Threenvest > Decentralized exchange reviews

Pancakeswap Review 2024

Autor

Alejandro Borja

Revisor

Xavier Tarrasó

Last update: 6 months ago

Our veredict

PancakeSwap is a leading decentralized exchange (DEX) on the Binance Smart Chain (BSC), known for its user-friendly interface and community-driven approach. It offers a wide range of features including trading, yield farming, and staking, making it suitable for both beginners and experienced traders.

PancakeSwap is recommended for users who are looking for a comprehensive and affordable DeFi platform, especially if they are interested in exploring additional earning opportunities beyond just trading. Its low fees and fast transactions make it an attractive option for users at all levels, particularly those who are just starting out in the crypto space. However, users should be mindful of security practices and the limitations of being restricted to the Binance Smart Chain ecosystem.

Pros

Cons

4,4

Threenvest Score

Network

BSC

Fees

0,25%

With the confidence of Threenvest

Security Methods: PancakeSwap employs multiple layers of security, including smart contract audits by reputable firms like Certik, PeckShield, and SlowMist. Additionally, the platform uses multi-signature wallets and time-lock features to ensure the safety of user funds and reduce the risk of hacking.

Trading Volume and Liquidity: The exchange provides excellent liquidity through its numerous liquidity pools, supported by a wide array of trading pairs. This ensures that users can trade efficiently and at competitive rates, even during periods of high market volatility.

Volume Managed: PancakeSwap consistently ranks among the top decentralized exchanges in terms of trading volume. This high volume indicates a strong user base and reliable liquidity, making it easier for users to execute trades without significant price slippage.

Reputation and Reviews: PancakeSwap has built a solid reputation within the crypto community. It boasts positive reviews from both users and industry experts, highlighting its ease of use, low fees, and robust feature set. The strong community support further reinforces its credibility as a trustworthy platform.

Transparency: PancakeSwap is known for its transparent operations. The platform’s code is open-source, allowing the community to review and audit it. Regular updates and active communication channels ensure users are kept informed about any changes or improvements.

Best Crypto Decentralized Exchange

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About pancakeswap

PancakeSwap is not just another decentralized exchange (DEX); it’s a forerunner in the burgeoning field of DeFi platforms on the Binance Smart Chain (BSC). Known for its playful branding and community-focused ethos, PancakeSwap offers a multi-faceted ecosystem revolving around crypto trading, staking, farming, and more.

What is PancakeSwap?

PancakeSwap is a decentralized exchange that operates on the Binance Smart Chain (BSC). It uses automated market maker (AMM) protocols to enable users to trade cryptocurrencies, participate in yield farming, and engage with lottery systems directly and securely without intermediaries.

Background and History

Launched in September 2020, PancakeSwap was developed to provide a faster and cheaper alternative to Ethereum-based DEXs, which were plagued by high gas fees and slower transactions during peak periods. Capitalizing on the efficient throughput of the Binance Smart Chain, PancakeSwap quickly became the go-to platform for users seeking reliable DeFi services with minimal costs.

Founders

PancakeSwap was created by anonymous developers, a common trend in the DeFi space that emphasizes the project’s decentralized nature. The anonymity of its founders also aligns with the ethos of blockchain and DeFi — promoting a trustless environment where the code and community governance are more important than the identities of creators.

Fun and Interesting Facts

Lottery and NFTs: PancakeSwap integrates unique features like lotteries and Non-Fungible Tokens (NFTs), which not only add entertainment value but also utility and rewards for its users.
“Flippin’ Fun” Branding: With its playful food-themed branding, PancakeSwap has created a relatable and enjoyable user experience that stands out in a typically complex market.
CAKE Token: The platform’s native token, CAKE, has seen explosive growth and utility, serving as a testament to the platform’s popularity and user engagement.

Headlines

“PancakeSwap Leads as Top DEX on BSC”
“Innovative DeFi Features Expand on PancakeSwap”
“PancakeSwap: A Recipe for DeFi Success”

PancakeSwap continues to innovate within the DeFi space, maintaining its appeal through constant updates and community-driven initiatives. This approach not only keeps the platform at the forefront of the crypto ecosystem but also ensures that it responds effectively to the needs of its users.

