how to buy safemoon – spend some time following crypto online and probabilities are you’ll listen human beings communicate about a cryptocurrency that’s “going to the moon.” safemoon has constructed its logo on this famous flip of phrase, despite the fact that there are quirks to this crypto token that make it greater challenging to buy (and probably riskier) than different main cryptocurrencies.

what’s safemoon?

safemoon is a cryptocurrency token that released in early 2021, the use of blockchain generation evolved through binance.

in the course of 2021, safemoon acquired superstar endorsements from the likes of sports activities blogger david portnoy, rapper lil yachty and youtuber jake paul. this helped speedy pressure up safemoon’s cost, although as of writing its fee has fallen nearly 90% from its height.

the maximum extraordinary feature of safemoon is that it prices a ten% charge whenever you promote the token. in different phrases, if you sold $1,000 of safemoon, you’ll pay a $100 fee on the sale. this is similarly to any costs you may owe a crypto exchange for facilitating the sale.
“the developers of safemoon say that this is executed to inspire long-term protecting, by both discouraging promoting and rewarding holders of the coin,” says shaun heng, vp of increase and operations at coinmarketcap, a charge monitoring website for cryptocurrencies.

safemoon takes the proceeds of all income fees and gives 50% to modern token holders in a distribution that is known as a “mirrored image.” the other half of of the rate is going into a liquidity pool that safemoon uses to hold rate stability.

safemoon does now not have any other special use case except being a store of price. it doesn’t facilitate any automatic contracts or decentralized packages, like ethereum.

“the developers of safemoon say that this is performed to inspire long-term conserving, by means of both discouraging promoting and worthwhile holders of the coin,” says shaun heng, vice chairman of growth and operations at coinmarketcap, a fee tracking website for cryptocurrencies.

safemoon takes the proceeds of all income charges and gives 50% to modern-day token holders in a distribution that is called a “reflection.” the alternative half of the charge is going into a liquidity pool that safemoon makes use of to hold fee balance.

safemoon does no longer have some other special use case besides being a shop of fee. it doesn’t facilitate any computerized contracts or decentralized packages, like ethereum.

safemoon vs safemoon v2

in december 2021, safemoon launched an up to date model of the token called safemoon v2. the brand new token targets to consolidate the authentic version at a ratio of one to one thousand, and drastically decrease transaction expenses.
note that folks who hold their unique safemoon tokens in crypto wallets will not have their coins migrated routinely to v2. pockets holders need to manually transfer their safemoon tokens to the v2 platform.

switching holdings to v2 is simple. for safemoon wallet customers, just update to the state-of-the-art version of the app and observe the consolidation instructions. for customers with another type of crypto wallet, go to the safemoon change website online to consolidate.

if you maintain safemoon tokens on an exchange, there’s no want to do whatever, the exchanges will cope with the migration technique and notify you whilst the technique is whole.

for safemoon v2, the brand new transaction rate is 2%. just like the original model, 50% of the rate is shipped to cutting-edge token holders. the alternative 50% is split among the safemoon liquidity pool and the managers of the general safemoon surroundings.

how to buy safemoon

there are a few hurdles concerned in buying safemoon, the biggest for novices being that the most effective manner to pay for purchases of safemoon is with different cryptocurrencies. that’s as it’s no longer currently listed on any exchanges that receive fiat foreign money, like bucks.

which brings up another of safemoon’s challenges: fundamental exchanges like coinbase and kraken do not support trading in safemoon. it’s additionally now not available on apps like robinhood or sofi invest.

to shop for safemoon, use safemoon’s proprietary safemoon switch to trade different crypto, like binance coin (bnb) for safemoon tokens. some different crypto exchanges assist trading in safemoon.

in case you don’t have already got crypto, you’ll probable need to create an account on every other change that allows you to trade bucks for coins, as you could with many of forbes guide’s choices for first-class crypto exchanges. you’ll then need to withdraw the coins from the alternate, location them in a wallet and then switch those cash onto an trade with safemoon.

disadvantages of buying safemoon

safemoon is a volatile investment due to high volatility, meaning the price can swing up and down dramatically. whilst that is genuine of any cryptocurrency, if making a decision to bail on safemoon, not only do you take your investment loss, but you will also lose another 10% due to the selling charge.

further, safemoon isn’t a good fit for frequent trading due to the fact each time you sell, you’re paying that sizeable rate. similarly, since it’s not indexed on primary exchanges, safemoon is also less liquid and it takes greater work to convert it into cash, as you want to transform it to bnb first.

the reality safemoon isn’t at the primary exchanges is a giant pink flag, notes jeremy britton, cfo of boston trading co, a crypto investment fund. “the exchanges have finished their due diligence and determined the challenge lacking. ignore the professionals at your very own danger,” he says.

benefits of buying safemoon

as a memecoin, safemoon has the ability to head viral and if it does, and its price could shoot up, as its call aspires, to the moon. don’t forget, for example, what happened with dogecoin: the cryptocurrency’s cost went up by greater than two hundred times over some months in 2021, honestly due to word of mouth.

in case you plan on protecting safemoon over the long term, you’ll also enjoy the reflections as you get hold of a part of the fee incurred on every occasion other humans sell their tokens. this is a financial incentive you received’t get from holding maximum different famous cryptocurrencies, where you only make money if the charge goes up.

similarly, safemoon’s recent safemoon replace decreased transaction fees, which could make it extra attractive to exchanges in the destiny and for different use cases.

ought to you buy safemoon?

afemoon is a reasonably excessive-chance, long-time period funding, so earlier than shopping for safemoon, make sure you have got the nerves to accept brief-time period losses.

even then, britton is not satisfied of safemoon as an investment. “i would endorse that everyone considering safemoon ought to run away screaming, or do some due diligence after which run away screaming,” he says.

but that doesn’t mean you have to stay out of crypto totally. “as opposed to risking your money on a token this is tough to shop for, and can turn out to be impossible to sell, keep in mind a coin that is inside the pinnacle 20, indexed on all important exchanges, or put money into a various crypto fund. with essential identified names and respectable market liquidity, it is going to be clean to exit your function when you want to sell,” he says.

if you do determine to buy safemoon, simply ensure whatever you invest is cash you may come up with the money for to lose.

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