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PancakeSwap is one of the leading decentralized exchanges built to run on Binance Smart Chain. PancakeSwap uses the well-established mechanism of algorithmic trading to achieve price discovery and set up liquidity for projects on that same blockchain, BSC. PancakeSwap is part of the liquidity mining and DeFi trend expanding in 2021.
How to Use PancakeSwap
PancakeSwap has several use cases. The simplest one is to exchange assets, which is achieved by connecting a wallet and choosing the type of swap to be performed.
The exchange also offers the opportunity to provide liquidity. To do this, choose a farm or a pool and also connect a compatible wallet, such as BitKeep, Trust Wallet, Binance Chain Wallet or another tool from the PancakeSwap selection screen.
How to Connect a Wallet to PancakeSwap
Choose the preferred type of wallet from the opening dialog. Before that, it is important to avoid phishing attacks. The list of wallets on PancakeSwap currently excludes MetaMask.
Double-check or bookmark the correct address for PancakeSwap, and beware of copycat attempts. Then click the connect wallet button and enter the wallet’s strong password.
How to Buy PancakeSwap (CAKE)
CAKE is the native token of PancakeSwap, which can be staked or traded for extra earnings. CAKE is not tied to any specific play to earn game, but it is an important asset in the BSC ecosystem.
Most importantly, CAKE can be exchanged for BNB and BUSD, which are even more liquid tokens and are easier to trade or swap.
How to get CAKE in Play to Earn Games
PancakeSwap is the go-to exchange for multiple BSC games. Using the game reward tokens, it is possible to provide liquidity, participate in pools and get rewards depending on the pool.
Some games also issue CAKE as a reward token, such as KittyCake.
How CAKE Justifies its Price
The CAKE market price is volatile, similar to other digital coins and tokens. CAKE started its trading in late 2020, hovering between $0.50 and $2. After the bull market in 2021, CAKE reached a peak above $42 and gradually deflated toward $12 at the end of the year.
The CAKE market price hinges on the price of underlying assets, as well as the general state of the cryptocurrency market.
Using CAKE may be a fast, accessible, non-verified and unregulated way of swapping new play to earn tokens. With easy wallet access, CAKE is highly accessible but also risky and open to scams or technical mistakes. Still, PancakeSwap offers an easy interface and a simple tool to swap or use liquidity pools or reach trading pairs.