Beginners Guide to Binance Smart Chain: BSC Philippines Guide

Have you felt left behind by those who started cryptocurrencies in 2017 or even earlier? Or are you in it just for the memes? Feel like ETHbased Defi transactions are too slow and too expensive for you? Then Binance Smart Chain (BSC) is just the playground for you. In this article, we will introduce you to Binance Smart Chain and how to hop on it. 

Note: The article serves as an introductory guide to Binance Smart Chain, including:

• How to Set up MetaMask to Connect to Binance Smart Chain,
• What you can do on Binance Smart Chain, and
• More information about BSC

The article does not constitute investment advice. BitPinas is not responsible for your loss nor take any credit from any gains you receive. Always do your research when trying out crypto products and platforms.

What is Binance Smart Chain

Binance Smart Chain a CeDeFi (centralized decentralized finance, which we’ll explain shortly) is not to be confused with Binance Chain, the latter is not smart contract and Ethereum Virtual Machine (EVM) compatible. BSC relies on Proof of Staked Authority where a validator would stake BNB to process transactions and blocks, which allows a shorter block time, and lower fees.

But first, what is CeDeFi? It’s a type of system that brings the best functionalities of both centralized finance and decentralized finance. Every blockchain has 3 important properties: Security, Scalability, and Decentralization. They can’t be achieved simultaneously and most of the time, trying to improve one of the properties results in sacrificing one of the other two (or both). In CeDeFi, faster time and cheaper transaction fees (therefore scalability), is favored in exchange for true decentralization. CeDeFi could be a topic on its own, for now, let’s go back to Binance Smart Chain.

In Binance Smart Chain, BEP20 Tokens are the ones used in Binance CeDefi protocols such as PancakeSwap, Venus, PancakeBunny, etc.. You can swap BEP2 tokens to BEP20 tokens by using Binance Chain Extension Wallet but I’d rather buy BNB and withdraw it and use DEx, rather than taking this route.

How to Set up MetaMask to Connect to Binance Smart Chain

1) If you haven’t set up your MetaMask yet, please refer to this article on setting it up: How to Use MetaMask: A Guide for Filipinos | BitPinas

2) Setup a custom RPC by clicking the drop down menu for “Networks” then clicking “Custom RPC.”

3) Fill it up with the info below:

• Network Name: Smart Chain
• New RPC URL: https://bsc-dataseed.binance.org/
• ChainID: 56
• Symbol: BNB
• Block Explorer URL: https://bscscan.com

4) Finally, on your MetaMask dashboard change your network to Smart Chain.

5) Maybe you bought some tokens at https://exchange.pancakeswap.finance/#/swap and wondered where are my tokens? Here are 2 possible problems you may encounter and their solutions:

A) You haven’t added the token yet. Just add token and paste the token’s contract address, click next and then add tokens.

B) Or you’re in the wrong wallet. Just click connected then click “switch to this account.”

For users of Trust Wallet, please refer to this article: https://academy.binance.com/en/articles/connecting-trust-wallet-to-binance-smart-chain-bsc 

What you can do with Binance Smart Chain

• On CeDeFi protocols like PancakeSwap
  • You can swap BEP-20 tokens
  • Stake
  • Farm
  • Add liquidity on liquidity pool
  • Buy NFT’s
  • Buy Initial Farm Offerings
• On CeDefi protocols like Venus
  • You can lend and borrow
• Buy pre-sales on dxsale/unicrypt
• Transfer tokens to another BSC wallet address
• Store your BNB and/or BEP-20 tokens

Get Started on Binance Smart Chain

Sandbox: DEFISTATION

To get started, you can dive right in the sandbox or DEFISTATION. DEFISTATION lists audited “legit” CeDeFi protocols that have been popular to users of the space. “Audited” and “legit” doesn’t necessarily mean it’s safe. Due to popularity or number of users, percentage returns are not as big as they used to. 

The projects are already lined up in the sandbox, you just have to pick your favorite.

Yield Farm: BSCSCAN

On https://bscscan.com/yieldfarms, they show ongoing Yield Farms that can provide you the highest APY but as the site says, Do Your Own Research. You can see if a yield farm is a rug pull, pulling out the liquidity, at DYOR stating a “Rug Pull”. Sometimes, it’s not always the case and they might not actually be a rug pull.

Get Started on BSC

After identifying which CeDeFi protocol you’d like to use, here are some notes:

How to Exchange Tokens on Binance Smart Chain

• Everyday, new tokens and/or sometimes “shitcoins” get listed on PancakeSwap and other DEX’s, you just have to know which one to trust and buy. DYOR
• Maybe you can’t read code, or don’t know how tokenomics works, I suggest using  a checker like http://bscheck.eu/last but be careful and check if they have enough liquidity.

• You can also use BSCScan to buy on contracts like PancakeSwap. Below are the steps for it:

Use BSCSCan to Buy on Contracts like PancakeSwap

1) Using PancakeSwapV2’s contract: 0x10ED43C718714eb63d5aA57B78B54704E256024E, Connect your Wallet by clicking “Connect to Web3.”

2) Go to 11. First type how much you’ll buy on payableAmount (BNB).

3) 0 for 100% slippage on amountOutMin (uint256).

4) For path (address[]), copy-paste WBNB contract address and the contract address of the token you’re going to buy.

5) For to (address), copy-paste your contract address.

6) For the deadline, it has to be any time in the future of the trade.

Farming on Binance Smart Chain

• Make more crypto from your crypto. Here, Annual Percentage Yield (APY) could go up to a millions but that doesn’t mean your token value couldn’t go down to dust making your APY useless. Also take note of liquidation.

Risks in Binance Smart Chain

• Rugpull
• Honeypot
• Minting
• Dumping
• Impermanent loss
• Flash loan attack
  • BurgerSwap, PancakeBunny, Bogged tokens have been victims of this causing their prices to drop up to 95%. PancakeBunny and Bogged have compensated for this by airdropping new tokens to original holders. If you’re not careful, the team behind your token might just abandon your token.

Closing Statement

If you want to enter this space, please take note that the price of BNB is tied up to everything that you do. As this space gets larger, the less profitable and the more riskier it could become. There are reports of people who’ve achieved their goals here, but  there are also a lot of people who become stagnant for not taking a profit when they can and not doing enough research.

There are so many ways that you can profit and lose money in BSC, you may check https://academy.binance.com/en but continue learning and make sure you only risk money you are willing to lose. 

The article does not constitute investment advice. BitPinas is not responsible for your loss nor take any credit from any gains you receive. Always do your research when trying out crypto products and platforms.

This article is published on BitPinas.com: Beginners Guide to Binance Smart Chain: BSC Philippines Guide