With the number of cryptocurrency investment apps on the market continuing to grow, there are a lot of choices for prospective investors. In fact, there are now so many different ways to invest in a cryptocurrency that it can be challenging to know where to begin. Users looking to get involved in the blockchain space will quickly discover there are plenty of options to choose from.
These platforms can be split into two main categories: centralized and decentralized exchanges; however, there are also a variety of different sub-categories within each of these two main groupings. If you’re looking for an easy way to invest in blockchain technology or simply want to explore your options further, keep reading as we break down the comparison between Uniswap vs Pancakeswap, two of the most popular crypto platforms available today.
What is Uniswap (UNI)?
Uniswap is a decentralized crypto trading platform that enables users to trade any token or coin that exists on the Ethereum blockchain. This platform is easy to use, features low fees and provides real-time price charts for users to monitor the value of their holdings.
Their aim is to create a robust and user-friendly exchange that is open to anybody who wants to invest in the cryptocurrency market. This user-friendly exchange allows users to buy, sell, store, and transfer various cryptocurrencies.
To understand how Uniswap works, it’s important to understand the Swapping Protocol. The Swapping Protocol is a feature that allows users to swap one cryptocurrency for another instantly. This type of exchange is beneficial for investors who want to use a kind of cryptocurrency for a specific use but then quickly change to a different type of coin for additional use.
For example, let’s say that you want to buy a cup of coffee with Bitcoin. Using Bitcoin to purchase a cup of coffee is an unsavory experience because sending Bitcoin to another person is slow and expensive.
On the other hand, let’s say that you want to buy a new computer with Ethereum. Using Ethereum to purchase a computer is slow and expensive because it’s not a good fit for this specific transaction.
Features:
● Strong focus on security
● Intuitive and easy to use
● Allows instant swap of one cryptocurrency using Swap Protocol
● Offers support for various languages
Fees
- Liquidity Provider Fees. A fee split by the liquidity providers is proportional to their liquidity reserves contribution. The fee for swapping tokens is 0.3%.
- Protocol Fees. There are no protocol fees at the moment.
Token (UNI)
Uniswap has its native token known as UNI. The UNI token is a utility token used as the primary form of fee payment within the Uniswap ecosystem. It is used to pay fees for listing tokens and making deposits/withdrawals from the decentralized exchange.
UNI can also be used for participating, proposing, and rejecting proposals that help shape the present and future of the platform. It also features a special staking model, where users who place their tokens in a staking contract will receive a daily reward in exchange for locking up their tokens for a period.
What is PancakeSwap (CAKE)?
PancakeSwap is another decentralized crypto trading platform allowing users to swap tokens or coins with others. It’s one of the newest entrants to the market.
PancakeSwap could be a promising investment because it has been accepted on several exchanges. The fact that it’s been listed on exchanges shows a demand for the coin and that a number of people are trading it.
This platform can experience an unsupported chain ID error when attempting to connect to a Trust Wallet. This error takes place because PancakeSwap may not play well with other networks.
Features:
● Can trade various assets all from one single interface
● Can easily buy and sell commodities, stocks, and crypto assets
● Can use their crypto assets as collateral to obtain loans
● Can earn a passive income through a rewards system
Fees
- Trading Fees. The platform charges 0.20% per transaction, notwithstanding whether one is a taker or a maker.
- Withdrawal Fees. PancakeSwap does not charge transfer or withdrawal fees other than network fees.
Token (CAKE)
PancakeSwap token is referred to as CAKE. The CAKE token is a utility token that will be used to access special features on the PancakeSwap exchange. It enables users to trade various digital assets on the same decentralized exchange.
Using CAKE is beneficial because it allows you to earn more tokens other than CAKE. Staking this token can help earn a portion of the collected revenue for the platform’s trading fees.
With each token you earn, you can either keep staking so that you can earn more fees or use it as a part of a liquidity pool pair in PancakeSwap Farms. This way, you’ll produce more tokens and can choose to deposit them in Syrup Pools to earn other BEP-20 tokens.
PancakeSwap vs. Uniswap: Side-by-Side Comparison
PancakeSwap and Uniswap both provide easy ways for investors to trade and invest in the blockchain space.
| Features | Uniswap | PancakeSwap |
| Launch Date | November 2018 | September 2020 |
| Exchange Platform | Decentralized | Decentralized |
| Support ERC-20 Tokens | Yes | No (unless you can swap Ethereum ERC20 tokens to BEP20 tokens) |
| Support NFTs | Yes | Yes |
| Fees | Yes | Yes |
| Customer Support | Can be contacted through email | Can be reached through socials, such as their Local Telegram Group, Twitter, and Instagram |
| Mobile App | Yes | Yes |
| Desktop App | Yes | Yes |
| Own Currency | Yes | Yes |
| Creates multiple wallets | No | Yes |
PancakeSwap volume vs. Uniswap volume can also be compared. The latter is still leading despite PancakeSwap’s rise in terms of liquidity.
Most of Uniswap’s tokens have substantial liquidity in comparison to PancakeSwap. Liquidity providers prefer Uniswap because PancakeSwap’s liquidity provision favors exotic token deposits more.
The one-day trading volume of PancakeSwap also surpassed Uniswap. They must maintain this upward trajectory to beat Uniswap’s trading volume permanently.
The main differences between these two platforms are that Uniswap is a trading platform only, while PancakeSwap allows users to invest in ICOs and crypto baskets as well. PancakeSwap also offers a greater variety of coins and tokens to choose from. There are also lower fees associated with using this platform.
Conclusion
There are many different ways to invest in crypto, and each of these trading platforms provides users with a quick and easy way to get involved in this growing space. If you’re new to the world of crypto, these decentralized exchanges offer a simple way for users to swap tokens and coins with other users.
These platforms also allow users to invest in ICOs and crypto baskets. Investing in ICOs enables users to get in on the ground floor of new blockchain projects and earn a profit if those projects are successful.
Crypto baskets are baskets or funds that hold a wide range of cryptocurrencies. Investing in crypto baskets can reduce your risk by spreading it across multiple projects while still benefitting from the growth of the overall basket.”
FAQs
Uniswap vs. PancakeSwap: which is better?
Uniswap and PancakeSwap are actually quite different in terms of their intended uses. Uniswap is a software application intended to facilitate the trading of a variety of different ERC-20 tokens.
Uniswap is designed to be used anywhere in the world and provides a quick and inexpensive platform for exchanging tokens. It also has an excellent user interface designed for both experienced and new traders.
PancakeSwap, on the other hand, is a so-called “Initial Coin Offering” (ICO) that depends on the Ethereum network to function. It’s a means of fundraising for developing an online pancake-ordering platform. PancakeSwap was designed to be used by people in a particular region (the United States) and to facilitate orders at select breakfast restaurants.
Is PancakeSwap cheaper than Uniswap?
The short answer is that it depends on which one you compare PancakeSwap to. If you’re comparing it to regular exchanges, the answer is “No” because it’s an ICO. If you compare it to Uniswap, the answer is “No” because it isn’t an exchange.
What is Pancakeswap used for?
PancakeSwap is used to raise money for a new breakfast restaurant by issuing “ICO tokens” that investors can purchase using familiar Ethereum wallets. These tokens are then used to buy pancakes at the restaurant when it opens. In short, investors purchase these tokens as a form of crowdfunding to open a pancake restaurant. The tokens can later be exchanged for pancakes at the restaurant.
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