What is CAKE?
CAKE is Pancakeswap's governance token which allows token holders to help shape the future of Pancakeswap. To get CAKE, you can stake in a process that rewards you with CAKE. "I'm sorry, What?" In this article, we will (briefly) explain why it's so revolutionary and why its price has skyrocketed in 2021.
There's been a huge number of questions about BNB and CAKE coming from new people in the Crypto world wondering what it's about and why there's been a gigantic boom.
To understand what these are, you have to know the difference between centralized and decentralized exchanges. Exchanges are meant to direct cryptocurrency transactions between two interested parties. The traditional Crypto exchange we've had for a number of years is centralized, places like Binance or Coinbase. Now comes DEX (Decentralized Exchanges) which are aimed at solving problems that are inherent to centralized exchanges (e.g., centralized exchanges are managed by companies focused on making a profit). Inversely, some features DEX has that would be useful is that they are independent of regulators.
Uniswap (one popular DEX) runs on the Ethereum network, but with the massive traffic and price surge, Ethereum has become bloated. Essentially you can swap coins in that DEX and it uses ETH as GAS (it's needed to process the transaction on the ETH network). It doesn't make sense to use this instead of alternatives that are available right now because it's expensive and it takes a while. That's where Binance and their token BNB appears. As you may know, Binance is currently the largest centralized exchange (That's why we propose it as the best option).
Binance Smart Chain(BSC) is the Network where everything runs. It isn't congested and doesn't cost a lot to transact with using BNB as GAS (it's needed to process the transaction on the BSC network). This is due to BSC being centralized in some aspects. Furthermore, BNB is an exchange coin where if you hold a specific amount you get discounts on exchange rates in Binance. PancakeSwap is the largest decentralized exchange for BSC.
BINANCE: 'THE' Platform to Buy CAKE Tokens
Changpeng Zhao, better known as CZ, is the founder and CEO of Binance, the cryptocurrency exchange that managed to become the largest on the planet in just under 180 days. This Chinese-Canadian programmer, seasoned in developing high-frequency trading systems for Wall Street flash boys, knew how to redirect his experience in this field and apply it to the emerging crypto environment.
How to Open a Trading Account to Buy CAKE Tokens
Opening a Crypto Trading Account with Binance is a process that is completed online and requires:
That you upload your ID or Passport through Binance App.
Once Binance approves the account, it's time to deposit cash. The depositing and withdrawing money methods are usually Credit Cards, Bank Transfers or eWallets (PayPal, PaySafe, Skrill, SafetyPay, Neteller, among many others). The available options to deposit funds will depend on each Broker. A vital fact to mention is that all of the Brokers presented above allow you to use a simulator on their platform; that is, they allow testing their Demo account, which is totally Free. In other words, you can open a Demo account, try the platform, and then decide whether to deposit money or not.
But I am not an Investment Banker... Is it easy to Buy CAKE tokens?
Binance allows Crypto Trading straightforwardly through its optimized app grants easy and fast access to Crypto markets. In fact, Binance platform resembles a social network or any other phone app: It is designed so that the investor can learn and start trading very quickly, without the need for much prior knowledge. Literally, to buy CAKE tokens, you have to:
open a trading account as explained before,
Search for "CAKE" at the App, and
press the "Buy" button.
And done, you officially own CAKE tokens.