If you’re tired of paying sky-high fees on the Ethereum blockchain when using decentralized exchanges such as UniSwap or SushiSwap. Then you might be interested to hear, Binance is looking to disrupt the DeFi space and challenge these Ethereum based AMMs with two of their own. PancakeSwap and BakerySwap are built on the Binance Smart Chain (BSC), instead of the Ethereum blockchain. Offering users high yields to stake and add liquidity but with faster transactions and lower fees.
In this PancakeSwap review we’ll see how you can save fees, exchange, provide liquidity, and best of all earn rewards using their own CAKE tokens.
What is PancakeSwap?
PancakeSwap is a decentralized exchange that is based on the Binance Smart Chain. If you’re familiar with the likes of UniSwap or Sushiswap you’ll have no problem understanding and getting to grips with pancake swap which is very similar in design.
However, the main difference is that instead of using the Etheruem network you’ll be connecting to the Binance Smart Chain. Therefore you’ll be trading BEP20 tokens as opposed to Etheruem or ERC20 tokens. At the time of writing this Pancakeswap review, the Ethereum network is heavily congested and gas fees are at an all-time high.
Therefore many users are trying to find ways to save money on fees when interacting with decentralized apps or Defi. One such way is by using apps that work on the Binance smart chain instead, where the fees are considerably lower, plus in my experience, it’s fast.
PancakeSwap uses an automated market maker (AMM) model. Meaning there no order books, use liquidity pools instead. However, Pancakeswap isn’t just an exchange. You can also earn by becoming a liquidity provider, adding your tokens to the liquidity pools, you can farm your LP tokens and stake your cake to earn rewards plus try your luck in lotteries and NFTs.
PancakeSwap (CAKE) Token
The Pancakeswap token (CAKE) is a BEP-20 token that was launched on Binance Smart Chain in September 2020. The main function of CAKE is to incentivize liquidity provision to the PancakeSwap platform.
The CAKE token price rallied at the beginning of 2021. CAKE has a token supply of over 118 million.
PancakeSwap Supported Wallets
To start using PancakeSwap you’ll need to use a supported wallet that is connected to the Binance Smart Chain. These include the likes of MetaMask,TrustWallet, TokenPocket, and WalletConnect.
If you choose the Metamask you will need to manually connect the wallet to the Binance Smart Chain.
How to Connect Metamask to the Binance Smart Chain
To use the Metamask wallet with the Binance Smart Chain, you’ll need to manually add the Smart Chain Mainnet. For further details, check out my blog post.
PancakeSwap can be used to trade BEP20 tokens. BEP20 is essentially a token standard that is on the Binance Smart Chain. Similar to the likes of ERC20 tokens that are used on the Ethereum blockchain.
With Pancake Swap, the trading fees are 0.2%. This is divided between liquidity providers (0.17%) and the PancakeSwap Treasury (0.03%).
As there are no order books there are no deposit or withdrawal fees, but you will need to pay transaction fees for interacting with the Binance Smart Chain. These transaction fees are currently minimal, especially compared to the likes of the gas fees on the Ethereum network.
With PancakeSwap you can also stake your tokens to earn rewards. This can be done in 2 steps.
Firstly, you can deposit your Liquidity Provider or LP tokens and lock them up in a process that will reward you in CAKE, by choosing to Farm. These tokens can be unstaked at any time with zero holding time.
Secondly, you can earn even more rewards by staking your CAKE in what is named Syrup Pools. This was initially named syrup pools as you used to earn their governance token named syrup, however, this came to a halt after an exploit was found in the syrup smart contract.
There are several tokens you can earn by staking CAKE. And you’ll obviously need some cake to stake which you can trade for or wait for your rewards to build up from staking your LP tokens.
Is PancakeSwap Safe?
PancakeSwap has been audited by CertiK, however, depositing funds into a smart does come with risks. Meaning that there can be bugs even when they have been audited.
In fact, an exploit was found in the SYRUP smart contract which forced PancakeSwap to put an end to their SYRUP pools. So, even with a CertiK audit, it appears the contracts can still be compromised.
If you have a support query, you can contact PancakeSwap via their social media channels, such as Telegram or Twitter.