Why Choose Pancakeswap?

PancakeSwap stands out in the crowded field of decentralized exchanges due to its innovative approach and user-friendly features, making it an ideal choice for both novice and experienced cryptocurrency enthusiasts. Its integration with the Binance Smart Chain ensures that users benefit from quick transaction times and lower fees compared to other leading DEXs on Ethereum. This efficiency makes it an attractive platform for traders looking to maximize their returns without being hindered by excessive costs.

The platform’s robust security measures and strong community governance further enhance its appeal. With regular audits and a decentralized operational structure, PancakeSwap provides a secure and transparent trading environment. This trust is bolstered by a large, active community and a track record of resilience against the security challenges that often plague decentralized platforms. Users can engage in various DeFi activities with confidence, knowing their assets are handled with utmost care.

Moreover, PancakeSwap’s diverse offerings extend beyond simple token swaps. The platform features creative DeFi solutions such as yield farming, staking, and NFTs, providing multiple streams of potential earnings. The native token, CAKE, is central to these activities, offering users additional utility and incentives. For anyone looking to dive into the DeFi space with a platform that offers low fees, fast transactions, and a range of features to explore, PancakeSwap is a compelling choice.

Where it falls short

1. Limited to Binance Smart Chain (BSC): PancakeSwap operates exclusively on the Binance Smart Chain, which, while beneficial for transaction speed and cost, limits users’ access to the wider array of tokens and services available on other blockchains like Ethereum, Solana, and Polkadot. This exclusivity can deter users who are interested in a more interconnected blockchain ecosystem or those looking to trade tokens not available on BSC.

Improvement: To address this limitation, PancakeSwap could integrate cross-chain compatibility, allowing for interoperability with other major blockchains. Implementing a cross-chain bridge would expand the range of accessible cryptocurrencies and DeFi products, attracting a broader audience and enhancing liquidity. This would not only retain the current user base by broadening investment opportunities but also attract new users from different blockchain communities.

2. Security Concerns Due to Anonymity of Founders: The anonymity of PancakeSwap’s founders can be a double-edged sword. While it underscores the decentralized nature of the platform, it also raises security concerns. Without transparency about the team’s identity, users may have reservations about the integrity and long-term commitment of the individuals behind the project, especially in an industry where trust is paramount.

Improvement: Increasing transparency around the development team and their operations could significantly bolster user trust. PancakeSwap could achieve this by disclosing more information about the team’s background and their ongoing involvement with the project, while still maintaining some degree of anonymity if necessary. Additionally, continuing to adhere to rigorous security protocols and regularly publishing audit results would reassure users of the platform’s commitment to security and reliability.

Features	Explanation
Minimum Trade	The minimum trade amount is quite low, allowing users to make small transactions, which is ideal for new traders starting with limited capital.
Trading and Transaction Fees	PancakeSwap offers competitively low trading and transaction fees due to its operation on the Binance Smart Chain, which generally has lower costs than Ethereum.
Number of Cryptocurrencies	While offering a variety of BEP-20 tokens, its selection is less diverse compared to multi-chain DEXs, limiting exposure to a broader range of assets.
Crypto-to-Crypto Trading Pairs	Provides a solid range of crypto-to-crypto trading pairs, primarily focused on tokens within the Binance Smart Chain ecosystem.
Website Transparency	The website provides essential information; however, the anonymity of the founders and specifics about operational strategies could be better detailed.
Credit/Debit Card	PancakeSwap is limited to the Binance Smart Chain, restricting access to other popular networks like Ethereum, which may alienate some users.
Storage Offering	As a DEX, it does not offer custody services, relying on users to manage their wallets and keys, which can be a double-edged sword regarding security and ease of use.
Staking and Rewards	Offers excellent staking and reward options, including high-yield farming and pools, making it attractive for users looking to earn passive income.
Mobile App and Desktop	The PancakeSwap website is user-friendly with a playful design, making navigation easy and trading enjoyable, though it could include more educational resources.
Customer Service	Customer service is primarily community-driven, accessible through social media and forums, which can vary in responsiveness and professionalism.
Deposit and Withdraw	Deposits and withdrawals are executed directly through user-controlled wallets, offering high autonomy but requiring some technical knowledge for new users.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As an expert on our website, I highly recommend PancakeSwap for those venturing into the world of decentralized finance. Its user-friendly interface, coupled with low transaction fees and robust reward systems, makes it an excellent choice for both beginners and seasoned traders. However, be mindful of its limitations to the Binance Smart Chain and prepare to manage your own security through secure wallet practices.

