SafeMoon: How To Buy SafeMoon, Is It A Good Investment? 

Safemoon: An Overview 

Launched in March of 2021, SafeMoon is a cryptocurrency Like other cryptocurrencies, it is also powered by blockchain technology. Safe Moon is a BEP-20 token released on the Binance Smart Chain (BSC) ecosystem. It is among the first cryptocurrencies on Binance Smart Chain to become popular in the mainstream. SafeMoon’s unique features have led to its comparison with Ethereum’s DeFi ecosystem.

SafeMoon gained the attention of the mainstream market when its price skyrocketed in April 2021. SafeMoon is among the 1st crypto assets to implement redistribution tokenomics. 

The official website of SafeMoon discusses the three key components of the crypto asset:

1. Reflection: SafeMoon charges a transaction fee, a fraction that is distributed among token holders. This is Reflection.
2. LP Acquisition: A part of the transaction fee is again distributed among different liquidity pools on various platforms such as Pancake Swap. 
3. Burn: Burning is the third component. With each trade, the tokens are burned. How much or what percentage of tokens are burned is not yet known. 

Out of 10%, reflection rewards are 5%, while liquidity pools the other half. 2.5% of 5%, which goes to liquidity pools, is converted into Binance Coin(BNB) for ensuring the liquidity of the Safemoon and Binance Coin Pair.

How to Buy Safemoon (SAFEMOON)

Open a Binance account

The top crypto exchanges where you can buy Safemoon are Gate.io, Bitrue, MEXC, BitMart, and PancakeSwap (V2)

Popular exchanges like Coinbase and Gemini do not support the asset on their platforms since it is new and controversial. 

The first step to start trading in SafeMoon is to create a Binance account to use the platform’s decentralized exchange, PancakeSwap. Creating an account on Coinbase is no rocket science. An email address and a password are the only prerequisites. Besides, depending on your location, you might need to provide additional information to start trading finally. 

You can buy Binance Coin(BNB) once your account is approved for trading. It is advisable to purchase as much as BNB you would like to invest in SafeMoon since eventually, you’ll be swapping these tokens for SafeMoon. 

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Download Metamask Wallet

MetaMask Wallet is popular among decentralized exchanges (DEXs). Its google extension makes it compatible with other programs on the user’s PC. Select “Custom RFP” from the drop-down tab in the upper right-hand corner of the screen for setting up your wallet. You would then need the following information to set up the wallet:

Network : Binance Smart Chain

Symbol: BNB

ChainID: 56

Block Explorer: https://explorer.binance.org/smart

RPC URL: https://bsc-dataseed1.binance.org:443

After setting up a wallet with Binance Smart Chain, the users can then send BNB tokens to their wallets. Once these tokens are reflected in your wallet, you can use the bridge feature on PancakeSwap to enable the tokens to work with BSC. 

Buy a hardware wallet (optional)

The next step is optional. You would need a software wallet to connect to PancakeSwap, which securely stores your cryptocurrency on a centralized exchange. Nonetheless, the software wallets still run the risk of getting hacked; the other storage solutions need to be explored. 

Hardware Wallets can be considered a much safer option than software wallets. They are physical devices that store your cryptocurrency offline, making it almost impossible for your cryptocurrencies to be hacked. Unfortunately, there aren’t many options in the market that support BEP-20 tokens like SafeMoon, since Binance Smart Chain is a new project. 

Some of the best hardware wallets available are mentioned below:

• Exodus Wallet(Hardware Wallet)
• Ledger Nano S.
• SafePal S1.
• Trezor Model One.

Purchase Your SafeMoon Token 

The good thing is that purchasing SafeMoon is a lot easier than the process of setting up your crypto wallets for interacting with PancakeSwap. 

PancakeSwap is an Automated Market Maker or AMM. An Automated Market Maker is a decentralized exchange protocol or DEX that depends on mathematical equations to price assets. Assets are priced according to a pricing algorithm in an AMM instead of using a traditional centralized order book. All you need to do is choose a SafeMoon token, and you can then swap your tokens in your SafeMoon wallet. 

Pancake’s low transaction fees are its biggest attraction among other DEXs. Users are required to pay less than $1 for processing their transactions. But, these low fees come at the cost of centralization. All of this might make it a lucrative short-term solution, there are various security concerns among users due to the small number of validators on Binance’s blockchain. 

It is also interesting to note that PancakeSwap and Uniswap work similarly. While PancakeSwap is the leading DEX on Binance Smart Chain, Uniswap is the leading decentralized exchange on Ethereum. 

Is Safemoon A Good Investment?

It is always advisable to conduct proper research before buying any cryptocurrencies. Many people invest in cryptocurrencies to make huge wealth. However, it is important to remember that not all cryptocurrencies boomed like DOGE or SafeMoon. Experts, however, advised investing in leading cryptocurrencies. Bitcoin and Ethereum rose by over 500% in the past year, and Ethereum up more than 1,000%. SafeMoon is a relatively new cryptocurrency. 

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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