Safemoon is one of the hottest new cryptocurrencies that has captured attention in 2021. This decentralized finance (DeFi) token claims to offer benefits to long-term holders while incorporating innovative tokenomics.
In this beginner’s guide, I’ll explain exactly what Safemoon crypto is, how it works, and step-by-step instructions to buy Safemoon tokens for yourself. Are you one of those who are looking to capitalise? In the Bitcoin Trader system you can buy and catch the next big crypto price rally?
Whether you’re just learning about Safemoon or are ready to invest, this article will tell you everything you need to know to get started with this unique cryptocurrency project.
What is Safemoon?
Safemoon is a DeFi token running on the Binance Smart Chain blockchain network. It was launched in March 2021 by an anonymous group of developers.
Some key features that make Safemoon unique include:
- Deflationary tokenomics – On every Safemoon transaction, 5% of the tokens are redistributed to existing holders and another 5% of tokens are permanently burnt or removed from circulation. This deflationary mechanism means the total supply reduces over time.
- Liquidity generation – A portion of every trade contributes toward automatically generating liquidity on PancakeSwap. This liquidity pool helps stabilize the price.
- Holders rewarded – Safemoon rewards long-term holders. The longer you hold Safemoon, the more tokens you can accumulate through redistribution.
- NFT marketplace – The project roadmap includes launching an NFT marketplace for buying and trading non-fungible tokens.
The founders of Safemoon marketed it as a next evolution of DeFi tokenomics. While the jury is still out on whether it can deliver sustained long-term growth, Safemoon has certainly gained a lot of hype and attention recently.
How Does Safemoon Work?
Safemoon utilizes tokenomics to incentivize holding rather than selling. On each transaction, the following occurs:
- 5% Burned – 5% of the tokens are permanently removed from circulation, decreasing the overall token supply over time.
- 5% Redistribution – 5% of the tokens are distributed to existing Safemoon holders relative to their share of the total supply. For example, if you hold 0.5% of Safemoon’s total supply in your wallet, you will gain 0.5% of the redistribution rewards.
- 5% Liquidity – 5% of the tokens go toward automatically generating liquidity on PancakeSwap.
This rewards those who hold onto their Safemoon tokens while creating scarcity through burning. As the total token supply decreases, the theory is that the value of each remaining Safemoon token will increase.
The smart contract also includes anti-whale measures. No wallet can hold more than 2% of the total supply. This prevents massive early holders from dumping their tokens and crashing the price.
Overall, Safemoon rewards patient investors who buy and hold, rather than short-term traders who sell quickly.
How to Buy Safemoon Tokens
Now let’s walk through how to buy Safemoon step-by-step:
Step 1: Download Trust Wallet
First you’ll need to download the Trust Wallet mobile app to store your Safemoon tokens. Trust Wallet allows you to store, receive, and send various cryptocurrencies easily and securely.
Install Trust Wallet on your iOS or Android device. Then create a new wallet and save & back up your recovery phrase securely. This will allow you to recover your wallet if needed.
Step 2: Buy BNB
To trade for Safemoon, you first need to purchase Binance Coin (BNB) – the base currency of the Binance Smart Chain.
You can buy BNB directly in Trust Wallet via Simplex, or transfer it in from another exchange you use like Binance or Crypto.com.
I recommend buying a little extra BNB to cover the transaction fees.
Step 3: Connect to PancakeSwap
Next, open the DApps browser within Trust Wallet and connect it to PancakeSwap. This allows you to exchange BNB for other tokens on Binance Smart Chain.
You can find the browser icon along the bottom of Trust Wallet. Type PancakeSwap.finance into the address bar.
When you connect your Trust Wallet to PancakeSwap for the first time, you will need to approve the connection.
Step 4: Convert BNB to Safemoon
Now you’re ready to trade your BNB for Safemoon tokens!
