Dogecoin was the trendiest alternative currency a few weeks ago thanks to the positive remarks of Elon Musk and Mark Cuban. After its incredible surge, Dogecoin has now somewhat retreated. Traders have since focused on SafeMoon, the most recent soaring token.
April was a crazy month for SafeMoon. At one time, it increased by as much as 2000%, reaching $0.0000130. On the other hand, it is currently at $0.000006, down almost two-thirds from its high. It’s hardly surprising that traders are fast learning how to purchase SafeMoon to take advantage of the swings given the price volatility.
As SafeMoon has only recently gained popularity, it isn’t yet listed on many significant cryptocurrency exchanges like Coinbase (ticker: COIN). In actuality, there are now just two main sources for SafeMoon trade. Prospective cryptocurrency investors should be aware of the following:
What is SafeMoon
Early in 2021, SafeMoon, a cryptocurrency token based on blockchain technology created by Binance, was introduced.
Throughout 2021, SafeMoon got endorsements from well-known people such as YouTuber Jake Paul, artist Lil Yachty, and sports blogger David Portnoy. Although SafeMoon’s price has decreased by about 90% from its high as of this writing, this helped fast increase the worth of the company.
SafeMoon’s 10% fee when you sell the token is its most distinguishing characteristic. In other words, if you sold $1,000 worth of SafeMoon, you would be required to pay a charge of $100. This is on top of any costs you could owe a cryptocurrency exchange for assisting the sale.
Shaun Heng, vice president of growth and operations at CoinMarketCap, a website that tracks cryptocurrency prices, explains that the makers of SafeMoon claim that this is done to promote long-term holding by both discouraging selling and rewarding holders of the coin.
In a distribution known as a “reflection,” SafeMoon divides 50% of the revenue from all sales fees to current token holders. The remaining half of the charge is placed in a liquidity pool used by SafeMoon to keep prices stable.
What makes SafeMoon special among all the cryptocurrencies and altcoins available on the market?
This alternative asset has an ingenious method to reward long-term owners. Using a platform for processing cryptocurrency payments, Clayton Moore, CEO of NetCents Technology (OTCMKTS: NTTCF), explains: “SafeMoon charges a 10% exit fee to investors who sell it, in contrast to the majority of other cryptocurrencies.
The other half of the price is incinerated, with the other half being divided equally among all SafeMoon holders. For the benefit of long-term investors, the corporation commits to following a burn strategy.”
Theoretically, this will function as a boosted share repurchase program. If everything goes as planned, SafeMoon owners will gradually witness a rise in the percentage of the company they control as the exit fee is gradually dispersed to the token holders who still have tokens. The number of SafeMoon tokens that are currently in circulation will gradually decline as a result of the burn, which works similarly to a stock repurchase scheme.
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How to Buy SafeMoon
The main barrier for newbies is the fact that SafeMoon can only be purchased using other cryptocurrencies, which is just one of the difficulties in buying SafeMoon. This is due to the fact that no exchanges that deal in fiat money, such as dollars, presently offer it.
This brings up a further issue SafeMoon faces: SafeMoon trading is not supported by well-known exchanges like CoinBase and Kraken. Additionally, it isn’t accessible through applications like SoFi Invest or Robinhood.
Use Binance Coin (BNB) or another cryptocurrency to swap for SafeMoon tokens using SafeMoon’s unique SafeMoon Swap to purchase the cryptocurrency. Trades on SafeMoon may be executed on a few other cryptocurrency exchanges.
If you don’t already have cryptocurrency, you’ll probably need to register for an account on another exchange that lets you convert money into coins, as is possible with several of Forbes Advisor’s top picks for cryptocurrency exchanges. After that, you’ll need to take the coins out of the exchange, put them in a wallet, and then transfer them to a SafeMoon exchange.
PancakeSwap is the primary marketplace where SafeMoon is purchased.
PancakeSwap, an automated market maker, was introduced last fall. A wide range of trading, liquidity-providing, and yield-farming operations are permitted by this decentralized finance (DeFi) application. A video guide on how to purchase SafeMoon through PancakeSwap was published on the official SafeMoon Twitter account.
Users must first purchase Binance tokens. These should be stored in a wallet that is compatible with the technology; supporters of SafeMoon recommend MetaMask and Trust as two suitable choices. From there, traders may use the BSC network to swap Binance tokens for SafeMoon.
If you don’t already have cryptocurrency, you’ll probably need to register for an account on another exchange that lets you convert money into coins, as is possible with several of Forbes Advisor’s top picks for cryptocurrency exchanges. After that, you’ll need to take the coins out of the exchange, put them in a wallet, and then transfer them to a SafeMoon exchange.
