How To Buy Safemoon
Cryptocurrency "to the moon" is something you'll likely hear about if you spend any time following the topic online. However, SafeMoon's brand has been built on this popular turn of phrase, but there are oddities to this crypto currency that make it more difficult (and arguably riskier) to buy than other top cryptocurrencies.
What Is SafeMoon?
Binance's blockchain technology was used to launch the SafeMoon cryptocurrency token in early 2021.
A number of well-known people have endorsed SafeMoon, including sports blogger David Portnoy, rapper Lil Yachty, and YouTuber Jake Paul, throughout the year 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. There is a $100 transaction fee if you sell $1,000's worth of SafeMoon. Aside from that, you'll have to pay any fees a crypto exchange charges to facilitate the sale of your cryptos.
Shaun Heng, vice president of growth and operations at CoinMarketCap, a price tracking website for cryptocurrencies, explains that SafeMoon's developers say this is done to encourage long-term holding by both discouraging selling and rewarding holders of the coin.
In a payout known as a "reflection," SafeMoon distributes half of the proceeds from all sales fees to current token holders. SafeMoon uses a liquidity pool to keep prices stable with the other half of the charge.
Besides being a store of value, SafeMoon does not have any other specific use case. There are no automated contracts or decentralized applications that can be run on this platform, unlike Ethereum, which does.
SafeMoon V2
SafeMoon will release SafeMoon V2 in December of 2021, which will be an improved version of the coin. By reducing transaction costs by a factor of a thousand, the new token intends to consolidate the original in the market.
Note that SafeMoon V2 tokens will not be immediately transferred to holders of the original SafeMoon tokens who keep them in crypto wallets. SafeMoon tokens must be manually transferred to the V2 platform by wallet holders.
Making the switch to V2 holdings is a piece of cake. To consolidate your SafeMoon Wallet, simply upgrade your app to the most recent version and follow the on-screen instructions. If you're using another form of crypto wallet, you can transfer your funds to the SafeMoon Swap site.
The migration procedure will be handled by the exchanges, so there is no need for you to do anything. The exchanges will tell you when the migration 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. All of SafeMoon's stakeholders receive 50% of the profits.
How to buy?
Purchasing SafeMoon comes with a number of challenges, the most significant of which being the fact that SafeMoon can only be purchased with other cryptocurrencies. Since no exchanges accepting fiat currency, such dollars, currently list it, this is why.
In addition, major exchanges like CoinBase and Kraken do not support trading in SafeMoon. In addition, Robinhood and SoFi Invest don't offer it.
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.
With many of Forbes Advisors' picks for the best crypto exchanges, you'll be able to convert money for cryptocurrencies if you don't already own any. Withdrawing the coins, storing them in a wallet, and then transferring them to SafeMoon will complete the process.
Benefits
A memecoin like SafeMoon has the potential to go viral, and if it does, its value may rise to the moon. What happened to Dogecoin, for example? Over the course of a few months in 2021, the value of the cryptocurrency surged by more than 200 times.
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. Holding most other popular cryptocurrencies, where you only make money if the price rises, does not provide you with this financial benefit.
The SafeMoon 2.0 update also reduced transaction fees, which could make it more attractive to exchanges in the future and for other use cases.
Drawbacks
There is a considerable degree of fluctuation in SafeMoon's price, which makes it a risky investment because of this. It's the same with every cryptocurrency, however in the case of SafeMoon, you'll lose 10% more on top of your original investment due to the selling charge.
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.
"The fact that SafeMoon is not listed on the major exchanges is a huge red flag," says Boston Trading Co's CFO, Jeremy Britton. In the end, the exchanges considered the project to be insufficient." At your own peril, disregard the advice of the experts, he cautions us.
Is SafeMoon a Good Investment?
Because SafeMoon is a long-term investment with a high potential for loss, it's important to be sure you have the stomach for it before investing.
In spite of this, Britton isn't sold on SafeMoon. SafeMoon should be avoided at all costs," he warns. "I would recommend that anyone considering SafeMoon run away screaming, or conduct some due diligence and then run away screaming."
There is no need to completely avoid cryptocurrency, however. Choose a cryptocurrency that is listed on all major exchanges or invest in a diversified crypto fund rather than putting your money on an obscure token that may be difficult to buy and even more difficult to sell in the future. It will be simple to exit your position when you need to, as long as there are well-known names and a reasonable amount of market liquidity," he says.
If you decide to invest in SafeMoon, make sure it's money you can live without if things don't work out.
