Pancakeswap (CAKE) Crypto Review 2024: Complete Guide

€ 1.8899

2.4486
Last updated 04:07:03 UTC
Market Cap
€ 444.21 Million
Fully Diluted Market Cap
€ 850.45 Million
Volume
€ 7.92 Million
Circulating Supply
235.05 Million CAKE

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Pancakeswap is a decentralized finance (DeFi) platform based on the Binance Smart Chain (BSC) blockchain, now known as BNB Chain. Launched in September 2020, it has since continued to evolve and gain popularity thanks to its advanced features and ease of use.

Discover here our complete review of Pancakeswap (CAKE). We present the specifics of this innovative project, as well as the reasons that make it an interesting option for investors. History, objectives, operation, purchase platforms, Pancakeswap staking… We tell you everything!

pancakeswap

What is Pancakeswap?

Pancakeswap is a decentralized finance (DeFi) platform based on the Binance Smart Chain (BSC) blockchain. It allows users to exchange tokens, earn rewards by providing liquidity, and participate in yield-farming pools.

PancakeSwap

Sign up now at this decentralized exchange, which supports tokens on the Binance Smart Chain.

Its native token, CAKE crypto, is at the heart of the platform’s operation and is used in particular for decentralized governance and reward allocation. One of the main advantages of Pancakeswap? The platform runs on the BNB Chain blockchain, whose transaction fees are much lower than those of Ethereum, the blockchain on which most other DeFi platforms are built. As a result, Pancakeswap is particularly attractive to small investors looking to reduce their transaction costs.

In parallel, Pancakeswap offers an intuitive user interface, which greatly facilitates access to its features for beginners. The platform also provides interesting investment opportunities through its yield farming pools and lottery pools, which allow you to earn CAKE and other token rewards.

The CAKE token, as a central element of the ecosystem, has interesting investment potential.

pancakeswap

The History of Pancakeswap

Here is an overview of the key dates and milestone events in Pancakeswap’s history

  • October 2020: introduction of the CAKE token, the platform’s native token. CAKE is used for decentralized governance, reward allocation, and participation in lottery pools.
  • November 2020: Pancakeswap launches the voting feature for decentralized governance. CAKE holders can participate in decisions regarding the evolution of the platform.
  • January 2021: The platform is growing rapidly and exceeds $500 million in total value-locked (TVL) assets. It also becomes one of the main alternatives to Uniswap which is based on Ethereum.
  • February 2021: Pancakeswap launches version 2 of its decentralized exchange with the goal of improving the user experience and optimizing transaction fees.  
  • March 2022: Integration of the PancakeSwap Mini Program into the Binance mobile application.
  • April 2023: Launch of Pancakeswap V3. A $135,000 airdrop is organized to celebrate the event.

Why Was Pancakeswap Designed?

Pancakeswap was designed to meet several specific needs in the field of decentralized finance (DeFi) and crypto exchanges. Its main objective was to offer an alternative to existing DeFi platforms, mainly based on the Ethereum blockchain, by leveraging the advantages offered by the BNB Chain blockchain.

Discover here the main reasons that motivated the creation of Pancakeswap:

  • Reducing transaction fees: one of the main disadvantages of Ethereum-based DeFi platforms is the high cost of transaction fees, partly due to network congestion. Pancakeswap, built on BSC, offers much lower transaction fees.  
  • Improving performance and scalability: BSC also allows Pancakeswap to offer superior performance and increased scalability compared to Ethereum-based platforms (faster transaction confirmation times, ability to handle more simultaneous users, etc.).
  • Accessibility and ease of use: Pancakeswap crypto was designed with an intuitive user interface that facilitates access to DeFi features for cryptocurrency beginners. The goal? Attract a wider audience and democratize access to decentralized finance.
  • Diversification of investment opportunities: Pancakeswap offers a range of features including yield farming, liquidity pools, lottery pools… A must to diversify your investments.

pancakeswap

How Does Pancakeswap Work?

