Buy PancakeSwap (CAKE)
What is PancakeSwap (CAKE)?
The decentralised finance (DeFi) space is developing at a rapid pace, with new DeFi token tools and trading platforms emerging. One of the fastest growing DeFi projects is PancakeSwap, which allows not only to trade, store and stake assets, but also to participate in various lotteries. About it all in order.
How PancakeSwap works
On PancakeSwap, you can not only exchange BEP-20 tokens, but also engage in CAKE stacking and receive rewards in Binance Coin cryptocurrency. PancakeSwap is also a liquidity pool provider and a CAKE token revenue farming service.
It is the support for lotteries and NFT tokens that sets PancakeSwap apart from other trading platforms. CAKE token holders can bid for other SYROP tokens with advanced functionality, including participation in lotteries. As for NFT, these token cards can be bought and sold for CAKE.
At the time of publication, PancakeSwap is the second largest exchange in the decentralised finance space. Because PancakeSwap runs on the Binance Chain blockchain, there are virtually no transaction fees.
What makes CAKE unique?
Like all DEXs, PancakeSwap has its own CAKE token, which is used for commissions and rewards the platform's participants. Its current exchange rate and price for today can be tracked on the exchange or broker platforms.
In September 2020, the Pancake token (CAKE) was launched on Binance Smart Chain (BSC). CAKE is a BEP-20 token specific to BSC. The CAKE token has performed very well in 2021 and experienced incredible price growth during February. CAKE's main function is to help provide liquidity to the PancakeSwap platform. In addition, CAKE has no maximum supply, which means it is a deflationary token and tokens are regularly burned to reduce supply.
The price of the CAKE token has soared in early 2021. CAKE cryptocurrency has a total supply of 118 million. Therefore, many analysts agree that the decision to invest in PancakeSwap is promising.
Is PancakeSwap safe?
PancakeSwap is a decentralised application (dapp) that interacts directly with smart contracts. So, if there is a bug in the code, there could be security issues.
But everyone can feel safe when they buy PancakeSwap, because they are checked and tested by Certik. Plus, if you work with a reliable exchange or brokerage platform, you and your finances are also under their protection.
How to Buy PancakeSwap (CAKE)
Many people struggle to understand the technology behind cryptocurrencies, let alone how exactly they function as an investment.
Investing in cryptocurrencies can be extremely lucrative, and many investors buy CAKE and other cryptocurrencies for short and long periods of time on an exchange or earn money by trading through a broker. You can as well. The main thing is to decide on your goals and capital.
Why buy CAKE?
Optimistic predictions about the prospects of virtual money with high liquidity are, of course, based on hard facts. And the main arguments why investing in cryptocurrency will be profitable are:
- Cryptocurrencies' protection against inflation. Unlike fiat money, which state banks can print in unlimited amounts, most cryptocurrency systems have a limit on the maximum number of coins that can be mined. And since the main cause of depreciation of currencies is their over-issue, cryptocurrencies are well protected against inflation.
- Dependence of digital currencies on governments and banking systems. Digital money systems are completely autonomous and have no single centre of control. Therefore, no government or commercial entity has the ability to limit or control their issuance and circulation, or artificially reduce the value of the coin.
- High security of cryptocurrency systems against hacking and cracking. All digital money systems are based on blockchain technology, which is the construction of a continuous chain of interconnected blocks of information with transaction data. It is impossible to change, delete or tamper with the blocks in blockchain.
- Stable, rising (on an annual scale) rates of highly liquid cryptocurrencies. Moreover, if you look at the dynamics of popular cryptocurrencies, it becomes apparent that each small decrease in their value was followed by a sharp jump in value after a short period of time.
- High level of confidence in highly liquid cryptocurrencies. Because the value of digital money is independent of government policies and because cryptocurrency systems are more profitable than bank transfers, virtual currencies are attracting both ordinary online users from all continents and investment firms.
Based on all these arguments, some experts even suggest that in the future, cryptocurrencies will play the role of a "safe haven" on stock exchanges that precious metals currently hold.
Where to buy PancakeSwap
There are many ways to acquire virtual coins, namely:
- Buy on a cryptocurrency exchange or forex.
- Buy from one of the many online exchangers.
- Make money as a reward for work done on cryptocurrency freelancing exchanges.
- Sell goods for digital currency Win a game or lottery with a Bitcoin prize.
It will depend on how long you will invest and when the profit arrives. Like any other asset, the investment term can be short term, medium term or long term. After you buy PancakeSwap in Malaysia, all you have to do is to keep track of its current value and choose the moment when the digital money can be exchanged for regular money with maximum benefit to you.
When choosing which cryptocurrency to invest in, there is no need to stop at just one digital financial system. On the contrary, investing in several cryptocurrencies at once is likely to be more profitable and help reduce investment risks.
PancakeSwap trading platform
Today, digital currencies are on a par with the most traded assets. The changing financial landscape is contributing to this to a large extent. In the beginning, cryptocurrency trading was for specialists, but now everyone has the opportunity, thanks to broker tools like Contract for Difference or CFD.
CFDs can be found on the broker's platform.
What are the CFDs for a Cryptocurrency
A CFD is a kind of agreement between a broker and a trader. Its features are:
- When a trader buys a CFD on a cryptocurrency, he is not buying the crypto itself. He is buying a contract with a price to buy the currency.
- The trader can close the contract at any time. If the prediction is correct, he will earn a certain amount of money, otherwise he will forfeit it.
- CFDs allow you to earn on the rise or fall of the cryptocurrency.
- CFD contracts originated in the early days of the stock market. In the beginning, traders used CFDs on stocks only, then the tool migrated to commodities, stocks and cryptocurrencies.
A feature of cryptocurrencies is their high volatility. They are becoming increasingly popular as their popularity grows and the potential for government regulation of the sector is imminent.
How to start investing in PancakeSwap (CAKE) in Malaysia?
On the brokerage platform, there will be many assets available for you to trade, including stocks, commodities and cryptocurrencies. To invest in PancakeSwap in Malaysia, you must first register with the broker and make a deposit into your account. After which you can start buying! It's easy, try it today for free!
The registration itself on the broker's website is free and fast. Simply go to the registration menu and fill in the required fields. A couple of minutes and you're in trading!
A demo account is a great way to practice your trading skills before you start trading cryptocurrencies for real money. You should move to a real account after you become comfortable with trading on a demo account.
You may also want to use a demo account to test new functionality without risk, such as margin trading. Often these accounts are used by experienced traders to test new trading strategies or algorithms for trading bots.
You can open a live account as soon as you sign up or practice trading on a live demo account. To do so go to your personal client cabinet and deposit your account with the amount you feel comfortable with. The sum must be equal or higher than the set minimum deposit. As a rule, brokers set the minimum deposit around $10. Check the amount at the time of registration. There are several ways to deposit and withdraw your profit, most commonly users choose a debit card.
What is Margin Trading?
Trading on margin is trading with leverage. In essence, margin trading multiplies the outcome - both gains and losses. A margin account gives traders more access to capital and partially eliminates counterparty risk. How? Traders can trade the same position, but hold less capital.
When it comes to margin trading, you will often hear the terms margin and leverage. Margin is the amount of your equity you're putting up as collateral. And leverage, or leverage, is how much you multiply your capital. Leverage 2x means that you open a position that is twice your margin. Leverage of 4x means you open a position that is four times your margin, etc.
Once you have opened an account, keep learning and keep practising. Good Luck!