The world of blockchain and cryptocurrency is vast. Numerous cryptocurrencies are being used for different purposes, such as payment methods, stablecoin, governance tokens, etc. One such niche of crypto assets is the meme coin.
Meme coins began as a joke that took a dig at the world of cryptocurrencies but soon became important investment entities. A few coins, such as Dogecoin, Shiba Inu, etc., fall under this niche. The latest one to join this list is the SafeMoon tokens. I will tell you how to buy Safemoon and where to buy them, I advise you to read about the crypto before you invest. I have given a brief on what Safe moon crypto is.
SafeMoon is a DeFi token launched in March 2021 when the phrase ‘getting to the moon’ was used with Dogecoin. SafeMoon literally translates to ‘Safely to the moon,’ which addresses the volatility of crypto assets.
How Did SafeMoon Begin?
The concept of meme coins has always fascinated me since they are developed as jokes but become serious investments. However, with SafeMoon, it was slightly different.
Despite being a meme coin, it looks to become a crypto asset that is less volatile in nature, unlike other cryptocurrencies like Bitcoin. This was the rationale behind developing SafeMoon tokens.
The model is such that the project encourages people to purchase SafeMoon and hold it to get passive rewards. People who sell it will have a 10% penalty transaction fee, of which they will share 5% of the fee with the other SafeMoon investors who are holding the token. This way, people will retain more of these tokens, leading to lesser transactions and lesser volatility.
According to CoinMarketCap, the price of this cryptocurrency is $0.000002666 as of when I write this article. The token was initially launched with 777 trillion tokens, and it claims to have an absolute one quadrillion tokens now.
Where To Buy SafeMoon?
SafeMoon is a decentralized token built on the Binance Smart Chain that and encourages peer-to-peer transactions.
One of the popular ways of buying SafeMoon is to purchase BNB from Binance and swapping it with SafeMoon on PancakeSwap. In addition to this, some exchanges have listed Safemoon and there is decent liquidity available.
Cryptocurrency Exchanges That Support SafeMoon
A few cryptocurrency exchanges that support SafeMoon are Gate.io, Bitmart, ZBGlobal, etc. However popular exchanges such as Coinbase do not support cryptocurrency.
This is because of the controversy around the crypto asset and how the project itself discourages cryptocurrency trading, which we will look at later in this article.
Things You Need Before You Buy SafeMoon
Before you buy your first SafeMoon token, you’ll need to have the following things ready:
- Binance account so that you can use the platform’s PancakeSwap and purchase Binance Coin.
- A crypto wallet, such as the Trust Wallet or the Metamask Wallet, is needed.
- PancakeSwap account to exchange BNB with SafeMoon.
- A hardware wallet. Though this is optional, storing your assets on a hardware wallet is usually recommended over centralized exchanges or wallets. In your case, you can keep the asset you buy from PancakeSwap onto your hardware wallet.
With just these four things, you are good to buy your first SafeMoon crypto. Buying your first SafeMoon token is a simple and straightforward process that you can complete with a few simple steps.
How to buy Safemoon: Step by Step Process
Step 1: Set Up A Binance Account
If you do not already have a Binance account, it’s time to create one. Since both Binance crypto exchange and PancakeSwap run on the Binance Smart Chain, you’ll need a Binance account. However, if you’re a beginner, don’t worry. The process is relatively easy.
You can even refer to the Binance Academy’s Binance Beginner’s Guide to understand how you can register on the platform.
First, you need to create a Binance account using your email ID/phone number and set a password according to the platform’s regulations. Once done, you’ll need to verify your email ID/phone number and proceed to do the KYC (Know Your Customer).
The KYC is for the platform to prevent fraudulent users from entering the platform. Once this is done, you can purchase your Binance Coin. There are several payment methods and options such as debit/credit cards, wire transfers, etc.
Step 2: Set Up A Trust Wallet Or MetaMask Wallet
If you don’t already have these wallets, you’ll need to set up an account on a new wallet with either of them based on your preference. You can download the Trust Wallet app from Google Play or use the Metamask Google Chrome extension for a smooth process.
Once you’ve set up the accounts, you’ll need to make the wallet, either the Trust Wallet or the Metamask Wallet, compatible with Binance Smart Chain while connecting it with PancakeSwap. There will be a default compatibility issue since both these wallets are Ethereum based.
However, you can add Binance Smart Chain to the account by the Add Network feature to provide the details of the Binance Smart Chain blockchain network. Using the Add Token feature, you can add a custom token, and in this case, it is SafeMoon.
Step 3: Purchase Binance Coin BNB
I think this part is self-explanatory. You can purchase Binance Coin on Binance with the numerous payment options involving fiat currency and cryptocurrency.
If you’re a beginner, you can do so with three types of orders:
- Stop Orders
- Limit Orders
- Market Orders
You can again refer to the Binance Academy’s guide to understand the process.
Step 4: Swap Binance With SafeMoon
Go to PancakeSwap and select the amount of Binance Coin you want to swap. Next, choose the cryptocurrency you wish to exchange it with. In this case, it is SafeMoon. Finally, if you want to swap all the Binance coins, you can select the Max button.
There will be a display of how much SafeMoon you’ll receive for a given amount of BNB. Once you’re sure of the transaction, you can click Swap.
But, before you do, you’ll need to check the slippage tolerance part. Slippage tolerance is the shift in price between the time you place an order and when the order is getting executed. Usually, the slippage tolerance should be set to about 12% so that the transactions are executed.
Is SafeMoon A Good Investment?
SafeMoon has been a controversial addition to the crypto world. People have called it names like Ponzi scheme, pyramid scheme, etc. because there is no regulation or standards for SafeMoon. So people have always wondered whether SafeMoon is a good investment or not.
