will be shown the payment options supported in your country. Select your preferred payment method and follow the onscreen instructions.
You now have everything you need to purchase CAKE. Select the trading pair containing CAKE and your deposited currency, then create a buy order. A market order will purchase CAKE immediately at the current price, while a limit order will automatically purchase CAKE in the future once a specified price has been reached.
You can buy PancakceSwap (CAKE) tokens from a range of platforms—make sure to review and understand each one and choose the best fit for your needs. We’ve shortlisted a handful of the best below to get you started.
PancakeSwap is a decentralised exchange (DEX) built on the Binance Smart Chain. It enables users to swap BEP-20 tokens, which are the type of tokens native to the Binance Smart Chain.
BEP-20 is a blueprint that enables developers to easily launch their own tokens, while swapping them on the more efficient Binance Smart Chain means lower fees for traders than Ethereum. Also, as PancakeSwap is a DEX, those fees are shared between its users, rather than going to a company like they would for a centralised exchange.
Users can provide liquidity to PancakeSwap by depositing the required tokens. They are rewarded for this with liquidity provider tokens. These liquidity provider tokens can then be staked in PancakeSwap’s farms to earn the protocol’s utility token—CAKE.
CAKE can be staked to earn more CAKE or other tokens, used to vote on PancakeSwap governance proposals, and even used to buy PancakeSwap lottery tickets.
Some investors like to hold onto their coins for the long term, while others prefer to turn a quick profit and sell. Choosing a strategy and a timeline depends on your own investment goals, and we’ll be examining how well-suited CAKE is to both these options below.
This strategy is fairly self-explanatory: you buy some CAKE and you hold onto it for a period of time. It’s the simplest strategy to execute and won’t require that you do any technical analysis. What’s more, if PancakeSwap is successful, there’s the potential to make a decent profit from holding CAKE.
There is also the opportunity to earn interest on your CAKE while you’re holding it. Holders can stake their CAKE in PancakeSwap’s pools to earn rewards in CAKE, or any number of other BEP-20 tokens on offer.
Once you’ve bought your CAKE, you may wish to transfer it to a private wallet to provide an extra level of security and ensure you have full control over your tokens. The most secure type of wallet is a hardware wallet, such as Trezor, KeepKey, or Ledger. You’ll have to pay for these and they may take a bit of getting used to.
Although a bit less secure, software wallets are easier to use and can be downloaded onto your computer or mobile device for free. If you want to use PancakeSwap, you’ll need a wallet supported by the protocol, which includes MetaMask, WalletConnect, Trust Wallet, MathWallet, and SafePal.
The volatility of CAKE’s price means that traders can also benefit from buying and selling it over shorter timeframes to make more frequent profits. This strategy will require more concentration and knowledge as traders often analyse charts and the markets to find the best times to buy and sell.
As they buy and sell much more frequently, traders may find private wallets less convenient as regularly transferring their tokens can be time-consuming and costly. Web wallets may therefore be the best option for traders—and your trading platform will generally provide one for free.
You can use a range of payment methods to buy CAKE, depending on the options available on your platform of choice. You should select the option that best suits your needs.
PayPal: PayPal is convenient, fast, and secure, but may not be available everywhere.
Bank transfer: Bank transfers are secure, have high transaction limits, and carry the lowest fees, but can sometimes take longer than other payment options.
Purchasing PancakeSwap and trading PancakeSwap are two distinct activities, and each requires a different strategy. Buying and holding is a simple, low-skill strategy that is easy to execute for long-term investors. Trading, on the other hand, involves buying and selling over short periods of time to generate profits.
Buying and holding involves buying CAKE and holding onto it for the long run, in the expectation that it will appreciate in price. This is an appropriate strategy for investors who believe in the long term prospects of PancakeSwap, and don’t have the time or skills to actively trade the market.
Trading PancakeSwap involves buying and selling CAKE tokens over short time frames for profit, exploiting the volatility of the crypto market. Traders don’t necessarily have to believe in the long term viability of PancakeSwap, and are simply exploiting its volatility to generate returns.
Traders aim to “buy low, sell high”, and identify opportunities to do so by conducting market analysis. Factors that may move the price of CAKE include the popularity of the PancakeSwap platform, the level of interest in decentralised finance (DeFi), and conditions in the broader crypto market.
