All About the Pancake Swap and Crypto Jargon

In this article, we will be talking about the Pancake Swap, and later on, we will also be taking a deep understanding of Crypto Jargon.

04:54 17 January 2022

Living in the 21st century, if you do not know anything about cryptocurrency and the blockchain, you are way back in the game, my friend. It is basically the future currency, and since it is so delicate, there is always something new with it. It is a wide sea of information, and it is not possible to learn everything about it quickly. This is why you should always check up on the latest cryptocurrency news. As said earlier, crypto is a vast topic to talk about, and it is impossible to cover everything in a mere article. That is why we are going to talk about certain topics that are taking some heat in recent times and getting popular. However, not many people know all about it.

 

In this article, we will be talking about the Pancake Swap, and later on, we will also be taking a deep understanding of Crypto Jargon. These two topics have recently gained popularity and because of all the right reasons. You will know what we are talking about as we proceed forward with the article. So, without wasting any time of yours, let us take a dive into this crazy form of information.

 

Things You Should know about the Pancake Swap

In the crypto world, decentralized exchanges (DEXes) are growing increasingly popular. Users can lend or stake their cryptocurrencies and earn rewards through permission-less liquidity mechanisms, in addition to swapping one token for another.

 

What is a Pancake Swap?

In the newbies the question arises, what is pancake swap? Pancake Swap is a decentralized cryptocurrency exchange powered by the Binance Smart Chain (BSC). Pancake Swap, like all decentralized exchanges, allows you to swap tokens without the use of a centralized intermediary while maintaining custody of your tokens. The Pancake Swap, which debuted in September 2020, employs an Automated Market Maker (AMM) approach, which eliminates the need for an order book to match you with another user anytime you want to trade digital assets on the platform; instead, you trade against a liquidity pool via smart contracts.

 

This function allows you to make the swap you desire while simultaneously keeping your coins in the pool and receiving incentives. CAKE is the platform's native token, which is a BEP-20 token. SYRUP pools are a type of liquidity pool. Is pancake Swap managed by Binance, a centralized exchange service, because it is based on Binance Smart Chain? No! Because the decentralized exchange was constructed by anonymous developers, Binance has no control over it. Pancake Swap is a BSC-based token swapping system for BEP-20 tokens. Individuals can transfer tokens from Binance and other exchanges to the DEX, but they must first "wrap" them as BEP-20 tokens before using them on the platform.

 

Working Of a Pancake Swap

Just because Pancake Swap cannot accept fiat payment, having cryptocurrencies, particularly CAKE tokens, coupled with some BNB is essential. Crypto wallets such as Trust Wallet, MathWallet, and Binance Chain Wallet can be used to hold these currencies. MetaMask, an Ethereum wallet, is another option. You only need to set it up to work with Binance Smart Chain. After that, go to https://pancakeswap.finance/ and register your wallet there. In your web browser, all of the platform's functions are presented on the left side of the screen. You can provide liquidity, trade the tokens, or farm the tokens.

 

• Offering Liquidity

To provide liquidity, go to the "pools" page and deposit monies into any of the liquidity pools that are accessible. In exchange, you will receive a Liquidity Provider (LP) token. The LP tokens that are awarded to all users are funded by a part of the platform's trading costs. 0.17 percent of the average 0.2 percent fee is directly redistributed to LP token holders, while the remainder is held in the pancake Swap Treasury to keep the platform running.

 

• Trading

To exchange or trade the LP tokens you've received for profit, go to the "Trade" tab, pick "Exchange," and then select the token in your associated wallet you'd like to trade or swap. You must confirm the transaction within your wallet for it to be fully successful.

 

• Yield farming

To farm, go to the "Farms" tab and choose any of the pairs that correspond to your LP tokens. Then, to approve the movement of BEP-20 tokens, click "Approve Contract." In your wallet, confirm the transaction and pick the number of tokens you want to stake.

 

Meaning Behind the Famous Crypto Jargons

• NFT

A non-fungible token is referred to as an NFT. It denotes information that can be recorded in a digital ledger. This information is usually associated with a certain asset. An art piece, a movie, music, or other digital assets can be used as this asset. There are also plans in the works to link NFTs to physical assets like documents, commodities, and real estate. To fully own an asset, you must first purchase a token (NFT). This can be saved in your digital wallet or transferred to it. That proof of ownership is stored on the blockchain.

 

• FUD

Fear, uncertainty, and doubt are abbreviated as FUD. This term is commonly used to denote a situation in which the user is controlled by fear or fear-based variables related to cryptocurrency mining. FUD is not your friend in the crypto industry. China is said to have the world's greatest level of Bitcoin skepticism. This effect is frequently a rumor on social media platforms that is not supported by research or evidence. Fear often arises as a result of false information spreading over social media platforms with no supporting evidence, such as the widespread belief that Bitcoin is a hoax. FUD refers to all the negative rumors that spread on social media and cause dread among crypto users.

 

• HODL

HODL was created as a typo of the word Hold. Even when the market is profitable, this term is used to indicate the practice of keeping your crypto assets for a long period. This serves as a reminder to individuals not to sell their cryptocurrencies just because they are growing steadily, and there is a large profit to be made from doing so. 'Hold on for dear life' is another term for this acronym. This typically encourages investors to hold on a little longer to see if there is a way to benefit even more.