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Safemoon: what it is and how to buy it

Launched in spring 2021, safemoon has become the latest cryptocurrency to make the headlines
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Launched in the spring of 2021, Safemoon is the latest cryptocurrency to make headlines.

It is designed to take some volatility out of the crypto market and reward long-term token holders. Its price rose in April, but has since fallen as investors worry about the fee structure and finding real use for the digital currency.

This article explains everything we know so far about Safemoon, including:

Launched in the spring of 2021, Safemoon is the latest cryptocurrency to make headlines

Sphimon’s Rise

The safemoon protocol began in March 2021, after its launch in the wake of cryptocurrencies such as Bitcoin, Cardano and Dogecoin.

On April 20, cryptocurrency exchange Binance was forced to temporarily suspend withdrawals as it flooded investors into a safe zone. Binance has now been blacklisted by the financial regulator.

In early May, market intelligence firm CoinMarketCap reported that safemoon had more users watched than Bitcoin — just over 1.3 million, compared to 1.2 million.

There are a lot of digital currencies. If you want to know more about Worldcoin and whether it is worth buying, check out our article here.

What is Savimon?

Safemoon describes itself as a token for decentralized finance (DeFi). This means that it is part of an alternative financial system, which enables trade on peer-to-peer chain networks without the intervention of central systems such as banks or governments.

Like Bitcoin and other digital currencies, it runs on a blockchain network.

However, the main difference between a security token and other cryptocurrencies is that investors are encouraged to hold their tokens and not sell them.

Like other digital currencies, safemoon operates on the blockchain

Safemoon fee

  • Anyone selling safemoon coins will receive a 10% fee, half of which will be paid out via dividends to existing investors.
  • Safemoon founders say the idea behind this sell penalty is to discourage day trading and smooth out the huge price swings that other cryptocurrencies are experiencing.
  • They claim that investors are safely shooting at the moon with currency but it will take time to get there.

Safemoon’s price at the time of writing w1riting, on December 1, was a fraction of a dollar: $0.000002, according to CoinMarketCap.

The price of one token peaked on April 20 at $0.00001399 after a 99% rise in one day.

It also means that there has been a 33% drop since then, and indicates that the founders’ actions have not put prices in check.

Find out how a Times Money Mentor reader earned £8,500 in Bitcoin.

How to buy safemoon in UK

Buying a safemoon in the UK is not a straightforward process, but it is possible.

To do this, potential investors must first create a crypto wallet on the Binance crypto exchange and then buy Binance Coins. They can later be exchanged for safe currencies.

Keep in mind that safemoon is on the Binance smart chain ecosystem and Binance is not allowed to conduct regulated activity in the UK. Also, remember that your money is not protected if something goes wrong.

Where to buy Safemoon:

  • Download the Trust Wallet app – available on the App Store, Google Play or Android.
  • Buy one of the two available Applicable cryptocurrencies: binance or bowscoin.
  • Click on the DApp tab in the Trust Wallet app, which enables you to find DApps and search for PancakeSwap.
  • PancakeSwap allows you to replace binance or bowscoin with secure tokens.
  • The Safemoon tokens are then kept in the Trust Wallet.

Should I invest in Safemoon?

Despite the desire to bring some stability through fees charged to investors selling their tokens, there is still significant price volatility.

This means that the investors could have made amazing gains and huge losses, depending on your financial situation.

As with all digital currencies, investing in Safemoon is risky and should only be considered by investors who:

It is certainly not a mainstream investment in cryptocurrency, to be relied upon to build a nest or fund retirement.

Investing in cryptocurrency is a bit like gambling, so don’t invest your entire life savings in this asset class. If you are not sure, talk to a financial advisor.

Is Safemoon safe?

As with investing in stocks, shares, or other currencies, a safe coin can drop in value. If investors sell in the wake of the drop, they will not only incur capital losses but also incur a 10% penalty.

Critics also argue that this incentive to remain an investor makes Safemoon not much different from the old pyramid scheme or Ponzi scheme, where existing investors rely on newcomers to consolidate their earnings.

In addition, investments in cryptocurrency are not regulated in the UK. Although Safemoon’s founders have held “ask me anything” sessions to answer questions from potential investors, they are not a substitute for proper consumer protection.

In January of this year, the Financial Conduct Authority warned consumers about the risks of investing in crypto assets that advertise high returns. The warning came after the price of Bitcoin reached unprecedented levels over Christmas, doubling its value in less than a month.

The Financial Conduct Authority has highlighted a number of concerns, including:

  • Lack of consumer protection beyond basic anti-money laundering measures. Investors are unlikely to be able to connect to the Financial Services Compensation Scheme – which protects up to £85,000 of an investor’s money if the service provider goes out of business or the Financial Ombudsman Service.
  • Extreme price volatility. The regulator advised that this, combined with the difficulties in accurately evaluating crypto assets, increases the risk of losses.
  • The complexity of crypto assets makes it very difficult for consumers to properly understand the risks of investing in them.

It is also important to note that it can be difficult for potential investors to convert holders of a safe currency – or any other cryptocurrency – into cash, with no guarantees that the market will provide the liquidity that investors want. Find out more about coding tips (and mistakes to avoid)

Svimon’s future

Crypto analysts appear to be cautiously optimistic about the safe rate.

WalletInvestor expects the value of the safe coin to rise to $0.000051 in one year and reach $0.000237 in five years. Meanwhile, the digital cryptocurrency puts its safe expectation at $0.0000870 in one year and $0.0001690 on five.

However, these are of course only predictions. And if a peek at any cryptocurrency price chart can tell you one thing, it’s likely to be a very bumpy ride.

It can also be argued that it is too early to determine the impact of the Safemoon sale tax on the appetite of potential investors.

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