Fees

PancakeSwap operates with a straightforward fee structure designed to benefit its users and liquidity providers while maintaining the platform’s economic sustainability. The main commission on PancakeSwap is a flat 0.25% trading fee applied to all spot transactions. This fee is divided as follows: 0.17% is returned to liquidity providers as a reward, 0.03% goes to the PancakeSwap Treasury, and 0.05% is used for CAKE token buyback and burn initiatives. For perpetual futures trading, PancakeSwap charges 0.02% for maker orders and 0.07% for taker orders. Users who pay trading fees with CAKE tokens receive a 5% discount on these fees, resulting in effective rates of 0.019% for makers and 0.0665% for takers. PancakeSwap does not charge withdrawal fees beyond the mandatory network fees, which vary depending on network congestion. This fee structure is competitive within the decentralized exchange landscape, providing a cost-effective trading environment for users.

Pros

Low Trading Fees: PancakeSwap charges a competitive 0.25% fee for all trades, with a substantial portion going back to liquidity providers.
No Withdrawal Fees: Unlike many exchanges, PancakeSwap does not impose withdrawal fees, aside from the mandatory network fees.
Fee Distribution: A portion of the trading fees is allocated towards CAKE buyback and burn, contributing to a deflationary token model.

Cons

PancakeSwap Commission Analysis

PancakeSwap offers a clear and competitive fee structure that benefits both users and liquidity providers. The primary trading fee on PancakeSwap is 0.25% for spot transactions. This fee is divided into three parts: 0.17% is returned to liquidity providers as a reward for their participation, 0.03% goes to the PancakeSwap Treasury, and 0.05% is allocated towards CAKE token buyback and burn initiatives. This structure not only incentivizes liquidity provision but also supports the deflationary mechanism of the CAKE token .
For perpetual futures trading, PancakeSwap charges 0.02% for maker orders and 0.07% for taker orders. Users who pay these fees with CAKE tokens receive a 5% discount, reducing the effective rates to 0.019% for makers and 0.0665% for takers. This discount mechanism encourages the use of CAKE, further driving its demand and utility.

Notably, PancakeSwap does not impose any withdrawal fees beyond the mandatory network fees, which vary depending on network congestion. This is particularly advantageous for users as it minimizes the cost of withdrawing funds, making PancakeSwap a cost-effective choice among decentralized exchanges. However, it’s important to be aware that certain tokens might have additional ‘taxes’ on transfers or sales, potentially increasing the effective fees users pay. Overall, PancakeSwap’s fee structure is designed to be transparent and user-friendly, promoting a sustainable and rewarding ecosystem for its participants .

Product selection

PancakeSwap offers a comprehensive range of services and products that cater to various user needs within the decentralized finance (DeFi) ecosystem. At its core, PancakeSwap allows users to trade BEP-20 tokens seamlessly on the Binance Smart Chain, benefiting from lower fees and faster transactions compared to Ethereum-based exchanges. The platform also supports liquidity provision, where users can add their tokens to liquidity pools and earn trading fees in return. Additionally, PancakeSwap provides yield farming opportunities, enabling users to stake their LP tokens and earn rewards in the form of CAKE, the platform’s native token.

