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.*

The Process:

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.

Never show these keys to anyone!

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.

Add a Custom RPC
This is where you fill out the SmartChain info!

Here’s a link to the Smart Chain Metamask documentation, or just copy from the image below!

Simply copy and paste the info over!

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.

Press Add Token
Enter the contract address and the rest will autofill.

CAKE contract address: 0x0e09fabb73bd3ade0a17ecc321fd13a19e81ce82

BNB contract address: 0xbb533cff0aff043fe746031a4b130c7cac256ed5

Click Next and complete the process.

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.

Example:
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

Pairings available for BNB

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.

Withdraw via Binance Smart Chain (BEP20)

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.

Click on Trade then Exchange.

Connect your wallet to Pancakeswap.

Click Connect on the top right of the Exchange
Select Metamask
Authorize Pancake Swap to Connect to Metamask

Now we swap from BNB into CAKE.

We will be swapping from BNB into CAKE

Remember DO NOT spend all of your BNB!
Leave about $10 worth for future transaction fees.

Remember to leave about $10 worth of BNB on the side to cover 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)

How to sell out of CAKE

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!

Go to Pools
Browse the various APR rates and Token projects

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.

How to Approve a CAKE contract

After a few days you can hit “Harvest” which will claim all of the newly minted tokens and leave the CAKE continuing to earn.

To harvest or not to harvest?

Alternatively, you can unstake the CAKE you deposited — and it will automagically withdraw your newly minted coins at the same time.

Take your CAKE and eat it too ;)

You’re all done!
Now just browse the pools and stake your CAKE wherever you’d like.

If you have any further questions or would like to learn more you can visit my YouTube channel or join my Discord community :)

Crypto donations:

Smart Chain BEP20 Tokens — 0x63B33c9CF4b68Da84e2E7cA1Ab5Db4366741C751

Ethereum ERC20 tokens — 0x63B33c9CF4b68Da84e2E7cA1Ab5Db4366741C751

Litecoin — ltc1qxlstajqkzhdyvukjpuvaxquwz3xy7gxt5ps78u

-Hector

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Hector

Hector

I write about technology, humans and other things.

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