More advanced traders may want to learn technical analysis (TA). TA involves reading charts and indicators to try and anticipate the future price action of CAKE.
There are a few factors you should consider before you buy CAKE tokens. This section addresses a few of these to help you make your decision.
Something to be aware of is the growing popularity of the Binance Smart Chain (BSC), the blockchain upon PancakeSwap is built. More and more new tokens are created on the BSC every day, bringing in new potential PancakeSwap users.
However, although PancakeSwap is one of the most popular DEXs out there, there is competition from several other platforms on the BSC, and this could impact the long-term trajectory of the coin.
Thousands of tokens are available to swap. Anybody can list a token on PancakeSwap, and virtually every token on the Binance Smart Chain (BSC) can be found here.
Low fees compared to Ethereum alternatives. PancakeSwap is built on the Binance Smart Chain, which boasts faster and cheaper transactions than Ethereum—the home of competing platforms like Uniswap.
Swap tokens without the need for a central authority. PancakeSwap allows you to swap tokens without creating an account or completing a KYC procedure, and you never give up control over your funds.
Lend out your tokens to earn rewards. You can become a ‘liquidity provider’ by lending out tokens to PancakeSwap’s exchange pool. In return, you can earn a portion of the exchange fees as well as other crypto rewards.
Whether or not buying PancakeSwap will make you money depends on a number of factors, and every investment carries an element of risk.
The value of CAKE is tied to the popularity of the PancakeSwap platform. PancakeSwap is one of the most popular decentralised exchanges out there and has added new features such as an NFT marketplace, which could expand its user base further. If this trend continues, the value of CAKE may continue to grow.
The CAKE token itself has multiple uses, including yield farming, staking, and even a lottery game. These uses create demand for the token. The supply of CAKE is also constricted by regular token burns, which remove CAKE coins from circulation. The combination of strong demand and a limited supply could also force up the price of CAKE in the long run.
Pros
PancakeSwap is one of the most popular decentralised exchanges
CAKE sees strong demand due to its various uses in DeFi
The supply of CAKE is limited by regular token burns
PancakeSwap offers cheaper and faster swaps than Ethereum competitors
Cons
PancakeSwap faces competition from a growing number of decentralised exchanges
Some popular tokens are only listed on Ethereum-based platforms
You will have to decide this for yourself based on what you know about the project and the crypto market in general. The demand for CAKE is an important factor in determining its price and this is driven by the benefits of staking it and its other various utilities on the PancakeSwap platform.
The supply of CAKE is currently inflationary, which could put downward pressure on its price. However, CAKE from a number of sources, such as lottery tickets and PancakeSwap’s NFT Market, is burned, which means that enough activity on the platform could lead to CAKE becoming deflationary.
Ultimately then, the price of CAKE will be heavily influenced by the success of PancakeSwap. The fees charged on the DEX are much lower than those on the Ethereum-based alternatives, and additions such as the NFT Market have proved popular. Therefore, if PancakeSwap continues to innovate and provide new offerings for its users, the price of CAKE could react positively.
Decentralised exchanges (DEXs) use automated smart contracts that operate over a blockchain. DEXs use liquidity pools of cryptocurrency to execute trades without the need for a centralised exchange or an order book.
You’ll need to download a Web3 wallet like MetaMask or TrustWallet. From there, navigate to the PancakeSwap website and click ‘Connect Wallet’ in the top right corner.
No. The supply of $CAKE is unlimited. Regular burning events are used to maintain a steady supply of circulating tokens. This makes the token deflationary.
From the PancakeSwap website: “PancakeSwap's vault has anti-flashloan protection. PancakeSwap’s CAKE token isn’t vulnerable to flash loan attacks. Unlike vulnerable tokens, CAKE token minting is predefined, and can’t be adjusted in a single transaction.”
Staking and yield farming are two different processes that can generate rewards. In the case of PancakeSwap, staking refers to “locking up” CAKE for a period of time in return for rewards. Yield farming involves providing liquidity on PancakeSwap in order to receive ‘LP’ tokens, and then staking these tokens for further rewards.