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Product Walkthrough | How to use PancakeSwap - a Step-by-step Guide

Publish by Trang Tran at 08 August 2021

PancakeSwap Overview

PancakeSwap is one of the first projects on Binance Smart Chain that was launched just a few days after the Binance Smart Chain mainnet.

The first product of the project is PancakeSwap AMM, a fork version of Uniswap V2. However, thanks to the BSC platform, the transaction time and costs on PancakeSwap are quite low compared to Uniswap, which has helped PancakeSwap attract a large number of small, low-capital investors.

Over time, besides AMM, the project has also developed more products to diversify its platform, such as Syrup Pools, IFO, Lottery, Team Battle,... All of them are very successful and have been attracting a large number of customers and investors.

Eventually, PancakeSwap from 1 forked AMM has gradually become an AMM with the highest TVL and trading volume these days.

Preparation for trading on PancakeSwap

What are the prerequisites for trading on PancakeSwap?

First, users need to download and create an account (optional) on Coin98 Wallet.

Coin98 Mobile Wallet version X is available for download at:

Read the detailed instruction about how to use Coin98 Wallet or watch the tutorial video below to install the Coin98 Mobile Wallet:

Coin98 Extension: Follow these below steps to install Coin98 Extension Wallet on Chrome:

  • Step 1: Find and select Coin98 Extension Wallet on Chrome Web Store;
  • Step 2: Click Add to Chrome;
  • Step 3: A pop-up notification is displayed on the screen, please read it carefully. To approve, click Add extension.
  • Step 4: To use the extension, click the extension icon to the right of the address bar. This dropdown will show you Coin98 Extension Wallet is installed and enabled in Chrome.

How to create a Binance Smart Chain Wallet on Coin98 Wallet?

Users may create a BSC wallet (BNB BEP20) or import an existing wallet from another platform into Coin98 Wallet.

Since PancakeSwap is an AMM on Binance Smart Chain, users definitely need a BSC wallet (BNB BEP20) to use this protocol. If users are currently using Coin98 Wallet, they can re-import their multichain wallet to automatically update their own Binance Smart Chain (BNB BEP20) wallet as well as other new wallets available in the latest version!

Read the instructions on how to create a Multi-Chain wallet in detail.

Remember to transfer all assets to the BEP20 wallet before trading.

In case of users accidentally transfer money to the TRC20, ERC20, or SPL wallets, Coin98 Wallet’s Cross-chain Bridge function will support converting tokens to BEP20 directly in the app instead of transferring them back to Binance and then withdrawing BEP20 tokens to their wallet. This is one of Coin98 Wallet's technological improvements to make it easier to trade on PancakeSwap.

Preparing BNB as gas fee

PancakeSwap uses BNB for gas fees. Therefore, in order to trade on PancakeSwap, users must have BNB in their wallets.

The transaction fee on BSC is cheaper compared to Ethereum. Currently, the transaction fee on PancakeSwap is approximately 0.25% of the trading amount.

How to trade with PancakeSwap natively on Coin98 Wallet

Step 1: Open Coin98 Mobile Wallet and click Swap on the home screen.

Step 2: Select PancakeSwap. Users can choose between PancakeSwap V1 or V2 based on the tokens they are trading.

Step 3: Click the settings icon at the top right corner of the screen and choose between 2 interface options: the Basic UI (1) and the Pro UI (2).

Users must fill in the following information to complete the transaction:

  • Choose the trading pair from the list: for example, BNB & CAKE. Users can choose other tokens as preferred.
  • For those tokens that haven’t been listed on Coin98 Wallet, users can still trade using their contract addresses.

Step 4: Slide the bar to reach the desired trading amount. Click Approve, then Swap to complete.

Wait for the transaction to complete and click OK.

