PancakeSwap is a Binance (BEP20) exchange.
You will need to use BNB SmartChain (BSC), in order to trade crypto assets if they’re on the Binance Chain.
Buying crypto on a decentralized exchange has advantages, as well as disadvantages. Make sure you do your own research (DYOR), as always, prior to buying/interacting with any cryptocurrency or platform. Before we get into PancakeSwap, let me share with you a pro and con about using this option to trade:
PRO: using BNB to trade comes with very reasonable and low gas fees, especially in comparison to ERC20, or Ethereum, backed tokens.
CON: you’ll find a lot of rug pulls (see our Glossary) and notoriously-risky projects favor use of the BNB BlockChain for this very reason.
I do not intend to discredit any entities, but will share my opinions and experiences! With due diligence, you can determine for yourself whether a project meets your expectations, and is worthy enough for you to invest in, regardless of this concern. Only you can make that decision, since we do not offer financial advice, and I am not a certified financial advisor. Moving on!…
If you wish to buy a cryptocurrency using PancakeSwap, you can follow these general steps (mobile view):
- Make sure you research the project you are interested in: DYOR
- Make sure you have enough BNB Smart Chain (BSC) in your wallet, to be used for the transaction.
- Open PancakeSwap or launch app from your “dApps” options in your DeFi wallet: commonly, Trust Wallet.
- Connect your wallet by selecting the connect wallet button, usually found on the upper right hand side of page.
5. Next, you will choose a wallet and follow the prompts. If using a mobile device, confirm the open in… wallet of your choice.
6. You will then be redirected to your wallet, where you’ll need to authorize the connection of your wallet to PancakeSwap. After your selection has been made, return to PancakeSwap. In the upper right corner, you should see your wallet address. This lets you know that your wallet has successfully been connected.
7. Confirm your BNB balance, in the upper trading bar and “please select token” on the lower bar, for trading.
8. Confirm your crypto’s contract address: you may navigate to Coin Market Cap (CMC), Coin Gecko, or (the best option) go directly to the cryptocurrency’s website, and directly copy its contract address.
9. Return to PancakeSwap. Paste the address on the lower trading bar, and enter the amounts you would like to trade.
10. Confirm your trade… and that is it! Congratulations, you have successfully made your first crypto trade using PancakeSwap.
To confirm you successful transaction, navigate to your wallet that you connected. Look for the cryptocurrency you traded for, and see if it has appeared in your wallet. *NOTE* This usually takes a few minutes, so don’t be alarmed if it doesn’t appear immediately!
In some cases, you may have to go and add a custom token to your wallet. To do so, look up the token of choice. If it doesn’t appear, select the add custom token option. You will then, again, select or paste your address for the crypto you’ve purchased, and it should appear! Slide the option bar to “on” for your token and return to your wallet: now you should see your token balance!