There’s a huge opportunity within cryptocurrency exchanges at the moment for people who wish to earn what can be considered as a ‘true passive income’ and this is in the form of holding/staking cryptocurrency.
Staking cryptocurrency is one of those things that not a lot of people actually know about, and it can be highly profitable for people if done correctly. Within this article, we will be teaching you all there is to know when it comes to staking CAKE token on the PancakeSwap exchange.
CAKE and PancakeSwap Exchange
Although PancakeSwap wasn’t the first decentralized exchange to hit our screens (UniSwap was), it has become a very popular one for users still due to its extremely affordable trading fees in comparison to its competition. This is owed to the fact that it runs primarily on the Binance Smart Chain (BSC) which has low fees in comparison to the Ethereum network.
PancakeSwap is what is known as an Automated Market Maker (AMM) within the Binance Smart Chain that aims to become one of the world’s leading liquidity providers. Users are able to earn $CAKE whenever they provide liquidity to the pool, stake CAKE tokens or even from the lottery they offer.
Users have the ability to provide liquidity on the individual liquidity pools in a process known as stacking pancakes, or you can simply farm CAKE through providing liquidity pairs under the farming tab of the website.
CAKE is available on many exchanges right now, so earning it can prove to be profitable. Let’s run through how to stake it on Pancakeswap now.
How to stake CAKE
When users contribute to the liquidity pool, PancakeSwap, like Uniswap and SushiSwap, offers its own coin. The platform’s native coin, CAKE, may also be readily staked. To do so, simply follow the steps outlined below.
Set up a wallet
Make sure you have the $CAKE tokens in a cryptocurrency wallet that supports PancakeSwap before you stake PancakeSwap tokens. The PancakeSwap DEX supports MetaMask and Trust Wallet, but there are others as well. To be able to trade and utilise tokens on PancakeSwap, you must first transfer them from Binance to your BEP20 (Binance Smart Chain) address.
For network costs, which apply to all transactions and swaps, make sure you have BNB in your wallet. It’s worth noting that Binance’s minimum withdrawal value is 0.1 BNB, which will cover several rounds of fees.
Begin by connecting your wallet to the PancakeSwap DApp in order to exchange your BEP20 tokens (BNB, BUSD, BTC, and so on) for $CAKE. It’s time to connect to the PancakeSwap network once you’ve set up the wallet.
Access the network
To access the PancakeSwap network, you must first head on over to the “Pools” page of the app to be able to see all of the individual liquidity pools that are available. To earn extra CAKE, locate the CAKE liquidity pool and enable it by clicking the “Enable” button. After that, you may begin staking CAKE to earn more PancakeSwap tokens.
Find a liquidity pool
To find a liquidity pool, click on the “Auto”/”Manual” button in the bottom left to reinvest the tokens you;’ve already earned. If you want to automate the process of harvesting and staking the tokens, set it to “Auto.” This procedure allows you to compound.
These pools are constantly changing and you’ll notice that the platform has a large number of liquidity pools available where you can begin to invest and earn tokens. New tokens often receive the highest payments due to their low liquidity.
How much can you make staking $CAKE?
PancakeSwap users that provide liquidity are rewarded with LP tokens and a portion of the trading costs. Users can make immediate exchanges of BEP20 tokens on the blockchain using the liquidity pools on the DEX.
Check the “Farms” page to see which liquidity pool is ideal for farming CAKE and offers the most tokens, so you can make the most money when you stake CAKE.
How much money can you make betting CAKE now?
The payout varies for each pool since each one has a distinct compound rate and performance feed. To receive the best return on investment, look for the APR and APY rates.
Earnings will also heavily depend on how much CAKE was initially staked and how long it was staked for. You have the ability to stake tokens for multiple periods ranging from 1 day to 5 years, however, if you remove your tokens during the first three days, you will be charged an unstacking cost.
Another factor to consider while stacking coins is the ARP and the temporary loss. Each Farm features a ROI calculator where you may get a rough estimate for the liquidity pool in question.
You must first give the liquidity pair (e.g., two different cryptocurrencies). You will receive LP tokens as well as a portion of the trading fees as a result of this. If you want to stake your LP tokens, go to the Farm page and choose the CAKE-BNB LP farm and you will earn CAKE tokens.
How much CAKE do you need to stake?
There is no set amount of CAKE that must be staked by the user. However, your ROI is determined by the quantity of tokens you stake coupled with the duration for which they are staked.
How do you stake CAKE using Trust Wallet?
There are currently many available cryptocurrency wallets out there that PancakeSwap supports, one of these is known as Trust Wallet.
You’ll need to login to the DEX from within your Trust Wallet after you’ve transferred your money to it. PancakeSwap may be found under the “DApps” category.
Connect Trust Wallet to PancakeSwap after opening it to view your BEP20 tokens on the PancakeSwap network and begin trading or staking them.
Is staking CAKE a good idea?
The annual percentage rate (APR) for staking PancakeSwap tokens is exceptionally high, and it may provide a steady stream of money. You may need to manually harvest your tokens and re-establish them in the pool, depending on the pool. To view the predicted ROI, go to the PancakeSwap network and look up the current APY rate.
All the more motivation to do it, given how simple it is to stake CAKE. All you have to do is link a cryptocurrency wallet that supports CAKE and BNB (BEP20). It takes around 10 minutes to complete, and once completed, it may be automated.