How to buy SafeMoon crypto? A comprehensive guide by Digimagg

SafeMoon was created to incentivize long-term investors and imposes a 10% fee on sellers, with a portion of that fee redistributed to existing holders. Initially introduced on the Binance Smart Chain (BNB) in March 2021, SafeMoon is now available for purchase on select platforms like PancakeSwap.

While some proponents argue that SafeMoon is resistant to manipulation, others point out the significant price fluctuations and decline experienced in 2022, suggesting potential irregular trading activity. It's essential for investors to conduct extensive research before making any investment decisions, particularly those involving cryptocurrencies.

What is SafeMoon?

Digital currencies are virtual assets secured by cryptographic encryption and run on blockchain technology, serving as global mediums of exchange, including popular examples like Bitcoin and Ethereum. However, navigating the cryptocurrency market can be complex due to the abundance of coins, with only a few being genuine. As an investor, thorough research into a coin's quality and legitimacy is essential before investing.

SafeMoon offers distinctive features such as a static reward system, where 50% of transaction fees (typically 10%) are distributed among token holders. Additionally, manual burning reduces the token supply to enhance price and demand. SafeMoon maintains a self-sustaining liquidity pool that collects tokens as fees, bolstering the token's liquidity on platforms like PancakeSwap.

Over the past year, several celebrities have endorsed SafeMoon, including social media personality and boxer Jake Paul, who has a substantial YouTube following. Paul has suggested that investing in SafeMoon could lead to long-term wealth. Other notable endorsers include Brett Ratner and DJ Afrojack.

How does SafeMoon work?

While there may be some debate surrounding it, SafeMoon aims to promote long-term investment and deter selling through a mechanism that imposes a 10% fee on users. Half of this fee is then distributed among current SafeMoon holders.

SafeMoon vs. SafeMoon V2

SafeMoon introduced an updated version of its token in December 2021, which consolidates the original token at a ratio of 1:1000, resulting in lower transaction costs. If you hold original SafeMoon tokens and wish to switch to SafeMoon V2, this transition must be done manually. The process is straightforward: SafeMoon wallet users can update their app and follow the provided instructions, while users with other wallets can visit SafeMoon Swap for token conversion.

If your SafeMoon tokens are held on an exchange, there's no need to switch to V2, as the exchange manages the migration process and provides updates on its progress. SafeMoon V2 boasts significantly lower transaction costs compared to the original version, with transaction fees reduced to 2% of the total transaction amount.

Challenges and accusations against SafeMoon

It's crucial to consider various allegations against SafeMoon when evaluating its investment potential.

In April 2022, Stephen "Coffeezilla" Findeisen accused the SafeMoon team of mishandling millions of dollars. He discovered that funds from SafeMoon's liquidity wallet were transferred to a wallet named the "Gabe (6abe) wallet," which then withdrew funds to a separate company owned by John Karony. Thomas "Papa" Smith, the former SafeMoon CTO, refuted Findeisen's claims, stating that the funds were taken from the "locked liquidity pool" before Karony's involvement.

In February 2022, a class-action lawsuit was filed against SafeMoon, alleging the company's involvement in a pump-and-dump scheme. Celebrities such as Jake Paul, Nick Carter, Soulja Boy, Lil Yachty, and Ben Phillips were accused of promoting the SafeMoon token with misleading information. Additionally, in May 2022, multiple SafeMoon investors filed another class-action lawsuit for securities fraud. However, this lawsuit was voluntarily terminated in November 2022.

In December 2021, SafeMoon introduced Version 2 of their token, SafeMoon V2, and set a deadline for token migration to avoid a 100% tax. They also launched a decentralized exchange called "Safemoon Swap." In April 2022, they announced the Safemoon card, a debit card with a 2.5% fee for purchasing goods using SafeMoon and other cryptocurrencies. However, the release of the card has been delayed, leading to criticism from experts.

Pros and Cons of SafeMoon

Pros of SafeMoon

SafeMoon operates on decentralized blockchain technology, similar to other cryptocurrencies, which means there's no central authority governing the network. Decentralization enhances security, transparency, and censorship resistance, as no single entity controls the platform. However, SafeMoon has faced criticism for potential manipulation, highlighting that even decentralized currencies can be influenced.

