PancakeSwap: Everything you need to know

We have been around cryptocurrencies for quite some time now and ever since the industry was first introduced, it has managed to mark its presence in the global marketplace and has had a surge in its overall growth and popularity recently. Not to mention the fact that the industry has been more than successful in luring in potential investors from all across the globe, helping it reach newer heights!

Having said that, I believe most of you are already familiar with the basics of the industry but, if for some reason that is still not the case, let me help you with that first.

Cryptocurrency is nothing but a blockchain-based platform that is decentralized to its very core. As mentioned, the industry uses blockchain technology to operate, which also plays a major role in eliminating the risk of double-spending and counterfeiting entirely. Also, being decentralized, the industry is more than capable of stepping outside the overall control and jurisdiction of central authorities and can work freely without any unnecessary government interference as well.

This virtual asset of yours can also be used for a variety of purposes just like in the case of physical money including the purchase and sale of goods and services as well as for the purpose of trade and exchange over cryptocurrency exchanges available online.

Since the industry has managed to become such a huge success over the past couple of years, it is worth mentioning that, unlike when the industry was first introduced, there are pools of cryptocurrencies today for you to choose from, with newer ones coming in with each passing day and tons of new investors joining in every hour.

Speaking of a lot of currencies available today in the marketplace, some of the most popular ones for you to choose from includes, Bitcoin, Ethereum, Binance Coin, Cardano, Dogecoin, Baby Doge as well as EverGrow Coin to name just a few of course.

In addition to this, though some of you might be wondering how exactly did the industry reach where it is today. If so, allow me a chance to explain. Some of the major contributing factors for this huge success of the industry include its portability, convenience it offers, ease of use, intuitive nature, volatility along with high-profit margins.

Now, being volatile, you should probably be aware of the fact that, the price fluctuations in the crypto marketplace are almost instant, thus leaving no time to predict and plan accordingly. Therefore, whenever dealing in virtual currencies, keep in mind that, if the industry is providing you with a platform to earn huge profits and make quick money, if not done right, you could also end up having significantly huge losses as well.

Not just that, as per the chatter amongst some of the leading experts on the field, it has come to our notice that, crypto is rapidly progressing towards completely revolutionizing the global payment system and from where I stand, it looks like it has already started to do so as many merchants and businesses have started accepting crypto as an official mode of payment from their customers.

Now that you have a brief backstory about the crypto world, you will be able to have a much better understanding of what we have with us today, PancakeSwap. To know more, I suggest you read further!

Everything to know about PancakeSwap (CAKE)

PancakeSwap or as commonly referred to as CAKE is nothing but an automated market maker (AMM) as well as an application for decentralized finance (DeFi) which is said to allow users to exchange tokens along with providing them liquidity through farming and earning a certain fee in return.

Before moving on any further, it is worth noting that, PancakeSwap is by far the most popular decentralized exchange (DEX) on the Binance Smart Chain and was launched back in September 2020, by anonymous developers with an apparent passion for pancakes it seems!

As mentioned, PancakeSwap has managed to become a phenomenon of sorts in the blockchain space recently, all thanks to its wide-ranging feature set, massive liquidity as well as a sizeable user base.

Not just that, the platform is designed to allow users on the platform to securely trade Binance Coin (BNB) along with a massive variety of BEP-20 tokens without even having to rely on centralized services or losing any control over their private keys for that matter.

Being a decentralized exchange, each and every trade on PancakeSwap is automatically executed through smart contracts, thus completely eliminating counterparty risks. Also, you should probably be aware of the fact that the platform is also completely open-source, since the smart contract code, as well as the PancakeSwap website, is open to public scrutiny.

In addition to this, since the platform was first introduced, it has been able to see a dramatic growth not only in the liquidity of supported assets as well as the number of users but is in the variety of features that it is known to offer.

Apart from this, PancakeSwap can also be considered as an entire ecosystem of tools for decentralized finance (DeFi), all of which are built around the native utility token of the platform, CAKE.

Speaking of CAKE, this particular token of the platform can very well be used for a variety of purposes within the growing landscape. Not just that, some of the major functions of the token include staking, yield farming, participating in the PancakeSwap lottery as well as making and voting on governance proposals with the help of the platform’s community governance portal of course.

As mentioned, PancakeSwap is a decentralized exchange for swapping BEP20 tokens on the Binance Smart Chain. Also, the platform makes use of an automated maker model where users will be trading against a liquidity pool.

Not just that, these pools are filled by users who are said to deposit their funds into the said pool and receive liquidity provider (LP) tokens in return. On a similar note, these tokens can also be used later in order to reclaim their share of the pool along with a portion of the trading fees.

Furthermore, these liquidity provider tokens that we are talking about are also known as FLIP. PancakeSwap is also known to allow users on the platform to farm additional tokens including SYRUP as well as CAKE.

Lastly, let us talk about some of the major reasons for PancakeSwap’s such a huge success and it being known as a game-changing investment includes Lower fees as compared to its main rival, Uniswap based on the Ethereum blockchain, many more staking options as and when compared to others in the marketplace as well as greater liquidity too.

Now that we have talked much about PancakeSwap, some of you must be wondering, whether or not it is a good idea to invest in the platform? If that’s the case, then let’s find out, shall we?

Investing in PancakeSwap (CAKE)

As of today, the price of PancakeSwap is about 10.77 US dollars with a twenty-four-hour trading volume of 144,218,493 dollars. Not just that, in just the past twenty-four hours, the value of PancakeSwap has gone up by 4.45 percent, and with the current market cap of 2,839,051,536 US dollars, CAKE is currently placed at #49 position as per the CoinMarketCap rankings.

Also, it is worth mentioning that, the current circulating supply of PancakeSwap is 263,572,130 CAKE coins, but unfortunately the maximum lifetime supply of the token is not yet available. In just the past week alone, the price of the platform has fallen by 16.89 percent.

Reading so far, you must have gotten a fair understanding of the platform and by now, you should be able to figure out on your own whether or not investing in PancakeSwap is the right thing for you to do. Seeing what it has to offer when combined with its performance in the recent past as well as its plans for the near future, I certainly believe that PancakeSwap can prove to be a profitable investment in the near future, which is likely to provide you with higher returns and it is a possibility that your current investment may increase in value. But again, nothing can be said or sure!

If still not convinced, see it this way that, if say you buy PancakeSwap worth a hundred dollars today, you will receive nearly 9.805 CAKE. According to the analysis done by experts on the field, after five years of your investment, the return is expected to be about +683.85 percent and thus, your current hundred-dollar investment will be nearly 783.85 US dollars in 2026.

As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is very important for you to understand the fact that just like any other currency in the crypto marketplace, PancakeSwap does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.

If you are wondering, where can you buy PancakeSwap? Let me help you with that. Currently, PancakeSwap is available on all major crypto exchanges but, some of the popular exchanges that have CAKE listed on them include Binance, Bybit, kuCoin, CoinTiger as well as HitBTC to name a few.  

In conclusion, what are your thoughts on PancakeSwap? Do let us know in the comments area below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: LUKSO: Everything you need to know