If you’re looking for an exchange to trade a variety of different cryptocurrencies Binance Exchange is one of the most popular platforms. Since early 2018, Binance is considered one of the biggest cryptocurrency exchanges in the world, in terms of trading volume. Supporting more than 100+ coins with 240+ trading pairs.
However, Binance is no longer just an exchange and in this Binance review, I take a look into what Binance has to offer on its platform. Including the likes of Binance Lending, Binance Academy, their own stable coins BUSD and location-specific platforms they are becoming a one-stop-shop for all things crypto.
Binance.com is an online exchange platform where you buy and sell cryptocurrencies using digital assets such as Bitcoin and Ethereum.
The platform was founded in 2017, in China by Changpeng Zhao. However, Binance moved their servers and headquarters out of China (to Japan) in advance of the Chinese government ban on cryptocurrency trading in September 2017. Binance has since opened offices in Malta after stricter regulations in Japan and China.
Back in July 2017, Binance raised $15 million dollars in an Initial Coin Offering (ICO) for its ERC20 BNB token. As of January 2018, it was the largest cryptocurrency exchange with a Binance coin (BNB) market capitalization of $1.3 billion.
However, Binance also announced recently that they are formally expanding to the U.S. via a dedicated platform Binance.us.
Binance BNB Token
Binance Coin (BNB) is an Ethereum-based token that allows you to receive discounts on the services of the Binance platform. Users of Binance can receive a 25% discount on trading fees, by paying with Binance’s BNB token.
When trading with cryptocurrencies there is sometimes a small fraction of that cryptocurrency left over. This is known as “dust”. Within Binance you can convert this dust into their BNB coin.
BUSD Binance Stable Coin
Working in partnership with Paxo, Binance are launching a dollar-backed stable coin. The upcoming stable coin, which is dubbed as Binance USD (or BUSD) will be pegged 1:1 to the US dollar. They have also received the blessing of the New York Department of Financial Services (NYDFS).
When its launched, verified Paxos customers will be able to purchase BUSD tokens directly through the company’s wallet using either US dollar or PAX (which is their own stable coin). Binance users will also be able to trade BUSD for Bitcoin Binance Coin or XRP.
Binance Supported Cryptocurrencies
Binance is predominately a crypto to crypto exchange, meaning that you’ll first need to buy some crypto before you can start to exchange. This means there are no FIAT markets, however there are links to purchase crypto on the Binance.com website using a credit or debit card or even bank transfer (although these will be at higher fees/rates).
With Binance, you can trade in markets including Bitcoin, Alts, Stablecoins and their own BNB token.
Binance has one of the lowest trading fees of any cryptocurrency exchange at just 0.1% across all trades. However, using the BNB token for transaction fees will give you a discount to your trading fee. By default, if you hold BNB in your account, your trading fees will be automatically subtracted from your BNB balance.
There are no fees for depositing your crypto into Binance, other than the miner fees for your transactions.
How to Reduce Binance Trading Fees
By signing up to Binance Exchange using this link or referral ID GPZ64I32, you will save 20% when trading. However, you can save up to 45% when using the Binance BNB token. To find out more on how to save 45% trading on Binance Exchange click here.
Binance Withdrawal Fees
An important factor when withdrawing from the Binance exchange is to check out the Binance withdrawal fees. Binance withdrawal fees do vary and depend on the type of cryptocurrency that you are withdrawing.
You may also find that there are minimum withdrawal amounts that meet and these will be displayed when withdrawing from the platform. You can find the Binance Withdrawal fees and minimum withdrawal amounts over on their fee page.
How to Withdraw from Binance?
When trading on an exchange, it is important to withdraw your crypto and to keep it stored on an exchange long term. With Binance or any other centralized exchange, you won´t have access or control over your private keys. Also, an exchange that holds a lot of assets is far more likely to be a target for hackers.
Therefore, it’s important to withdraw from Binance and store your crypto safely in a secure wallet. I personally recommend a hardware wallet such as the likes of a Ledger or Trezor where your funds are stored offline and away from any potential harm.
The Binance Smart Chain is a new blockchain with an environment for developing high-performance decentralized applications. Meaning that you can use DEFI apps such as the likes of PancakeSwap or BakerySwap to exchange your tokens, provide liquidity or yield farm. However, compared to transactions on the likes of the Ethereum network, the Binance Smart chain is fast and with low fees.
