How to buy PancakeSwap online

One of a new generation of decentralised exchanges, PancakeSwap is also one of the most distinctive. Use this guide to learn about its own CAKE cryptocurrency and whether the coin looks set to rise.
By: James Knight
James Knight
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed,… read more.
Updated: Jul 1, 2021
Tip: our preferred broker is, eToro: visit & create account

This beginner’s guide explains everything you need to know about PancakeSwap. Get a quick history of the platform, take a look at the coin’s future prospects, and find out where’s best to buy some.

Compare where to buy PancakeSwap, and open an account

If you’re ready to dive in with a broker, use one of the platforms in the table below. They have been comprehensively vetted and approved by our experts so that you can be confident they’re the best platforms around. Otherwise, scroll down to keep reading about PancakeSwap.

1
Min. Deposit
$50
Exclusive promotion
user-score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start Trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
2
Min. Deposit
$1
Exclusive promotion
user-score
9.3
The world's largest cryptocurrency exchange with over 2bn daily users
Innovative trading platform offering enormous range of crypto coins
Supports over 60 methods of payment including PayPal
Start Trading
Description:
Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.
Payment Methods
Cryptocurrencies
Full regulations list:
3
Min. Deposit
$20
Exclusive promotion
user-score
8.7
Margin Trading with full legal compliance
Cryptocurrency staking
Various Payment options
Start Trading
Description:
Cex.io offers exchange of fiat currency for Bitcoin Ethereum, Tether, and 23 other cryptocurrencies, as well as Bitcoin/Ethereum trading against the USD.
Payment Methods
Credit Card, Cryptocurrencies, Debit Card, Wire Transfer, skrill
Full regulations list:

What is PancakeSwap?

A decentralised exchange platform that lets you trade cryptocurrency without going through any central authority. You can buy and sell coins straight from your wallet and don’t need to create an account. PancakeSwap’s own cryptocurrency is known as CAKE.

As well as being an exchange, PancakeSwap offers a whole host of other features as well. These range from ‘traditional’ decentralised finance perks, like earning extra money for providing liquidity, to things that would be more at home in a casino, like a lottery that runs every six hours.

PancakeSwap launched in late 2020 and quickly became one of the most popular decentralised exchanges. With a distinctive theme based on sugary treats (where you can put CAKE coins in SYRUP pools), it already owns 10% market share and has hundreds of coins available.

How does PancakeSwap work?

By acting as an automated market maker (AMM) and storing transactions on the blockchain rather than using a central authority to approve trades. An AMM is essentially just a formula that sets the price of an asset, and is opposed to prices being set by matching buyers with sellers.

It operates a system of incentives that encourages users to lock their cryptocurrency into the exchange and create liquidity, so that there is always enough coins to make and match trades on the platform.

All of this information is stored on the blockchain, which is just like a database. One of the distinctive features of PancakeSwap, compared to rivals like Uniswap and SushiSwap, is that it’s based on the Binance blockchain rather than Ethereum. In practical terms, that lets it charge much lower transaction fees to attract new users.

How to buy PancakeSwap online – a step-by-step guide

Step 1. Find an exchange

A cryptocurrency exchange offers a wide range of coins and lots of ways to swap between them. As PancakeSwap is relatively new, it’s only available on a few exchanges at the moment, and here are two of the top ones that let you get CAKE coins:

  • Binance: Binance offers hundreds of cryptocurrencies and has the largest trading volume of any exchange. It adds new coins all the time, and offers lots of useful learning material to beginners, including a ‘lite’ mobile app. Sign up with Binance >
  • Kucoin: Kucoin also boasts a lot of helpful advice and information for beginners. It also specialises in lesser-known coins as part of its range of more than 200 tokens in total. Join Kucoin now >

Step 2. Sign up and fund your account

To use a centralised exchange like either of the options above, you need to create an account and deposit some funds. To sign up you have to provide some contact details and a form of ID, while you can make deposits in either fiat currency (like GBP or USD) or cryptocurrency.

You can also get CAKE on the PancakeSwap exchange itself. To use decentralised exchanges you don’t need to sign up or deposit money, you just need a cryptocurrency wallet to get started.

Step 3. Purchase

Now that you’re ready, the next step is to go ahead and get your coins. Go to your exchange platform and search for the coin’s ticker symbol. For PancakeSwap, you should use CAKE. Then choose which currency to swap for it from the list of options. If you’re using USD to pay for the coins, choose the USD/CAKE pair, enter how much you want, and execute the trade.

Step 4. (Optional) Get a suitable wallet

A wallet is a piece of software that keeps your coins secure, away from an exchange. They are almost all free and easy to use, and are a great option for anyone who intends to hold their coins for a long period of time. Here are two of the top wallets around:

  • Guarda Wallet: Guarda is an online wallet that can be accessed through a browser or by downloading a desktop app. It comes with an integrated exchange, so you can trade coins straight from your wallet. Sign up with Guarda today >
  • Trezor: Trezor is a hardware wallet, a USB-like device that keeps your coins in ‘cold storage’ (offline) so that they’re protected even if you plug it into an infected computer. Get Trezor now >
1
Min. Deposit
$1
Exclusive promotion
user-score
10
The world's largest cryptocurrency exchange with over 2bn daily users
Innovative trading platform offering enormous range of crypto coins
Supports over 60 methods of payment including PayPal
Start Trading
Payment Methods:
Cryptocurrencies
Full Regulations:

How to trade PancakeSwap – a step-by-step guide

Step 1. Find a broker

To trade cryptocurrency successfully you need a regulated broker that charges low fees. Brokers often charge for trades, so making lots of moves can be expensive if you have to pay a lot each time.

