I’m sure you’ve heard about Pancakeswap — it’s the platform where you can safely exchange cryptocurrencies like Bitcoin and Ethereum without even owning them!
Here, we take a look at Pancakeswap and review the best DEX crypto exchanges out there today. Let’s get started!
Why we love pancakeswap exchange
pancakeswap has quickly become one of our favourite exchanges to trade on. There are a lot of reasons why we love pancakeswap. Pancakeswap offers fiat trading which gives you access to an exchange that accepts dollars, euros and more. We love exchanges that support a variety of currencies because it makes cross-exchange trading so much easier.
However, pancakeswap only supports USDT pairs which is great if you want to trade with a stable coin but not great if you’re looking for other pairings or pricing stability from another currency like CAD or CAD tethers. But pancakeswap does let you transfer funds between exchanges through Bittrex for a small fee so you can still trade your favourite coins without transferring them into USDT pairs immediately. This is one of our favourite features because it helps bridge some of these missing gaps.
Does PancakeSwap have a future?
There are many DEX (decentralized exchanges) around at the moment, but only a handful of them have proven to be successful and those have provided an extra level of security in addition to what more traditional exchanges offer. PancakeSwap isn’t just a one-trick pony though; it also allows for users to easily trade their crypto assets for other crypto assets. If you don’t fancy using it for direct trading between fiat and crypto, then that shouldn’t be a problem either.
The exchange has some unique features that will be of great interest to those who are more experienced with trading and it’s worth checking out if you can find it on a reputable DEX website. If you don’t fancy using it for direct trading between fiat and crypto, then that shouldn’t be a problem either because at least a dozen exchanges list PancakeSwap as one of their primary options, so you can look into them if you prefer to use a traditional model instead. Some of these include OKEx, Binance, Huobi and Hotbit. Despite its relatively low popularity in comparison to some other options, we believe PancakeSwap does have potential and we hope to see it added to many more exchanges over time.
How it works
PancakeSwap is a decentralised cryptocurrency exchange platform. It seeks to enable anyone on its network to buy and sell virtual currencies quickly, safely and with zero fees. This marks a radical departure from other exchanges that charge commissions of up to 5% or more for every transaction. That’s because PancakeSwap does not act as an intermediary for trades. Instead, it functions as a peer-to-peer platform that enables buyers and sellers to connect directly via order books in an open environment.
The platform supports transactions in all ERC20-compliant tokens. Tokens can be deposited and withdrawn directly from users’ wallets, which are hosted by third-party providers that support Ethereum, such as MyEtherWallet. In addition to buying and selling cryptocurrencies, users can also create new tokens through a process called minting. To mint new tokens via PancakeSwap, you’ll need to obtain their private key first, which is typically derived from your wallet address and password.
Is PancakeSwap exchange safe?
PancakeSwap seems to be a small and newly launched DEX that’s offering some interesting features, including a mobile app and social trading. However, like many other new exchanges, PancakeSwap is offering users no insurance in case of exchange hacks or server downtime. They haven’t provided much info about their team either—so it’s hard to say if they’re trustworthy. Overall, PancakeSwap appears to be safe for now, but that could change at any time. Make sure you understand all of your exchange’s risks before deciding to trade there.
If you are looking for an exchange that has all of these features and is safe and secure, then PancakeSwap might be your answer. It doesn’t have as many coin options as IDEX, but it does have more than Cryptopia. And according to CoinMarketCap it currently ranks #35 with over $3 million in daily volume. Hopefully, with time it will have more features and coins added. However, if safety and security are your primary concerns when choosing an exchange for DEX trades then we recommend using Binance (though there’s no word on whether or not they will add new coins anytime soon) or another more established platform such as Coinbase Pro/GDAX.
Is PancakeSwap cheaper than Uniswap?
If you’re looking for a P2P platform with lower fees, well, then Uniswap is more likely to be your best option. The Swap protocol that runs on top of Uniswap includes transaction fees and withdrawal fees of 0.025% and 1 USD respectively; compare that to PancakeSwap’s 0.05% fee for both trading and withdrawals (there are no transaction fees). That said, one issue with P2P platforms is typically a lack of liquidity—meaning you might find it hard to find someone who wants to trade with you or fulfil an order at any given time. This can be a problem if you aren’t able to hold onto your funds or trade quickly.
That said, if you’re looking for a more traditional exchange experience, PancakeSwap has that covered as well. It offers market (maker) and limit (taker) order options—the latter of which may be best for newer traders—along with seven trading pairs with BTC and USDT. The difference between market and limit orders lies in how much control you have over your trade price. Market orders automatically execute at current prices while limit orders allow you to specify a particular price point; limit orders can also be used to set stop losses or take profits automatically.
What we like about pancakeswap
Uniswap is newer than PancakeSwap, so it’s been able to take advantage of technological developments and improvements as they’ve been created. However, Uniswap isn’t necessarily better than PancakeSwap, at least not yet. There is a possibility that over time there will be more DEXs like Uniswap and they’ll all have their own unique advantages and disadvantages, but right now it’s unclear whether or not there will be a long-term future for any of them. Either way, both PancakeSwap and Uniswap are worth trying out if you want to give one of these new crypto exchanges a shot in 2019.
What makes PancakeSwap better than Uniswap? The only real advantage that we can see from using PancakeSwap over Uniswap is that you have a lot more trading pairs to choose from, including a lot of obscure coins. However, there’s really no reason for an average trader to care about obscure coins unless they’re trying to complete their coin collection or something. If you just want to buy and sell Bitcoin and other popular cryptocurrencies without paying too much in fees then it doesn’t matter which DEX platform you use, as long as it’s fast and reliable.
Issues with pancakeswap
Although it is clear that PancakeSwap has taken many of its design choices from other successful DEXes such as EtherDelta, there are some problems. First, although I appreciate that they have made their UI simple to ensure novices can utilize their platform and make trades quickly, a less drastic approach may have been more appropriate. Second, PancakeSwap uses IOUs to handle orders on its platform rather than allowing users to directly put up tokens for sale or buy orders. While in itself not a deal-breaker, it does mean that users must trust PancakeSwap with their tokens when placing buy/sell orders and vice versa.
The above issues with PancakeSwap are not too much of a deal for me personally, especially given that there is no fee for using their platform. However, many traders will be put off by these design choices and it will take time for PancakeSwap to gain widespread adoption. In addition, I am concerned about the potential regulation of DEXes in future as well as its feasibility in highly restrictive countries such as China where domestic exchanges may have an advantage. This could slow down PancakeSwap’s growth and adoption over time which would negatively impact its value over time compared to competitors such as Uniswap or EtherDelta which already have more traction.
Summary on pancakeswap
The exchanges where you can buy and sell are called DEX. These are decentralized, and they don’t rely on middlemen or third parties. (Because no one likes these! Get it?) It’s actually quite cool; on a DEX, all trading is done via smart contracts between users. That means there are fewer fees involved since there aren’t any people taking a cut of each transaction. There’s no central ledger to manage either, so you can rest assured that your tokens will be secure at all times—unless someone gets access to your private key and manages to steal them from you… which is more about being careful with your crypto in general than anything else!
So, is PancakeSwap cheaper than Uniswap? Let’s take a look at some of their prices and how they compare to their competitors. First, let’s look at UNIFY. This token is currently trading for 0.0000948 BTC. At that price, it’s easy to see why Uniswap is so popular; it has some of the lowest fees around! Of course, its overall popularity also means that you may find your ideal pair a little harder to come by; if you don’t see what you’re looking for as soon as you open up your exchange, be patient and keep searching!