How to Connect Binance Smart Chain to MetaMask
MetaMask has always been the go-to wallet for accessing the Ethereum network. However, you now connect to the likes of the Binance Smart Chain for accessing decentralised apps (or DeFi) with low transaction fees.
Binance Mobile App
With the Binance mobile app, you can trade Bitcoin and cryptocurrencies from the palm of your hand. The app is available for download for Andriod or iOS. By installing on a mobile device, you can also make use of the built-in security features such as a face or fingerprint technology to secure your assets.
Margin trading is now available on selected Altcoin trading pairs
Trust Wallet Binance Official Wallet
Trust Wallet is the official digital wallet of Binance. Binance acquired the secure and intuitive mobile wallet in 2018. For more information on the Trust Wallet check out our video tutorial.
In late August 2019, Binance launched their lending platform on a subscription-based service which was on a first come, first service. Its a value added service to Binance users who hold idle digital assets.
What is allows, is for Binance users to grow their funds by earning interest income for lending out their holdings over a specific period of time.
They’ve split this across phases. Phase 1 of the lending launch included a 14-day fixed term for BNB, USDT, and ETC. And Phase 2 (released 4th September 2019) included 14 and 28 days fixed terms and included Cardano, BTC as well as the above.
Binance Earn is a crypto savings account, offering users an interest-earning solution for crypto assets held on the exchange. You can find out more information on Binance Earn by click here.
Binance Liquid Swap (BSwap)
Binance has recently created its own centralized version of an automated market maker (AMM) pool which is set to rival the likes of UniSwap. BSwap/Binance Liquid Swap (which is the name of their new decentralized exchange) allows users to token swap and provide liquidity in return for an annual percentage yield whilst also getting a share of the protocol’s trading fees.
If you’re trading crypto over on the Binance exchange it’s important to withdraw from Binance and not to keep your crypto stored on an exchange long term. As with any centralized exchange, you don’t have access or control over your private keys and are entrusting a 3rd party. Also, an exchange that holds a lot of assets is far more likely to be a target for hackers.
Its, therefore, recommended moving your crypto assets from Binance and into the safety of a wallet once you’ve finished trading. One of the safest wallets would be the likes of a hardware wallet like a Ledger Nano or a Trezor. Hardware wallets allow you to keep your crypto assets offline and away from any potential threats.
How to Withdraw from Binance – Step by Step Guide
In this step-by-step guide, I’ll show you how to withdraw from Binance and send your funds across to an external wallet address. Withdrawing your crypto to a hardware wallet such as a Ledger or Trezor are the safest ways to store your crypto.
To get started, log Into to Binance.com, go to ‘Wallet’ at the top of the screen, and select ‘FIAT and Spot‘
This will then display a list of all your available Fiat and Crypto Balances. You can then select the token you wish to withdraw by clicking ‘Withdraw‘.
The crypto withdrawal screen will then display, where you’ll be prompted to enter the ‘Recipient Address‘ for your withdrawal. Copy your ‘Receive‘ address from your chosen external wallet (or scan the QR code) and paste it into this field.
Enter the amount that you would like to withdraw, or click onto ‘Max‘ to withdraw all of your available balance. Any minimum withdrawal amounts will be pre-populated in the ‘Amount‘ field.
The fees for your crypto withdrawal will be shown on screen, as well as the total amount that you will receive.
When you are ready, select ‘Submit‘. Depending on your 2-factor authentication method, you may be requested to complete this before the withdrawal will complete.
Any withdrawals will be displayed under your ‘Recent Withdrawal History‘.
Binance Withdrawal Fees
When your withdrawing your funds from Binance, an important factor to check out are the Binance withdrawal fees. Binance withdrawal fees depend on the type of cryptocurrency that you are withdrawing and is on a crypto-by-crypto basis. There are also minimum withdrawal amounts that you’ll need to adhere to. You can check out the Binance Withdrawal fees and minimum amounts on their fee page.
Binance has now created its own centralized version of an automated market maker pool, named BSwap or Binance Liquid Swap. Set to rival the likes ofUniSwap, their decentralized exchange allows users to token swap, plus provide liquidity in return for an annual percentage yield and get a share of the protocol’s trading fees.
What is Binance Liquid Swap?
