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August 16, 2022

PancakeSwap: What is it and How can you File Taxes on this Exchange?

Pancake Swap is a decentralized cryptocurrency exchange built on the Binance Smart Chain. The Pancake Swap Exchange allows users to trade cryptocurrencies without having to go through a centralized exchange. PancakeSwap offers a variety of features that make it an attractive option for traders, including low fees, fast transactions, and support for a wide range of tokens.

What are the benefits of Pancake Swap?

Some of the benefits of using PancakeSwap include:

Low fees: Pancake Swap charges a very low fee of 0.2% per trade. This is much lower than the fees charged by centralized exchanges.

Fast transactions: Pancakeswap transactions are fast and settlement is instantaneous. This is due to the fact that the exchange uses the Binance Smart Chain, which is much faster than other blockchain networks.

Support for a wide range of tokens: PancakeSwap supports a wide range of tokens, including both BEP-20 and ERC-20 tokens. This makes it a very versatile exchange that can be used to trade a variety of different cryptocurrencies.

Are there downsides to using Pancake Swap?

There are a few downsides to using PancakeSwap, but they are not significant enough to deter most users. Some of the potential downsides include:

Lack of liquidity: as Pancakeswap is a new exchange, it does not yet have the same level of liquidity as some of the more established exchanges. This can make it difficult to find buyers or sellers for certain tokens.

Lack of customer support: Pancakeswap does not yet have a customer support team in place. This means that if you encounter any problems while using the exchange, you will not be able to get help from a customer service representative.

Overall, Pancakeswap is a great option for those looking for a decentralized exchange with low fees and fast transactions. While there are some downsides, such as lack of liquidity and customer support, these are not significant enough to deter most users.

If you're curious about how to integrate PancakeSwap with the Ledgible crypto tax and accounting platform to automate your taxes, you can read our support article here.

Jacques Potts - Sr. Marketing Manager at Ledgible and experienced financial author, marketer, and crypto expert. His work has been featured on The Street, Project Serum, FirstTrade, and Invstr.
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