How and Where to Buy PancakeSwap (CAKE)
A group of anonymous developers launched PancakeSwap in September 2020, a non-custodial DEX (decentralized exchange) on the BSC (Binance Smart Chain).
In 2021, the front end of the PancakeSwap website was hacked, with some of the DeFi projects exposed to hijackers, although the smart contracts were not at risk. The PancakeSwap website warns of phishing risks and advises checking you are logging in to the official PancakeSwap site.
PancakeSwap has over $5.1 billion staked $CAKE tokens, with over 3 million users. Still, with anonymous founders and the security risks, you might be cautious about using the PanckeSwap website. This post features a way to buy $CAKE tokens without risking your money on a site with potential vulnerabilities.
What Is PancakeSwap (CAKE)?
PancakeSwap is an AMM (automated money maker). On this decentralized financial platform, $CAKE token holders exchange their coins to provide liquidity to PancakeSwap via yield farming and, in return, receive rewards.
The PancakeSwap exchange swaps BEP20 tokens on BSC (Binance Smart Chain). As an AMM, its users trade against the liquidity pool, which continues to fill from user deposits who receive LP (liquidity pool) tokens known as FLIP. As a reward for adding to the liquidity pool, users receive $CAKE tokens.
$CAKE is the native token of PancakeSwap that powers the ecosystem. $CAKE holders have governance in voting on PancakeSwaps’s proposals for the ecosystem, and you can take part in IFO token sales when available.
You can stake in a syrup pool. Even staking one $CAKE token in a PancakeSwap syrup pool earns you token rewards.
Later, users can reclaim a share of the liquidity pool and receive a portion of the transaction fees.
What Makes PancakeSwap Unique?
The automated market maker (AMM) model is not essentially unique to PancakeSwap. If you become a liquidity provider, you can earn income and help the platform stay liquid. The $CAKE token is an incentive for users to provide liquidity to the PancakeSwap pools.
Once you stake your tokens, you lock them into the liquidity pool. It’s a “farming” process, with $CAKE tokens as a reward. You can unstake your $CAKE tokens with zero holding time, but that isn’t without risks.
You can use your $CAKE tokens to enter the PancakeSwap lottery. The entry fee is 10 $CAKE tokens. Numbers are generated randomly between 1-and 14, and if you match four numbers, you win 50% of the lottery pool, however much that is at the time. You can also win NFTs (non-fungible tokens), which you can trade for $CAKE tokens or store in a secure wallet.
How and Where to Buy PancakeSwap (CAKE)?
If you want to buy PancakeSwap (CAKE) tokens, it’s probably best to choose a reliable cryptocurrency exchange rather than registering with the PancakeSwap website.
Several cryptocurrency exchanges list $CAKE tokens. Binance, for instance, is equally suitable for experienced or new crypto investors. The platform has a vast range of trading markets and coins if you wish to explore the crypto space beyond buying $CAKE tokens: –
1. Go to the Binance website, and in the top right corner of the home page, click on “register”
2. Complete all the required details and upload your KYC documents
3. You can deposit with supported cryptocurrency or use your Visa or Mastercard. Wire transfer is another option for deposits
4. There are several trading pairs available for PancakeSwap (CAKE): CAKE/USDT, CAKE/BUSD, CAKE/BTC, CAKE/BNB & CAKE/GPB
5. Transfer your $CAKE tokens to a secure crypto wallet. Use the Binance mobile Trust Wallet if you prefer, which you can download to iOS or Android devices
Important note: Never leave your cryptocurrency tokens on an open exchange.
How do I Sell PancakeSwap (CAKE)?
1. You can sell your $CAKE tokens directly from the Binance Trust Wallet or the exchange
2. Click on the $trade” or “convert” tab
3. Exchange or sell the $CAKE tokens for a popular stablecoin like $USDT
4. Transfer the $USDT to an off-ramp platform that supports fiat currencies (Coinbase is a good place to start)
5. When the $USDT is in your account, simply sell it or convert it to the fiat currency of your choice and request a bank transfer
Should I Buy PancakeSwap (CAKE)?
Whether or not to buy PancakeSwap (CAKE) is your choice as we aren’t financial advisors. It’s best to do additional research on the project to see if it is the cryptocurrency token you want to buy. As there are over 18,500 listed coins, you might prefer other options.
How do I invest in PancakeSwap (CAKE)? Safely?
Whatever financial instrument you choose for investment, there are always risks. The cryptocurrency market is volatile, and there are no guarantees that you’ll make a profit from your $CAKE investment. Never invest more than you can comfortably afford to lose, and try not to panic as the crypto market has a downswing at times.
$CAKE pairs listed on KuCoin and Gate.io: –