Beyond trading and farming, PancakeSwap has expanded its offerings to include an NFT marketplace, where users can buy, sell, and trade digital collectibles. The platform also features a lottery system, which adds a fun, gamified element to user engagement, and an Initial Farm Offering (IFO) service, allowing users to invest in new projects by committing their LP tokens. With these diverse services and products, PancakeSwap caters to a wide range of DeFi enthusiasts, from traders and liquidity providers to NFT collectors and early-stage project investors.

Pros

Low Transaction Fees: Transactions on PancakeSwap incur significantly lower fees compared to Ethereum-based DEXs.
Fast Transaction Times: Operating on the Binance Smart Chain ensures quick processing of trades and transactions.
Diverse Features: Offers trading, yield farming, staking, NFT marketplace, and lottery, catering to various user interests.

Cons

Read more about product selection in Pancakeswap

Comprehensive Overview of PancakeSwap Services and Products

PancakeSwap, the leading decentralized exchange on the Binance Smart Chain (BSC), has developed a robust platform offering a wide array of financial products and services that cater to both novice and experienced DeFi users.

Spot Trading

PancakeSwap operates as an automated market maker (AMM), allowing users to swap BEP-20 tokens directly from their wallets. This decentralized approach ensures users retain control of their assets while enabling efficient trading. The platform also offers a limit order function, enabling users to set predefined price targets for trades, although this feature does not support tokens with transfer fees.

Yield Farming

Yield farming on PancakeSwap allows users to earn CAKE tokens by providing liquidity to various pools. Each farm requires users to stake pairs of tokens to receive Liquidity Provider (LP) tokens, which can then be staked in farms to earn rewards. The platform offers different yield rates and multipliers, with the CAKE-BNB farm featuring a high multiplier of 40x.

Syrup Pools (Staking)

Syrup Pools enable users to stake CAKE tokens to earn additional CAKE or other tokens. There are two types of staking options: flexible staking, which allows users to withdraw their tokens at any time but offers lower returns, and locked staking, which requires tokens to be locked for a set period in exchange for higher APYs.

Perpetual Futures Trading

In collaboration with ApolloX Finance, PancakeSwap offers perpetual futures contracts, which have no expiry dates. The platform supports various order types and on-chain settlement, maintaining user privacy by not requiring KYC. Users who pay trading fees with CAKE tokens receive a 5% discount on these fees.

Initial Farm Offerings (IFOs)

Initial Farm Offerings provide early access to new tokens by committing CAKE to the IFO pool. This feature allows users to invest in new projects within the PancakeSwap ecosystem, potentially gaining significant returns from early-stage investments.

NFT Marketplace

PancakeSwap includes an NFT marketplace where users can buy and sell NFTs hosted on the BSC. This adds a unique dimension to the platform, catering to the growing interest in digital collectibles.

Prediction Market

The prediction market allows users to bet on the price movements of token pairs like BNB-USD or CAKE-USD. This gamified feature enables users to earn rewards based on accurate predictions.

Lottery

PancakeSwap’s lottery program offers users a chance to win significant CAKE prizes by purchasing lottery tickets. Each ticket has a unique combination, and the closer the ticket is to the winning combination, the higher the rewards. PancakeSwap’s comprehensive suite of services and products makes it a versatile platform for DeFi enthusiasts, offering numerous ways to trade, earn, and interact within the cryptocurrency ecosystem.

Account opening

Opening an account on PancakeSwap is a straightforward and user-friendly process, typical of decentralized exchanges that prioritize simplicity and accessibility. Here’s a concise summary of the steps involved:

Visit the PancakeSwap Website: Navigate to the official PancakeSwap site at pancakeswap.finance and click on the “Connect Wallet” button located in the top-right corner of the page.
Connect Your Wallet: Choose the type of wallet you want to connect, such as MetaMask, Trust Wallet, or Binance Chain Wallet. Follow the prompts to authorize the connection.
Authorize the Connection: You’ll be redirected to your wallet’s interface to approve the connection. Confirm the action, and you will be redirected back to the PancakeSwap site, now signed in and ready to start trading.

