Centralization
Binance:
- Managed by one company
- Registration and KYC identity verification required
- Funds are stored on the exchange
PancakeSwap:
- Managed by the community (DAO), but thoroughly supported by Binance 😉
- Does not require an account and KYC
- Funds are stored in your personal wallet (third-party application, e.g., MetaMask)
Convenience and support
Binance:
- Convenient interface
- Fast technical support
PancakeSwap:
- Interface is simpler but less beginner-friendly
- No centralized support, only community
Trading
Binance:
- Huge selection of tokens, including top coins (BTC, SOL, ETH). Tokens are verified.
- Different types of orders: market, limit, stop-limit
- Deep liquidity
- has built-in margin trading, futures, user protection tools
PancakeSwap:
- only tokens on BEP-20, no top tokens, only their wrapped versions. However, you can manually input any contract and trade.
- Only deals at market price (at the current pool price)
- Not always sufficient liquidity, which affects the price. Price slippage may occur.
- no built-in margin trading or futures. Can use third-party services, but this carries separate risks.
Staking/Farming
Binance:
- There is staking for top coins, flexible and locked Earn
- Simple solutions – one click
PancakeSwap:
- Income from fees and tokens (LP tokens)
- Yield Farming — flexible and high-yield strategies. Rare tokens can be farmed, but the risk is higher.
Risks
Binance:
- Risks of hacking attacks on the exchange
- Possible regulatory restrictions
PancakeSwap:
- Risks of bugs in smart contracts
- Lack of technical support in case of user errors
- There is a risk of scams: tokens without verification, without liquidity or with honeypot traps
Withdrawal:
Binance:
- suitable for beginners
- top coins (BTC, ETH, SOL, etc.)
- convenience, reliability, powerful tools, access to the CEX ecosystem
- friendly interface - all-in-one + powerful support
PancakeSwap:
- not suitable for beginners due to a higher entry threshold and greater risks
- only BEP-20 tokens, but access to new and rare tokens, possibility to 'enter early'
- great flexibility, freedom, control, income from DeFi
- more complex interface, requires third-party applications, bridges