Here comes another crypto among the long lists of cryptocurrencies!
The name’s Moon … SafeMoon.
And how to buy SafeMoon?
Well, keep reading the article and keep learning new things here!
What Is SafeMoon?
What Is SafeMoon?
In the early year of 2021, a unique cryptocurrency was launched, SafeMoon. This coin has a strategy to reward its long-term holders by applying the new tokenomics model. In contrast to most other forms of cryptocurrency, one can only buy SafeMoon from other digital assets since it is not listed on fiat currency exchanges.
What Makes SafeMoon Unique?
What Makes SafeMoon Unique?
The features that makes SafeMoon unique from its competitors are:
Static Rewards:
The static rewards refer to the 5% tokens given to SafeMoon holders. Amount distribution is based on the volume of tokens traded since the 5% is part of the 10% fee charged on every transaction. It helps solve the downward sell pressure often the case when early adopters sell their tokens.
Manual Burn:
This is a feature that implements a token burn strategy for SafeMoon in order to reduce the supply of tokens and increase their price and demand.
Automatic Liquidity Pool:
It also features a self-sustaining liquidity pool that sucks up tokens from transactions in the form of fees and adds them to SafeMoon’s liquidity pool on PancakeSwap. This adds a solid price floor for the token. Furthermore, it penalizes selling activities, thereby actually discouraging whales from dumping the token in the markets.
How to Buy SafeMoon?
Follow the below steps to buy SafeMoon:
Step 1: Setting Up a Compatible Wallet
Setting Up a Compatible Wallet
You will need to create a digital wallet that supports the Binance Smart Chain and can store your SafeMoon tokens since the token runs on this blockchain. Popular ones include Trust Wallet and MetaMask. Once more, make sure that you download the wallet from a legitimate source; store your recovery phrase safely since it’s fundamental in recovering your account in case anything goes wrong.
Step 2: Get Binance Coin
Get Binance Coin
Now it’s time to buy Binance Coin. Why? Because you cannot buy SafeMoon directly in fiat currency. Cryptocurrency exchanges like Binance, Kraken, or Coinmama could be used for this purpose.
Step 3: Connect to a Decentralized Exchange
Connect to a Decentralized Exchange
Then you will have to connect the wallet to a DEX that supports the Safemoon token; some of these popular ones are PancakeSwap and SafeMoon Swap.
Step 4: Swap BNB for SafeMoon
Swap BNB for SafeMoon
On the DEX, go to the the swap interface and select Binance Coin as the input currency and on the other side SafeMoon as the output currency. Input any amount of BNB that you want to spend, then see the rate in the swap and fees before confirming the transaction.
Step 5: Storing Your SafeMoon Safely
Storing Your SafeMoon Safely
After the swap is finished, you will receive your SafeMoon tokens in your wallet. Take note that you should consider your recovery phrase very safe and never share it with anyone, as it provides access to your crypto assets.
Risks and Considerations
Risks and Considerations
While SafeMoon has unique benefits such as reflections from selling fees and reduced transaction costs through SafeMoon V2, the investment in this cryptocurrency comes with substantial risks. Here are some major considerations:
10% Selling Fee:
SafeMoon charges a 10% fee on every sell, half to token holders and the other half to the liquidity pool. This, in a way, discourages short-term selling and encourages long-term holding, but might prove quite disadvantageous to the trader who wants to hold frequent trades in the markets.
Absent from Major Exchanges:
SafeMoon doesn’t have a presence in the larger cryptocurrency exchanges that accept fiat currency, such as Coinbase or Kraken. Since it is inaccessible, that would finally make it further away from investors looking to cash in their SafeMoon holdings.
Speculative Nature:
Since SafeMoon is a really new cryptocurrency, nobody knows what its future holds and how long they are able to continue growing. Many experts dubbed it to be the same as other memecoins, such as Dogecoin, thus cautioning the investors when investing in this highly speculative market.
How does SafeMoon compare to other cryptocurrencies?
Comparison with Bitcoin:
Similarities
- Blockchain Technology: SafeMoon and Bitcoin utilize Blockchain technology to assure transparency and security for transactions.
- Decentralization: These are two cryptocurrencies aiming to function independently outside of any traditional banking system providing more control for their respective asset holders.
Differences
- Market Capitalization and Volatility: Bitcoin has a huge market capitalization running into hundreds of billions, while that of SafeMoon is quite low. The volatility of SafeMoon has also been extremely high, peaking and then going down nearly 99% from its all time high.
- Transparency and Regulation: Bitcoin enjoys a more longstanding reputation with increased scrutiny by regulators. SafeMoon has gained many criticisms regarding its transparency. It has also been accused of working on the base of a pump-and-dump scheme about the legitimacy of this entity.
Comparison with Ethereum:
Similarities
- Smart Contracts: Both SafeMoon and Ethereum run on blockchain technology supporting smart contracts. However, the Ethereum platform is better developed and used in a far larger capacity for dApps and DeFi projects.
- Community Engagement: Both cryptocurrencies have active communities contributing to their growth and development.
Differences
- Functionality: Ethereum is a decentralized applications platform strongly developed and integral with an ecosystem of tokens and projects atop its blockchain. SafeMoon is, at best, a token concentrated on their reward system and doesn’t feature the same level of utility or application development.
- Development and Roadmap: Ethereum has a very clear roadmap and ongoing upgrades in action, like Ethereum 2.0, making it more scalable and using less energy. SafeMoon’s plans for development are anything but clear and have been met by skepticism over whether they’ll ever come to fruition or ever actually have any positive effects.
Unique Selling Proposition:
When compared with other altcoins, SafeMoon stands out, and what helps to set it apart are its unique tokenomics that include:
- Reflection Mechanism: By redistributing a portion of the transaction fee, this mechanism incentivizes holders by rewarding them for holding rather than selling.
- Liquidity Pool Acquisition: The price is now stabilized because most altcoins seldom have automatic addition of liquidity.
Conclusion
First and foremost, one needs to have a compatible wallet, acquire BNB, and then exchange the same for SafeMoon tokens through a decentralized exchange.
But be aware of the massive risks involved in investing in SafeMoon due to its volatility, 10% selling fee, and not being listed on any major exchanges. As such, all potential investors have to first determine their tolerance for risk and never invest more than they can afford to lose.
