First of all, welcome all students to the third week class of season 3. In today's class ,we will read more about pancake swap exchange and we will try to understand the practical how we can link Binance smart chain extension account with Binance exchange.
Which is very easy. Because we all use binance exchange for trading and through Binance smart chain we can trade directly on many defi exchange. I'll try to cover all topic related to pancakeswap and uniswap
How to connect Binance Smart Chain with Binance Exchange
- First you need to login to your Binance smart chain wallet.
- And after logging in, you have to click on the three dots that appear in the screenshot
- and then click on the Wallet Direct option below.
- As soon as you click on the "Wallet Direct" option, a new window will open in front of you and you have to click on verify and Connect my address again.
- As soon as you click on it, you will see the official exchange of binance exchange Will open and you have to enter your email and password.
- As soon as we enter the login detail of the binance exchange, once again we have to click on verify and connect address.You can see this screenshot in step number seven in the screenshot.
- As soon as we click on verify and connect my address again, a pop up window will open and we have to tick "Do not ask again" and then click on "I understand".
- Then another pop up window will appear. We have to click on Connect to Wallet. You can see the details of each step in the screenshot to understand all these steps.
- As soon as we click on Connect to wallet once again binance security will ask us for security verification because the security of any account is very important and in security google verification, Phone verification code that connect to wallet. You will have to enter, then your binance exchange account will be connected to your Binance smart chain.
This way your binance smart chain will be connected to your binance exchange account. This way you can easily transfer your binance exchange asset to the binance smart chain wallet.
Process to add liquidity to the Pancakeswap Exchange (Defi)
Deffi Exchange I have said many times about Deffi that Deffi means Decentralized Finance system which does not work under any center command but it works under full decentralized system.
Thus, deffi exchanges are exchanges that are user base. Each user's assets are under their control. This is how a deffi decentralized finance exchange comes into being.
liquidity Liquidity refers to the assets that the investor invests in the liquidity pool of the deffi exchange. If I describe it in such a way that the liquidity pool is the wallet of the deffi exchange through which the trade in the deffi exchange continues.
I try to illustrate this with an example. Suppose we want to open an Exchange or a bank under the Deffi system, then we will need some assets to open a bank or exchange and if the bank or exchange is decentralized then where will we get the assets to run the trade on exchange or banking system ?
So different users will provide their assets in the liquidity pool of deffi exchange as liquidity exchange and the assets users will invest in the liquidity pool we call those user ask market makers.
Thus in any Deffi exchange liqudity is provided under 50% formula. Suppose you want to provide liquidity in pancake swap or uniswap then you have to invest 50% 50% in two pairs.
Suppose you want to provide liquidity in BnB and cake then you have to invest both in equal value. If BnB coin ,you invest 100 dollars then you have to keep cake coin liquidity pool of 100 dollars .
Thus, a liquidity pool is a wallet through which any deffi exchange trade is traded.
And so whatever happens on the trade exchange, the fee is distributed to the market provider according to their liquidity pool.
This is how the market maker gets tax profit from the liquidity pool. This is how the liquidity pool works. This is a very simple explanation of liquidity.
If you try to understand the image above carefully, we will understand that the liquidity provider deposits its assets in the liquidity pool.
Then the trader buys and sells and uses this liquidity pool and the trader pays tax or fee to the exchange at the time of buy and sell and that fee is paid to the liquidity provider as profit. This is how the liquidity pool of deffi exchange works.
liquidity to the Pancakeswap
In the first lecture you have learned how to connect pancake swap exchange to BSC wallet. So now we will link BSC wallet with Pancake swap exchange and then click on Trade.
After clicking on trade, we will click on "Liquidity". And now you have to provide the liquidity of those coins which are trusted because it is very important that we should invest in the coins which are reliable and the same formula should be adopted for liquidity.
Follow these steps to add liquidity to the pancake swap exchange.
- First connect the BSC wallet to the pancake swap exchange.
- Then click on the Trade option. Then click on Liquidity.
- Then click on Add liquidity.
- Then select the coin and add 50% to 50% liquidity
- and click on the supply button
- then click on confirm supply.
- And then click on confirm.
