When it comes to cryptocurrencies, it's hard to avoid hearing about a coin that is "going to the moon." However, SafeMoon's brand has been built on this popular turn of phrase, although there are oddities to this crypto currency that make it more difficult (and potentially high risk) to buy (compared to other major cryptocurrencies).
Defintion of SafeMoon
Binance's blockchain technology was used to launch the SafeMoon token in early 2021.
SafeMoon gained celebrity endorsements from David Portnoy, Lil Yachty, and Jake Paul during the year of 2021. Although SafeMoon's price has already decreased about 90% from its peak, this boosted its value in a short period of time.
SafeMoon's biggest distinguishing feature is that it charges a 10% fee for token sales. If you sold $1,000 worth of SafeMoon, you would be charged a fee of $100. You'll also have to pay any fees the crypto exchange charges you to facilitate the sale.
According to Shaun Heng, vice president of growth and operations at cryptocurrency price tracking website CoinMarketCap, "the SafeMoon developers argue that this is done to encourage long-term holding, by simultaneously discouraging from liquidating or day trading and rewarding holders of the coin."
Sales fees are taken by SafeMoon and distributed 50 percent to token holders in a "mirror" distribution. SafeMoon uses the other half of the fee to preserve price stability by putting it in a liquidity pool.
Other than being a place to deposit value, SafeMoon has no unique functionality. There are no automated contracts or decentralized applications that can be run on this platform, like Ethereum. It is referred as "shitcoin", which is a cryptocurrency that has no legitimate value or utility, as defined by crypto investors.
The SafeMoon V2 token will be released in December 2021, and it will be a new version of the token. Consolidation at a 1 to 1000 ratio is one of the primary goals of the new cryptocurrency, as are considerable reductions in transaction fees.
To be clear, anyone who have SafeMoon V1 tokens in crypto wallets will not immediately have their funds transferred to SafeMoon V2. SafeMoon tokens must be manually transferred to the V2 platform by wallet holders.
Switching to V2 is a simple process. Update the app and then follow the instructions for consolidating your SafeMoon Wallet. Visit the SafeMoon Swap webpage if you have a different sort of crypto wallet and want to consolidate.
SafeMoon tokens held on an exchange will be migrated automatically, and you will be notified when the procedure is complete.
The new transaction cost for SafeMoon V2 is 2%. The charge is split 50/50 among token holders, like in the original edition. The remaining 50% is split between the SafeMoon liquidity pool and the SafeMoon ecosystem's administrators.
How to Buy SafeMoon
For newbies, the biggest obstacle to purchase SafeMoon is that it can only be purchased using other cryptocurrencies. Isn't listed on any exchanges that take fiat currencies such as the dollar at this time. You can use your debit or credit card to purchase Binance Coin tokens via TrustWallet or the Binance exchange.
Another problem SafeMoon faces is that major cryptocurrency exchanges like CoinBase and Kraken do not offer SafeMoon trade. Apps like Robinhood and SoFi Invest do not have it either.
With SafeMoon's SafeMoon Swap, you can exchange another cryptocurrency, like Binance Coin (BNB), for SafeMoon tokens. SafeMoon can also be traded on a few other crypto exchanges.
There is a good chance you'll need to open an account on a different crypto exchange that allows you to swap dollars for coins, like many of the finest crypto exchange options recommended by Forbes Advisors. In order to transfer the coins to SafeMoon, you'll need to withdraw the funds from the exchange and store them in a wallet first.
Benefits and drawbacks of SafeMoon
The price of SafeMoon has a significant price volatility, making it a dangerous investment. This is true of any cryptocurrency, but in the case of SafeMoon, you will lose 10% more due to the selling fee in addition to your investment loss.
Because SafeMoon charges a large fee every time you sell, it's not a suitable fit for regular trading. In addition, SafeMoon is less liquid and requires more effort to convert into cash because it is not listed on major exchanges.
Boston Trading Co CFO Jeremy Britton says the fact that SafeMoon isn't listed on any of the major exchanges is a huge red flag. In the end, the exchanges considered the project to be insufficient." He warns: "Ignore the experts at your own peril."
However, SafeMoon has the potential to go viral as a memecoin, and if it does, its value might soar to the moon, as the coin's name suggests. Initially trading at $0.000000001, the SafeMoon cryptocurrency surged to an all-time high of $0.000013 in March. What happened to Dogecoin, for example? In just a few months in 2021, the cryptocurrency's value increased by more than 200 times due of word of mouth.
When other people sell their tokens, you'll get a cut of the charge, so if you plan on keeping SafeMoon for the long time, you'll also benefit from the returns. With this financial incentive, you can earn money regardless of whether or not the price of the cryptocurrency rises.
The SafeMoon 2.0 update also reduced transaction fees, making it more attractive to exchanges and other use cases in the future.
Is SafeMoon a Good Investment?
SafeMoon is a long-term investment with a significant degree of risk, so make sure you can handle short-term losses before investing in SafeMoon.
Then again, SafeMoon as an investment doesn't convince experts. As a result, they advise anyone considering SafeMoon should flee, or at the very least, conduct some research.
There is no need to completely avoid cryptocurrency, however. It's better to invest in one of the top 20 coins, or in a crypto fund, than risk your money on a token that is difficult to buy and may become impossible to sell. In the event that you need to get out of a position, you'll be able to do so with ease.
If you decide to invest in SafeMoon, make sure it's money you can live without if things don't work out. Avoid putting your entire life savings into this asset class, as crypto investing is equivalent to gambling.