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How To Buy Safemoon – Forbes Advisor

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Sat, 05 Mar 2022 09:30:22 +0000harvestmoonfriends

Spend a while following crypto on-line and chances are high you’ll hear folks discuss a cryptocurrency that’s “going to the moon.” SafeMoon has constructed its model on this in style flip of phrase, though there are quirks to this crypto token that make it more difficult to purchase (and doubtlessly riskier) than different main cryptocurrencies.

What Is SafeMoon?

SafeMoon is a cryptocurrency token that launched in early 2021, utilizing blockchain expertise developed by Binance.

All through 2021, SafeMoon acquired superstar endorsements from the likes of sports activities blogger David Portnoy, rapper Lil Yachty and YouTuber Jake Paul. This helped shortly drive up SafeMoon’s worth, though as of writing its value has fallen almost 90% from its peak.

Essentially the most distinctive characteristic of SafeMoon is that it prices a ten% price everytime you promote the token. In different phrases, should you bought $1,000 of SafeMoon, you’d pay a $100 price on the sale. That is along with any charges you could owe a crypto trade for facilitating the sale.

“The builders of SafeMoon say that that is completed to encourage long-term holding, by each discouraging promoting and rewarding holders of the coin,” says Shaun Heng, vp of development and operations at CoinMarketCap, a value monitoring web site for cryptocurrencies.

SafeMoon takes the proceeds of all gross sales charges and offers 50% to present token holders in a distribution that known as a “reflection.” The opposite half of the price goes right into a liquidity pool that SafeMoon makes use of to take care of value stability.

SafeMoon doesn’t have every other particular use case moreover being a retailer of worth. It doesn’t facilitate any automated contracts or decentralized functions, like Ethereum.

SafeMoon vs SafeMoon V2

In December 2021, SafeMoon launched an up to date model of the token referred to as SafeMoon V2. The brand new token goals to consolidate the unique model at a ratio of 1 to 1000, and considerably decrease transaction prices.

Notice that individuals who maintain their authentic SafeMoon tokens in crypto wallets is not going to have their cash migrated robotically to V2. Pockets holders have to manually switch their SafeMoon tokens to the V2 platform.

Switching holdings to V2 is simple. For SafeMoon Pockets customers, simply replace to the newest model of the app and observe the consolidation directions. For customers with every other kind of crypto pockets, go to the SafeMoon Swap web site to consolidate.

When you maintain SafeMoon tokens on an trade, there’s no have to do something, the exchanges will deal with the migration course of and notify you when the method is full.

For SafeMoon V2, the brand new transaction price is 2%. Like the unique model, 50% of the price is distributed to present token holders. The opposite 50% is split among the many SafeMoon liquidity pool and the managers of the general SafeMoon ecosystem.

How you can Purchase SafeMoon

There are some hurdles concerned in shopping for SafeMoon, the largest for freshmen being that the one technique to pay for purchases of SafeMoon is with different cryptocurrencies. That’s as a result of it’s not presently listed on any exchanges that settle for fiat forex, like {dollars}.

Which brings up one other of SafeMoon’s challenges: Main exchanges like CoinBase and Kraken don’t help buying and selling in SafeMoon. It’s additionally not obtainable on apps like Robinhood or SoFi Make investments.

To purchase SafeMoon, use SafeMoon’s proprietary SafeMoon Swap to commerce different crypto, like Binance Coin (BNB) for SafeMoon tokens. Just a few different crypto exchanges help buying and selling in SafeMoon.

When you don’t have already got crypto, you’ll doubtless have to create an account on one other trade that permits you to trade {dollars} for cash, as you may with lots of Forbes Advisor’s decisions for greatest crypto exchanges. You’ll then should withdraw the cash from the trade, place them in a pockets after which switch these cash onto an trade with SafeMoon.

Disadvantages of Shopping for SafeMoon

SafeMoon is a dangerous funding due to excessive volatility, that means the worth can swing up and down dramatically. Whereas that is true of any cryptocurrency, should you determine to bail on SafeMoon, not solely do you’re taking your funding loss, however additionally, you will lose one other 10% due to the promoting price.

As well as, SafeMoon will not be an excellent match for frequent buying and selling as a result of each time you promote, you’re paying that sizable price. Additional, because it’s not listed on main exchanges, SafeMoon can be much less liquid and it takes extra work to transform it into money, as it’s worthwhile to convert it to BNB first.

The actual fact SafeMoon isn’t on the main exchanges is a huge crimson flag, notes Jeremy Britton, CFO of Boston Buying and selling Co, a crypto funding fund. “The exchanges have completed their due diligence and located the undertaking missing. Ignore the consultants at your personal threat,” he says.

Benefits of Shopping for SafeMoon

As a memecoin, SafeMoon has the potential to go viral and if it does, and its worth may shoot up, as its title aspires, to the moon. Contemplate, for instance, what occurred with Dogecoin: The cryptocurrency’s worth went up by greater than 200 instances over a number of months in 2021, merely due to phrase of mouth.

When you plan on holding SafeMoon over the long run, you’ll additionally profit from the reflections as you obtain a portion of the price incurred every time different folks promote their tokens. It is a monetary incentive you gained’t get from holding most different in style cryptocurrencies, the place you solely earn money if the worth goes up.

As well as, SafeMoon’s latest SafeMoon 2.0 replace lowered transaction charges, which may make it extra interesting to exchanges sooner or later and for different use instances.

Ought to You Purchase SafeMoon?

SafeMoon is a reasonably high-risk, long-term funding, so earlier than shopping for SafeMoon, be sure to have the nerves to just accept short-term losses.

Even then, Britton will not be satisfied of SafeMoon as an funding. “I might counsel that anybody contemplating SafeMoon ought to run away screaming, or do some due diligence after which run away screaming,” he says.

However that doesn’t imply it’s a must to keep out of crypto totally. “Fairly than risking your cash on a token that’s tough to purchase, and will turn out to be unimaginable to promote, contemplate a coin that’s within the high 20, listed on all main exchanges, or spend money on a diversified crypto fund. With main acknowledged names and respectable market liquidity, it will likely be straightforward to exit your place when it’s worthwhile to promote,” he says.

When you do determine to purchase SafeMoon, simply make sure that no matter you make investments is cash you may afford to lose.

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