A portion of SafeMoon's transaction fee is allocated to the liquidity pool, a smart contract holding a reserve of the token. This pool helps stabilize the token's price by ensuring sufficient funds are available for trading, even during volatile periods. The transaction fee distributed to existing token holders incentivizes them to hold onto their tokens, potentially increasing their token balances over time without the need for active participation in yield farming or staking.

While SafeMoon's primary focus isn't on yield farming or staking, its reflective tokenomics model can create passive income opportunities for holders. Some users may opt to engage in yield farming on decentralized finance (DeFi) platforms supporting SafeMoon or stake their tokens in protocols offering rewards.

Cons of SafeMoon

Despite its advantages, SafeMoon also presents numerous downsides. A major concern is its future public perception, which heavily influences its success, as with many other cryptocurrencies. Given the lawsuits and fraud allegations it has faced, it's uncertain whether SafeMoon will garner significant growth or user adoption.

Cryptocurrencies, including SafeMoon, are notorious for their price volatility, with rapid and unpredictable fluctuations leading to both significant gains and losses. This volatility was evident during the 2022 lawsuit filing, resulting in SafeMoon losing a substantial portion of its value.

Moreover, SafeMoon's practical utility is limited, and it lacks well-defined schedules and proven roadmap execution compared to more established cryptocurrencies. Additionally, smaller tokens like SafeMoon may suffer from limited liquidity, making it challenging for holders to execute large trades at desired prices and potentially resulting in unprofitable exits from investment positions.

Most importantly, SafeMoon remains a speculative investment with an unproven business model and limited adoption. The legal issues in 2022 led to substantial losses for many investors, raising concerns about its reliability. While future performance may differ, the historical context of price volatility and losses remains a significant downside for SafeMoon.

How to buy SafeMoon?

If, after considering this information, you still believe that SafeMoon aligns with your investment strategy, there are cryptocurrency exchanges where you can acquire SafeMoon. These exchanges serve as platforms where a wide array of cryptocurrencies can be bought or sold. However, it's important to note that not all coins can be purchased directly with fiat currency but may require the exchange of other cryptocurrencies. SafeMoon falls into this category, as it is not listed on any centralized exchange that accepts fiat currency.

While SafeMoon is not available on major centralized exchanges like Coinbase or Binance, you can still acquire SafeMoon tokens through these exchanges by following the steps outlined below:

Step 1: Download and register with a wallet

You can download a wallet onto your computer or as a browser extension, or you can directly download it from mobile app stores such as the Google Play Store or the Apple App Store. Once you've downloaded the wallet, you'll need to create an account and set a username, which should be securely stored.

Step 2: Safeguarding your recovery phrase

Upon setting up your wallet and username, you'll receive a 12-word recovery phrase. It's crucial to securely store this recovery phrase as it serves as a backup for your cryptocurrency wallet. Never share this recovery phrase with anyone else. The recommended practice is to write it down and store it in a secure location.

Step 3: Confirming Ethereum sufficiency for transaction fees

Transaction costs on the Ethereum network, known as gas fees, vary depending on network activity, transaction urgency, and transaction size. Before proceeding, ensure you have adequate Ethereum to cover these fees.

Step 4: Purchasing and transferring Ethereum to your wallet

Once you've fulfilled the user verification requirements, you can transfer funds to your wallet and proceed to purchase Ethereum coins. After the purchase, the acquired Ether (ETH) coins will be stored in your Ethereum wallet.

Step 5: Utilize the Ether (ETH) to acquire SafeMoon 

Once your ETH is in the wallet, you can directly exchange ETH coins for SafeMoon. Simply navigate to the assets tab and click on the "swap" icon, select SafeMoon, and initiate the swap of ETH for the desired amount of SafeMoon tokens.

What are the requirements for opening a cryptocurrency exchange account?

To open an exchange account, certain criteria must be met. Decentralized exchanges typically involve downloading the software or browser extension, setting up an account, and securing your recovery phrase. However, centralized exchanges require compliance with know-your-customer (KYC) verification procedures before account funding and trading. The necessary steps for opening an exchange account are outlined below.