One drawback of brokers is that they usually only offer the largest and most popular coins, so an altcoin like PancakeSwap might not be available. Try eToro or Plus500 first, and check back often to see if it’s been added.

Step 2. Deposit money

Brokers only accept deposits in fiat currency. You have to fund your account before trading, and many platforms offer some form of first time deposit bonus. Again, the most important thing to beware of is fees, as brokers sometimes charge for deposits and withdrawals as well as for trading.

Step 3. Decide how you’d like to trade

Most short term traders use contracts for difference (CFDs) to speculate on the price of assets. A CFD is an agreement whereby a buyer makes money based on the difference between the price of a coin when they get the CFD compared to when they sell it. They also work the other way: you can offer a CFD for sale if you think the price is going to go down.

Step 4. Start trading 

Before you start trading for real, think about using a demo or virtual account to practice. Every good broker offers one as a feature of your account and it means you can make trades with fake money to get used to the market.

Trading itself isn’t too complicated, you just have to decide whether you think a coin is going to go up or down in value. That determines whether you should buy or sell the asset.

There are ways to make it more advanced, although these are generally left to more experienced users. You can trade with leverage, which means making big moves by putting down a portion of the total trade as a deposit and borrowing the rest from your broker. This can lead to big wins, but it’s risky as it can cause big losses too.

1
Min. Deposit
$50
Exclusive promotion
user-score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start Trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA

Still undecided?

You should always take your time before deciding on any investment, and cryptocurrency is no different. Here we have summarised PancakeSwap’s pros and cons, and you can find more useful information below.

Pros

  • Already one of the most popular exchange platforms
  • Lots of opportunity to earn extra money from CAKE
  • You can spend the coin on NFTs, lotteries, and many other features through PancakeSwap

Cons

Finally, here are three more questions to help you decide whether to invest in PancakeSwap.

1. Is it a good time to buy PancakeSwap?

It could be if you think the future looks bright for cryptocurrency in general and decentralised exchanges in particular. Otherwise, it depends on what sort of trader you are and on what the current price is.

A short term focus usually means you want to brush up on some analytical skills so that you can study price charts and graphs. They can help you time your entry into the market. If you need more help, then the latest predictions from our team of analysts can be found below:

2. What problem does PancakeSwap solve, and what are the coin’s investment prospects?

It makes buying and selling cryptocurrency cheaper by taking away the middleman. Instead of a company taking a cut and governing the rules on who can trade, it lets you buy and sell instantly, paying less in fees each time.

PancakeSwap launched itself into the top five decentralised exchanges in the world within a few months of launch. Usually the coin’s prospects are tied to the success of the underlying platform, it has previously hit all-time highs during crypto bull runs, when total volume on the exchange is highest.

The challenge could be whether the coin can grow in value outside of the busiest periods. As well as whether every decentralised exchange can be successful, or whether the likes of Uniswap, Mdex, and PancakeSwap itself can all rise together. Check in with how the market is doing using the links below:

PancakeSwap CAKE/USD has weakened from $24 below $18 since the beginning of September 2021, and the current price stands around $20. The fundamentals of this cryptocurrency continue to improve; still, PancakeSwap has decided to delay the “Pancake Squad project” by several days. Fundamental analysis: PancakeSwap has much lower transaction…
PancakeSwap CAKE/USD is an automated market maker (AMM) that has tremendously increased its trading volume by 35% within the span of the last 24 hours.  Avalanche AVAX/USD is an umbrella platform used for launching decentralized finance (DeFi) applications and financial assets and is used for trading. It has…
PancakeSwap CAKE/USD is a Binance Smart Chain-based DEX that was launched by anonymous developers. Its an automated market maker (AMM) and decentralized finance (DeFi) application that has seen a lot of activity recently. On June 29, we saw Fetch.ai launch Intelligence Automation for PancakeSwap and Uniswap V2. This…

3. Do you want to hold PancakeSwap for the long term?

That depends on how soon you want to see returns, your mindset, and the state of the market at the moment. To help you decide, here are a couple of final considerations depending on what type of trader you are.

Considerations for a long term investment strategy

The broader crypto market is important when it comes to an exchange. If you think total trading volume is going to keep rising, then you want to find an exchange and get some coins straight away. If you want some more security, get a wallet to store them in.

Considerations for a short term trading strategy

Short term strategies are based around technical indicators that flag when the data suggests you should buy. Brush up on your analytical skills and then find a broker that charges low trading fees.


Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Financial writer
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed, rode, and ate an ostrich all on… read more.