In this tutorial we will find out what PancakeSwap is and how to buy XRA through its decentralized swap.
PancakeSwap and decentralized exchanges
PancakeSwap is a decentralized exchange, or DEX as it is more often known. Unlike exchange platforms like Binance, where sales and purchases are handled centrally through a company’s servers, everything on a DEX is handled through blockchain smart contracts in a completely trustless and decentralized manner.
This has both advantages and disadvantages. On the one hand, it simplifies the process of entering the platform by not requiring any identification or KYC; on the other hand, depending on the blockchain on which the DEX operates, the buying fees of a token can be significantly higher. In fact, the commission paid on a DEX is equal to the sum of the exchange costs and the fees required to register the transaction on the blockchain network. PancakeSwap, for example, operates on the Binance Smart Chain Network, which causes the purchase price to fluctuate in accordance with the Binance Smart Chain Network’s gas fees.
Furthermore, DEXs do not allow the purchase of cryptocurrencies with fiat currencies such as the US dollar or the Euro, but only the exchange of crypto for crypto. As a result, you must own cryptocurrencies in your own wallet that is not part of a centralized exchange and keep them on hand in addition to the cryptos you want to swap and those required to pay transaction fees on the blockchain.
How to be prepared for the swap BNB/XRA
There is a BNB/XRA pair on Uniswap; consequently, it is necessary to have BNB in your own wallet, such as Metamask or TrustWallet, to purchase XRA tokens and other BNB to pay transaction fees on the Binance Smart Chain Network.
Here you can find the guide to connect your wallet to PancakeSwap
BNB can be purchased on CEX like Binance and then sent to your wallet wallet or instead if you have a decentralized wallet like TrustWallet or Binance Wallet you can receive BNB on your wallet by purchasing it directly with your debit or credit card. This is not possible with Metamask.
Remember to add the XRA token to your wallet before proceeding with the swap; that means to enter the essential information to allow your wallet to identify the XRA token.
If you use Metamask, scroll to the bottom of the pop up and look for the blue inscription “Import tokens.” Choose it, then click on the word “Custom Token.” In this field, enter the BSC smart contract of the XRA token (0x83ec54a56fea7c7ccd2e65a4839dee1707206164), the token sign “XRA”, and the number of decimals (18).
Once added, you’ll be able to see your XRA balance in your wallet.
If you use another wallet, I recommend searching Google for a specific tutorial for your situation, such as “How to import a custom token on my (insert the name of the wallet provider)”.
How to perform the swap BNB/XRA
To make swapping easier, we’ve created this link that will take you directly to the BNB/XRA pair. When you click the link, a disclaimer will appear informing you that the token has not been directly verified by the Pancake Swap team. Close the disclaimer once it has been read.
Now you can see the page of the pair with the historical BNB price chart and you can input the number of BNB you want to convert in XRA in the box with the ticker BNB instead of “0.0.” After that you will be shown the number of XRA that corresponds to the price on Uniswap.
Take caution not to pick the maximum amount of BNB in your wallet, as they will need to keep enough BNB to cover network costs.
Then click “Swap,” and when your wallet popup appears, click “Confirm” to allow the transaction to spread.
As soon as the transaction is approved by the Binance Smartchain Network, your XRA balance will be updated!