How to Earn Passive Income with PancakeSwap in 6 Easy Steps (2021)!
PancakeSwap is an Automated Market Maker, Yield Farm and Decentralized Exchange on the Binance smart chain.
Now WHAT the hell does that mean?
Basically it’s a way to make your money work for you and pay the cheapest in transaction fees because it’s on the Smart Chain as opposed to Ethereum.
So, let’s talk about how to get started.
There is basically 6steps.
NOTE: This tutorial assumes you’re on a computer — if not, please watch my video on how to set this up on your mobile device.*
Step 1: Setup your Metamask
Step 2: Add Binance Smart Chain to Metamask
Step 3: Add BNB and CAKE as Custom Tokens
Step 4: Get some BNB
Step 5: Purchase CAKE
Step 6: Stake your CAKE and Start Earning!
Step 1/ Setting Up Metamask
If you don’t already have Metamask, simply download it over here and install the extension on your web browser - go through the setup process.
It will prompt you to setup a new wallet, make a password and write down your recovery keys.
This is the most critical part — do not EVER, under any circumstance, by any company or entity — give away your private keys.
Think of it as your banking info. If anyone gets their hands on it, you’re screwed — they will steal all your money.
2/ Adding Binance Smart Chain as a Custom Network
Now that you have MetaMask, you can interact with all the cool dApps and crypto projects online.
But certain ones, like PancakeSwap are only accessible on the Smart Chain, not Ethereum’s network.
So we must add the Smart Chain as a custom network.
For this, just copy and paste the information over to the correct fields.
Here’s a link to the Smart Chain Metamask documentation, or just copy from the image below!
3/ Add BNB and CAKE as Custom Tokens on MetaMask
If you check your wallet you’ll notice it only displays one token.
We need to get the custom token address of the CAKE and BNB coins so that they will be visible in our wallets.
To do this, simply copy and paste the following contract codes into the custom token section of your wallet.
CAKE contract address: 0x0e09fabb73bd3ade0a17ecc321fd13a19e81ce82
BNB contract address: 0xbb533cff0aff043fe746031a4b130c7cac256ed5
4/ Get some BNB Token
Now that we’ve added the Smart chain, it’s key to know that each network requires you hold it’s native token to interact with it.
To do stuff on Ethereum’s network, you need to hold Ethereum in your wallet. These are called ERC20 tokens.
To do stuff on the Smart Chain, you need to be holding BNB to pay for transaction fees. These are called BEP20 tokens.
How to Get BNB:
Head over to Binance.com, make an account — fund it with some USDT or coin of your choice
If you wanted to invest $500 into PancakeSwap, buy $500 worth of BNB.
Next, make sure your Metamask is set to the “Smart Chain” network and copy your address.
Now head over to Binance and withdraw your BNB via the BEP20 Network.
It must be the BEP20 network, anything else will not work.
After completing this withdrawal, the BNB will appear in your Metamask within 3 minutes.
NOTE: If you can’t access BEP20, you must use Binance Bridge to turn ERC20 tokens into BEP20.
This is an entirely different process and is explained in this tutorial.
5/ Purchase CAKE
Now that we’ve got BNB we can head over to the exchange on PancakeSwap and swap our BNB directly into CAKE.
Connect your wallet to Pancakeswap.
Now we swap from BNB into CAKE.
Remember DO NOT spend all of your BNB!
Leave about $10 worth for future transaction fees.
Approve the Transaction.
That’s it! And it’s the same process to sell, just flip the placement.
i.e. You could go from CAKE into BNB (or token of choice)
NOTE: Even when selling, always leave some BNB in your wallet to cover your fees.
6/ Stake your CAKE and Start Earning!
You’re almost done! now that you have CAKE tokens, you can directly “Stake” them in a designated pool and begin earning the token of your choice!
By clicking the “APPROVE CAKE” button, you allow the contract to interact with the pool and begin earning those tokens at the designated APR rate.
After a few days you can hit “Harvest” which will claim all of the newly minted tokens and leave the CAKE continuing to earn.
Alternatively, you can unstake the CAKE you deposited — and it will automagically withdraw your newly minted coins at the same time.
You’re all done!
Now just browse the pools and stake your CAKE wherever you’d like.
Smart Chain BEP20 Tokens — 0x63B33c9CF4b68Da84e2E7cA1Ab5Db4366741C751
Ethereum ERC20 tokens — 0x63B33c9CF4b68Da84e2E7cA1Ab5Db4366741C751
Litecoin — ltc1qxlstajqkzhdyvukjpuvaxquwz3xy7gxt5ps78u