Crypto academy Season 3 week 3 || Trustwallet, Metamask, Uniswap & Pancakeswap, How To Link Binance Smart Chain Wallet To Binance Exchange

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Liquidity In Pancake Swap And How To Add Liquidity On Pancakeswap

Well the concept of Liquidity is very important for us to understand. Liquidity simply put is how easily we can exchange our crypto into fiat and when will do this the asset market price as the same time shouldn't be negativly impacted. So I believe liquidity or for an asset to be said to be a liquid assets that means it could easily be converted into cash.

Now liquidity in pancakeswap or being able to provide liquidity is when an investor actually offers his asset to Pancakeswap in the liquidity pool for other people to be able to trade with it. Now this investors actually earn an interest in for the liquidity the provided.

Liquidity pools is what allows traders to buy and sell their asset without a need for an orderbook. Liquidity pool uses an algorithm that ensures we can buy and sell whenever we want no matter how high or low an asset price is currently or the time of day also it doesn't matter if there is a buyer or seller to meet our needs.

Now in pancakeswap just like in any other defi exchange it operates on a 50:50 ratio which means for example if we want to give the pool $500 liquidity to trade with then we will be giving the pool $250 of BnB coin and $250 of safemoon token to maintain the 50 50 constant based on the constant product automated market maker used by most liquidity pools.

Liquidity pool is like a large pool of money that ensures we trade 24/7 and wherever we want.

How To Add Liquidity On Pancakeswap

On Pancakeswap i clicked the menu, then clicked on the trade column and under it i saw liquidity then i clicked on liquidity

This opens up

I was told to add liquidity

As the pix shows i added liquidity in the form of BnB and Safemoon then clicked on supply

I had to confirm supply and the it went through, it was a success.

So this illustrate how we can easily add liquidity on Pancakeswap.

How To Connect Binance Exchange To Binance Smart Chain Or Trustwallet

There are steps to follow to connect my binance exchange to binance smart chain.first thing i need to do is to login to my binance smart chain on chrome extension.

Then i click on the 3 dotted line and this pop up

So i clicked on wallet direct and was asked to connect and verify my address and i clicked on it and login to my binance account and had to do an email and phone verification for security purposes

Then had to complete a set of steps to finally connect

After this set of 3 steps i was asked to bind which i did and was directed once again to the wallet connect page.

I clicked on verify and connect again and then this 👇popup

I clicked on i understand and my binance exchange account was successfully connected to binance smart chain chrome extension.

The Transfer Process

First of I went to the binance smart chain and copied my address

Then i went to binance exchange and input the withdrawal details for BnB coin and confirmed it, also had to verify both for phone and email.

After which the transaction was submitted successfully

And I l received it in my smart chain balance as the image above shows. My balance changed from 0.00 to 0.0195

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Difference Between Metamask And Trustwallet

Trustwallet	Metamask
i) In trust wallet tokens are added using the search option	while in meta mask token are simply added using the custom token button
ii) Trustwallet accepts a huge range of crypto asset not just ethereum	Most times Metamask passes through the Ethereum blockchain
iii) In trust wallet the notification feature alerts one whenever he receives a new token	we have to open it to see the new token since we are not always notified when we receive new tokens
iv) the cost of Transaction on trust wallet is very low	metamask charges transaction fees with a small amount of ethereum right and ofcourse eth is not a cheap asset anyways.
v) Trustwallet is readily available on IOS and Android	while Metamask an application, but also has a browser extension

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My preference

Personally I prefer trust wallet over metamask not taking anything away from metal marks which actually offers more versatility over trust wallet but for one trust wallet which is the world's largest digital wallet which is also the main wallet of binance exchange. I must confess binance been the crypto exchange that are use mostly for trading infact they are my no 1 crypto exchange for this reason based on Trustwallet connection with binance being their personal wallet i lean forward binance.

Another reason Trustwallet is the considerably lower fees Trustwallet charges in comparison to metamask. Ofcourse when sending a $50 asset from Metamask we wouldn't want to be paying a fee of $65 depending Ofcourse it could be way lesser but my point is for this reason i personally prefer Trustwallet.

