How to Buy Crypto on Pancakeswap Using Metamask Wallet: a Step-by-Step Guide

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How to Buy Crypto on Pancakeswap Using Metamask Wallet: a Step-by-Step Guide

Decentralized Exchanges have emerged as a result of the emergence of Decentralized Finance (DeFi) (DEXs).What exactly is DeFi? It is a whole ecosystem of cryptocurrencies known as DeFi tokens, and DEXs are exchanges where such tokens may be purchased.

To purchase tokens on DEXs, just link a wallet. One of the wallets used for this purpose is Metamask, and this post shows how to use it to purchase DeFi coins on Pancakeswap.

Metamask is a browser plugin that acts as a bitcoin wallet for the Ethereum network. Unlike a typical wallet, this exclusively handles ERC20 tokens, which are Ethereum blockchain-based tokens.

On Binance Smart Chain, it has lately begun to support BEP20 tokens as well (BSC).If you’re a complete novice, you should learn more about getting started with Metamask.

You may quickly create a Metamask wallet with only a password. The Ethereum blockchain or BSC coins may then be added to it. There are hundreds of supported coins, so chances are that one you’re looking for is supported if it’s built on these two blockchains.

The wallet has a particularly cool feature in that you can add unsupported tokens to it using the “add token” button. Metamask, like a web3 wallet, enables web3 Decentralized Applications (Dapps) and Non-Fungible Tokens (NFTs).

If you prefer to utilize your mobile device, you may install the wallet from the Play Store or the iOS Store.

Metamask is a tool for storing and managing your account keys. It broadcasts transactions and sends and receives ERC20 and BEP20 tokens, much like a traditional wallet.

It is also simple to trade tokens inside the wallet by utilizing the Metamask “Swap” function. The wallet combines many DEXs to get the best swap exchange rates. Many people are unfamiliar with DEXs, yet they are really simple to use.

What Is Pancakeswap?

Pancakeswap is a popular decentralized exchange. This is not to be confused with Pancakeswap (CAKE) the token, which is the exchange’s native token. Pancakeswap is particularly built for swapping DeFi coins based on BSC.

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You may farm liquidity and stake the CAKE token to gain incentives on Pancakeswap in addition to trading DeFi tokens. Unlike centralized exchanges, you may just connect to the internet and begin using the DEX without any registrations or personal information.

Metamask debuted in 2016 and already has millions of monthly users. This is due to the wallet’s increasing significance, particularly in the DeFi ecosystem. If you’re just getting started with decentralized finance, check out our quick introduction to learning more about the ecosystem.

If you want to acquire or sell DeFi tokens quickly, you’ll need to use a tool like Metamask. Furthermore, as the world moves toward Web3, wallets like Metamask become increasingly important since only wallets like Metamask can connect with decentralized exchanges, dapps, and NFTs.

Because Pancakeswap is a DEX for exchanging BSC-based tokens, this tutorial only covers tokens that are supported by BSC. There are tokens accessible on both BSC and Ethereum.

On Pancakeswap, you may also exchange the BSC version of similar tokens. So, how do you use Metamask to purchase a token on Pancakeswap?

1. Create a Wallet

The first step is to create a Metamask wallet. If you already have one, congrats; you may go to the next step. If not, just go to metamask.io and click on the blue Download icon. Browsers that are supported include:

  • Chrome
  • Firefox
  • Brave
  • Edge

You’ll then be prompted to establish a strong password, which should be easy for you to remember but difficult for others to guess. After generating a password, you’ll be invited to copy and save your password; you should do so.

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If anything happens to your device or you forget your password, the passphrase is generally a 12-word phrase that you may use to restore your wallet.

You should write them down, and you’ll be asked to input them in the right sequence to prove you did. Many individuals have lost a lot of money because they skipped this step.

After you’ve created your wallet, you’ll need to fund it with BNB, the native token for BSC. One method is to purchase by clicking on the Buy button in the image below.

The asset may also be sent to Metamask from another wallet or exchange by simply copying the address at the top and sending the BNB to it. The wallet’s default blockchain is Ethereum, thus you must change it to BSC by clicking on the down arrow next to Ethereum, as seen in the image below.

Select Binance Smart Chain from the dropdown menu, and you’re all set.

To link your Metamask Wallet to Pancakeswap, go to pancakeswap.finance. The Connect Wallet button is located in the upper right-hand corner, as illustrated below.

You will be linked after clicking the button and selecting Metamask from the list of wallets. Where the connect button used to be, you should see a wallet symbol with the first two and final six characters of the wallet address.

Finally, as seen in the image above, go to Trade. Click it and choose Swap from the dropdown menu. You should see the screen shown below.

Assuming you want to purchase CAKE, the native token for Pancakeswap, just input the amount of BNB you want to exchange for CAKE. If you want to utilize all of your BNB, choose MAX, although this is not recommended since you will need some BNB to pay future costs.

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Slippage, or the amount of variance from the projected rate, is set by default to 0.5%. Depending on the coin of interest and how crowded the network is at the moment you want to trade, you may need to raise this.

If everything works as planned, you’ll see a highlighted SWAP button down below. When you click on it, your transaction is completed. Congratulations on successfully purchasing your first cryptocurrency on Pancakeswap using Metamask.

Because it is noncustodial, Metamask was built with security in mind. This implies that no user data is saved on it, thus hackers cannot steal any of your info from it.

However, it is a hot wallet, and hot wallets are the most susceptible. Metamask, on the other hand, is a risk worth taking for anybody interested in dealing with Ethereum.

What should you think about before using Metamask?

Pros:

  • Does not store user data
  • No KYC required to use
  • Because Wallet is open-source, it is quite safe to use.

Cons:

  • Hot wallets are vulnerable
  • Only Ethereum and BSC-based coins are supported.

Is Metamask worth utilizing after reading this post and understanding how to purchase cryptocurrency using it? Yes, you may interact with DeFi coins on Ethereum and BSC.

DeFi tokens, Dapps, smart contracts, and NFTs are becoming the norm, and Metamask is one of the primary gates into the ecosystem, thus it is worthwhile to use.

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