PancakeSwap is a decentralized exchange (DEX) based on the Binance Smart Chain (BSC). Decentralized exchanges allow direct peer-to-peer trading of tokens on a blockchain. There is no central company that oversees the transaction like there is with a centralized exchange (CEX).
PancakeSwap can be a useful tool to stake and trade funds without needing to trust anybody or ask for permissions.
Step 1: Buy BNB from an exchange (optional)
If you do not have any BNB on your Binance Smart Chain wallet you need to get some BNB first. One of the easiest ways of buying BNB is by using exchanges like Kucoin, Coinbase or Binance. After you have purchased BNB you will need to send it to your Binance Smart Chain wallet.
Step 2: Connect your wallet to PancakeSwap
Once you have a Binance Smart Chain wallet with BNB you can go to PancakeSwap. You will then need to connect your wallet by clicking the 'Connect Wallet' in the top right corner.
PancakeSwap supports Metamask, WalletConnect, Trust Wallet, MathWallet, TokenPocket, Binance Chain, SafePal and Coin98.
Step 3: Select a token
Once you have connected your Binance Smart Chain wallet you can click on 'Trade' and you will get redirected to the swap interface of PancakeSwap.
Select a token and choose a cryptocurrency that is already listed. You can also import a contract address but please make sure to check that it is the right one. Always copy a contract address from official sources.
Step 4: Make your trade
Enter the amount of BNB you want to trade for another token and also make sure you have enough funds to cover the gas fees. Then click on 'Approve'.
The confirmation of your transaction will take some time. Once the transaction is done you have successfully swapped BNB for another token on the Binance Smart Chain via PancakeSwap.