How to Stake CAKE on PancakeSwap, Wallet & Exchange
crypto staking
If you’ve been in the cryptosphere for a while, you’re probably familiar with the mysterious and lucrative world of decentralized finance. Within the DeFi realm is a popular decentralized exchange called PancakeSwap and its potential-filled coin, CAKE. So, how to stake CAKE and earn passive income off of it?
Chances are you’re scratching your head, wondering how to access a decentralized exchange and take advantage of its immense potential. You might also be wondering what staking really is, if it's safe, and if you can actually make more CAKE with your holdings.
Worry not, because we’re about to dive deep into the sweet world of PancakeSwap to learn exactly how to stake CAKE!
Where to Stake CAKE
You can stake CAKE on a decentralized exchange called PancakeSwap, several centralized exchanges, and through software wallets. While there are a limited number of exchanges where you can do this, it’s one of the most staked cryptos. Moreover, it’s one of the safest tokens to stake, with most CEXs, DEXs, and wallets being thoroughly tested by the community.
#1. PancakeSwap
PancakeSwap is a decentralized exchange that operates on the Binance Smart Chain. CAKE is its native cryptocurrency, making this DEX the natural choice for staking your CAKE holdings. It requires a bit of technical knowledge and proficiency around wallets and DEXs. However, once you’ve grasped the basics, you can get the most out of your CAKE holdings.
One of the simplest ways to do this is to join Syrup Pools to stake your CAKE and earn rewards in the cryptocurrency of your choice. If you’re looking for higher gains, you can provide liquidity with your tokens and then use LP (Liquidity Provider) tokens to join staking farms.
Ultimately, PancakeSwap gives you plenty of versatility when it comes to your CAKE holdings. The learning curve to access its features might be a bit steep for beginners, but the DEX remains one of the best options to make passive income on your assets.
#2. Binance
Binance is the world’s biggest and most popular centralized exchange. It’s also the exchange behind the Binance Smart Chain, on which PancakeSwap runs. That makes it a great CEX option and perfect for beginners learning how to stake CAKE.
You can look at Binance CAKE staking as a beginner-friendly alternative to DEX staking. Since it’s a centralized exchange, you’ll need to create an account using your email and phone number. Furthermore, you’ll need to perform Binance KYC verification.
In return, you’ll get a streamlined Web2-like experience with a user-friendly interface, which you can use to effortlessly stake your CAKE tokens. Binance offers several different ways to stake your assets, and the process can be as simple as selecting the number of tokens and a staking period before hitting “Stake.”
#3. Trust Wallet
Trust Wallet offers a different approach to staking CAKE than centralized and decentralized exchanges. It’s a non-custodial software wallet that offers an all-in-one solution to investors who want to buy, trade, sell, and stake their assets using their smartphones.
After downloading and installing the app and performing the initial setup, you’ll be able to use Trust Wallet to access PancakeSwap staking pools. More than that, the wallet allows users to swap their CAKE tokens for various other BEP20 cryptocurrencies.
However, it’s worth mentioning that Trust Wallet faced some criticism regarding security measures. As a result, you should do your research and be careful when using it to manage and stake your assets.
How to Stake CAKE on PancakeSwap
To stake CAKE on PancakeSwap, you need a wallet to connect to the exchange and tokens in it. While learning how to stake CAKE on a DEX can look intimidating to beginners, you’ll learn it quickly by following our step-by-step guide.
#1. Get a Crypto Wallet
You need a crypto wallet to access any feature on PancakeSwap. Unlike centralized exchanges, which hold the keys to your crypto, decentralized exchanges operate by accessing funds from your private wallet.
In addition to the aforementioned Trust Wallet, another crypto wallet to consider connecting to PancakeSwap is MetaMask. MetaMask comes in the form of an app and a browser extension. One of its main perks is that you can easily connect it to various platforms, and the wallet makes sending and receiving cryptocurrency easy.
#2. Connect the Wallet to PancakeSwap
Connecting your wallet to PancakeSwap is a straightforward procedure that starts when you click the “Connect Wallet” button on the PancakeSwap main page. There are a number of different wallets you can connect to the platform, such as Binance Wallet, Coinbase Wallet, Brave Wallet, and more.
As a result, you should carefully follow the instructions given by PancakeSwap, and you’ll have your wallet connected in minutes. PancakeSwap offers the option to connect using a QR code for the majority of wallets that you can have on your smartphone.
#3. Transfer CAKE into Your Wallet
You transfer CAKE into your wallet by using a public key the wallet gives you. That way, you can transfer tokens from a centralized exchange or another wallet.
Keep in mind that PancakeSwap operates on a Binance Smart Chain and uses Binance Coin (BNB) for gas. That’s why it’s recommended to keep at least 0.01 BNB in your wallet for gas fees.
#5. Go to the Syrup Pool
With funds in your wallet, you can navigate to the “Earn” tab on the PancakeSwap website, where you’ll find Syrup Pools. Once there, you can choose which pool you want to join and what cryptocurrency you want to earn.
While staking CAKE to earn more of it is the most popular option, you can also opt to earn some other tokens, such as WNCG, TUSD, CSIX, and many others. To help you decide which pool to join, PancakeSwap lets you sort all pools by date, popularity, APR, the amount staked, and the amount earned.
#6. Stake CAKE
To stake CAKE, you simply input how much of your tokens you want to stake, choose between flexible or fixed-term staking, select the lock-up period, and start staking. PancakeSwap offers a handy ROI calculator that you can use to determine which option is best for you.
