What Is PancakeSwap And How It Works In Cryptocurrencies!

What Is PancakeSwap And How It Works In Cryptocurrencies!

From the title above, you may have guessed that the discussion on this occasion cannot be separated from cryptocurrencies. Yups, that's right because we will provide an explanation of what pancakeswap is and how it works that maybe not many people know. Pancakeswap is the term used to describe the services built by the Binance Smart Chain or BSC.

Pancakeswap is an exchange method that has several advantages, including having affordable transaction fees, not requiring exchange through intermediaries, being supported by various digital wallets, and having a fairly high adoption rate. However, behind these advantages, pancake swaps also have drawbacks, namely the possibility of a lack of liquidity.

To further discuss what pancakeswap is and how it works as an alternative exchange for cryptocurrencies, here we will provide some information and explanations that we have collected from various sources. We hope that you don't miss this article because it can add to your insight in the investment and trading fields so that you can get a profit.

Understanding What Is Pancakeswap Crypto Currency

The term pancakeswap is quite popular lately, especially in the world of cryptocurrency business, pancakeswap is a term used for a decentralized exchange that allows you as a user to be able to trade cryptocurrencies and owned tokens without having to use a centralized intermediary.

You need to know that this service was created by BSC or Binance Smart Chain which is a blockchain-based platform that can help users to exchange Binance crypto through smart contracts that have been designed automatically. For those of you who are longtime Binance players, you may already understand that it is a minus to using a centralized exchange service.

There are exceptions, however, where exchanges cannot control or operate pancakeswaps if they are built by anonymous developers. This service can be considered as an automatic market maker that makes it easy for users to exchange crypto on the BSC network. So you can trade a pool of liquidity to trade crypto with the help of Yield Farming DeFi as a liquidity provider.

Even though it is relatively new because it was just released in September 2020, Yield Farming DeFi's liquidity taking has already reached 1 billion US dollars. You could also say that pancakeswap has become one of the largest DEXs on the Binance Smart Chain.

How Pancakeswap Works and Uses

After learning about what pancakeswap is, then we will discuss how it works and its use where the exchange of tokens in the pancakeswap DEX can occur through a liquidity pool with paired tokens. So that the liquidity provider will interact with the pool to receive tokens and represent their share in the pool.

Well, later this token will become a key that can remove their share from the pool so that you can exchange only one type of token with another token without any intermediary. To help you better understand how pancakeswap works and uses, here is a tutorial that you can follow regarding exchanging cryptocurrencies through pancakeswap:
  1. First you have to install the metamask extension first on the chrome application, if it is installed then choose the preparation button option
  2. Then don't forget to create a new wallet by selecting the new wallet menu, or if you already have a digital wallet then choose the import wallet menu
  3. The next step is to go to the metamask page then find the etherium mainnet network to be the default network for digital wallets
  4. If you want to find out then select the ethereum menu and click custom RPC
  5. Then select the new network menu then don't forget to complete the data in the existing column, click the save button when you're finished
  6. At this stage, you already have a BSC wallet
  7. Then go to the official pancake site which you can access by clicking the link HERE: https://pancakeswap.finance/
  8. In addition, select the Connect Wallet menu which is in the upper right corner then click Metamask and then set the permissions
  9. The next step you have to go to the main page or homepage then select trade then click exchange
  10. Then here you will see the type of token that can be used for transactions, on the form menu select the BNB menu
  11. Then select the token you want to exchange, then on the To menu, please select Safemoon and select the desired token
  12. Don't forget to also specify the nominal amount of tokens you want to exchange and then select swap to complete the transaction
  13. Done
The final word
We come to the conclusion of the discussion of what pancake swap is in the world of crypto currency exchange. Hopefully the information in this article can add to your insight, don't forget to share if this is useful for others and keep updating information from our next site, okay!