Note:

  • The default gas fee on Coin98 Wallet has been set for the highest speed with the most reasonable cost.
  • Users can also adjust the gas fee and slippage by clicking the settings icon at the top right corner of the trading interface.
  • Slippage is one of the reasons that lead to failed transactions. Users can trade with the default slippage of 2%, or set to a higher rate for a better chance of success.
  • Users need to have a BEP20 wallet and a proper balance of BNB-BEP20 in this wallet to pay the gas fee before trading.
  • The Approval step only displays in the very first trade. In the following trades, users only need to click Swap to complete the transactions.
  • The arrow in the middle of the trading interface is used to switch between the buying and selling positions. Users need to check the tokens’ positions carefully before making any transaction.

After swapping successfully, users can access the Trade History from the swapping interface to view their transactions or go back to the home screen to check the traded tokens if needed.

How to use PancakeSwap with the Coin98 Extension Wallet

Connect the Coin98 Extension Wallet to PancakeSwap

This is the PancakeSwap exchange's interface, which looks identical to UniSwap and SushiSwap. As a result, the trading process is relatively similar.

Step 1: Go to PancakeSwap.

Step 2: Click Unlock Wallet or Connect at the top right corner of the screen to unlock the wallet.

Choose Coin98 Wallet => Enter the password to log in to the Coin98 Extension Wallet.

Click Connect to confirm and start trading.

Trade

Step 1: Choose the token to Swap and enter the trading amount.

Step 2: Carefully check the information and click Swap to continue.

Step 3: Double-check the information and click Confirm Swap to conduct the transaction.

Step 4: Click Confirm on the pop-up window to approve the transaction.

Users can now view the transaction information by click "View on Bscscan."

Add liquidity

The Pools feature on the PancakeSwap exchange allows users to provide liquidity by adding tokens to different liquidity pools (LPs).

When adding tokens to liquidity pools (LP), users will receive FLIP tokens (the native tokens representing the liquidity provision of PancakeSwap). For instance, if users deposit $CAKE and $BNB into a liquidity pool, they will receive CAKE - BNB FLIP tokens.

The amount of FLIP tokens users receive represents their share in the CAKE - BNB liquidity pool. Users can also get money back at any time by canceling the liquidity they provided. Users can retrieve their assets at any time by canceling the added liquidity.

To start adding liquidity, follow these steps:

Step 1: Go to Pools on PancakeSwap via: https://pancakeswap.finance/pools

Step 2: Click Add liquidity.

Step 3: Choose tokens to Stake. And then choose Supply. For example, BNB and CAKE.

Note: Users must provide a proper amount of tokens with the same value in USD. For example, $10 in BNB with $10 in CAKE.

Step 4: Carefully check the information and click Confirm Supply.

Step 5: Click Confirm on the pop-up window to approve the transaction.

Users now own CAKE/BNB FLIP LP tokens.

Farm

After getting the LP tokens, users can use them to earn CAKE. There are many Pools for users to Farm on the PancakeSwap exchange.

Step 1: Go to Farm on Pancakeswap via: https://pancakeswap.finance/farms and click Connect to connect the wallet as instructed above.

Step 2: Select a Farm to join. For example, CAKE - BNB farm.

Step 3: Click Select.

Step 4: Click “+” to stake LP tokens.

Step 5: Enter the amount and click Confirm.

Wait for the transaction to complete and you have farmed successfully on PancakeSwap.

Lottery

Lottery is a special lottery feature on the PancakeSwap exchange.

Each Lottery ticket is usually worth $5 in CAKE, and after purchasing the ticket, users will be given six random numbers from 0 to 9. There will be two lottery draws every day, each lasting 12 hours.

Users can buy as many tickets as they prefer to participate since the number of tickets available is unlimited.

If the numbers on a ticket match the Lottery results in the correct order from left to right, the ticket's owner wins the prize.

For example: The lottery result is 913662 and there are 2 tickets participated in the Lottery:

  • Ticket A - 913962: Match the first 3 numbers and the last 2 numbers with the lottery results ⇒ Ticket A will win the “Match First 3” prize.
  • Ticket B - 013662: Although the last 5 numbers match, the first number does not match the lottery results ⇒ Ticket B will not win any prizes.