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Disadvantages of Buying SafeMoon
Due to its extreme volatility, which causes pronounced up-and-down price swings, SafeMoon is a dangerous investment. While this is true of all cryptocurrencies, if you chose to sell SafeMoon, you will lose an additional 10% due to the selling charge in addition to your investment loss.
Furthermore, SafeMoon is not suitable for regular trading since you must pay that significant cost each time you sell. Furthermore, because it is not traded on well-known exchanges, SafeMoon is less liquid and requires more labor to convert into cash because you must first convert it to BNB.
Jeremy Britton, CFO of Boston Trading Co, a crypto investment company, says that SafeMoon’s absence from the main exchanges is a huge warning sign. The exchanges conducted their due diligence and discovered problems with the scheme. At your own risk, disbelieve the experts, he warns.
Advantages of Buying SafeMoon
As a meme coin, SafeMoon has the potential to gain popularity, and if it does, its value may rise to the moon, as its name suggests. Think about what occurred with Dogecoin, for instance: Simply as a result of word-of-mouth, the cryptocurrency’s value increased by more than 200 times within a short period of time in 2021.
If you want to retain SafeMoon for a long time, the reflections will also be advantageous to you because you will share in the commission paid when other users sell their tokens. Holding the majority of other well-known cryptocurrencies, where you only get money if the price increases, won’t provide you with this financial incentive.
Furthermore, the latest SafeMoon 2.0 version reduced transaction fees, which could make SafeMoon more appealing to exchanges and other use cases in the future.
Should You Buy SafeMoon?
That being said, now that you know how to purchase SafeMoon and why it has so far attracted so much trader attention, is SafeMoon a wise investment?
The initiative has drawn a great deal of criticism. On social media, prominent crypto thought leaders have attacked the currency and compared it to the notorious Ponzi scam Bitconnect.
Moore has a similar skepticism. Although he recognizes certain benefits of SafeMoon, overall he is wary. “SafeMoon has been compared by some analysts to a multi-level marketing system that only makes select participants wealthy. The fact that the CEO of SafeMoon reportedly holds more than 50% of the liquidity is further problematic, in my opinion, “Moore claims. Even when these monies are locked up, the level of ownership consolidation is still troubling.
The fact that those who find a new token first reap the benefits in a significant way is a regular phenomenon in the altcoin landscape.
Personally, I believe that a SafeMoon crash is inevitable, adds Moore. It will likely be too late to generate any immediate profits by the time the majority of people learn about SafeMoon. That reveals the essence of the situation. Although SafeMoon could turn out to be a solid product, this does not necessarily mean that investors should acquire the token during the height of its initial hype cycle.
The CEO of Bitcoin Depot, which runs over 2,000 Bitcoin ATMs throughout the world, is Brandon Mintz. Mintz believes that investors should exercise caution with SafeMoon for the time being since, unlike Bitcoin or Ethereum, SafeMoon “is not expected to have as much underlying long-term value. Additionally, “its value has already taken a sharp decline. The safety of the currency is being questioned far too frequently “Says Mintz.
However, Mintz is not entirely unfavorable of SafeMoon. Investors appear to be flocking to new DeFi protocols like SafeMoon, thus adoption will undoubtedly increase the underlying value over time, says Mintz.
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That will be an important factor in the end. If SafeMoon is to be successful, it must develop features that go beyond its current role as a tool for speculators. Although the loyalty function is a benefit, SafeMoon’s present value could not be supported by it alone.
“Regarding a cryptocurrency with no practical use, I believe investors should exercise caution. It’s obvious that the SafeMoon crew wants to thank devoted consumers, but what good is it to keep the cryptocurrency forever if there is no genuine purpose for it?” Moore claims.
That is a legitimate argument, but SafeMoon’s whitepaper, which outlines the company’s plans to create educational crypto applications, a market for non-fungible tokens (NFTs), and manages philanthropic endeavors, appears to reject it.
Before joining in, remember that it’s just talking until you do the walk.
Make sure you have the guts to tolerate short-term losses before investing in SafeMoon because it is a rather high-risk, long-term investment.
Even still, Britton is not persuaded to invest in SafeMoon. He advises anyone thinking about SafeMoon to “run away screaming” or “do some research and then go away screaming.”
You are not, however, required to completely avoid cryptocurrency.
Consider a coin that is in the top 20, listed on all major exchanges, rather than gambling your money on a token that may become impossible to acquire and sell, or invest in a diversified cryptocurrency portfolio. It will be simple to exit your investment when you need to sell because there are well-known companies and good market liquidity,” he argues.
Make sure that whatever you invest is money you can afford to lose if you decide to purchase SafeMoon.
