It doesn’t facilitate any automated contracts or decentralized applications, like Ethereum. Every exchange has a range of deposits that users must fund their accounts with. For example, Coinbase and Binance require users to deposit a minimum of $50 and $10, respectively, to complete their trades.
Some investors have calculated that it would take more than all the money in the United States to bring SafeMoon anywhere close to $1 per token. SafeMoon is among the 1st cryptocurrencies on Binance Smart Chain to gain mainstream attention. Most of this attention has been gained from social media platforms, namely Twitter and TikTok. It’s also 1 of the 1st cryptos to implement redistribution tokenomics, something which has yet to be proven as a viable framework for cryptocurrencies. Tap on”Connect Wallet.”Tap on “Trust Wallet”and tap on”Trust.”You’ll be prompted to login to your Trust Wallet account. Finally, tap on”Connect”on the”PancakeSwap wants to connect to your wallet”window.
The new token aims to consolidate the original version at a ratio of 1 to 1000, and significantly lower transaction costs. Please also note that data relating to the above-mentioned cryptocurrency presented here are based on third party sources. They are presented to you on an “as is” basis and for informational purposes only, without representation or warranty of any kind. Links provided to third-party sites are also not under Binance’s control.
What Is SafeMoon Crypto?
He specializes in making investing, insurance and retirement planning understandable. Before writing full-time, David worked as a financial advisor and passed the CFP exam. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners. SafeMoon is a fairly high-risk, long-term investment, so before buying SafeMoon, make sure you have the nerves to accept short-term losses. If you hold SafeMoon tokens on an exchange, there’s no need to do anything, the exchanges will handle the migration process and notify you when the process is complete.
With Tik Tok influencers promoting cryptocurrencies like SafeMoon, much of this newfound traction can be attributed to SafeMoon’s social media promotions. Purchasing SafeMoon isn’t the most straightforward process, but with these easy-to-follow, step-by-step instructions, you’ll have your tokens in no time. For this guide, I’ll be using PancakeSwap as the primary exchange for SafeMoon. This will mean creating an account on another exchange that allows you to exchange dollars for coins. To buy SafeMoon, use SafeMoon’s proprietary SafeMoon Swap to trade other crypto, like Binance Coin for SafeMoon tokens.
In November 2022, the world’s second-largest crypto exchange, FTX, collapsed and immediately filed for bankruptcy. Its books showed the exchange lacked tangible reserves and court filings alleged the exchange indiscriminately used customers’ funds for both operational and personal use. The SafeMoon v2 enables users to complete transactions at a much lower cost, usually 2%. After downloading a wallet and setting up the username, a 12-word recovery phrase will be presented to you for safekeeping. This recovery phrase is a key to your crypto that helps you retain your wallet should your device get damaged or lost. Remember that you aren’t supposed to share this phrase with anyone.
Exodus wallet is a free software wallet that helps investors store, earn interest, and use their digital assets in practical ways. It’s available on both desktop and mobile, and Exodus has several apps integrated in its wallet that makes using your digital assets easy. The wallet supports major cryptocurrencies like Bitcoin, Ethereum and Dogecoin, as well as 150+ other digital assets. Unlike most software wallets, Exodus also allows investors to buy and sell cryptocurrency directly from their wallet. Before you buy the trending token, you must know that SafeMoon penalizes sellers with a 10% fee, and redistributes half to other token holders to incentivize buying and holding.
There are plenty of reasons you got an error on PancakeSwap, but the most common error when investing in SafeMoon is that your slippage tolerance is too low. Since the token taxes investors when they buy, sell or transact SafeMoon tokens, you’ll need to increase your slippage tolerance to 10% or more to successfully swap your tokens on PancakeSwap. While SafeMoon isn’t definitively scamming investors, it’s tokenomics resemble a pyramid scheme. Pyramid schemes accrue value from additional investors buying in, and without this SafeMoon would fail. Plus, those at the top of the pyramid scheme make much more than those who buy in late. Investors with large amounts of SafeMoon reap huge daily rewards which they can sell on the market to lock in their profits.
Is SafeMoon Safe?
Compared to the original version, SafeMoon V2 processes transactions at a much lower cost. Finally, go to a crypto exchange that sells SafeMoon and make your purchase. SafeMoon recently upgraded to SafeMoon V2 by migrating to a new smart contract. There is now a 100% reflection fee on SAFEMOON , making the token effectively worthless. This will incentivize holders to upgrade to 2.0, however, it is concerning that the team was able change the original contract.
One of the major tweaks it made from the Ethereum code was it only has 21 nodes validating transaction compared to the 10s of thousands of validators on Ethereum. To be a Binance Smart Chain validator, investors must stake millions of dollars of BNB. With such a high cost to be part of the network, the network is controlled by a few well off Binance Coin holders, including people involved with Binance directly.
Types of Cryptocurrency Exchanges
However, these low fees come at the cost of centralization; while it’s an attractive short term solution, the small number of validators on Binance’s blockchain raise security concerns. Since you’ll need to use a software wallet to connect to PancakeSwap, your crypto assets are much more secure than if you were to store your cryptocurrency on a centralized exchange. However, software wallets can still be hacked, so you may want to consider other storage solutions.
Simply make an account, deposit your crypto and start earning up to 10% annual interest on your crypto holdings. For SafeMoon Wallet users, just update to the latest version of the app and follow the consolidation instructions. For users with any other type of crypto wallet, visit theSafeMoon Swap siteto consolidate. The fact SafeMoon isn’t on the major exchanges is a giant red flag, notes Jeremy Britton, CFO of Boston Trading Co, a crypto investment fund. “The exchanges have done their due diligence and found the project lacking. SafeMoon is a risky investment because of high volatility, meaning the price can swing up and down dramatically.
They allow you to monitor your investments across multiple networks and wallets 24 hours a day, 7 days a week. For those having hardware wallets, a crypto portfolio tracker is the best way to monitor your investments. Getting in early in any cryptocurrency can be an appealing way to get rich quickly. However, most small cryptocurrencies don’t end up pumping like DOGE or SafeMoon, so your money may be more stable in more established, large cryptocurrencies. However, if you default on your loan, your cryptocurrency will be used to pay it back. If that happens, you’ll also be required to pay capital gains tax on the collateralized crypto.
The most distinctive feature of SafeMoon is that it charges a 10% fee whenever you sell the token. In other words, if you sold $1,000 of SafeMoon, you would pay a $100 fee on the sale. This is in addition to any fees you may owe a crypto exchange for facilitating the sale. Atomic swaps are smart contracts that enable the exchange of cryptocurrencies from different blockchains in one transaction instead of many. Decentralized platforms eliminate the need for third parties, making transactions cheaper than centralized exchanges. Additionally, users risk losing access to their accounts should they lose their recovery phase.
Monitoring an Investment in SafeMoon
Cold wallets, a type of crypto wallet, are digital cryptocurrency storage on a platform not connected to the internet, which protects them from hackers. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. For centralized exchanges, you are expected to meet the know-your-customer verification requirement before being able to fund your account and trade.
This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed. An issue affecting SafeMoon is that a large number of its tokens are owned by its founders. While these tokens are in “lock-up”, such a heavy concentration of tokens in so few hands means that the holders can have outsized influence over price movements if they sell. The SafeMoon ecosystem includes the SafeMoon Wallet which is available for download on the Google Play and iTunes stores. SafeMoon is an interesting memecoin that’s popular among crypto investors. Read more to learn about the coin and risks of investing in SafeMoon.