CAKE DEFI: PUT YOUR CRYPTOS TO WORK
What does Cake do?
Cake is a platform that allows users to get cashflow from their cryptocurrencies in the most transparent way. Cake Pte Ltd based in Singapore.
Cake provides the following services:
Buy Bitcoin or Ethereum directly with Euro / Dollar: All purchases are handled by our trusted partner BANXA and the cryptocurrencies are automatically credited to the account with you on Cake. This means that you can now buy Bitcoin or Ethereum with SEPA or credit card.
Lending: The Lending service allows cash flow on your Bitcoins, Ether and Tether. It could be described as a term deposit of your coins: You freeze, for example, 0.01 Bitcoin for 30 days, and get back your capital + interest. Your capital and returns (Usually, around 5%) are fully guaranteed and risk-free, with possible bonuses. (Bonuses = additional returns to the guaranteed returns in case the coins reach a higher price).
Staking Services: There are various forms of consensus building and thus consensus processes. In addition to Proof of Work (PoW), there is also Proof of Stake (PoS) - these are the two most well-known and important ways to reach consensus in a decentralized blockchain network. When using Proof of Stake, this means putting coins or tokens into so-called "nodes" to verify transactions for cryptocurrencies with Proof of Stake consensus mechanisms. Stakers receive staking rewards for providing this service. The rewards or rewards vary from coin to coin in this regard.
Liquidity Mining: With Liquidity Mining you deposit coins (BTC, ETH, LTC, USDT, BCH or DOGE) to offer liquidity for members who would like to exchange cryptocurrencies. Rewards are paid twice a day.
Cake Defi's Sign Up Bonus
When you sign up for a Cake DeFi account and make your first deposit of $50 or more in value (with any coin), you will receive a bonus of $20 worth of DFI. This bonus will be locked up for 180 days and automatically yields staking returns during this time.
Is it easy to open an account with Cake Defi?
Opening an account to put your cryptos to work with Cake Defi is a process that is completed online. It only requires an ID (Passport or Identity Card), and a proof of address, both scanned through the platform. Cake takes only a few hours to open the account, and allows the customer to log in from any device and deposit funds using the following section's methods.
How can I withdraw Bitcoin, Ethereum, DeFiChain and Co?
You can easily withdraw your freshly baked coins in just a few steps:
Click on the baker's hat at the top right
Click on "Balance" there
Click on " Withdraw" at the Coin you want to withdraw.
Choose the right network! It says exactly which network you can use!
Now you only have to fill in the fields with the correct data and confirm.
If your objective is to mine DFI and withdraw them to exchange them for other cryptos, you will need a different platforms: Cake Defi is not an exchange. The most extended one among Cake Defi users is Bittrex (bittrex.com).
How long does it take for your Crypto deposits to be confirmed?
Deposits do require some amount of confirmations before they can be used.
The amount of confirmations for each coin are as follows:
Dash: 10 confirmations
DeFiChain: 5 confirmations
Bitcoin: 2 confirmations
Ethereum: 20 confirmations
Tether: 20 confirmations
Litecoin: 8 confirmations
Dogecoin: 10 confirmations
How do I use CakeDefi?
I use a combination of the services offered by CakeDefi. On the one hand, I lend Bitcoin, freezing them for 30 days and generating an interest rate of 5% on them. On the other hand, I use the Liquidity Mining service, which accounts for almost 70% of my investment with CakeDefi. It generates DFI tokens daily (At a rate of 90% annual) which go straight to the Staking Service (Which, in turn, generates circa 40% annual).
So, you end up building a good amount of DFI tokens. However, if you leave it unmanaged, you'll probably end up with way more than you wish to hold (Although the DFI token seems to have great potential).
What I do (Now, this is not Financial Advice, it's just my own experience):
I Mine DFIs via CakeDefi as explained before
I transfer the DFI rewards to Bittrex (Withdrawal costs are minimum)
I exchange my DFIs to other Cryptos at Bittrex (I started buying Litecoin, then Tether, and then went riskier with ultra-low volume coins).
Eventually, I retransfer some of those newly acquired coins back to CakeDefi to increase my Liquidity Mining position.
Bottomline - What you need to know about CakeDefi
CakeDefi is an excellent mining site for DFI coins. So, if you believe that this token will go "To the Moon", go ahead and use this platform. However, if you don't hold Bitcoin and DefiChain tokens, entry fees are quite high, so buying Bitcoin with Cake Defi and converting it to DFI is not the best option.
For: The platform is super friendly; you don't have to be a Crypto expert to understand how it works: Add liquidity by depositing Bitcoins (or other accepted tokens), and that's it.
If you decide to mine DFI as a way to exchange the rewards for other coins through Bittrex (That's my strategy), you may easily acquire other coins with the received profits.
Against: As mentioned previously, when trying to convert your mined DFIs to FIAT money you'll need another gateway system, since you can't flip your DFI tokens to Bitcoin through Cake (This point proves to be quite inconvenient). Although the dev team might change this in the near future.
Conclusion - Is it a cool platform? Definitely, it is.