This seamless integration with various wallets allows users to maintain control over their funds and ensures a secure and decentralized trading experience.

Pros

Simple and Quick: The process is user-friendly and does not require extensive technical knowledge.
No KYC Required: Users do not need to undergo KYC verification, preserving privacy and reducing hassle.
Wallet Integration: Supports multiple popular wallets like MetaMask, Trust Wallet, and Binance Chain Wallet, making it accessible for many users.

Cons

Read more about account opening in Pancakeswap

Detailed Account Opening Process on PancakeSwap

How to Sign Up on PancakeSwap

Step 1: Visit the PancakeSwap Website

Navigate to pancakeswap.finance.
Click the “Connect Wallet” button located in the top-right corner of the homepage.

Step 2: Select Your Wallet

Choose the type of wallet you want to connect, such as MetaMask, Trust Wallet, or Binance Chain Wallet.
Each wallet option will redirect you to its platform for authorization.

Step 3: Authorize the Connection

Follow the prompts to approve the connection in your wallet interface.
Once approved, you’ll be redirected back to the PancakeSwap website, now signed in and ready to use.

Opening an Account

Since PancakeSwap is a decentralized exchange (DEX), it does not require users to create traditional accounts with usernames and passwords. Instead, your crypto wallet acts as your account. Here’s a breakdown of what happens:

1. Connect Your Wallet

The connected wallet acts as your account, enabling you to trade, stake, and interact with all features of PancakeSwap.

2. No KYC Requirements

PancakeSwap does not require any Know Your Customer (KYC) procedures, ensuring privacy and ease of use for all users.

Buying Your First Cryptocurrency

To buy your first cryptocurrency on PancakeSwap:

Step 1: Acquire BNB

Ensure you have Binance Coin (BNB) in your wallet to cover transaction fees. BNB can be bought on many centralized exchanges and then transferred to your wallet.

Step 2: Use PancakeSwap to Swap Tokens

Go to the “Trade” section on PancakeSwap.
Select the token you want to swap from and the token you wish to receive.
Input the amount and execute the swap.

Account Types

PancakeSwap does not offer different account types. Every user has the same access to features like trading, yield farming, staking, and participating in lotteries and prediction markets.

How to Use PancakeSwap

Connect Your Wallet: As described above.
Swap Tokens: Use the AMM to trade BEP-20 tokens.
Provide Liquidity: Participate in yield farming by adding liquidity to pools and earning rewards.
Stake Tokens: Use Syrup Pools to stake CAKE and earn additional rewards.

Registration and KYC

PancakeSwap maintains its decentralized nature by not requiring any registration or KYC process. This keeps user information private and secure, aligning with the principles of decentralized finance (DeFi).

Note: To deposit funds into your wallet, you must use an entry-level exchange that supports fiat to crypto transactions. PancakeSwap itself does not support direct fiat deposits.

Security

PancakeSwap takes security seriously, implementing multiple measures to ensure the safety of user funds and data. The platform’s smart contracts are regularly audited by reputable firms such as Certik, PeckShield, and SlowMist, helping to identify and mitigate potential vulnerabilities. Additionally, PancakeSwap utilizes multi-signature wallets and time-lock mechanisms to secure its operations, further reducing the risk of unauthorized access and hacks. The decentralized nature of PancakeSwap also means that users retain control over their private keys and funds, as trades and transactions are executed directly from their wallets, eliminating the need for third-party custodians. These security features collectively contribute to making PancakeSwap a reliable and secure platform for decentralized trading and finance.

Pros

Multiple Security Audits: PancakeSwap has undergone multiple security audits by reputable firms like CertiK, Peckshield, and SlowMist, ensuring a high level of security for its users.
Decentralized Control: As a decentralized exchange, PancakeSwap does not hold users' funds, reducing the risk of centralized hacks.
Multi-Signature and Time-Lock: The platform employs multi-signature (multi-sig) for all contracts and a time-lock feature, enhancing security and preventing unauthorized access.