- Tap “Trade” then select “Exchange” in PancakeSwap
- Select BNB as the “From” currency and paste the Safemoon contract address into the “To” field
- Contract: 0x8076C74C5e3F5852037F31Ff0093Eeb8c8ADd8D3
- Enter the amount of BNB you want to swap
- Set slippage to 12% to account for the 10% transaction fee
- Tap “Swap” to complete the trade
After a moment, your swapped Safemoon tokens will show in your Trust Wallet.
That’s it! As long as you hold the tokens in your wallet, you will see your Safemoon balance grow from redistribution rewards over time.
Pros & Cons of Safemoon
Now that you understand the basics of what Safemoon is and how to buy it, let’s examine some of the potential benefits and drawbacks of this cryptocurrency.
Potential Benefits
- Innovative tokenomics – The tokenomics are designed to incentivize holding and benefit long-term investors who don’t sell out early. This has the potential to align incentives and build a stable growing community.
- Rewards for holding – You can passively earn more Safemoon over time by simply holding it in your wallet due to the redistribution on each transaction.
- Upcoming products – If the Safemoon team can deliver on the planned exchange, wallet, and NFT marketplace, it may increase the token’s utility and value.
- Great marketing – Safemoon’s marketing efforts and community-building have been very successful so far, making it one of the most hyped new cryptos.
Potential Risks
- Very speculative – As with most cryptos, there is no guarantee Safemoon will succeed in the long run. It is purely speculative at this point.
- Vulnerable to selloffs – If enough early investors decide to take profits, it can trigger significant price declines. The anti-whale measures help, but do not completely prevent this.
- Unaudited contract – The Safemoon contract has not undergone a third-party code audit, which raises security concerns.
- Regulatory risks – Safemoon’s legal compliance status is unclear. Regulatory crackdowns could negatively impact its value.
As with any high-risk cryptocurrency investment, it’s wise to only invest discretionary funds you can afford to lose entirely. Safemoon has plenty of potential upside but also downside risks to consider.
Conclusion
I hope this beginner’s guide has helped you understand what the Safemoon crypto token is, how it works through its unique tokenomics, and how to buy Safemoon for your portfolio if you choose to invest.
While it is still a speculative asset, Safemoon’s focus on rewarding long-term holders is an interesting experiment and innovation in the crypto space. With careful research and planning, it may have a place in some investor’s portfolios – though likely a small allocation due to the risks involved.
As always, please do your own thorough due diligence before investing in any cryptocurrency. Consider starting with a very small position in Safemoon to get comfortable with buying, holding, and selling it yourself before allocating more.
FAQs
What is the total supply of Safemoon tokens?
The original total supply of Safemoon at launch was 1 quadrillion tokens. The current circulating supply is under 600 trillion and decreasing with every transaction due to the burned tokens.
How do you sell Safemoon tokens?
You can sell your Safemoon back to BNB anytime by reversing the buying process – connect to PancakeSwap, trade Safemoon to BNB, then withdraw the BNB to an exchange.
Is there a Safemoon wallet?
Yes, the Safemoon wallet app for Android and iOS launched in 2021. This provides another secure option for storing your tokens.
What is the minimum Safemoon investment?
There is no minimum. You can buy even a tiny fraction of a Safemoon token if you want. Though minimum trade sizes apply on exchanges.
Can Safemoon reach $1?
While unlikely anytime soon, some crypto enthusiasts speculate Safemoon could reach $1 eventually in the future if the project succeeds and gains mass adoption. But there are no guarantees.
Is Safemoon a good long-term investment?
Safemoon has potential but also big risks. As a speculative asset, it may reward some long-term investors willing to stomach the volatility. But only invest money you can afford to lose.
How high can Safemoon go?
Given the extreme volatility of crypto, it’s impossible to predict how high Safemoon’s price may go in the future during a speculative frenzy. It could potentially reach over 100x its current value – but also may fail and go to zero.
Disclosure: The articles, guides and reviews on BlowSEO covering topics like SEO, digital marketing, technology, business, finance, streaming sites, travel and more are created by experienced professionals, marketers, developers and finance experts. Our goal is to provide helpful, in-depth, and well-researched content to our readers. You can learn more about our writers and the process we follow to create quality content by visiting our About Us and Content Creation Methodology pages.