Pancakeswap is a decentralized exchange (DEX) platform that runs on the Binance Smart Chain (BSC) and allows users to exchange BEP-20 tokens. Here are its main features:

  • Automated market maker (AMM) model: Pancakeswap uses an AMM model. Transactions are not made through a traditional order book; users directly exchange tokens using liquidity pools.  
  • Liquidity pools: Liquidity pools are created by liquidity providers who deposit token pairs into the pools. These pools allow decentralized token exchange, and liquidity providers receive transaction fees in return for their contribution.
  • Liquidity providers: If you want to become a liquidity provider, you can deposit token pairs into liquidity pools and receive interest for your contribution. By providing liquidity in this way, you allow other users to conduct transactions on the platform.  
  • Syrup Pools: PancakeSwap also offers syrup pools. These work similarly to yield farms, although they only require one type of LP token.  
  • Token exchange: you can exchange BEP-20 tokens using Pancakeswap. Connect to the platform with a crypto wallet compatible with the BSC BEP-20 network. Once connected, you can make transactions by exchanging tokens with each other thanks to the liquidity pools.
  • Yield farming and reward pools: Pancakeswap also offers yield farming features and reward pools if you want to earn passive income. By depositing tokens into these pools, you have the opportunity to earn interest and CAKE token rewards.  

Intuitive user interface: Pancakeswap was designed with a simple and intuitive user interface that facilitates access to DeFi features for beginners.

Pancakeswap crypto review: Pancakeswap works like a decentralized exchange platform that allows you to exchange BEP-20 tokens on the BNB Chain. Thanks to its automated market maker model, liquidity pools, and yield farming features, the platform offers a fast, affordable, and easy-to-use cryptocurrency trading experience.

Where to Buy Pancakeswap?

You want to buy Pancakeswap and you wonder where to do it and what are the best options available? Discover our selection of the three best platforms to buy CAKE, Pancakeswap’s native crypto. Let’s compare their advantages and disadvantages together to allow you to make an informed decision about the platform that best suits your needs.

Binance

Binance is one of the largest cryptocurrency exchange platforms in the world and offers a huge choice in terms of crypto trading pairs.

Binance

  • Low fees
  • One of the largest crypto exchanges
  • Fee discount for using native BNB

Advantages :

  • Relatively low transaction fees  
  • Large number of trading pairs for CAKE  
  • High liquidity (which facilitates the buying and selling of tokens)

Disadvantages :

  • Long identity verification process

Kucoin

KuCoin is another crypto exchange platform where you can buy Pancakeswap. Based in the Seychelles, it is also one of the oldest of its kind.

Advantages :

  • Intuitive and enjoyable platform to use  
  • Large number of cryptocurrencies, including CAKE  
  • Competitive transaction fees  
  • Referral program that allows you to earn passive income by inviting others to join KuCoin.

KuCoin

  • Wide range of cryptos
  • Advanced Trading Options
  • Competitive fees

Disadvantages:

  • KuCoin does not offer as many trading pairs for CAKE as Binance

Crypto.com

Crypto.com is a crypto exchange platform and mobile app that allows you to quickly and easily buy PancakeSwap.

Crypto.com

  • Free crypto card
  • Reputable exchange
  • Competitive fees

Advantages :

  • Easy-to-use mobile app
  • Buying and selling CAKE in a few clicks
  • Crypto debit cards to spend cryptocurrencies in the real world

Disadvantages

  • Higher transaction fees than Binance and KuCoin, especially for small investors.
  •  Basic mobile app

Of all these platforms, our preference goes to Binance. It is indeed one of the largest cryptocurrency exchange platforms in the world, and it offers a wide range of tokens, including NFTs (non-fungible tokens), which allows you to easily access this growing market and diversify your portfolio.