Cons

Smart Contract Risks: Despite multiple audits, the inherent risks associated with smart contracts, such as potential bugs and vulnerabilities, remain a concern.
Impermanent Loss and Scams: Users providing liquidity face the risk of impermanent loss, and the platform's open nature can sometimes lead to scams if users do not verify token contracts properly.

Detailed Overview of PancakeSwap Security

Is PancakeSwap Legit?

Yes, PancakeSwap is a legitimate decentralized exchange (DEX) that operates on the Binance Smart Chain (BSC). Since its launch in September 2020 by anonymous developers, PancakeSwap has grown to become one of the largest DEXs, known for its user-friendly interface, low fees, and extensive range of financial products. Its legitimacy is bolstered by multiple security audits from reputable firms such as CertiK, Peckshield, and SlowMist.

Regulation and Licensing

As a decentralized exchange, PancakeSwap does not fall under the jurisdiction of any central regulatory authority. This is common among DEXs, which rely on blockchain technology and smart contracts to facilitate transactions without intermediaries. While this provides users with greater privacy and control, it also means that users must exercise caution and perform their own due diligence when using the platform.

Is PancakeSwap Safe?

PancakeSwap implements several robust security measures to ensure the safety of its users and their assets:

Smart Contract Audits: PancakeSwap has undergone numerous security audits by leading blockchain security firms such as CertiK, Peckshield, and SlowMist. These audits are essential for identifying and mitigating potential vulnerabilities in the platform’s code.
Open-Source Code: Most of PancakeSwap’s code is publicly visible and verified on BscScan, allowing the community to review and audit the code for transparency and security.
Multi-Signature (Multi-Sig) and Time-Lock Features: The platform uses multi-signature for all contracts and incorporates a time-lock feature, which enhances security by requiring multiple approvals for transactions and providing a delay before transactions are executed.
Bug Bounty Program: PancakeSwap offers rewards to users who identify and report security vulnerabilities, encouraging the community to contribute to the platform’s security.
SSL Encryption: The platform uses SSL encryption to protect data transferred between users’ web browsers and PancakeSwap’s servers, preventing hackers from intercepting sensitive information.

While PancakeSwap has implemented strong security practices, users should be aware of the inherent risks associated with using DEXs, such as smart contract vulnerabilities and the potential for impermanent loss when providing liquidity to pools.

Conclusion

Overall, PancakeSwap is a secure and reliable platform for trading BEP-20 tokens and engaging in various DeFi activities. Its robust security measures, transparency, and multiple security audits make it a trustworthy choice for users looking to participate in decentralized finance. However, users should always exercise caution, conduct their own research, and be aware of the potential risks involved in DeFi trading.

Customer service

PancakeSwap provides a robust support system to assist users with their queries and issues. The platform offers extensive documentation and FAQs on its website, covering a wide range of topics from how to use the platform to troubleshooting common problems. Additionally, PancakeSwap maintains active community channels on social media platforms such as Twitter, Telegram, and Discord, where users can seek help from both the support team and other community members. While PancakeSwap does not offer direct customer service through traditional means like phone or email, the active and responsive community support channels ensure that users can quickly find assistance and guidance whenever needed. This community-driven approach fosters a collaborative environment, helping users to effectively navigate and utilize the platform.

Pros

Community Support: PancakeSwap has active and responsive community channels on Telegram and Discord, providing quick assistance and fostering engagement.
Timely Support for Futures Trading: Users of the perpetual futures market benefit from a support ticket system through ApolloX Finance, ensuring timely assistance for complex trading issues.
Extensive Troubleshooting Resources: The PancakeSwap website offers a comprehensive troubleshooting page for common issues, helping users resolve problems independently.

Cons

Lack of Traditional Customer Support: PancakeSwap does not offer live chat, phone support, or direct email assistance, which can be challenging for users who prefer conventional support methods.
Risk of Scams: Users need to be cautious of scams and fake support lines in community channels, requiring them to verify sources carefully to avoid being misled.

