Did you hear about PancakeSwap and the features of Farms, Pools & Co. ?
If you have heard about the DeFi segment of cryptocurrencies, you probably came across how to use pancakeswap function sooner or later. Pankaceswap is a decentralized exchange (DEX) where BEP-20 tokens can be exchanged. In particular, passive income streams such as #staking and yield farming opportunities made the platform famous. You can exchange tokens and coins in the process, farm hence bring liquidity to the ecosystem and earn passive rewards in return. The whole process takes place on the Binance Smart Chain. We’ll show you exactly how to use pancakeswap and the platform and how to avoid making mistakes.
How to use PancakeSwap main features?
This website offers three main functions, which we will explain one by one. we will focus on the most famous three features: how to use pancakeswap exchange, how to use pancakeswap liquidity pools and how to use pancakeswap farms, although you can also find other options there like a lottery and an NFT marketplace. Before we explain how to use pancakeswap we will explain the first steps.
Basics: connect your wallet
First open the website https://pancakeswap.finance in a browser, wallet should be connected with the website. Pay attention at the correct spelling, because scams are very popular in the crypto world. There are many different wallets available, but Metamask (which can be easily integrated into a browser) or Trust Wallet are very well established. You can also choose one where you also get a credit card included to use the crypto profits, such as Crypto.com. You can read more about Crypto.com features here. If you need any further help with choosing the right wallet just contact us with all your questions in our Investment4Insider Telegram Group.
Choose “Pools” in the menu on the left and click on “Unlock Wallet” at one of the pools. The wallet is connected, so you can interact with the swap function. Now we continue how to use PancakeSwap features!
How to use PancakeSwap exchange to convert a coin?
The first step how to use pancakeswap exchange is selecting “Trade” and then „Exchange” in the menu on the left. In the new menu you can exchange the coins in your wallet onto any other. The default is “BNB”, which is the Binance Smart Chain Coin. Click on the icon to change the selection. After that, how to use pancakeswap exchange is selecting the currency you want to receive, so you click on “Select a currency” in the lower window. You also need to set the appropriate amount you want to exchange and possibly the Slippage Tolerance.
Hit the “Swap” button and the transfer on your wallet happens automatically. After one moment (the network takes a few seconds) pancakeswap will exchange your token to another, if you follow the guide of how to use pancakeswap.
We will show you how to use pancakeswap liquidity farms – the most complex function:
How to use PancakeSwap providing liquidity in a farm?
In a farm you provide pairs of coins if you ask yourself how to use pancakeswap farms feature. If you click on “Farms”, you will see an overview of those coin pairs. you first have to provide liquidity, Before you can use a farm. Continue with the following steps:
1. To provide coins for “CAKE-BNB” farm, we will show you how to use pancakeswap farm. For this you need two coins: CAKE and BNB. First swap your existing coins via the “Exchange” feature as described in the part of how to use pancakeswap.
2. Now we bundle CAKE and BNB, which are now in your wallet, into a liquidity pair.Click on “Liquidity” beneath “Trade” on the left side.
3. In the two opened windows select BNB in one window and CAKE in the other. Also enter the amount of coins. Note: The real value (in Euro) of the amount of money in both coins must be approximately identical.
4. Select “Approve [Coinname]“ and click on „Supply“ to verify both coins. After a short period, the CAKE-BNB bundle will be transferred onto your wallet.
In the last step go back to “Farms” in the menu. How to use pancakeswap farms right is select the CAKE-BNB farm and select “Enable”. Afterwards “Stake” to make your bundle available for the farm and maintain the right process how to use pancakeswap.
Just follow strictly the recommendations how to use pancakeswap, you can do this process with any other coin combination. After some time, this complicated matter will be much easier to handle.
How to use PancakeSwap Staking?
Be careful not to mix farming and providing liquidity in pools, these are different options how to use pancakeswap! As you know after this part of our article with staking you might get some returns. Its important to secure your profits in a wallet. First click on “Enable” in the pool to activate staking. Then click “Stake” to supply this pool. This transaction takes a few seconds. After that, its possible to withdraw your money or create more. These “auto” pools restock your profit several times a day, so you can earn more profits through a compound interest effect, if you know how to use pancakeswap.
How to use PancakeSwap Pools?
Click on “Pools” to get access to the pools and see how to use pancakeswap pools. There you can stake your received coins and get paid for it, if you know how to use pancakeswap pools. Currently (as of May 19, 2021), you will receive 192.01% profit per year when staking CAKE for example. You mostly have to stake CAKE, but many pools pay out in other currencies. Just pick a pool that seems attractive to you. If you have any questions about how to use pancakeswap or anything else feel free to ask us all your questions directly in our Investment4Insider Telegram group.
Do I get profitable rewards?
Although the APY (the average yield per year) fluctuates in some cases, the profits are realistic, in our experience it works. In a farm, you carry some risk due to the volatile loss. Pools, however, are quite risk-free. as always with crypto investing you’re often advised to never put more money into it than you can lose without problems and to inform yourself before investing about details. If you want to get more knowledge about the DeFi sector and how to find a strategy of investing projects, you can read about decentralized finance in our article here.
You should definitely read details about that in advance and also about how to use pancakeswap. Alternatively, you can ask us all your questions in our Investment4Insider Telegram group
Typical challenges
If you know how to use pancakeswap, it takes place on Binance smart chain but there can also be several challenge while the usage, as it might be complicated doing the process the first times.
If its not possible connecting MetaMask Wallet, it’s usually because Binance Smart Chain (BSC) network is not integrated. We can solve this problem how to use pancakeswap as follows:
1. click on the name of the network at the top and in the new menu click on “Special RPC”. 2. there you enter the data for BSC:
– Network Name: Binance Smart Chain – New RPC URL: https://bsc-dataseed.binance.org– Chain ID: 56
Done: your wallet is now compatible with the BSC and you can send any BEP20 tokens to this address. Never send any tokens from other networks to this address, because you will lose them. If any questions arise during the process, feel free to contact us in our Investment4Insider Telegram group.
Simply get the best out Swaps, Farms & Pools!
As how to use pancakeswap seems confusing at the first sight, hopefully now is more transparent and simple for you. Do you wish to get even more informations about how to use pancakeswap or any other features or keep up to date about innovations in the DeFi area, just visit us in our Investment4Insider Telegram group.
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