What we like about Binance:

  • High liquidity 
  • Interesting transaction fees
  • Simple and efficient trading process
  • Responsive customer support to answer your questions and quickly resolve issues

How to buy Pancakeswap on Binance:

  1. Registration: Go to Binance website and sign up by creating a user account. You will need to provide an email address and choose a password.
  2. Verification: Complete the verification process by providing the required documents (ID and proof of address).
  3. Fund deposit: Fund your Binance account with crypto or fiat currencies.
  4. Search for Pancakeswap (CAKE): In the trading interface, search for the “CAKE” symbol using the search bar.
  5. Select the trading pair: Choose the trading pair corresponding to Pancakeswap, e.g. CAKE/USDT or CAKE/BNB.
  6. Order type: Select the desired order type: market order (immediate purchase) or limit order (purchase at a specific price)?
  7. Quantity: Indicate the Pancakeswap value (CAKE) you wish to purchase.
  8. Execution: Confirm the details of your transaction and execute the purchase order.
  9. Balance check: Once the purchase is made, check your CAKE balance in your Binance wallet.
pancakeswap

Pancakeswap Fear and Greed Index

Updated: 19 July 2024

Now: 51 Greed

Now: 51 Greed

Yesterday: 50 Greed

Last Week: 54 Greed

Is Buying Pancakeswap a Good Investment?

Before making a decision, weigh the pros and cons and look at the forecasts for the evolution of the CAKE price. Over the past few years, Pancakeswap has seen significant growth, thanks in particular to its dominant position on the Binance Smart Chain. This decentralized exchange platform has managed to attract a large number of users, mainly due to lower transaction fees and faster confirmation times compared to Ethereum.

Advantages and Disadvantages of Investing in Pancakeswap

  • Sustained platform growth, with more and more projects and users joining the ecosystem.
  • Competitive transaction fees and fast confirmation times.
  • A decentralized governance model that allows CAKE holders to participate in decisions regarding the evolution of the platform.
  • Interesting yield opportunities through liquidity pools and CAKE staking.
  • Increasing competition in the DEX market, with new platforms emerging regularly.
  • Fluctuations in cryptocurrency prices, which can lead to significant volatility in the Pancakeswap euro price and other pairs.
  • Potential security issues associated with decentralized platforms and cryptocurrency wallets.

Our Final Opinion on Pancakeswap

Our final opinion on Pancakeswap is generally positive. A serious and well-established project in the crypto world, Pancakeswap has proven that it is here to stay. The decentralized exchange platform (DEX) has attracted a multitude of renowned tokens, including BTC, which helps strengthen its credibility and reputation.

One of Pancakeswap’s main advantages is its compatibility with NFTs, a rapidly growing market that is expected to see significant growth in the coming years. NFTs promote the concept of scarcity and customization of digital goods, and their association with Pancakeswap offers good profit potential.

The returns offered by Pancakeswap are also impressive, with rates that can reach 200% expressed in CAKE. The platform uses a technology based on the Initial Farm Offering (IFO) rather than traditional Initial Coin Offerings (ICO) for an innovative approach to rewarding users.

To ensure the smooth running of the Pancakeswap blockchain, Pancakeswap allocates 60% of the rewards to farming and 40% to liquidity pools. The IFO is another way to earn tokens through yield farming, with part of the CAKE from the IFO burned to ensure better distribution of rewards.

In short, a solid project that deserves your attention!

PancakeSwap

Sign up now at this decentralized exchange, which supports tokens on the Binance Smart Chain.

FAQ - Frequently Asked Questions about Pancakeswap Crypto

Pancakeswap works with an automated market maker (AMM) model, where users can exchange tokens using liquidity pools created by other users.
CAKE is Pancakeswap’s native token, used to participate in different activities on the platform, such as yield farming, governance and lotteries.
To connect to Pancakeswap, you need to have a wallet compatible with the BEP20 network of the Binance Smart Chain, like MetaMask, Trust Wallet or Binance Chain Wallet. Then connect your wallet to Pancakeswap by selecting the “Connect a wallet” option on the site.
Yield farming is a way to earn rewards by providing liquidity to the platform’s pools. Liquidity providers receive LP tokens in exchange for their contribution and can stake them to earn CAKE tokens.
Yes, Pancakeswap is NFT-compatible. The platform offers NFTs and organizes NFT-related events.