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ShareWhat is PancakeSwap?
In the expansive realm of cryptocurrency, there exist numerous avenues through which you can acquire digital assets.
One method involves utilizing peer-to-peer (P2P) services, where you directly purchase your preferred cryptocurrency from another individual. This could encompass Bitcoin, Ethereum, Litecoin, or any other digital asset, with payment typically made in various national currencies such as US Dollar, Georgian Lari, Euro, and more, as per the agreed terms.
Centralized cryptocurrency exchanges also play a significant role in the market. These platforms store your crypto assets and facilitate transactions between users in a digital environment. Traders, whether buying or selling crypto, connect with one another, and transactions are conducted based on mutually agreed terms. For instance, if one user wishes to buy Bitcoin and another intends to sell it, they negotiate the price on the exchange, and the buyer acquires the agreed-upon amount of Bitcoins in exchange for fiat currency, akin to purchasing a product in a store with national currency (e.g., GEL).
Moreover, you have the option to purchase crypto directly from centralized exchanges, akin to acquiring any currency from a bank, such as the US Dollar.
In addition to these methods, decentralized exchanges offer another avenue for purchasing crypto. Here, users interact directly with one another, and the cryptocurrency-fiat exchange occurs directly into their crypto wallets, bypassing the intermediary exchange.
PancakeSwap stands out as a prominent decentralized crypto exchange, facilitating the buying and selling of various cryptocurrencies, including but not limited to Bitcoin, Ethereum, Litecoin, BNB, and Ripple.
It's worth noting that PancakeSwap supports multiple networks, including BNB Chain, Ethereum, Polygon, Arbitrum, Linea, Bayes, Aptos, opBNB, and zkSync Era.
Beyond its core exchange functionality, PancakeSwap provides a range of other crypto-related services, which we'll delve into further in the upcoming sections of this blog.
PancakeSwap (CAKE) as a Cryptocurrency
It's noteworthy that PancakeSwap, the crypto platform we've been discussing, boasts its own native cryptocurrency, which shares the same name. Abbreviated as CAKE on various exchanges, this cryptocurrency operates within the PancakeSwap ecosystem.
Built on the BNB network, CAKE enables users to engage in trading activities on decentralized exchanges. However, its utility extends beyond trading; the cryptocurrency serves various other purposes within the platform.
Presently, CAKE can be acquired at approximately $3.2, with a total market capitalization nearing $760 million, as per data from CoinMarketCap.
While CAKE is seldom utilized for investment purposes, its primary function revolves around facilitating the exchange and consumption of diverse tokens within decentralized exchange environments.
How Can I Buy Cryptocurrency on PancakeSwap?
Signing up for an account isn't necessary to conduct transactions such as purchasing, cashing out, and other operations on PancakeSwap. However, connecting your crypto wallet to the platform is essential.
If you're unfamiliar with crypto wallets and the process of connecting them, we've got you covered. Check out our blog:
To link your crypto wallet to the PancakeSwap platform, simply navigate to the upper right corner of the interface and click on "Connect Wallet."
You will find well-known crypto wallets for use on the platform, such as Metamask, Binance Web3 Wallet, Binance Wallet, Coinbase Wallet, Trust Wallet, WalletConnect, Opera Wallet and Brave Wallet.
Upon selecting your preferred crypto wallet, the platform will prompt you to scan the corresponding QR code. Once scanned, PancakeSwap seamlessly establishes a connection with your personal digital wallet.
In our example, we opted for Metamask, but you have the flexibility to choose and accept any crypto wallet of your preference.
Upon scanning your crypto wallet, the corresponding application on your phone, browser, or computer device will request confirmation to ensure that you are indeed initiating the operation:
Upon confirmation, you gain full access to the PancakeSwap platform, enabling you to engage in various activities such as buying and selling crypto, as well as exchanging assets.
To purchase your desired cryptocurrency using fiat currency, locate the Trade section on the main page of the platform, and proceed to click on "Buy Crypto."
It's important to note that on PancakeSwap, you have the option to purchase cryptocurrency using fiat currencies. The platform supports a wide array of national currencies, including but not limited to:
- United States Dollar (USD)
- Euro (EUR)
- British Pound Sterling (GBP)
- Hong Kong Dollar (HKD)
- Canadian Dollar (CAD)
- Australian Dollar (AUD)
- Brazilian Real (BRL)
- Japanese Yen (JPY)
- South Korean Won (KRW)
- Vietnamese Dong (VND)
In essence, PancakeSwap accommodates virtually all major fiat currencies from around the world.
