CRYPTOACADEMY SEASON 3/WEEK 3/ WALLETS AND EXCHANGES/#yousafharoonkhan-s3week3

I must say that I am really gaining great knowledge through the lessons of you professors. Every week, we are exposed to different levels of lessons. Thank you very much professor @yousafharoonkhan for this particular lecture. However below is my homework entry. I just hope that I meet your requirements.

Question no 1:
What is Liquidity in PancakeSwap Explain with examples ?and add Liquidity in PancakeSwap and explain all the steps with screenshot.(explain in your own words)

Before I answer the question above, let me explain few things about pancakeswap . Just like the name implies"swap" refers to exchange, so pancakesswap is an exchange platform built on binance smartchain where trading, coin swap and staking is done. Pancakeswap allow users of it's platfotm to stake their coin in exchange ,By allowing their coin to be staked on the platform, they are adding liquidity and therefore will be rewarded. This rewards are interest generated for the coin staked.

We may liken this process of coin staking by crypto exchange platforms to the same method used in banks or banking fixed deposit where people deposit there funds for a fixed period of time and they are paid interest as a reward for fix depositing their money. The very difference is that in DeX (decentralized exchange) like pancakeswap there are no third parties. The processes are automatic and known as AMM ( automated market makers)

Just as in banking fixed deposits, the rewards given in staking is an interest accrued due to the deposited coins. The rewards are usually paid in the native token which can be exchange for Fiat money or for other coins.

That therefore brings us to the question posed:

What is liquidity in pancakeswap?

Liquidity in pancake swap is a means whereby users donate their coin to the liquidity pool of pancakeswap and for their donations, they will receive "cake" as interest which is a native token of pancakeswap. Put simply, in banks for example, we fix deposit our money and by so doing we are lending our money to the bank to do business, then the bank pays us interest based on the value of our deposit and duration. the difference with crypto exchangers is that the money is not fiat and the process is decentralized.
Therefore, once we as individual users stake our coin, we have added liquidity. It can equally be said that liquidity is the money various users staked on the platform to improve the value of the platform.

Example
Let us take Mary Jane as a case study. Mary Jane is just new to crypto world. She do not know or have an overall knowledge of how to trade in crypto, so she was advised to do staking instead. Mary Jane took the advice and staked her coin. In so doing she has deposited her coin to pancakes swap to trade on her behalf. By lending her coin, she has provided liquidity. She will be given interest based on her investment.

HOW TO ADD LIQUIDITY IN PANCAKESWAP
Adding liquidity requires a simple process. I will begin by connecting my trust wallet to pancakeswap.
The process is simple. Click on the Dapp bottom; in the window that opens, input pancakeswap. See image below.

Then scroll down to see pancakeswap or you can simply search it in the browser column.

Clicking on it you will be taken to a window to connect. Click on connect.

Choose trust wallet from the list below:
Then click on connect wallet.

Once done, your wallet is connected. Now you will need to enable staking for you to add liquidity. It is simply done by clicking on the connect staking and farms option. See image below.

From here you can then add liquidity. This is done by clicking the add liquidity button, then choose your preferred coin that is support by binance. For example: If i want to stake my usdt coin for cake. I will choose the two coins as shown below. The amount of my usdt will give me cake equivalent. By clicking the button below to approve, I have staked my coin.
Example below. I used safemoon. I could not complete the process because I do not have required amount of safemoon.

Clicking on the drop down pointed out in the image above will take you to where to select your preferred coin.
Or you can equally add the coin by searching it.

Once done the platform will automatically calculate the percentage that you will get by staking your coin. Once you approve the transaction, you are done.

Question no 2:
How to connect Binance exchange account with Binance smart chain or trust wallet. Explain all the steps through screenshot. And transfer any coin from Binance exchange to Binance smart chain.

I already have my trust wallet, so to connect it binance exchange I will need to follow few steps.
Step 1: In my trust wallet I need to find smartchain.

From the smart chain I will link binance by simply making a transaction. Once a transaction is made, the two is linked.
Therefore, open the smart chain and click on the receive bottom. Then copy the address to binance.

step 2: Goto binance wallet and select a coin to transfer. In this instance I want to transfer USDT.

