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, in 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
Binance (www.binance.com) operates the world's leading cryptocurrency exchange in daily volume and transactions (1.4 million per second).
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.
Buy Cake Coins with Binance
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.
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,
deposit money,
Search for "CAKE" at the App, and
press the "Buy" button.
And done, you officially own CAKE tokens.
Warning: EU's Supervisory Authorities opinion on Crypto Assets
As crypto-assets continue to attract public attention, the European Supervisory Authorities (EBA, EIOPA and ESMA – the 'ESAs') remind consumers that some crypto-assets are highly risky and speculative. As stated in the ESAs' February 2018 joint warning, consumers must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money.
Additionally, crypto assets come in many forms, but most remain unregulated in the EU. This means that consumers buying and/or holding these instruments do not benefit from the guarantees and safeguards associated with regulated financial services.
To conclude, Crypto Assets are complex instruments and come with a high risk of losing money rapidly. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.
If you are part of Telegram Channels that discuss Crypto topics, you have probably heard of Cake, an open-source platform for launching decentralized applications.
There are several ways to acquire the governing coin. This article will briefly describe how to do it and what investment options you have when doing it via Binance.
Note: This article doesn't constitute financial advice; you should take it as an informative text.