You can see in the screenshot how I have gradually added liquidity to the pancake swap exchange.
What is the difference between a metamask and a trust wallet?
At the moment every crypto trader wants to secure their crypto asset and every user wants to use secure wallet to keep their crypto assets under their control even if they trade in any crypto currency.
So trust wallet and metamask are both decentralized wallets. And the only difference between them is that the metamask is connected to the etheruim blockchain and the trust wallet is connected to the Binance blockchain.
In addition, both wallets are decentralized and both wallets are safe and thousands of coins can be stored in these wallets. In addition, the trust wallet can be connected to a pancake swap and all deffi exchanges that support the binance smart chain.
In this way the metamask wallet can also be associated with all the defi exchange that is connected to the etherum block chain.
In addition, we can easily buy and sell crypto through metamask wallet by connecting it with Binance smart chain. We can use metamask on both mobile phones and computers while trust wallet can only be used with mobile phones. While trust wallet has to be connected to Binance smart chain to be used on computer.
metamask is considered a better software wallet for storing any crypto, whereas if we look at it in terms of buy and sell or transaction, trust wallet is considered better.
In order to keep the assets safe in these two software wallets, it is very important that their 12 word pharase should not be shared with anyone and thus their private keys should not be shared with anyone. Both wallets are safe in every way and very easy to use.
PancakeSwap & UniSwap
PancakeSwap and Uniswap are both decentralized defi exchange. Both of them do not require KYC for registration to use these exchange but we can easily trade on these two exchanges by connecting via trust wallet or Metamask wallet. If we look at the difference between these two exchanges, the main difference between them is that uniswap works on etherum base network while pancake works on swap Binance smart chain network. There is also a big difference in fees. Uniswap has very high trading fees while pancakeSwap has very low fee charges. If we talk about the feature in both of them, then both of them work under exchange auto market maker system. Both exchanges have liquidity pool, stake and swap system. Both exchanges are very easy to use.
At the moment pancake swap is the most used and we can say that pancakeSwap is a lattest cryptocurrency wallet compared to uniswap.
But traders are making a profit from these two deffi exchanges. And some users say that uniswap is better and for some pancakeSwap but transaction charges on pancakeswap are very low and transaction speed is also faster than uniswap.
If we talk about different features of pancake swap, they are as follows. Exchange, through which we can buy and sell cryptocurrency and this process is called swap.
We can earn passive income by providing liquidity to liquidity pool in the form of LP token. In addition, Lp margin, Farms, Pools, prediction, Lottery and Team battle and stake are popular features. We also find such features in Uniswap.
How to link Metamask to PancakeSwap
Just like we have connected PancakeSwap exchange with Trust Wallet and Binance smart chain, this is how we have to add Metamask extension file in google chrome and by creating Metamask wallet we will connect it with PancakeSwap like Binance smart chain.
And we can swap the coin. This way we can also connect the metamask wallet with pancakeSwap or uniswap by installing the metamask Mobile app like trust wallet.
Homework week-1 :
Question no 1:
What is Liquidity in PancakeSwap Explain with examples ?and add Liquidity in PancakeSwap and explain all the steps with screenshot.(explain in your own words)
Question no 2:
How to connect Binance exchange account with Binance smart chain or trust wallet. Explain all the steps through screenshot. And transfer any coin from Binance exchange to Binance smart chain.
Question no 3:
What is the difference between Trust Wallet and Metamask and which of them is better and why? Explain in your own words.
Question no 4:
What is meant by PancakeSwap and Uniswap?
- And what is the main difference between them?
- Explain the different futures of both.
- Which of these exchanges is better and why? Explain in your own words.
Question no 5:
How to connect PancakeSwap with Metamask. Explain this with a screenshot.
- Important All Homework posts should be posted in the community Steemit Crypto Academy .
- Your Homework should be at least 300-1000 words.(if any students want to explain more words ,it is allowed)
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- Courses participation time is from 00:00 12th to 23:59 17th July
- Users having a reputation of minimum reputation of 55 and at least 250 Steem Power of their own (not delegated to them).
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- It is necessary to complete all given questions in the week 3 course to gain the full marks.
Crypto Professors at Steemit Crypto Academy