Binance Liquid Swap is an automated market maker (or AMM) pool product, the first of its kind in a centralized exchange. AMMs work by automating the trading process, so that no 2 traders ever have to wait to find each other. Instead, trades are executed via smart contracts, and private reserves are replaced by voluntary liquidity pools.
The benefits of using their AMM will give users lower fees, stable prices, and instant liquidity. Plus trading fees for the first month will be as low as 0.04%
They’ve initially launched with 3 crypto assets for trading which are Binance USD (BUSD), Dai (DAI), and Tether (USDT). Users can deposit these and start earning interest (plus a cut of the transaction fees) in return for pooling your tokens.
Binance, like many other centralized exchanges, are being forced to adopt DeFi tokens, or else risk being left behind. By providing the convenience of being a few clicks away from their centralized exchange, plus having the security and userbase of Binance, they hope to bring some of their users back to their platform and encourage more growth in the DeFi market.
Binance Earn is a complete suite of products that are available for Binance customers.
However, from today 1st May 2020 the Binance widget is now easily accessible from within Brave Browser. Meaning that millions of users can now seamlessly trade and manage crypto without ever having to leave their browser.
Trade on Binance Directly in Brave Browser
Brave has grown rapidly in popularity with over 13.5 million active users and Binance is the world’s largest cryptocurrency exchange by Trading volume and users. So by integrating the 2 platforms, it should be mutually beneficial to both companies with the hope that more Binance users will adopt Brave Browser and Brave users will sign up to the Binance Trading platform.
This widget is available for both Binance and BInance.US users although US-based users may not yet be able to buy using the widget which is due to be released soon.
How to Update Brave Browser
To get access to your Binance Widget the first thing you’ll need to do is update your browser to the latest version 1.8. If you’re unsure which version of Brave you are currently using.
Launch Brave and in the top right hand corner of the screen select the “Settings” or burger menu.
Then select “About Brave“.
And in here you can check which version you’re running in the bottom left and it’ll also check for the latest version which you “Update” and “Relaunch Brave“.
Or you may be automatically prompted to install the latest update like this and where you can go ahead and follow the screens to update and relaunch.
How to Connect Binance Widget to Brave Browser
Once your browser has been updated to the latest version, the Binance widget can be found by creating a “New Tab” and is then visible on the right-hand side of your Brave desktop browser.
To connect your Binance Widget to Brave, click onto the Binance widget and click onto “Connect“.
You’ll then be prompted to “Sign in to Binance login to continue with your Brave Browser” and at this point, you’ll need to enter your Binance username/email address and password.
It then provides you with some information in relation to what the brave browser will be able to do. Then if you’re happy with all of that you can go ahead and log in to connect.
Then once you’re signed in you’ll all set to start using the widget.
Binance Widget Tabs
There are several tabs that you can use within the widget, these include “Summary”, “Deposit”, “Convert” and “Buy”. However, please note that US users are currently unable to use the “Buy” option, although this is set to be released soon.
The summary is the first tab you will see on the widget and this shows a list of your asset balances from within your Binance account. This may automatically be set to not be visible when the Widget is first launched, but can be made visible by clicking onto the eye icon.
The Deposit tab will show your deposit addresses, including your QR codes and the functionality to be able to “Copy” the deposit address so that you can send funds to your account.
With the convert tab you can easily convert from 1 crypto to another. Simply by selecting these assets from the drop-down available. You can preview your conversion which is valid for 30 seconds. This will show your your related fees for converting your crypto and you can “Confirm” when you’re happy.
Once your conversion is complete, the binance widget will then reflect the new balance in the summary tab soon after the conversion has completed.
Within Buy, you can buy any crypto thats available from the dropdown in your chosen currency.
When you proceed to buy your crypto, it will take you to Binance.com to complete the transaction
Within the widget, there is a settings menu which can be found under the icon with the 3 vertical dots in the top right of your widget. This is where you can Hide Binance so that it no longer appears within Brave, you can refresh the data shown or you can disconnect your Binance account.
How to Disconnect Your Binance Account from Brave
If you want to Disconnect your Binance account from the widget and erase the widget settings, it will not effect your Binance account. It just means that the brave browser can not interact with your account again until you reconnect it.
Then if you want to use it again you’ll need to reconnect.
Binance Widget for Brave Browser Mobile
Brave will release a mobile version for its Browser available on Android and iOS later in 2020.