Beginners Guide About SafeMoon Cryptocurrency I How to Buy It?

SafeMoon captured the headlines when it registered an exponential growth of 23,225% from March 2021 to April 2021. It reached its all-time high price of $0.000014 on April 20. However, since then it has lost 99% of its value, raising several questions among investors about its authenticity and performance. If you are cynical about investing in SafeMoon cryptocurrency, this article will help you out.

Let’s dive into everything you need to know: what is SafeMoon and how to buy and sell it.

What is SafeMoon?

Launched in March 2021 SafeMoon is a cryptocurrency built on the Binance Smart Chain blockchain. It is used as a medium of exchange for fiat currency, digital assets, and making a purchase. A member of the group of tokens known as the meme coin, SafeMoon had a market cap of only about $88.4 million in July 2022. It is developed to reward its long-term investors and holders.

John Karony, CEO of SafeMoon is a former analyst for the United States Department of Defense. The token has more than 2.9 million active users. Registering phenomenal growth, the decentralized finance (DeFi) token notched its all-time high price of $0.000014 in April 2021 soon after its launch.

SafeMoon was launched with the aim to resolve two major issues crippling the crypto market:

It charges sellers a painful fee of 10% on transactions, half of which is redistributed to incentivize buyers and holders, and the other half is used in a liquidity pool to maintain price stability. The high selling charges are intended to thwart panic selling during market volatility.  It was aimed to encourage long-term investment among buyers but due to its instability, it failed drastically in doing so. SafeMoon regularly reduces the number of coins in circulation to reduce supply and increase the price.

How to Buy SafeMoon?

Since it is different from normal crypto coins, you cannot buy it directly from a crypto exchange for fiat currency. You need to create a wallet on  Binance Smart Chain or any other exchange that supports SafeMoon. You need to buy BNB (Binance Coin) and convert it into SmartChain to acquire SafeMoon. You can buy a BNB token in the exchange for fiat currency or any other token such as BTC, ETH, BNB, etc. on the exchange on a decentralized exchange (DEX) such as SafeMoon Swap or PancakeSwap. You can also create an account in MetaMask or Trust Wallet to start buying SafeMoon. Start buying SafeMoon through the below steps:

Where to Buy SafeMoon?

You can buy SafeMoon by swapping other tokens for it on the following decentralized exchanges (DEXs):

Out of these DEXs, PancakeSwap is the most popular and primary platform for purchasing SafeMoon.

Pros and Cons of SafeMoon Cryptocurrency

Following are the pros and cons of SafeMoon:

Pros

 Huge Brand Awareness 

Since its launch, SafeMoon has successfully created hype around its token on social media. It has also been endorsed by high-profile celebrities like Dave Portnoy, gaining massive popularity among crypto lovers.

 Passive income

SafeMoon incentivizes its long-term investors and penalizes the selling. With an aim to discourage selling and bring price stability it charges a fee of 10% on selling. Half of which goes to the liquidity pool and another half is distributed to the investors. As such SafeMoon investors make money even when someone sells their holdings.

 Manual Token Burning

SafeMoon claims to burn the tokens manually instead of continuous burn to remove the token from circulation. A dedicated team of SafeMoon is engaged in burning coins regularly to reduce the supply and maintain the token’s price value. Manual token burning brings transparency to the system and is profitable for long-term investors

Cons

Highly Volatility

Most of the meme altcoins are highly volatile due to the lack of liquidity and underlying value, and SafeMoon is no exception. The recent performance of SafeMoon shows that it is an extremely volatile currency. Since its launch, it has gone up 20,000% and lost 99% of its value.

 No Utility

Another major downside of SafeMoon is that it is not acceptable as a means of payment. Since it is not available on most of the major centralized exchanges it has limited support for major fiat currencies.

 Centralized Ownership

SafeMoon has been criticized for being an excessively centralized cryptocurrency because more than 50% of the coin’s liquidity is owned by its CEO and insiders who have generated tremendous amounts of income. Several times it has been accused of being a Ponzi scheme, of which there is no proof.

Final Words

Safemoon has gained huge popularity among crypto investors in a short span due to some of its distinctive features such as passive income from liquidity pool, and manual coin burn. However, it has also been criticized as a highly volatile cryptocurrency with centralized ownership. Before investing in the fairly high-risk digital currency, SafeMoon, for the long term do some due diligence and be prepared to bear short-term losses.