If you’re a newbie in this industry, you’ll need to know what exactly crypto is. Cryptocurrency is a method of income that may be traded for products and services online. Numerous businesses have created their own cryptocurrencies, known as tokens, which can be exchanged for the goods or services that the business delivers. Consider them to be arcade tokens or casino chips. To have access to the item or service, you must first swap actual dollars for cryptocurrency.
Cryptocurrencies operate on blockchain technology. According to CoinMarketCap.com, a market analysis website, over 13,000 distinct cryptocurrencies are openly traded. On Oct. 22, 2021, the total worth of all cryptocurrencies was more than $2.5 trillion, having plummeted from an all-time high of more than $2.6 trillion just days before. The overall worth of bitcoins, the most popular digital currency, was estimated to be around $1.2 trillion.
What is Safemoon?
Safemoon, the most recent cryptocurrency, bills itself as decentralized finance (DeFi) token. This means that it is a component of an alternative financial system, allowing trading via peer-to-peer chain networks without the intrusion of centralized institutions like banks or governments.
The initial quantity was one quadrillion tokens, but the creators burnt (223 trillion) them. That left 777 trillion as a launch supply. Because it is not listed on the main cryptocurrency exchanges, the majority of purchasers obtain it through the decentralized PancakeSwap exchange.
The main idea of Safemoon is to charge a fee for selling it. If you sell your Safemoon, you must pay a 10% commission. This 10% is allocated as follows:
- Existing investors receive a 5% dividend.
- 5 percent is divided evenly, with half converted to Binance Coin (BNB) and the other half retaining Safemoon tokens, which are then paired for usage in a liquidity pool.
Safemoon unquestionably satisfies the lower pricing requirement. It presently trades for fractions of a penny, implying that a few bucks may buy over a million Safemoon. Those that buy and hold will gain from this.
Despite the enthusiasm, Safemoon has some severe problems that should make you reconsider purchasing. Let’s take a look at how this cryptocurrency works and why it’s so hazardous to help you make an informed decision.
Why is Safemoon worth it?
Safemoon unquestionably satisfies the lower pricing requirement. It presently trades for fractions of a penny, implying that a few bucks may buy over a million. It also has an intriguing hook in that it charges a fee to anyone who sells and distributes half of that amount to Safemoon holders. Those that buy and hold will gain from this. Despite the enthusiasm, Safemoon has some severe problems that should make you reconsider purchasing.
Analysts of digital currencies tend to be cautiously enthusiastic about the Safemoon price.
Meanwhile, Digital Coin forecasts a one-year of $0.00000870 and a five-year of $0.00001690. These are, obviously, only projections. And if any crypto price graph can tell you anything, it’s that it’s going to be a rocky trip.
It is also difficult to predict how Safemoon’s selling tax may affect potential investor interest.
Purchasing Safemoon important steps
First of all, sign up for a Binance account. Because SafeMoon is a new and contentious digital token, prominent exchanges such as Coinbase and Gemini do not support it on their platforms.
Opening an account with Binance is simple; all you really need is an email address and a password. Obviously, it depends on where you reside, you may be required to give extra information before you may make transactions.
Once you’ve been approved to trade, you’ll need to buy Binance Coin (BNB). Because you’ll be exchanging these tokens for SafeMoon, you should purchase as much BNB as you want to invest in SafeMoon. Keep in mind that names may be misleading. While cryptocurrencies like DOGE and SafeMoon might make you fast cash, they are also viewed as long-term investments.
- Install Metamask or Trust Wallet. You must have a software wallet that is functional with Binance Smart Chain. Trust Wallet and Metamask are also viable solutions, however, you must first allow them to function with Binance Smart Chain (BSC) before using them for these coins, as both wallets were designed to be Ethereum wallets.
- Buy an item. Fortunately, purchasing SafeMoon is significantly simpler than configuring your crypto wallets to interface with PancakeSwap. If Tik Tok users can work it out, it can’t be that difficult, correct? PancakeSwap is an Automated Market Maker (AMM), which means that it calculates token values using mathematical equations rather than centralized order books. Simply choose the SafeMoon token, and you will be able to exchange the tokens in your wallet for it.
Investing in SafeMoon is a personal decision that should be dependent on how much risk you are willing to face. The success of SafeMoon is dependent on Binance, the SafeMoon team, and the community that develops around it.
A prudent investment in it would need the investor to consider the centralization of the Binance Smart Chain, as well as the amount of control Binance, has over it. It would also need trust in the validity of the team, which has a limited track record of performance. While everyone must begin somewhere, a healthy dose of skepticism may go a long way.