Decentralized PancakeSwap Exchange: overview of tools
User anonymity is possible only on decentralized exchanges, which is PancaceSwap. Created with the support of Binance, the platform has been operating since 2020 and quickly took a leading position in the segment of decentralized exchanges.
How PancakeSwap works
Main advantage of the first types of cryptocurrencies was decentralization and the associated anonymity of transactions. Now, for operations with fiat, for example, payment of crypts from a plastic card, verification (proof of identity) is required. This is a mandatory requirement for centralized exchanges.
PancaceSwap does not require not only verification, but also mandatory registration. She works in the Finance smart contract network. The exchange’s website provides an interface for the user to communicate directly with this network. Transactions are practically not controlled by anyone from the outside, developers can only update contracts, but not affect the blockchain network.
Among decentralized exchanges, there are analogues of PancaceSwap, for example, Uniswap, but they usually work in ethereum networks, where transaction fees are much higher.
Where to start and how to trade
Work with the platform, you must:
- Install a cryptocurrency wallet linked to the exchange’s website. For example, Meta Mask.
- Add the Finance SmartChain blockchain to your wallet. To do this, select the Network item in the wallet settings, and then click the “Add network” button. A form will appear in which you need to enter Binance Smart Chain data.
- Buy a small amount of native BNB toxins from the Binance exchange and exchange them for BSC. The easiest way is to buy BNB directly on Binance, but it should be borne in mind that the verification process is mandatory there. Thus, the anonymity of the user will not be complete.
- Go to the pancakeswap exchange website.finance and link MetaMask (or another wallet) to it.
After linking the wallet to the exchange, you can go to the “Transactions” section and select the desired pair of cryptocurrencies in the “Exchange” subsection. This way you can earn money by changing the course of scripts.
How to make money on PancaceSwap
The platform, as an ecosystem with a wide range of operations, provides the following tools:
- Farming. Translated as “farming”. On crypto exchanges, pharming is understood as charging tokens for placing coins (cryptocurrency pairs) in the liquidity pool. Coins are frozen in the pool (i.e. the owner cannot use them while the coins remain in the pool). The longer the freezing period, the greater the owner’s income.
- Stacking. The exchange has its own Cake token. It can also be frozen (steaked), receiving a reward for it.
With the help of Cake tokens, you can place bets by receiving Syrop management tokens. Using the latter, you can vote for various projects, as well as pay for lottery tickets on the exchange.
- Swaps and liquidity pools. Contracts for blocking cryptocurrency assets on decentralized exchanges. Users who have frozen assets in the pool receive a reward, and the exchange has a stock of coins for conducting exchange transactions (swaps). Thus, the user, trading on the exchange, actually receives coins from the liquidity pool.
- NFT. On the site in question, users can sell and buy non-interchangeable tokens (NFT). Often NFTs are author’s works of art, in particular, avatars of game characters.
- IFO. Investing in the Initial Form Offering is suitable for crypto investors. If the project turns out to be successful, small amounts can be increased many times in this way.
- Lottery on PancakeSwap. The principle is classic: the user buys a ticket with a six-digit number, if this number coincides with a randomly generated one on the exchange, then the ticket holder receives a prize that can be quite large.
Decentralized PancaceSwap exchange is suitable for users who want to preserve the anonymity of their cryptocurrency transactions. The platform is developing rapidly and provides a wide range of tools.
Published: 24 October, 2022