The world of digital assets grows in scale each year, offering new opportunities for investments and high profits for those who invested in the right coin at the right time.
After the Bitcoin revolution, which made everyone turn to crypto coins and their profitability, many new developers began introducing their own products. Safemoon is the latest star on the horizon; it is one the fastest-growing cryptocurrencies of today with favorable forecasts and a fantastic window of opportunity.
Together with Bitcoin, Safemoon began raising more and more interest from the public. Not to mention, the coins also contribute to rising interest in crypto trading in general. If you’re just starting out in crypto or want to explore coins beyond Safemoon, there are many trading platforms out there. For instance, take a look at Bitcoin revolution review on bitcoin-trading.io.
Now, let’s take it back to the infamous coin. Safemoon is 100% community-driven and focuses on static rewards functions and locked liquidity. Take a look at our article to get a better understanding of what is Safemoon, how it is different from other coins or tokens, and be able to decide for yourself if it is a safe investment worth considering for your portfolio.
Safemoon Explained for Beginner Traders
A surprising fact about Safemoon is that it is not exactly a cryptocurrency. The correct term for it is a DeFi token or decentralized finance token. First launched as recently as in March 2021 by John Karony, Safemoon, similarly to Bitcoin, Dogecoin, and other major crypto coins run on blockchain technology.
The idea is to operate based on decentralized bank-free finance that promotes peer-to-peer in network sales. There is minimal or practically no regulation for DeFi. That can create both opportunities and dangers for the investors, DeFi is largely under development from both developer and regulator sides.
A unique feature of Safemoon that made it so famous on the Internet is that it charges a 10% fee if you want to sell. Half of the cost is then being distributed to the other Safemoon holders via the “reflect mechanism” to encourage keeping the currency and buying more. This decision was introduced as an attempt to prevent volatility problems and panic selling faced by so many other DeFi tokens and cryptocurrencies on the market.
You may wonder what happens with the other 5%. It is also being divided in half, with the first 50% going towards the contract into BNB and the last 50% added to PancakeSwap.
Is Safemoon a Good Investment?
Like with many new coins, the price of Safemoon has been subject to high volatility, despite all the attempts from the developers to keep it under control. Let’s a brief look at its price history.
On March 30, Safemoon was selling at $0.000000025 per coin, which is quite an average start compared to other competitors on the market. In April, the price managed to surprise the most advanced traders and developers, including Elon Musk himself, who tweeted “Going to the Moon” and added another 25% increase to the coin’s value.
We witnessed a 0.00000101 USD price on April 15 and a 0.00000338 USD on April 18, which met a 0.00001118 USD mark 2 days later. These numbers provided by CoinMarketCap mean that traders who invested as little as 5,000-6,000 USD at the beginning of April have already made millions in profits by the end of the month.
This looks like a fantastic investment, but high volatility could not skip bringing the changes. As of April 29, it is trading as low as 0.0000049 USD per coin with a 12.49% decrease in the last 24 hours.
Risk vs. Reward
Safemoon is one of those investments that can make you rich very quickly due to the high risk- high reward nature of this investment strategy. However, one has to be ready for extreme fluctuations similar to those that happened this month. The advantages of Safemoon include its unique approach to selling coins and distributing the fees. The disadvantages center around the fact that it is a very new, highly volatile token that has barely entered the big world of cryptocurrencies. It may be just too early to make any serious predictions about its utility or growth potential.
The solution to finding a balance between pros and cons is to invest in a new coin only the amount of money that you are willing to lose. This strategy will help you mitigate the risks of massive disappointment if something goes wrong.
Another piece of advice is to diversify your investment portfolio. The good old saying “don’t put all your eggs in one basket” is a great approach when it comes to new digital assets.
How to Buy Safemoon
Unlike buying Bitcoin, Safemoon purchases are more complicated. It is a new coin that not so many exchanges are dealing with. Currently, there are four major exchanges where you can buy Safemoon:
● PancakeSwap
● BitMart
● WhiteBit
● BakerySwap
The payment methods are also not very straightforward, as there are no conventional card or bank transfer options. In order to be able to buy Safemoon, traders have to acquire BinanceCoin BNB first. Then, they will have to convert it to Smart Chain, after which it becomes possible to finally buy Safemoon.
Safemoon is currently in the process of creating their own crypto wallet, which is aimed at making the purchase and the storage of the Safemoon coin easier. But there is no news on that front as of this moment. Therefore, users are offered a choice to download a wallet from an external provider, for example, Trust Wallet.
To help you go through the entire process, we prepared an easy step-by-step guide on buying Safemoon via Pancake Swap:
- Download Trust Wallet and purchase BNB or BSC.
- Open Pancake Swap. If you have an iPhone, don’t forget to turn on the trust browser.
- Visit the page “Select a Currency” and pick Safemoon from the list of coins.
- Click on the wheel icon and adjust the slippage tolerance to 11-12%.
- Choose your desired amount and press the Swap button.
- Confirm the transaction.
Safemoon Latest News
Safemoon is still in the process of establishing itself and building the prerequisites for a better and more reliable future of the token. Therefore, the developers have made several goals for the nearest years.
Most importantly, the team will focus on the completion of Safemoon App, Wallet, Games, and Safemoon exchange, which will enable users to buy and sell Safemoon directly from the provider. They will further ensure Bitmart integration with tokenomics and the NFT Exchange.
Among some other priorities of Safemoon are:
● Integration of Safemoon to the African markets
● Setting up the Charity Drive and Charity Vote for Safemoon community.
● UK Office establishment
● Africa Office establishment and job creation
● Development of cry to educational app
Concluding Remarks
Digital assets are considered high-risk/high-reward investments. Therefore, we encourage beginner traders to conduct thorough research before investing in cryptocurrency or any DeFi tokens.
To make a weighted decision, feel free to consider using these tips:
● Do not rush when buying coins, and evaluate your financial goals before making a big purchase.
● Avoid panic selling.
● Do proper research on every coin you’re interested in.
● Refrain from leverage.
● Compare your strategy to other traders.
Quoting the Safemoon Facebook page: “Remember, getting to the moon takes time, and the longer you hold, the more tokens you pick up”.
