A Quick Guide on How to Buy Safemoon in 2021?
The cryptocurrency arena is constantly abuzz with new coins, and keeping up with them can sometimes get overwhelming. However, as an investor, you can’t afford to ignore industry trends because your portfolio highly depends on it.
Think about bitcoin; when it was first launched, there was a lot of controversy surrounding it. Some investors wouldn’t even touch it with a 10-foot pole, but currently, it’s the gold standard for all digital coins.
If you’ve been keeping up with crypto news, you’ve definitely come across a new coin named Safemoon.
What exactly is it? Is Safemoon a scam? Where can you buy it?
We’ve compiled a quick guide below to help you understand how to buy Safemoon.
What Is Safemoon?
Safemoon is a new coin that’s been taking the cryptocurrency industry by storm since its launch. It’s also one of the first coins on the Binance Smart Chain blockchain to start gaining recognition.
Interestingly, Safemoon was launched in early March 2021, but it wasn’t until April that its popularity took off due to Twitter and Tiktok. This sparked the interest of investors, increasing its value. At some point, Binance had to suspend withdrawals temporarily because Safemoon investors had flooded the site.
Due to its recentness in the market, there’s little information about the coin, but the founders seem to be relying on Dogecoin’s success formula. Safemoon’s slogan is ‘Safely to the Moon’, an ingenious twist on the phrase that was used to hype up Dogecoin’s price.
While there are speculations that the coin is here to stay, it’s still trading below the $1 mark. It has, however, experienced a steady price increase since its launch. Safemoon’s founders are also pushing the coin aggressively by holding sessions where investors can ask any questions they have about the cryptocurrency.
Since it is a Defi currency, it’s unregulated, which translates to lower fees.
How Does Safemoon Work?
When bitcoin was launched, it was aimed at providing a decentralized currency that isn’t regulated by anybody; a type of currency whose value was hugely influenced by its holders. Over time, cryptocurrency has strayed from this and is now mainly an investable commodity. Investors majorly buy it with the hopes of selling it when its value increases instead of using it for its transactional benefits.
Safemoon isn’t quite like that; it’s encouraging people to hold on to it by penalizing sellers a 10% fee. Half of this is distributed to people that hold the coin, while the other half is burned.
According to Safemoon’s Facebook page, they’re encouraging people to hold on to the coin because getting to the moon takes time. This is meant to imply that the more you hold on to your Safemoon, the more coins you collect.
This policy has resulted in traders referring to it as some sort of pyramid scheme because Safemoon highly relies on traders to keep investing in their coin so that its price can increase.
How Much Is Safemoon Worth?
Like other new cryptocurrencies, Safemoon’s value is way less than that of Bitcoin or Ethereum, but its value has been increasing.
When it was launched, it was only worth $0.0000000010, but in April, its value spiked to an all-time high of $0.000014 due to the social media attention it was getting.
Currently, one unit of Safemoon is worth $ 0.0000088, but investors are beginning to give it more attention. Most people are buying it now while it’s still cheap and are holding it so as to avoid the selling penalty.
Where Can I Buy Safemoon in 2021?
For most cryptocurrencies, buying coins is as easy as pie. You sign up to an exchange platform, make a deposit, identify the coin you’d like to buy, and confirm the transaction.
The process of buying Safemoon is, however, a bit complex because you first have to purchase Binance coins and then swap them for Safemoon tokens.
There are 4 main exchanges where you can trade this digital coin; PancakeSwap (most popular), Gate.io, WhiteBit, and BitMart. The good news is that the Safemoon team is working towards launching their own wallet, which will hopefully make the buying process easier.
How Can I Buy Safemoon?
Due to the newness of this currency and the controversy around it, you can’t trade it on popular exchanges like Swyftx and Coinbase. You can, however, buy Safemoon on the Binance exchange platform, and this step-by-step guide will help you through the process.
1. Sign up on Binance
PancakeSwap is one of Binance’s decentralized exchange platforms, so you’ll have to create a Binance account. The sign-up process is easy, and you only have to provide your email address and create a strong password.
As an Aussie trader, you’ll have to go through the identity verification process before your account is approved because Binance is regulated by AUSTRAC and has to comply with KYC rules and AML regulations.
Once your account is activated, make a deposit and then purchase the Binance Coin (BNB). You’ll eventually swap BNB for Safemoon, so buy as much as you’d like to invest in the new coin.
Since Safemoon isn’t a stable cryptocurrency, be cautious when making an investment. It may be great if you’re looking for a quick buck, but for long-term investment, you’ll need to pursue other digital coins that you can trade on multiple exchanges.
