Staking Cake On Pancakeswap: Building Passive Income!

Disclaimer: This article is not intended to be a piece of financial advice. I am just going to share my experience of building passive income by staking Cake on Pancakeswap. This will also serve as a simple guide to those who are interested in doing the same thing. Read at your own risk!

I have been staking my Cake holdings on the Pancakeswap platform for quite a while now to have passive income from it while holding it. Before, I used to provide liquidity to the Liquidity Pool on the platform and stake my LP Tokens on the farms to earn Cake from my other crypto holdings, which I have shared in My Pancakeswap Journey: Flipping TWT, EGLD, REEF, and BNB article. But because there is a risk in providing Liquidity which is the Impermanent Loss, I decided to stop farming there, and I've also sold these coins already.

In my previous article, "How Do I Increase my Bitcoin Cash Holdings?" I have shared that I'm converting the earnings I have from staking Cake on the Syrup Pools on Pancakeswap, to buy back the BCH I spent in buying Cake.

Let me just share my stupidity. Before I decided to convert my Cake earnings into Bitcoin Cash, I was selling my earnings to buy some shitcoins, which gave me losses instead of gaining profits. My mentality before was that it's okay to spend my earnings on shitcoins as I just earned them without doing anything. But if only I have thought about converting them into BCH earlier, I should've more BCH holdings now instead of shitcoins.

This is one mistake I did before and I've learned from it too. Anyway, it's all in the past now, so let's move on.

How To Generate Passive Income by Staking Cake on Pancakeswap?

Assuming that you're a newbie on staking, let's go to the basics first.

If you don't know yet, Pancakeswap is an Automated Market Maker (AMM) that is the number 1 liquidity provider on the Binance Smart Chain (BSC). It is the leading Decentralized Exchange on BSC that has great offers in farming, staking, and you can also win Cake through their lottery.

The Cake token is the native token of the Pancakeswap platform, which you can earn by farming, and you can also buy it in crypto exchanges such as Binance with a current price of $19 each. You can access the Pancakeswap website with the use of your Trust Wallet or Metamask. You can stake this Cake to generate passive income while holding it.

There are various ways on how to create Passive Income using your Cake Token on this DApp but since I'm only staking my Cake there, let's just focus on staking Cake first.

How do you get started?

First, you need to have some CAKE on your Trust Wallet or Metamask. (I'm using Trust Wallet as it's easier to navigate for me.) You can choose to buy Cake on Pancakeswap or Binance, whichever you deem convenient. You can buy Cake by selling your Bitcoin Cash, or if you have an extra fund for it, that's better. Assuming that you bought Cake on Binance, just withdraw the token and send it to your Smart Chain address on your Trust Wallet, or just look for Cake, click the receive button, then copy the address there.

Second, you need to have some BNB (Smart Chain) for the transaction fees. For every transaction you do on the platform, you need to spend a small amount of BNB as your gas fee. So aside from the Cake you'll be staking, you also need to have some BNB (Smart Chain), which you can also buy on Binance.

Third, it's time to access the PancakeSwap website on the DApps of your Trust Wallet. Once you're in, navigate the website using the 3 bars on the left side, and look for the Pools.

Fourth, once you're already on the Syrup Pools, you can scroll down on the page to look for the best pools where you can stake your Cake. You can opt to auto-compound your Cake to earn more Cake as this has the biggest APY, or you can also stake your Cake to earn other tokens, with big APR too.

Fifth, once you've decided on which pool to stake your Cake, it's time to enable the pool. Just click the arrow down button to find this enable button. To enable it, you have to spend $0.08 BNB to approve the contract.

Sixth, after enabling it, it's time to stake your Cake, click the Max button to stake all of your cake, then click Confirm. To approve this transaction, you also have to pay $0.37 BNB as your gas fee.

Lastly, it's time to sit back and relax because your Cake funds are already staked in your selected pool.

I love Staking Cake because it's like letting my money work for me that even if I'm not doing anything, I still get to earn money from it. Plus, I get to take advantage of it while waiting for my desired price before selling my Cake.

Currently, my Cake is staked on the SPS pool as I already removed it from the SKILL pool. Both of these are gaming tokens and they look promising to hold. I'm still holding the Skill token I've earned and I haven't decided if I will sell it already to buy back some BCH.

There you go! For those who have been asking how to stake on Pancakeswap, I gave an extra effort for you. I hope you were able to follow the guide. It looks complicated but it's really just simple.

Cheers to building Passive Income!