Where to Buy CAKE
One of the easiest ways to buy CAKE is via a centralized exchange. Binance allows you to buy CAKE directly with fiat. Once you have an account, you can choose to buy PancakeSwap tokens with your credit or debit card, bank deposit, or third-party payment.
Furthermore, you can use centralized exchanges to trade other cryptocurrencies for CAKE. For instance, both Binance and KuCoin allow you to trade CAKE for ETH, BTC, and stablecoins. Both centralized exchanges also allow you to earn passive income using your PancakeSwap tokens, so you can start staking immediately.
Another option to buy CAKE is to use PancakeSwap. Once you have a wallet connected to the DEX and funded, you can use it to swap some of the numerous BNB Chain tokens for CAKE.
How Much Can You Earn From Staking CAKE
How much you can earn from staking CAKE depends on how much of your assets you set aside for staking and for how long. It’s also important whether you choose fixed or flexible staking.
For instance, flexible staking on PancakeSwap will bring you 0.34% APR. However, you’ll be able to take your assets out at any moment. On the other hand, if you choose fixed staking and lock up your assets for a maximum period of 52 weeks, you’ll get as much as 7.39% APR.
So, is staking CAKE worth it in fiat terms? That can also vary depending on the price of CAKE. The token’s all-time high (ATH) price was $43.96, which is much higher compared to its bear market value, which generally fluctuates between $1 and $4.
How to Stake CAKE Using Trust Wallet
You can stake CAKE using your Trust Wallet in three simple steps:
- Install Trust Wallet on your Android or iOS device.
- Access PancakeSwap by navigating to the wallet’s DApp Browser and then the DeFi section.
- Start staking by choosing the pool and tapping “Stake It.”
Trust Wallet streamlines the staking process by removing the need for setting up an independent wallet and then manually connecting it to PancakeSwap. That makes it one of the best options for entry-level crypto enthusiasts.
Furthermore, Trust Wallet gives you the option to participate in yield farming. Providing liquidity can be highly lucrative, but it also carries more risk than staking, so it’s crucial to do research before trying it.
How to Stake CAKE Using Exchange
Staking CAKE on centralized exchanges like Binance and KuCoin by using their built-in earning services. Here’s a step-by-step guide on how to stake CAKE on Binance:
- Create an account using your email or phone number.
- Perform KYC verification to unlock the exchange’s features.
- Buy CAKE tokens with fiat or trade them for other cryptocurrencies.
- Go to Binance Earn.
- Choose among several options, such as Simple Earn, Staking, Farming, etc.
- Select CAKE cryptocurrency, the amount of tokens, and the staking duration.
The process varies slightly from one exchange to another, but the core idea stays the same.
How to Unstake CAKE
Here’s how you can quickly unstake CAKE using PancakeSwap:
- Go to the Syrup Pools to find your staked CAKE.
- Tap on the “minus” (“-”) button.
- Select the number of coins you want to unstake
- Pay the network fee in BNB
Keep in mind that this is only possible if you’ve chosen flexible staking or if your fixed staking term has ended. Otherwise, your assets will remain locked and only be available for unstaking after the lock-up period has expired.
The process is similar when you’re using a centralized exchange. You should navigate to the section of the website that you used to stake your tokens to remove them from the staking pool.
Risks of Staking CAKE
Most of the risks of staking CAKE stem from the fact that you’re using a DeFi platform. Here are some of the most prominent potential risks:
- Smart contract vulnerabilities are a common concern in the world of DeFi. Even though PancakeSwap undergoes regular audits by reputable entities, there’s always a risk of a malicious actor discovering an invulnerability first.
- Impermanent loss is particularly important when providing liquidity. If the price of tokens changes drastically after you’ve deposited them, you can end up in a situation where it would’ve been more profitable to simply hold onto your assets.
- Market movements impact the value of CAKE. The cryptocurrency market is highly volatile, which can result in the price of CAKE dropping significantly, which could make your entire holding, along with everything earned while staking almost completely invaluable.
- Regulatory risks are an increasingly prominent concern among crypto enthusiasts. While the market isn’t yet fully regulated, there can be tax implications regarding earnings from staking CAKE.
Key Takeaways
The world of decentralized finance is filled with rewards and potential, but it requires knowledge to navigate safely. Platforms like PancakeSwap aim to enhance financial inclusion and allow anyone to participate in the realm of DeFi.
Now that you’ve learned how to stake CAKE, you can also become a part of the financial revolution and perhaps make some handsome profits along the way. However, like with all investments, it’s essential to educate yourself and be aware of all the risks associated with staking.
Other than that, it’s time to grab your digital wallet and make that delicious CAKE work for you. Happy staking!
How to Stake CAKE FAQ
Is CAKE staking profitable?
CAKE staking is profitable as it earns you more tokens by simply holding them in a staking pool. However, the exact profitability of staking depends on many factors, including the exchange you’re using, the amount of CAKE staked, the lock-up period, the token’s value, and more.
What is the best way to stake CAKE?
The best way to stake CAKE depends on the person’s individual needs and preferences. For instance, PancakeSwap offers the most options and the biggest gains, but it requires some work and technical knowledge. Staking on CEXs and Trust Wallet is simpler and more user-friendly.
What is the minimum amount of CAKE that you can stake?
There is no minimum amount of CAKE you can stake. As long as you have more than zero CAKE, you can stake it on the PancakeSwap decentralized exchange. However, your reward will depend on the number of staked tokens, so staking small amounts will likely yield negligible rewards.
What is PancakeSwap?
PancakeSwap is one of the most popular decentralized exchanges in the world. It was built on the Binance Smart Chain and launched in 2020 by a group of anonymous developers who call themselves Chefs. This DEX is one of the best places to stake your CAKE holdings.