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what is pancakeswap

Pancakeswap is a decentralized exchange that works on the binance smartchain. It has been created on binance smartchain. It uses permissionless liquidity pool controlled by algorithm. This algorithm allows Pancakeswap to work atomatically without the need of market makers. Pancakeswap token is called CAkE

Pancakeswap automated market allows one to trade this asset against it's liquidity pools and make profit. Is alot different from the traditional exchange where the buyers and sellers has to come face to face and the and the way those that are selling makes profit is by selling their asset. While in Pancakeswap the users loan their asset to the liquidity pool and make profit in form of Liquidity tokens which can be further used to make more digital assets

Pancakeswap has a high transaction speed(in matter of seconds) and lowest fees compared to any defi project built on ethereum. Pancakeswap allows us to trade the Bep-20 tokens. With the prospect of earning tokens when we loan our assets to Pancakeswap liquidity pool this means our earnings could be without bound because this tokens we have earned we could still put it to the liquidity pool again to still earn more tokens.

Now in Pancakeswap anyone from around the world could take part in the liquidity pool and eaen more token with the need for revealing their identity since Pancakeswap does not require excessive documentation from it's users

Pancakeswap features include Trade where we can exchange or trade against another crypto asset and the liquidity under trade feature also where we can add liquidity to Pancakeswap liquidity pool. We also have Farm as one of it's features which allows us to stake our Lp tokens, We also have the pool which is the syrup pool that allow users to stake and earn token with low risk and high APR, we also have the lottery, the nft collectables and voting features available on Pancakeswap

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What Is Uniswap

Uniswap is the world's leading decentralized exchange built on ethereum blockchain.

Uniswap just like Pancakeswap is also a defi decentralized exchange built not on binance smartchain but on Ethereum network

Uniswap was created as a financial decentralized exchange which allows anyone to take part in the financial transaction of ethereum based tokens without the need of a central party or middle man. The goal of Uniswap or we could say it was created to provide us with permissionless access to financial service while also ensuring the security of it's users. The project has a coin, the Uni token.

Uniswap replaces the traditional centralised market tools like exchange listing and limit order book with with automated liquidity pool executed by algorithm. And people who provide asset to this pool are known as liquidity providers or LPs and they earn a proportion of the transaction fees for their contribution. Every time someone trades on the exchange, they provide about a 0.3 transaction fee, which is added to the liquidity pool and divided proportionally to the amount a liquidity provider has contributed to the pool.

Uniswap has the swap feature which gives us the option of swapping our tokens, some other features include pool, votes, charts etc.

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Difference Between Uniswap And Pancakeswap

One of the notable difference between this two defi dex is for Pancakeswap it is built on the binance smartchain while Uniswap is built on the ethereum blockchain. Pancakeswap charges a considerably lower transaction fee in comparison to Uniswap which is built on ethereum the second largest crypto asset by market Uniswap is more compatible with Erc-20 tokens while Pancakeswap supports the trading of BEP-20 token.

Also in terms of transaction speed per second Pancakeswap process it more faster than Uniswap in less than 5 seconds

These are some differences that i pointed out between these two DEX's.

How To Connect Pancakeswap To Metamask

I login to pancakeswap from my metamask browser then to connect to metamask i clicked on unlock

I clicked on Metamask next, then this👇 pop up

Then i click on connect

Then i approved and it was connected

That was it. Successfully connected.

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Conclusion

From your lecture Prof @yousafharoonkhan and based on the assignment i think i have been able to gain some basic knowledge and vital information based on my exploration of these exchanges and wallet. such as Metamask, Trustwallet, Binance Exchange, Binance smartchain extension, Pancakeswap and Uniswap etc.

I believe both a centralised and decentralized exchange are important in cryptocurrency and offers us with enormous choices as the possess some cons and pros in that where one is lacking the other covers up for it. And the fact also that we have wallets where we hold our crypto assets is an awesome innovation. We trade with a centralised or decentralized exchange and stores our asset on a hot or cold wallet the most secure being the cold wallet.