Open the crypto asset, click on withdrawal. Input the the copied address to the box as shown in the image below. Gas fee will be required.

Select BSC as shown in the image above. Click on withdraw.

• Note: As part of the requirement for this task, I suppose to make a withdrawal. Crypto is banned in Nigeria and my usdt balance is insufficient.

Question no 3:
What is the difference between Trust Wallet and Metamask and which of them is better and why? Explain in your own words.

Metamask and Trust wallet are wallets. Their function is to store and hold our crypto assets. Wallets connect us to exchange platforms through programs like Dapp through which we can swap, stake or do more things with our coin.

There are lots of similarities between metamask and trust wallet. For example, both of them are wallets to store coins. Both support android and IOS. Both have good user interface. Both have good securities.
Here below are the differences:

DIFFERENCES BETWEEN METAMASK AND TRUST WALLET

METAMASK

• Metamask is open source. It supports ethereum based cryptocurrencies.
• Metamask has a web extension for desktop computers.
• metamask stores users password in it's web without accessing user's data.
• Metamask is fast, users can choose on faster transaction with higher transaction fees or slower transaction with lower transaction fees.

TRUST WALLET

• Trust wallet can store all crypto assets.
• trust wallet is a mobile app and has no web extension for desktop
• Trust wallet stores users password offline.

From the above, I will say that the two wallets are good options, yet I prefer Trust wallet do to it's ability to store coins other than ethereum base.

no 4:
What is meant by PancakeSwap and Uniswap?
And what is the main difference between them?
Explain the different futures of both.
1Which of these exchanges is better and why? Explain in your own words.

Pancakeswap and uniswap are exchange platforms. Unlike wallets on which one can simply store crypto assets, exchange platforms allows one to trade, swap, stake and do more without a third party. The staking are equally decentralised and achieved through AMM (automatic market maker)
AMM is a kind of DEX (decentralised exchange)protocol used by exchangers. A mathematical formula is applied to calculate the percentage of interest and the entire process is automatic so that one do not need a third party.

DIFDERENCES BETWEEN UNISWAP AND PANCAKESWAP.
1: The major difference between pancake swap and Uniswap is where they are built. The pancakeswap is built on binance smartchain whereas uniswap is built on ethereum blockchain.

2: Scalability. Uniswap running on ethereum chain uses proof of work consensus algorithm and therefore has some issues with scalabiblity as more transaction is happening on the exchange. On the other hand pancake swap which is running on binance smart chain using proof of stake consensus algorithm is more scalable.
3: Uniswap supports ethereum platforms and coins built on etheruem chain whereas pancakeswap supports both ethereum chain coins and others.
4: Uniswap is older and has more coin listed on the exchange, about 1500 coins whereas pancake swap has a listing of 200 and above coins.
5: Uniswap as an ethereum based exchange has high exchange fees due to gas. Meanwhile pancake swap has lower transaction fees.

Given the points above. I will prefer pancake swap, if not for other things but for it's low transaction fees.

Question no 5:
How to connect PancakeSwap with Metamask. Explain this with a screenshot.

CONECTING PANCAKE SWAP WITH METAMASK IN FEW SIMPLE STEPS.

Step 1:
Open your metamask wallet, goto browser

Search for "pancakeswap". Pancakswap will appear in the search, then click on it.
Another window will open requiring you to connect your wallet.

*Step 2
Click on connect.

The next window will be where to choose your wallet. Select Metamask.

Next, your wallet address will show automatically for you to connect to.

Once done, the next window will ask you to approve

Once approved, the next screen shows that we have connected our wallet.

.

CONCLUSION

Wallets platforms are used to store our crypto coins. Metamask and Trust wallets are few examples of wallet platforms. Both are good and secure platforms for storing crypto coins. The difference in the two is that while Metamask accepts ethereum based crypto projects, in Trust wallet one can store any crypto coin.

On the other hand, Exchange platforms are decentralized platforms for trading, crypto swap, staking and more. Uniswap and pancake swap are examples. Pancake swap is built on binance chain while uniswap is built on ethereum smart chain. Uniswap is older in age and has more coin listing than pancakeswap while pancake swap seems to excel more as it builds and improves on the weaknesses of uniswap like being more scalable, having low transaction few, supporting various crypto projects ( binance and even ethereum).