The reward distribution for each prize will be presented as follows:

  • Match the first 1 digit - Match First 1: 1% of the Pool prize.
  • Match the first 2 digits - Match First 2: 3% of the Pool prize.
  • Match the first 3 digits - Match First 3: 6% of the Pool prize.
  • Match the first 4 digits - Match First 4: 10% of the Pool prize.
  • Match the first 5 digits - Match First 5: 20% of the Pool prize.
  • Match all 6 digits - Match All 6: 40% of the Pool prize.

To join Lottery on Pancakeswap, follow these steps:

Step 1: Go to Lottery on Pancakeswap.

Step 2: Click Buy Tickets.

Step 3: Choose the ticket amount and click Enable.

Step 4: Click Confirm.

Step 5: Wait for the Lottery result.

PancakeSwap Collectibles

Users can also earn special NTFs in the Pancake Collectibles set and trade them for CAKE.

Follow these steps to join and earn NFT on PancakeSwap:

Step 1: Go to Pancake Collectibles via https://pancakeswap.finance/collectibles and click Register for a chance to win.

Step 2: Users will be randomly chosen to receive NFTs.

IFO

Initial Farm Offerings (IFO) are a new type of token sale event popularized by Decentralized Exchange (DEX) platforms. PancakeSwap is the most popular of them all, utilizing this unique fundraising event for upcoming projects.

Note:

  • CAKE-BNB LP tokens are required.
  • CAKE Tokens will be burnt permanently when they equal to half of the total fund.

For example, if the total amount given is $1,000,000 USD, $500,000 CAKE tokens will be burnt.

To join IFOs on PancakeSwap, follow these steps:

Visit: https://pancakeswap.finance/ifo for IFOs projects.

Before the sale:

  • ​Buy CAKE and BNB tokens.
  • Get CAKE-BNB LP tokens by adding CAKE and BNB to the liquidity pool.

During the sale: Users must deposit CAKE-BNB LP tokens to buy IFO tokens.

After the sale ends: Users claim the IFOs tokens they bought. The remaining amount of LP tokens will be sent back to users.

Prediction

In fact, it's extremely easy to play Prediction on PancakeSwap. Essentially, users have to estimate whether the BNB/USDT price will be greater or lower than it was when the “LIVE” period began.

To join Prediction, follow these steps:

Step 1: Tick on two boxes to show that users understand the risks of Prediction. Click Continue.

Step 2: Next, two main screens displays:

  • The LIVE screen on the left: shows the locked price of BNB/USDT at the moment.
  • The Prediction screen on the right: players can manipulate and choose their position on this screen.
  • If users choose “Enter UP”, they believe the BNB/USDT price will be higher in the next 5 minutes than the locked value on the LIVE screen.
  • If users choose "Enter DOWN", they believe the price of BNB/USDT will be lower in the next 5 minutes than the locked value on the LIVE screen.
  • Users will WIN if the outcome is precise as anticipated! Users will lose if the opposite happens!

Step 3: For example, we're choosing Enter DOWN. Enter the BNB amount to bet.

Step 4: Click Confirm.

Step 5: The system will charge a small confirmation fee. Click Send and the chosen position will be confirmed.

In case of winning, users will be rewarded. The reward value will depend on the value of the Pool and the proportion of participants in the UP & DOWN position.

Step 1: Click Collect Winnings to get the reward.

Step 2: Click Confirm.

Step 3: The system will charge a confirmation fee. Click Send to pay and complete.

The displayed reward value has been deducted by 3% to transfer to the Pancake Treasury, which will be used to redeem and burn CAKE every Monday.

In case of losing, users will lose all the money they bet at the beginning.

PancakeSwap also offers a market prediction tool for real-time pricing updates to help users make better decisions. By clicking Charts at the bottom left corner of the screen, users may access this feature.

Click I understand to use the Charts function.

The BNB/USDT chart will be shown to support users in making their predictions.

Conclusion

Hopefully, this article can effectively support users in using PancakeSwap with Coin98 Wallet.

If there are any questions, please feel free to comment below or join Coin98 Community for further discussions about Crypto.

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Trang Tran

Life’s too mysterious to take too serious 🌸🌸🌸

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