How To Buy SafeMoon Crypto

First launched on the Build and Build (BNB) chain in March 2021, SafeMoon can now be bought on some exchanges such as Binance and Pancakeswap. SafeMoon was designed to reward long-term holders and charges sellers a 10% fee, with part of that fee going back to existing holders. While SafeMoon is seen as a currency that is resistant to manipulation, investors should conduct thorough research before making the decision to add this crypto to their portfolios. 

What Is SafeMoon?

Digital currencies are virtual assets, secured by cryptographic encryptions and powered by the distributed ledger technology known as the blockchain. Virtual currencies such as Bitcoin, Ethereum, and other stablecoins now serve as media of exchange globally.

Investing in cryptocurrencies can be complicated since thousands of them exist but only a handful are real. As an investor, you should research the quality and realness of a coin before leaping.

Some distinct features of SafeMoon include the static reward where 50% of tokens from its transaction fees (usually 10%) are distributed to token holders, as well as the manual burn where the supply of SafeMoon tokens reduces to increase the price and demand. SafeMoon also has a self-sustaining liquidity pool that can siphon tokens in the form of fees, which are then added to the token’s liquidity pool on Pancakeswap. 

In addition, Binance has played a significant role in the development of SafeMoon. SafeMoon tokens (SAFEMOON) were first launched on the BNB chain. The token’s wallet has striking features with the Trust wallet powered by Binance.

In the past year, some celebrities have invested and endorsed SafeMoon. They include UFC boxer Jake Paul, with a YouTube channel of over 20 million subscribers, who has claimed that investing in SafeMoon can make everyone rich in the long run. Others are Brett Ratner and DJ Afrojack.

SafeMoon vs. SafeMoon V2

SafeMoon launched an updated SafeMoon token in December 2021. The updated token consolidates the original version in a ratio of 1:1000 while ensuring transactions cost lower.

If you hold original SafeMoon tokens in a wallet and choose to switch them to SafeMoon V2, it can only be done manually. The switching process is quite easy. 

SafeMoon wallet users can update the app to the latest version and follow the instructions while those with other kinds of wallets can visit SafeMoon Swap to convert their tokens.

Additionally, if you hold your SafeMoon tokens on an exchange, you don't have to switch to the V2 tokens. This is because the exchange handles the migration process and gives an update on the status of the process.

Compared to the original version, SafeMoon V2 processes transactions at a much lower cost. The V2 transaction fee is now 2% of the entire transaction.

How To Buy SafeMoon 

Crypto exchanges are platforms where cryptocurrencies can be bought or sold. However, investors must understand that not all coins can be bought with fiat but with other coins. One such coin is SafeMoon as it isn't listed on any centralized exchange that accepts fiat currency. 

While SafeMoon isn't available on the Coinbase or Binance centralized exchanges, you can still buy the tokens on these exchanges using the steps outlined below.

Step 1: Download the wallet and sign up

You can install your wallet on your computer or browser extension or directly download it via mobile app stores such as the Google Play Store or the Apple App Store. After downloading the wallet, you must set a username that should be kept safe. 

Step 2: Securing your recovery phase

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. Writing it out and keeping it in a safe is ideal.

Step 3: Check to ensure you have enough Ethereum to cover fees

The cost of a transaction depends on how busy the Ethereum network is, how quickly you want the transaction to be processed, and the size of the transaction. Ethereum network fees are also known as gas fees.

Step 4: Buy and transfer Ethereum to the wallet 

Once you have met the user verification requirement, you can transfer cash to your wallet and proceed to buy some Ethereum coins with it. After purchase, the Ether (ETH) coins will be stored in the Ethereum wallet.

Step 5: Use the Ether (ETH) to buy SafeMoon 

With your ETH in the wallet, you can swap ETH coins for SafeMoon directly. All you need to do is click the “swap” icon in the assets tab, choose SafeMoon, and swap ETH for the value of SafeMoon you desire.

Alternative Ways To Buy SafeMoon 

An alternative way of buying SafeMoon is to use the SafeMoon Swap decentralized application that is available on the Build and Build chain. This way you trade BNB tokens for SafeMoon tokens.

