PancakeSwap

PancakeSwap Overview

According to the on-chain data platform Coingecko, PancakeSwap ranks as the third-largest decentralized exchange and is the largest cryptocurrency exchange on the Binance Smart Chain (BSC).

PancakeSwap is the decentralized exchange that supports the most cryptocurrency trading pairs, offering a diverse range of services. Some in the crypto community even consider PancakeSwap to be the first decentralized exchange to provide a “one-stop service,” on par with the convenience of centralized exchanges.

Three major advantages of PancakeSwap:

1. It offers up to 5,776 cryptocurrency trading pairs, the largest among cryptocurrency exchanges.

2. In addition to basic cryptocurrency trading functions, it also provides cross-chain, yield farming, and NFT collectibles services.

3. As a decentralized exchange, users can self-custody their assets without needing to register to use the platform.

The main difference between “decentralized” exchanges and “centralized” exchanges is that centralized exchanges are operated by organizations, with users’ funds held by the exchange. While entrusting funds to exchanges can make financial operations and investments very convenient, in cases of bankruptcy or other events, users’ assets may not be retrievable.

On the other hand, decentralized exchanges like PancakeSwap are based on blockchain technology, ensuring complete transparency of on-chain information. User assets are independent of the exchange. This means that users do not need to register on PancakeSwap; they only need to connect their hot wallets with PancakeSwap (by authorizing them) to access its diverse and convenient services. However, users must be responsible for securing their own digital assets within their wallets.