Buying Methods of Safemoon
Buy SafeMoon Using Binance
Cryptocurrencies that may be used on the Binance platform are continually being reviewed and added by Binance. You can adhere to the detailed instructions below to purchase SafeMoon, which is not presently available on Binance. By linking your cryptocurrency wallet to a decentralized exchange (DEX) and purchasing the basic cryptocurrency using your Binance account, it will demonstrate how to purchase SafeMoon.
Download a Binance Wallet
The BNB Chain network offers a variety of crypto wallets, with Binance appearing to be the most integrated. You may download Google Chrome and the wallet Chrome extension if you’re using a desktop computer. If the wallet is available, you may download it from the iOS App Store or Google Play if you prefer using your smartphone. Just be sure to visit the Binance website and download the official Chrome extension and mobile app.
Set up your Binance
Using the Google Chrome extension for the wallet or the mobile app you downloaded in Step 1, register and set up the cryptocurrency wallet. You can use the help page for the wallet as a resource. Make a note of your wallet address and keep your seed phrase secure. Later, when you are on Steps 4 and 6, you will need it.
Buy BNB Chain as Your Base Currency
You may purchase the BNB Chain after setting up your wallet by logging into your Binance account and going to the Buy & Sell Crypto page. If you have never used Binance before, you can read our How to Buy BNB Chain article to learn how to sign up and purchase your first coin.
Send BNB Chain From Binance to Your Crypto Wallet
Go to your Binance wallet area and search for the BNB Chain you bought after purchasing it. Click on “withdraw” and provide the necessary data. Set the network to BNB Chain, enter your wallet address, then enter the desired transfer amount. When your BNB Chain appears in your Binance, click the withdraw button.
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Buy SafeMoon Using – Coinbase
Download Coinbase Wallet
To acquire SafeMoon, a self-custody wallet like Coinbase Wallet is necessary. Both a browser extension and a mobile app are offered for Coinbase Wallet.
Choose a Coinbase Wallet username
You must select a username while configuring your Coinbase Wallet. With this login, other Coinbase Wallet users may transfer your cryptocurrency with ease. The username is optional, however, it is necessary to access the account.
Securely store your recovery phrase
A recovery phrase made up of 12 random words will be sent to you when you establish a new self-custody wallet. Anyone who knows your recovery phrase gets access to your crypto because it is the key to it. Keep your recovery phrase a secret from others.
We highly advise writing these down on paper, keeping them in a safe place, and using the cloud backup function of Coinbase Wallet.
Do not divulge your recovery phrase to anybody, please. Your recovery phrase will never be requested by Coinbase. Additionally, Coinbase cannot assist you in accessing your wallet if you forget your recovery phrase.
Understand and plan for Ethereum network fees
Fees vary according to the amount of traffic on the network, the complexity of the transaction, and how quickly you need the transaction to be finished. Consider saving some cash for fees. Study up on Ethereum costs.
Buy and transfer ETH to Coinbase Wallet
To purchase Ethereum, you must first open a Coinbase account (ETH). Find out more about setting up a Coinbase account and purchasing Ethereum (ETH). Using the Chrome extension or the mobile app will affect how you send ETH to your Coinbase Wallet. See the instructions in detail.
Use your ETH to buy SafeMoon in the trade tab
You may buy SafeMoon directly from the app if you use Coinbase Wallet on your smartphone. On the Assets tab, click the (+) Buy. Then choose the “Trade” option to exchange ETH for any token that adheres to the Ethereum protocol (also known as “ERC-20 tokens”). Select SafeMoon by tapping “choose coin.” Enter how much ETH you want to trade for SafeMoon. Don’t forget to budget for transaction costs. To complete, confirm your purchase and adhere to the on-screen instructions.
Click “Convert” if you are using the Coinbase Wallet plugin. Enter the amount of ETH you want to swap for SafeMoon when searching for it. Don’t forget to budget for transaction costs. Verify your purchase and adhere to the directions displayed on the screen.
Brief History of Safemoon
The token price of SafeMoon is a little deceptive given its low market capitalization. There are already more than 585 trillion tokens in circulation, making it significantly more abundant than other cryptocurrencies like Bitcoin (with a maximum supply of 21 million) and Ethereum (with a current supply of 115 million).
Because there are so many tokens in use, it is almost impossible for SafeMoon to ever hit $1, as some investors claim. SafeMoon would require a market capitalization that is around 600 times larger than Bitcoin’s in order to accomplish this pricing goal.
By moving to a new smart contract, SafeMoon (SAFEMOON) was recently upgraded to SafeMoon V2 (SFM). SAFEMOON (V1) now has a 100% reflection charge, thus devaluing the coin.
Holders will be encouraged to upgrade to 2.0 as a result, but it is troubling that the organization was able to alter the initial contract. What would stop them from basically rendering V2 useless as well? For a token with “safe” in the name, there are undoubtedly many hazards.