What Are the Advantages of SafeMoon?

As a meme coin, SafeMoon has a couple of advantages. First, just like Dogecoin, it has the potential to go viral and generate profit in the long run.

Additionally, SafeMoon holders are rewarded with 50% of transaction fees. The SafeMoon v2 enables users to complete transactions at a much lower cost, usually 2%.

What Are the Disadvantages of SafeMoon?

There are reasons why SafeMoon may not be worth all the hype. First, the token is extremely volatile and can lead to a possible loss of investment. Since it isn’t listed on common exchanges, buying or converting SafeMoon could be stressful for investors. 

In addition to spending a significant amount on swapping and transaction fees, SafeMoon not being on major exchanges is a sign that it could be lacking in regulatory requirements.

What You Need To Open a Cryptocurrency Exchange Account 

There are several requirements needed to open an exchange account. For decentralized exchanges, the process is pretty simple: Download the software or browser extension, set up an account, and store your recovery phase.

For centralized exchanges, you are expected to meet the know-your-customer (KYC) verification requirement before being able to fund your account and trade. Things needed to open an exchange account are explained below.

Personal Information

Exchanges often mandate customers to provide their personal information to meet KYC requirements as mandated by regulatory authorities. Examples of personal information required include:

• Full name
• Means of Identification such as an International passport 
• Proof of address such as utility bills
• Social Security number
• Others as required by the exchange

Minimum Deposits

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.

Types of Cryptocurrency Exchanges

Centralized Exchanges

Centralized exchanges are custodial platforms that enable users to exchange their crypto assets safely. Though secure, these exchanges take custody of a user's private key which is needed to authorize transactions.

Authorities or businesses that control centralized exchanges have the sole right to make decisions regarding the platform. Centralized exchanges have sustainable liquidity as they can partner with platforms that provide them with liquidity.

Decentralized Exchanges

Decentralized exchanges are platforms that give users sole custody of their private keys and require the consent of the community to make key decisions regarding the platform.

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.

Hybrid Exchanges

Hybrid exchanges are becoming quite popular. These exchanges combine the features of centralized and decentralized exchanges, allowing users to trade crypto seamlessly.

Best Cryptocurrency Exchanges

Factors To Consider When Opening a Cryptocurrency Exchange Account

As a crypto investor, there are factors you should consider when creating an exchange account. These factors include:

Security: With the current activities of fraudsters, exchanges that protect and update their security architecture constantly have high trading volumes. When opening an account, you should check if the platform has multi-layer verification for withdrawals, two-factor authentication, or if it’s custodial.

Fees: From buying fees to swapping and exchanging fees, it’s often advised to compare the best in the industry before making a choice. However, security should not be compromised.

Number and quality of coins supported: It’s important to check the number of coins an exchange supports, especially if you want to diversify your investment portfolio. Research the quality of coins in the exchange to avoid investing in scam tokens.

Wallet safety and quality: Before choosing an exchange, you should ensure it has a reputation for security.

Storage and custody: This feature has to do with if an exchange takes custody of your private keys or gives you the responsibility of holding them. Depending on your preferences, you may choose either a custodial or non-custodial wallet. 

Centralized vs. Decentralized Exchanges

While centralized and decentralized exchanges exist to trade crypto assets, the difference is based on how they do it and their mode of operation. Factors that differentiate both include regulation, supported coins, liquidity, security, user experience, and custody.

While centralized exchanges are more regulated, support several coins, have more liquidity, are less secure, have a great user experience, and take custody of users' private keys, decentralized exchanges are not.

Even though the crypto industry is at its early stage in terms of regulation, centralized exchanges are striving to comply with financial regulations. Regulation works to protect investors and their investments.

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.

Being a centralized exchange, key decisions were taken without the knowledge of the community. To prevent issues such as this, decentralized exchanges may just be a great fit. These exchanges are built on-chain and all information regarding them is available to the public. Above all, decisions can only be made after token holders have voted in favor of them.

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