Read more about customer service in Pancakeswap

PancakeSwap Customer Service Overview

Customer Support

PancakeSwap, as a decentralized exchange, primarily relies on community-driven support rather than traditional customer service methods. Users can find help through active community channels on Telegram and Discord. The platform also provides a troubleshooting page on its website, addressing common issues such as “price impact too large” and “router expired” errors. For perpetual futures trading, PancakeSwap partners with ApolloX Finance to offer a support ticket system, ensuring users of this product receive timely assistance.

Reputation and Customer Feedback

PancakeSwap enjoys a positive reputation among its users, largely due to its active community and responsive support through social media channels. Users often praise the platform’s intuitive interface and the variety of financial products available. However, some feedback highlights the risk of encountering scams in unofficial support channels and the need for users to exercise caution. The platform’s community engagement and development are frequently cited as strengths, contributing to its overall positive user experience.

Contact Methods

Users can reach out for support through several channels:

Telegram: An active community with quicker response times, though users should be wary of scam attempts.
Discord: Another platform for community support, though slightly less responsive than Telegram.
Troubleshooting Page: Available on the PancakeSwap website for resolving common issues.
ApolloX Ticket System: Specifically for users of the perpetual futures market.

Response Time

The response time on PancakeSwap varies depending on the channel used. Telegram tends to have quicker replies due to its active user base, while Discord responses may take longer. The ApolloX ticket system provides more structured and timely assistance for complex issues related to futures trading.

Additional Considerations

For users new to decentralized exchanges, it is crucial to use official channels for support to avoid scams. Setting privacy options in Telegram to prevent spam can also enhance the user experience. PancakeSwap’s reliance on community support means that while the platform offers extensive resources, users must remain vigilant and proactive in seeking help and verifying information.

Is Pancakeswap Right for You?

You Value Low Fees and Fast Transactions: PancakeSwap operates on the Binance Smart Chain (BSC), which means lower transaction fees and faster processing times compared to Ethereum-based exchanges. If minimizing costs and maximizing efficiency in your trades is a priority, PancakeSwap is an excellent choice .
You Prefer a Wide Range of DeFi Products: PancakeSwap offers a comprehensive suite of decentralized finance (DeFi) products, including yield farming, staking, perpetual futures, and an NFT marketplace. If you’re looking to diversify your investments and engage in various DeFi activities, PancakeSwap provides a versatile platform to meet your needs .
You’re Comfortable with Decentralized Platforms and Community Support: PancakeSwap does not require KYC, maintaining user privacy and allowing quick access to trading. The platform relies on community-driven support through active Telegram and Discord channels, which can be a great fit if you’re comfortable seeking help from fellow users rather than traditional customer service .

Threenvest score

4,4

Network

Earn

Yes

Fees

0,25%

On the exhange website

Threenvest score

4,5

Network

Earn

Yes

Fees

fluctuates

Threenvest score

4,5

Network

Ethereum

Earn

Yes

Fees

0,30%

Available cryptocurrencies and countries available

Available Cryptocurrencies and Countries on PancakeSwap

PancakeSwap supports trading of over 2220 different cryptocurrencies on its platform, providing users with a vast array of options. These include popular tokens like Binance Coin (BNB), PancakeSwap Token (CAKE), Ethereum (ETH), Cardano (ADA), and many others. However, it is important to note that PancakeSwap primarily supports BEP-20 tokens on the Binance Smart Chain. This means that some well-known cryptocurrencies, such as Bitcoin (BTC) and Litecoin (LTC), are not natively available on the platform.
In terms of geographical availability, PancakeSwap is accessible in most countries worldwide. However, there are notable exceptions due to regulatory restrictions. The platform is not available in countries like Iran, Cuba, Iraq, North Korea, Sudan, Syria, and Belarus. Additionally, while PancakeSwap generally allows U.S. investors to use its services, regulatory complexities may still pose challenges for U.S. residents.

Overall, PancakeSwap offers extensive cryptocurrency options and broad accessibility, although users should be aware of the limitations in certain regions and the unavailability of some major tokens.