Here's how it works: You select your desired fiat currency, followed by the cryptocurrency you wish to purchase. Specify the quantity you'd like to acquire and click on "Buy." With this simple process, the fiat currency in your crypto wallet gets converted into the corresponding cryptocurrency on the platform, and the digital asset is then returned to your wallet for safekeeping.
It's essential to bear in mind that there are limitations on the cryptocurrencies that can be purchased using fiat currency on the PancakeSwap platform. Specifically, you can only buy a restricted selection of crypto assets, which includes:
- Ethereum (ETH)
- USD Coin (USDC)
- Tether (USDT)
- Dai (DAI)
- Wrapped BTC (WBTC)
If you want to Withrdraw Cryptocurrency?
If you're looking to convert the cryptocurrency you acquired on PancakeSwap into fiat currency, Cryptal offers a solution.
Here's how it works: From your digital wallet, containing the crypto assets obtained through PancakeSwap, you transfer them to your Cryptal wallet. Ensure that Cryptal supports the specific cryptocurrency you're transferring; the platform typically accommodates numerous popular assets such as Bitcoin, Ethereum, Litecoin, and more.
Each cryptocurrency on Cryptal possesses its unique address, generated personally by you upon opening an account on the platform. Whether you're receiving funds from another platform or sending out digital assets, it's imperative to utilize these addresses for seamless transactions.
Once your digital assets have been transferred to Cryptal, the next step is to sell them. Cryptal facilitates this process through Convert, allowing you to instantly exchange your crypto for Georgian Lari.
Through the conversion feature, you can swiftly obtain Georgian Lari in exchange for your cryptocurrency holdings, enabling seamless transactions and access to fiat currency.
With the assistance of Georgia and TBC Bank, you can withdraw fiat currency to your personal card with a minimal commission of 1.2₾. Alternatively, you have the option to cash out completely via bank transfer without incurring any interest fees.
Why should you use Cryptal for Withdrawal?
- Georgian Lari (₾) is supported
Cryptal fully supports the national currency of Georgia, the Georgian Lari, allowing you to withdraw funds to your Georgian account seamlessly and without obstacles. Additionally, if you prefer to cash out in US dollars or euros, this is equally feasible as Cryptal accommodates both fiat currencies.
- Instant Withdrawal
By leveraging Cryptal Convert, you can swiftly sell your cryptocurrency holdings without any waiting period. This instant conversion process enables you to receive fiat currency directly into your account within a matter of seconds.
- Low Fees
Maximizing the returns on your crypto investment while minimizing fees during cash-out is crucial, and Cryptal offers some of the lowest fees in the market.
When withdrawing Georgian Lari to Georgia and TBC Bank cards, you'll incur a maximum commission of just 1.2₾.
However, if you opt for a bank transfer, whether it's in Georgian Lari, US Dollars, or Euros, the withdrawal process is entirely fee-free.
Swap One Crypto for Another
In addition to purchasing crypto assets, PancakeSwap offers a feature called "Swap." Suppose you've acquired Ethereum on Cryptal but seek to exchange it for a cryptocurrency not available on the platform.
Utilizing a crypto wallet, you transfer your Ethereum to PancakeSwap, where a broader array of cryptocurrencies awaits. Decentralized crypto exchanges like PancakeSwap typically host a wider variety of digital assets, as they allow trading without the need for verification or authorization.
In essence, PancakeSwap's Swap feature facilitates direct cryptocurrency exchanges, enabling you to seamlessly swap one digital asset for another.
To use Swap:
Once you reach the field for exchanging desired cryptocurrencies on PancakeSwap, you simply specify the quantity you wish to exchange, and you're all set. However, during the Swap process, you'll encounter an intriguing feature known as Slippage Tolerance.
So, what does this function do? Slippage Tolerance allows you to specify certain percentage thresholds. If the price of the crypto you're exchanging has changed between the initiation and completion of the swap, this feature comes into play. It enables you to indicate how much percentage change you're willing to accept during the swap process. If the price change falls within your specified tolerance range, the swap operation proceeds as planned. However, if the price change exceeds your specified tolerance, the swap operation is halted to prevent any unfavorable outcomes.
For instance, let's consider a scenario where you're exchanging 1 ETH for 1 Bitcoin. At the time of initiation, the price of Bitcoin is $60,000. However, by the time the swap is completed, the price of Bitcoin has risen to $61,000, indicating a price increase of approximately 1.6%. If you've set a Slippage Tolerance of 2%, the exchange will proceed smoothly. But if your Slippage Tolerance is set to 1%, the swap operation will be canceled to protect against unexpected price fluctuations.