uniswap or pancakeswap while defy may not be as popular as it was during the flaming hot DeFi
summer of 2020 the rivalry between layer 1 chains remains strong and in today's video uniswap and
pancakeswap go head to head which one is better and before we get started my name is Trev and
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or pancake swap which one is better now before we get into it what is a decentralized exchange
decentralized exchanges or DEX are a place to trade your tokens while keeping control
of your private keys this means that you can trade directly with your counterparty without
having to hand over your tokens to a middleman a piece of code called a smart contract takes care
of the whole deal there is one downside to DEX though because they run on specific blockchains
you can only trade tokens that run on the same chain for uniswap this means you can only trade
ethereum based assets whereas pancake swap only offers tokens running on binance smart chain on
the flip side you will be able to trade close to any ethereum based token on udeswap and the same
is true for pancake swap and bsc based tokens and if you want to learn more about dexes make sure to
ask alex in the description below and let's get started with uniswap uniswap is the largest and
most popular decentralized exchange running on the ethereum blockchain as one of the first successful
dexes many other DEX will probably remind you of uniswap since they're launched in 2018 uniswap has
grown significantly to the point that the dex now generates over 3 billion dollars a day in volume
as i said earlier uniswap runs on the ethereum blockchain a blockchain notorious for high gas
fees this means that a cost of a single token swap could run you over a hundred dollars on a busy day
ouch for this reason alternatives to ethereum were created solana polygon and binance smart chain are
just a few examples each of which have their own pros and cons pancake swap is the decks for the
finance smart chain allowing you to swap any token running on the binance backed ethereum competitor
pancake swap was launched in september of 2020 and quickly rose to become one of the largest DEX in
the world and at the time of shooting this video pancake swap generates more than a billion dollars
a day in volume because pancake swap runs on the binance smart chain transactions on the chain
are much cheaper costing less than a dollar per transaction this is possible because bsc is a more
centralized blockchain than ethereum as a result the chain could be considered more vulnerable to
hacks or exploits with higher trading volumes and the majority of active projects trading on uniswap
it's generally considered as a larger DEX because anyone can list a token on either decks
both platforms have their fair share of low quality tokens so while pancake swap might
technically have a wider range of tokens to trade many of these tokens die quickly after launch also
both uni and pancake swap have had their problems with meme coins and outright scams being listed
in rapid succession so which decks is better in our comparison we've seen advantages to both DEX
uniswap runs on a more decentralized and arguably more secure blockchain but this means you'll pay
significantly higher transaction fees and that's fine if you trade with large sums but a 50
fee is a lot when you're trading with just 500 this price difference might change in the
future when ethereum completes the migration to proof-of-stake an upgrade we expect will reduce
transaction costs significantly but that's still a while away essentially deciding which decks is
best for you depends on your preferences do you favor decentralization track record in the newest
projects and you're okay with paying a hefty premium then uni swap is the place to be do you
want a more centralized but cheaper place to trade pancake swap is your home in any case both dexes
are great pioneers in their respective blockchains and regardless of your choice there's one final
note of caution trading on decentralized exchanges means that there's no middleman
while this sounds great it means you alone are responsible for what happens to your money
you can get hacked you can accidentally buy a token that looks like another token
or buy a token that you'll never be able to sell so the market cap is 2.168 trillion dollars
and now the mark oh oh it went to zero people are out for your money and centralized exchanges
are a good first defense against all kinds of threats if you want to enjoy the DeFi landscape
make sure to protect yourself and double check tokens before you ape in once you cover your
security defy is a great world to dive into and which decks will you be choosing let us
know in the comment section down below hey did you like that video yeah well make sure to like
and subscribe and while you're at it actually go check out some of our other videos here you're
probably going to like it so what are you doing go check them out right now go look at them yeah