Main cryptocurrencies available

Binance Coin (BNB)
PancakeSwap Token (CAKE)
Ethereum (ETH)
Cardano (ADA)
Bitcoin (BTCB, a BEP-20 wrapped version)
Tether (USDT)
USD Coin (USDC)
Chainlink (LINK)
Polkadot (DOT)
Dogecoin (DOGE)
Avalanche (AVAX)
Litecoin (LTC, as a BEP-20 wrapped version)
Solana (SOL, as a BEP-20 wrapped version)
Shiba Inu (SHIB)
VeChain (VET, as a BEP-20 wrapped version)
Filecoin (FIL)
Stellar (XLM, as a BEP-20 wrapped version)
Tron (TRX, as a BEP-20 wrapped version)
Aave (AAVE)
Uniswap (UNI)

Main countries where you can open an account

Canada
United Kingdom
Australia
Germany
France
Japan
South Korea
Singapore
Brazil
India
Mexico
Russia
Spain
Italy
Netherlands

FAQs

What is PancakeSwap?

PancakeSwap is a decentralized exchange (DEX) built on the Binance Smart Chain (BSC). It allows users to swap BEP-20 tokens without an intermediary, offering features such as yield farming, staking, and an NFT marketplace.

How do I use PancakeSwap?

To use PancakeSwap, you need a compatible crypto wallet such as MetaMask or Trust Wallet. Connect your wallet to the PancakeSwap platform, then you can trade tokens, provide liquidity, and participate in various features like farming and lotteries.

How do I add liquidity to PancakeSwap?

To add liquidity, go to the “Liquidity” section under “Trade”, connect your wallet, select the tokens you want to provide, and click “Supply”. You will receive Liquidity Pool (LP) tokens which can then be staked in farms to earn rewards.

What fees does PancakeSwap charge?

PancakeSwap charges a 0.25% fee on all token swaps. This fee is divided into 0.17% returned to liquidity providers, 0.03% sent to the PancakeSwap treasury, and 0.05% used for CAKE buyback and burn.

Is PancakeSwap safe?

PancakeSwap employs multiple security measures including smart contract audits by Certik, Peckshield, and SlowMist. The platform also uses multi-signature contracts and time-lock features to enhance security.

What is slippage tolerance on PancakeSwap?

Slippage tolerance is the maximum percentage difference you are willing to accept between the expected price and the execution price of a trade. The default setting on PancakeSwap is 0.5%, but users can adjust this manually.

Can I trade Bitcoin on PancakeSwap?

No, PancakeSwap primarily supports BEP-20 tokens, which are tokens on the Binance Smart Chain. Bitcoin and other non-BEP-20 tokens are not directly tradable on PancakeSwap.

Final opinion on Pancakeswap

PancakeSwap stands out in the crowded field of decentralized exchanges due to its user-friendly interface, robust feature set, and the cost-efficiency of operating on the Binance Smart Chain (BSC). Unlike many Ethereum-based DEXs, PancakeSwap benefits from significantly lower transaction fees and faster processing times, making it an attractive option for both new and experienced users. The platform’s broad range of functionalities, including yield farming, staking, and its own NFT marketplace, provides ample opportunities for users to earn rewards and engage with the DeFi ecosystem. PancakeSwap’s active community and regular updates also contribute to its strong market presence, ensuring that it remains a dynamic and reliable choice for decentralized trading.

However, PancakeSwap is not without its drawbacks. The platform’s reliance on the Binance Smart Chain, while advantageous in terms of cost and speed, does tie it to the centralization issues associated with BSC. Additionally, the limited support for non-BEP-20 tokens can be restrictive for users looking to trade a more diverse range of assets. In comparison to other DEXs like Uniswap or SushiSwap, which operate on the Ethereum network, PancakeSwap may appeal less to those who prioritize decentralization and access to a wider array of tokens. Nevertheless, for users seeking an affordable, efficient, and feature-rich DEX, PancakeSwap remains a strong contender.

At Threenvest, we recognize PancakeSwap as a solid option for those looking to maximize their DeFi experience while keeping costs low and transaction speeds high.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.