When buying crypto, there are only two ways you can do it: using a centralized exchange or using a decentralized one such as FatWallet and PancakeSwap. In this article, I will guide you through how to purchase your favorite cryptocurrency from PancakeSwap using MetaMask.
Before we go into the details of the process, let’s discuss what PancakeSwap is all about.
What is PancakeSwap?
PancakeSwap is a decentralized crypto exchange that allows users to buy, sell and trade cryptocurrencies.
PancakeSwap runs on the Binance Smart Chain (BSC) network, which is built for speed and low fees. BSC is a fork of Ethereum and can be accessed using MetaMask, Trust Wallet, or Wallet Connect.
PancakeSwap uses a pricing method known as Automated Market Maker (AMM), which allows users to trade without going through an order book. An AMM price is determined by a mathematical formula, rather than match-making buyers and sellers in real-time.
As well as being a cryptocurrency exchange, PancakeSwap is also home to the CAKE token, which can be traded on PancakeSwap. CAKE’s value increases when users swap tokens on PancakeSwap and has seen huge growth since its release in September 2020.
Using the CAKE token, users can participate in liquidity pools and earn rewards through staking.
Difference between PancakeSwap and Uniswap
Like Uniswap, PancakeSwap also provides liquidity pools where users can provide liquidity and earn transaction fees from trades. However, PancakeSwap is built on the Binance Smart Chain instead of Ethereum.
Compared with Uniswap, PancakeSwap offers cheaper transaction fees and faster transaction speeds due to the nature of its blockchain, but it comes at the expense of sacrificing some security measures provided by Ethereum.
Furthermore, unlike Uniswap, which provides a native token (UNI), PancakeSwap has an inflationary token called CAKE that provides rewards to liquidity providers.
PancakeSwap Supported Wallets
The following Wallets are PancakeSwap supported:
- Trust Wallet Android/iOS
- MetaMask Android/iOS/Desktop
- Coinbase Wallet Android/iOS
- Wallet Connect Wallet (e.g. Argent, Rainbow) Android/iOS
- Binance Smart Chain Wallet
There are many ways to connect to PancakeSwap and use it, including the Binance Smart Chain Wallet mobile app, but here we will focus on MetaMask.
How to Connect to PancakeSwap Using MetaMask?
Here’s how you can connect to PancakeSwap and start swapping tokens using MetaMask:
1. Log into your MetaMask account.
2. Click “Settings” on the top left corner of the browser extension, then “Advanced” and click “Connect to custom network” at the bottom of the advanced settings.
3. When you click “Connect to custom network” you will be prompted with a pop-up window asking you for the RPC URL and chain ID of PancakeSwap. You can find these on https://pancakeswap.info/
4. Add a new custom RPC with the following information:
Network Name: PancakeSwap (or any name you like)
New RPC URL: https://rpc.cakeswap.fi/
ChainID: 0x91 (For Mainnet) or 0x82 (For Testnet)
Block Explorer URL: https://bscscan.com/ (or any other explorer site of your choice)
5. Click Save, then select PancakeSwap from the list of networks that appears when you click the network name on MetaMask.
Now that you have connected your MetaMask wallet to PancakeSwap, it’s time to add some BNB to your MetaMask wallet! You can do this by purchasing BNB from any exchange of your choice that supports MetaMask.
How to Deposit the Coins on Your Binance to MetaMask?
If you’ve already got a Metamask account, skip ahead to the next part. If not then:
1. Open the MetaMask Chrome extension and click on the menu icon next to your account name (at the top).
2. Click on Settings or Account Settings.
3. Click on Networks, then click on Add Network.
4. Use the following information for Binance Smart Chain:
New RPC URL: https://bsc-dataseed1.binance.org/
Chain ID: 56
Block Explorer URL: https://bscscan.com/
5. Click Save to add Binance Smart Chain to your list of networks in MetaMask.
6. Then go to Binance and click on the “Wallet” tab at the top of the screen.
7. Click on “Withdraw”, then search for “BNB”. Paste your own wallet address where you see an option named recipient address to withdraw BNB; then on the transfer network, make sure you have selected Binance Smart Chain (BSC) or BEP20 (BSC).
8. Now click submit and follow the verification steps afterward. After successfully withdrawing your BNB it should arrive very shortly in your Metamask wallet.
How to trade on PancakeSwap with MetaMask?
Ready to get your trading on? Here’s how you can buy BEP20 tokens on PancakeSwap.
1. First, make sure you have some BNB in your MetaMask wallet for gas fees on the BSC network. If you don’t, go ahead and purchase some from an exchange like FTX or Binance, which both accept fiat currency.
2. Once you’re sure you have some BNB in your MetaMask wallet, head over to our exchange page on PancakeSwap and start trading.
3. If you want to sell a particular BEP20 token on PancakeSwap, transfer it from exchanges or other wallets to your MetaMask address.
4. To buy BEP20 tokens on PancakeSwap, you can mostly use BNB, BUSD (BEP20), and CAKE. There are also BTCB and ETH pairs on the platform.
5. To trade on PancakeSwap, first click the “exchange” page under the trade menu.
6. Choose a token pair that you want to trade with. For this guide, I will be using the CAKE-BNB pair as an example.
7. Enter the amount of CAKE that you want to buy/sell and click "APPROVE"
8. Click "SWAP" to confirm and complete the transaction.
Hopefully, you found this guide helpful in buying crypto on PancakeSwap. If you’re new to this process and want to do it yourself, I hope this guide was helpful and served as a complete "how-to" of the process. If you still have questions, feel free to ask them in the comments section or email me directly.