Continuing my series of guides on the Binance Smart Chain blockchain, today I would like to tell you about how to provide liquidity on Pancake Swap for any token, including a token you create yourself - I talked about this in detail in my last guide.

Including today I will talk about the test version of Pancake Swap, which many people don't know about - young token developers can use it to test their assets without risking any real money.

To begin with, we will need a Web3 wallet with Binance Smart Chain support to start liquidity provisioning. The easiest way is to use Meta Mask, in which you manually add BSC network - you can use the official instructions from Binance.

Once you have a purse, we replenish it with BNB coins - they can be purchased on a large number of exchanges, including Binance for rubles from the card.

After that go to the official Pancake Swap website and connect your wallet to it. Then we need to buy both tokens for which we want to add liquidity. This is easiest to do on Pancake Swap itself - if the token is not in its list, you can add it manually by simply typing the contract address in the search bar.

If you have both tokens in your balance, then go to the Exchange section on the Liquidity page. Click Add Liquidity, select both tokens and enter the amount for one of them - Pancake will automatically calculate the amount for the second. It is important to keep in mind that you can only add equal amounts of tokens to the liquidity pool, for example 100 BUSD and BNB for $100.

When all the fields are filled in, you will need to apprude token withdrawal from wallet by clicking on button Enable and signing the transaction in wallet with gas payment for about 10 cents, and after that click on button Supply and finally provide liquidity, also by signing the transaction and paying for gas about 50-60 cents more.

After that, you will have LP tokens from Pancake Swap, which are a kind of receipt, confirming that you have provided liquidity. You can send them to Farmig either at Pancake Swap itself, or at many other protocols that offer such opportunity. But of course consider the risks.

If you want to withdraw your liquidity, you need to go to the Liquidity page again, select the desired position in your LP list and click Remove, after which you will get your LP tokens written off, and in exchange you will get back your tokens + accrued interest from commissions. Just keep in mind that you may get less tokens than you invested - the reason for that is such a mechanism as Impermannent Loss, that is, a variable loss.

It occurs when the price of two tokens strongly changes relative to each other. For example, if you invested 100 BUSD and the corresponding amount of BNB in a pool when they were $300, then after they rose to $600, you will receive back about 5% less assets than you invested.

But what if the token is not already trading on Pancake Swap? For example, this is your own token that you just created from my last guide.

And the principle is actually exactly the same. You go to the Liquidity page, choose the token pair you want - for example your creation paired with BNB, and then specify the amount of both assets. Since you will be the first liquidity provider for that token, you can decide its price yourself. For example, in the last video I created my own VXT tokens for the test. And now I am free to add them to the listing on Pancake Swap. For example I will put 10 VXT and 0.1 BNB into the pool, thereby setting the initial price of my tokens at 0.01 BNB per 1 VXT.

And also by allowing Pancake to write off assets and confirming the corresponding transactions in MetaMask, my token will be officially added to the Pancake Swap listing, after which it can be traded by anyone.

However, I don't want to spend BNB for the sake of a simple experiment, so I performed all operations on the test network. Yes, officially Pancake Swap does not support work with BSC testnet, but I googled a fork of this exchange on test network Binance Smart Chain, created by one of the enthusiasts. I'm not so sure about its reliability, so if this site will ask you to enter your private key, it's not my fault.

But as for me, this fan fork of Pancake Swap will be a great opportunity for newbies to go all the way from creation to listing their first token without spending any real BNB.

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