Required details for account setup

Exchanges typically require customers to submit personal information to comply with KYC regulations imposed by regulatory bodies. This information may include:

• Full name
• Identification documents like an International passport
• Proof of address such as utility bills
• Social Security number
• Any additional details as requested by the exchange

Minimum deposits

Each exchange sets its own minimum deposit requirements that users must meet to fund their accounts. For instance, Coinbase and Binance specify minimum deposit amounts of $50 and $10, respectively, for users to initiate trades.

Types of cryptocurrency trading platforms

Centralized exchanges

Centralized trading platforms function as custodial services, providing a secure environment for users to exchange their cryptocurrency assets. While offering security, these exchanges retain control over users' private keys, necessary for transaction authorization.

Decisions concerning the platform are solely made by authorities or entities managing centralized exchanges. They maintain sustainable liquidity by establishing partnerships with liquidity providers.

Decentralized exchanges

Decentralized exchanges grant users full control over their private keys and necessitate community consensus for significant platform decisions. By eliminating intermediaries, these platforms facilitate cheaper transactions compared to centralized exchanges. However, users risk losing account access if they misplace their recovery phrases.

Hybrid exchanges

Hybrid exchanges, gaining popularity, blend features from both centralized and decentralized exchanges. This integration enables seamless crypto trading experiences for users, offering a balance between security and decentralization.

Best cryptocurrency exchanges

Key considerations for opening a cryptocurrency exchange account

As a cryptocurrency investor, there are several factors to consider when setting up an exchange account. These factors include:

• Security: Given the prevalence of fraudulent activities, it's crucial to opt for exchanges that prioritize and regularly update their security measures. Look for platforms offering multi-layer verification for withdrawals, two-factor authentication, and robust security protocols.
• Fees: Assess the various fees associated with transactions, including purchase fees and exchange fees, and compare them across different exchanges. However, prioritize security over cost-saving measures.
• Range and quality of supported coins: Evaluate the selection of coins available on an exchange, particularly if you intend to diversify your investment portfolio. Conduct thorough research to ensure the coins listed are reputable and avoid potential scams.
• Wallet security and reliability: Prioritize exchanges with a proven track record of maintaining secure wallet systems.
• Storage and custody options: Consider whether an exchange holds custody of your private keys or allows you to manage them independently. Depending on your preferences, you can opt for either a custodial or non-custodial wallet solution.

Centralized vs. decentralized exchanges

While centralized and decentralized exchanges serve as platforms for trading crypto assets, their distinctions lie in their operational methods. Factors setting them apart include regulation, coin offerings, liquidity, security measures, user interface, and custody arrangements.

Centralized exchanges, being more heavily regulated, typically support a wide range of coins, boast higher liquidity, offer a smoother user experience, and take custody of users' private keys, despite being less secure compared to their decentralized counterparts.

Decentralized exchanges, on the other hand, operate without centralized control, allowing for greater transparency and security. However, they may lack the same level of coin offerings and liquidity as centralized exchanges.

Although the crypto industry is still in its infancy in terms of regulation, centralized exchanges are increasingly striving to comply with financial regulations, aiming to safeguard investors and their assets.

A significant event in November 2022 was the collapse of FTX, the world’s second-largest crypto exchange, leading to its immediate bankruptcy filing. Investigations revealed that the exchange lacked sufficient reserves, and court documents alleged misappropriation of customer funds for both operational and personal purposes.

This incident underscores the risks associated with centralized exchanges, where key decisions can be made without community involvement. In contrast, decentralized exchanges offer a potential solution by operating on-chain, providing transparency, and requiring community consensus for decision-making, potentially mitigating such risks.

In summary, SafeMoon is a recent cryptocurrency with distinctive tokenomics, incorporating a 10% transaction fee that allocates 5% to current holders and contributes 5% to the liquidity pool. Its goal is to promote prolonged holding and maintain price stability. Nevertheless, it has faced accusations of fraud, emphasizing the importance for investors to conduct thorough research before considering investment in SafeMoon.