2. Download a Software Wallet
In order to buy BNB tokens, you’ll first have to get a software wallet that should also be compatible with Binance Smart Chain. You could either use Metamask or Smart Wallet, but because they were designed as Ethereum wallets, you’ll need to activate them for BSC.
Safemoon recommends that you use Trustwallet.
3. Add Safemoon to Your Wallet
On your Trustwallet, navigate to the top right corner and search for Safemoon tokens. If it’s unavailable, click on ‘add custom token’ and change Ethereum to smart chain. Safemoon already has a contact address which you should paste on the contact address box.
You’ll then be prompted to input the name of the token you’re buying, in this case, Safemoon and its symbol. Once you’re done, you can now trade Safemoon tokens.
4. Buy Binance Smart Chain
Your TrustWallet’s main screen has a Smart chain button that you should click on and then tap on ‘Buy’. You may have to verify your identity at this point, so ensure your documents are ready for uploading.
If your transaction goes through, it may take a while for processing to be done, so be patient. There are also instances where the transaction is declined, in which case you should contact your bank for approval.
5. Swap Binance Smart Chain for Safemoon Tokens
The good news is that buying the actual tokens is much easier than activating the software wallet. Since PancakeSwap is an automated market maker, it doesn’t use centralized order books but instead calculates token prices using mathematical equations. You just have to choose the Safemoon tokens in your wallet, and you’ll easily swap the BNB tokens for this cryptocurrency.
One of the main advantages of trading Safemoon on PancakeSwap is that you’ll incur fewer charges than you would on decentralized exchanges. In fact, you may even pay less than $1 for the entire transaction.
How Can I Sell Safemoon?
If you’re willing to incur the 10% selling fees, there are 3 main platforms that you can sell Safemoon on;
If you already have a smart wallet that’s compatible with the Binance smart chain, this is the most convenient way of selling Safemoon tokens. The major challenge with this platform is that the prices are a bit lower than other sites, and once you include the sell tax, you earn considerably less.
It’s, however, the best option for sellers that are looking to sell Safemoon quickly.
While this platform is smaller than most established exchanges, it’s still one of the most reputable. It’s also one of the few sites that are currently trading Safemoon tokens, so it’s worth a shot.
WhiteBIT seems capable of supporting large trade volumes of Safemoon, as it’s currently its 19th most traded asset. Its prices are also attractive, and the only major risk is that there might be an influx of new users which could slow down trades.
According to CoinMarketCap, BitMart is the most preferred platform for Safemoon trades.
This site is relatively new, and even if Safemoon tokens are its most traded assets, there have been a couple of red flags, including deposits not reflecting on accounts.
Make sure you conduct due diligence before selling on any platform to protect your investment.
Other alternative markets include;
Is Safemoon Safe?
If you’re like most traders, you’re probably wondering,’Is Safemoon legit?‘. Well, digital currencies are highly volatile, and Safemoon is a great example of just how dynamic crypto trades are.
When it was launched, its price was very low, but after it started getting mainstream attention from social media sites, its prices spiked, only to drop after a while.
When new coins are launched, some investors view this as a get-rich-quick scheme and end up buying many tokens hoping to sell them when prices stabilize. While this is a bold investment move, you need to remember that not all coins end up being as successful as Bitcoin and Ethereum.
Currently, the future of Safemoon is uncertain, so you should be cautious when making an investment. There have been comparisons between this digital coin and a Ponzi scheme, and its liquidity is in question.
The founders own 50% of all Safemoon tokens, and while they claim that this is meant to make the currency more secure, some experts say that this move intentionally drains the coin from the market, making it harder for traders to sell.
Is Safemoon the New Dogecoin?
There are undeniable similarities between Safemoon and Dogecoin which is why it’s no surprise that investors are drawing comparisons between the 2 coins. Dogecoin was based on a joke and drew widespread attention on social media sites. Its popularity further peaked when Elon Musk and Snoop Dogg talked about it, and currently, 1DOGE is $ 0.475.
Safemoon seems to be following in the footsteps of Dogecoin as most of its popularity has been driven by social media platforms. There are, however, fundamental differences between the two coins, including how they operate; Safemoon is mostly driving investors to hold on to it instead of trading it by imposing seller tax.
Should You Invest in Safemoon?
One of the major mistakes that investors make is getting caught up in the hype of new cryptocurrency and investing blindly. Keep in mind that crypto trading is highly speculative, and for every millionaire, there are countless others who have made a loss.
Before you purchase Safemoon tokens, familiarize yourself with how they work so that you can assess it’s stability and viability. Since this currency has been in the market for less than 4 months, it may not be the best for investors who prefer long-term investment.