How to Earn Passive Income with PancakeSwap (CAKE)

PancakeSwap was created by a group of anonymous users and the platform was launched in September 20, 2020, days after the launch of BSC. While we do not really know who the development team behind the platform is, it has been regularly audited by blockchain security companies, such as → Slowmist and → Certik.
So, if you are curious as to whether PancakeSwap is safe, be concerned no more; it has frequent security audits, so you can trade PancakeSwap’s CAKE and other assets with peace of mind.

See PancakeSwap real-time price chart → HERE

How to start using PancakeSwap?
1. You need → MetaMask (which is a wallet installed on your computer via a web browser extension). It is the most used wallet although → TrustWallet is also another option. With Trust Wallet you can send, receive, store, swap and purchase BEP-20 tokens without leaving their interface.
By installing the wallet, you will have a wallet address that you will need for transactions.

2. The next step is to create an account on a centralized exchange like:
→ - if you are using this REFERRAL link you get $10 bonus
→ - you will receive a commission (5%) on all trades!
→ - you will receive a discount of 10% on trading fees

3. Once you are logged into any of the above sites, buy BNB, as the BNB token is used for payment on PancakeSwap but also you need BNB to pay the transaction fee.

4. Access your MetaMask (or TrustWallet) and create the Binance Smart Chain network (because Pancakeswap works on BSC). Also add the BNB coin to your wallet.

5. Initiate a transfer of BNB from the centralized exchange into your MetaMask.
You can't use Pancakeswap directly from the centralized exchange, so you transfer BNB to your decentralized wallet (MetaMask or Trustwallet)

6. Access → to exchange your BNB to any token you want to invest in.
Make sure you check that you are visiting the correct website and bookmark it, there are fake websites that try to scam you (it's a kind of scam to steal your money using a website that looks like the original one and in case you insert your personal details, the scammers can access your online wallet).

What Can You Do on PancakeSwap?

The first thing you need to do on the PancakeSwap platform is to add liquidity to the pool. People invest in the liquidity pools and collect a fee and CAKE (LP tokens = Liquidity Pool tokens) in exchange.
You can add liquidity for any token pair by staking both through the Liquidity page.
When you add liquidity, you will select a token pair, for example it can be BNB and CAKE. The combination of BNB+CAKE will have the name BNB-CAKE LP

PancakeSwap is an exchange, even though it is a decentralized one, and the most basic function it supports is trading in BEP-20 tokens. LP tokens will be given to liquidity providers that enable trading for other BEP-20 tokens. It is very similar to crypto trading.

Farms require you to stake two tokens to get LP Tokens, which you then stake in the Farm to earn rewards. This lets you earn CAKE while still keeping a position in your other tokens!
a) - Search for a farm that you like (maybe because they have a high APY, maybe they look stable etc). So you will select a pair from a list. If you don't have in your wallet a specific token, you will buy it from → PancakeSwap to have it into your wallet.
b) - After you add liquidity with both tokens PancakeSwap will create for you the LP Token
c) - Once you have the LP Token, you can put it into the Farm to earn APY or $CAKE.

Is important to note that the $CAKE you earnt, you can stake to earn APY, so you will earn even more.

Staking through Auto-Compound
Not everyone trading in cryptocurrencies is an expert who can trade LP tokens and earn a profit. For the newcomers to this field, staking emerges as the best option. With PancakeSwap, you can stake CAKE coins in the SYRUP pools to earn even more rewards. The auto-compounding feature, rather than users having to manually re-stake their CAKE tokens to get the best APY, this is a process that is done automatically. Stake the money and enjoy the APY.
The profit you earn can be withdrawn through the "Harvest" (claim) button.
The CAKE you earn can be swapped to BNB if you want to sell it to regular FIAT on a decentralized exchange like Coinbase or Binance for example.

NFT stands for Non-fungible tokens. Following its gamification approach, PancakeSwap makes it possible for users to win special NFTs, which can then be used for trading and staking.

This is another way of earning money on PancakeSwap. At the date of writing this article, the platform runs four lotteries a day, with each lottery session running for six hours. You are required to buy a ticket with CAKE to participate in the lottery draw. If you win, you can even receive an NFT as a reward. PancakeSwap has another lottery pool called Pottery, where you can deposit CAKE for 10 weeks and stand a chance to win from their prize pot while earning yield.

Initial Farm Offerings (IFOs)
To participate in initial farm offerings, you need to use specific tokens from PancakeSwap in order to receive access to the sale of newly launched tokens.

Should You Start Investing in PancakeSwap Right Now?
PancakeSwap has multiple options you can use to earn money. Make sure you understand exactly each method and you can evaluate the risk/reward ratio.

Note that all cryptocurrency investments have a certain level of risks associated with them, as it is highly speculative
For example, you stake a certain amount of CAKE and you receive a nice APY but if the price of CAKE goes down, although the APY is huge, you are still in loss becase CAKE does not worth too much.

The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research.

If you want to read detailed informations about PANCAKESWAP feel free to access their docummentation page at →

Using cryptocurrency to make money is not a get-rich-quick scheme.

However, I bought once 10 CAKE when price was $10 per CAKE. In about two months, CAKE has pumped over $30 and combined with staking, I made a profit of $450 by starting with $100 initial investment

I made a guide where I explain step by step how I increased my crypto portfolio more than 100x in a few months because I made money even when the market went down because the methods I use are not based on luck.

How To Make Money in De-Fi

Always only use money you can afford to lose because the crypto market is very volatile!