Some believe that it is a potentially good investment that offers two important values to its investors.
- It will change the way farming rewards are distributed. The rewards will be given based on the volume of cryptocurrencies the user holds. So if a person holds more SafeMoon, they will get a higher reward. This solves the way mining rewards operate where the reward value decreases over time, and latecomers usually get lesser rewards than the old ones.
- Another key feature is the penalty of 10%. If a person tries to sell off their assets, 5% of the total will be distributed amongst the other investors. They say it is a measure to mitigate the volatility of the asset.
- Besides these, the makers of SafeMoon periodically burn the volume to raise the value of the crypto assets.
This third feature doesn’t add any substantial value to investors, and experts generally have an opposing view of SafeMoon. They believe it to be a pump and dump scheme because all features encourage users to buy more assets than sell.
This way, the value will increase, benefitting the owners and early investors. But, once it has reached an amount, there’s a chance they might dump all their assets, leading to a sharp fall in the price.
Here are a few market trends of SafeMoon in the past to help you understand its performance.
In mid-April, SafeMoon shot up by 20,000%, peaking at an all-time high but very soon dropped as well. It is said that the value lost by SafeMoon was much higher than even Bitcoin and Ethereum.
This stands testament to how SafeMoon is volatile despite all the measures the developers have taken. In fact, it has been on a downward trend since then. However, this is not the only reason for SafeMoon to be a risky investment. Here are a few reasons why experts are calling SafeMoon one of the riskiest investments in cryptocurrency.
Reasons Why SafeMoon Is A Risky Investment?
- All features of the new cryptocurrency get users only to buy the SafeMoon and not sell it. Usually, both buy and sell operations are necessary for healthy trading. The fact that the project only encourages buying seems suspicious since it indicates that the owners can abandon the project anytime.
- There is no substantial value that the cryptocurrency offers to its users, which means it doesn’t solve any challenge. Historically the cryptocurrencies that have stayed in the long run are the ones that solve some real-world problems.
- Crypto investments, in general, have a higher risk compared to other traditional investment options. However, SafeMoon seems so risky that no crypto exchange is willing to enlist it on its platform. It also indicates the authenticity and credibility of the crypto.
- There seems to be a lack of a clear plan or roadmap for SafeMoon. The website states several strategies, but they seem to be disparate pieces that do not coherently come together to accomplish a bigger vision.
These reasons make SafeMoon a risky investment and, in fact, has the potential to do more harm than good. Nevertheless, if you’re planning to buy cryptocurrency, here are a few things to remember before you invest in SafeMoon.
Things To Remember Before Investing In SafeMoon
Lower Price Doesn’t Mean Low-Risk High Rewards
Do not be enticed by its low price. If you’re planning to buy SafeMoon assets worth $50, you might get yourself a large volume and hope that it would take the same trend as Bitcoin did. But that is like leaving your money to chance.
This is because there are trillions of tokens out there, and hence your $100 won’t make that much of a difference to the overall value of the cryptocurrency. Therefore, gauge how much your investment will impact the overall value and then decide if it’s worth it.
Only Invest Money You Can Afford To Lose
If you’re investing in SafeMoon, only invest the amount that you are okay losing. In any investment you make, it is crucial to gauge your results against the worst-case scenario. SafeMoon, being risky, makes it even more critical to abide by this rule.
Celebrity Endorsements Do Not Equal Credibility
We’ve seen this in the past, too, with Elon Musk, Dogecoin, and Bitcoin. It’s not advisable to look at celebrity endorsements and think that the cryptocurrency is credible. This isn’t just with SafeMoon but with any asset in general.
Instead, pay heed to industry experts who analyze the asset’s value, performance, and other aspects. They would give a perspective that’s closer to reality.
Don’t Invest The Money That You Require Elsewhere
Never risk a significant amount of money that caters to your requirement in hopes of a potential profit. This is because your requirements are at stake, and if there’s a loss, you wouldn’t be able to fulfil your needs.
In short, don’t put your present at risk for a potentially better future.
Do A Thorough Research On SafeMoon Before Investing
Needless to say, thorough research is necessary before you invest in any cryptocurrency. With SafeMoon, you must know what the cryptocurrency is meant for, the market trends, the comments of the experts, etc.
Essentially, any information that can aid you in understanding the crypto project better will be helpful while you start investing in the crypto of your choice.
This research will lead you to understand the overall project scope, quality and even help you guestimate the price performance.
Thus, this is everything you need to know about the SafeMoon cryptocurrency. It is indeed one of the riskiest investments in the crypto world currently, and most experts would advise you to steer away from it.
In fact, it is a meme coin that not only has no purpose but also its business model seems sketchy. So, therefore, take into consideration all factors before investing in this digital asset.
FAQs in Safemoon Crypto
Why is SafeMoon unsafe?
SafeMoon is a risky investment since the cryptocurrency doesn’t have any purpose and the project’s business model encourages only buying of assets. This is indicative of a pyramid scheme.
Where can I buy SafeMoon?
The easiest way to buy Safemoon is to go to an exchange like Gate.io and buy using the SAFEMOON/USDT pair, which means you will need UDST. The alternate method is to buy BNB and then swap for SAFEMOON using Pancakeswap.
Is SafeMoon good for long-term or short-term investment?
The performance of SafeMoon has been highly volatile, and it is difficult to predict its performance in the near future, thus making it unsuitable for any kind of safe investment.
Anish loves reading, researching, and writing about crypto and blockchain. He started his crypto journey early in 2017, what started as a fad is now a full-time hobby. He curates guides after thorough research on platforms and is responsible for the most in-depth guides on the site. You will find him walking his dog (not Doge) when he is from his Laptop.