According to some research, 16% of people have invested in some kind of cryptocurrency.
If you’re going to invest in cryptocurrency, you might be wondering what the difference is between Uniswap vs PancakeSwap.
Thankfully, you came to the right place. Keep reading for a Uniswap guide and a PancakeSwap guide.
What is Uniswap
Uniswap is the top decentralized exchange. It uses the Ethereum blockchain and the Automated Market Maker to execute trades.
You might recognize the name Uniswap because it was the market that flipped Coinbase’s trade volume.
Trades on Uniswap focus a lot on liquidity. There are billions of dollars worth of cryptology on the exchange. You don’t need buyers or sellers to trade on here, but you’ll trade assets with liquidity pools.
You can provide liquidity to the pools and trade with them, but there are many different ways to do it.
What is PancakeSwap
PancakeSwap is also a decentralized exchange. You can actually farm Binance Smart Coin on this platform.
People use PancakeSwap instead of Uniswap because it has yield farming, transaction speed, and lower trading fees.
The tokens on here also use the BEP-20 Binance token. So if you wanted to trade an Ethereum token, you’d have to use the Binance Bridge to change it into a BEP-20 token.
Once you’re done, you’ll get lower fees through the network since it’s the same coin.
While some people might think this is a lot of work, it actually gives you great yields when it comes to farming.
How Are They Similar?
These two platforms are similar because they’re both in an automated market. They both use a marker model that’s automated, so you have to do less work.
You can also earn a yield from each platform. You can provide liquidity regardless of which platform you’re using.
Both platforms are decentralized and driven by the community. That means that the community governs and supports the exchange.
Before you can use either exchange, you’ll also need to have a browser wallet extension.
How Are They Different?
To start with, Uniswap Price is also a little bit more expensive than PancakeSwap. Uniswap is way ahead of any other exchange type, but PancakeSwap is quickly rising as it gains popularity.
Uniswap was built on blockchain from Ethereum, so each transaction costs an ETH. This is a gas fee, and it’s rising as global warming gets worse. That means the transactions made on Uniswap will also be a little bit more expensive than PancakeSwap.
Uniswap is also older than PancakeSwap, being two years ahead of the other.
Learn More About Uniswap vs PancakeSwap
These are only a few things to know about Uniswap vs PancakeSwap, but there are many more differences.
If you’re thinking of investing in cryptocurrency, you should consult with a financial advisor.
They’ll be able to provide more information and advice. If you found this article helpful, explore our website to find even more articles just like this one.