Safemoon is one of the latest DeFi tokens that was introduced in March 2021. The digital coin has attracted plenty of crypto investors.
Safemoon’s price was quite high by April. However, this couldn’t be the case as the price fell after some time.
This is no longer the case; Safemoon is a crypto to watch. Its price is slowly becoming steady. At least one million Twitter followers are embracing this digital coin. There’s hope; lets exchange Safemoon.
What is Safemoon?
Safemoon is decentralized finance (DeFi) in the cryptocurrency ecosystem. Its work is to facilitate crypto trading through reflection, burning, and LP acquisition. What makes it distinct is the static rewards holders earn for staking it. 5% of Safemoon is distributed among holders, while 5%is burned. All Safemoon transactions incur a 10% fee.
How Safemoon works
This digital currency aims to be a medium where crypto traders can earn by investing in the blockchain. Investors are discouraged from trading their tokens to earn ROI.
How does this happen? Any Safemoon transactions require a 10% facilitation fee. 5% of the fee is awarded to Safemoon holders, whereas the remaining percentage is absorbed for liquidity purposes.
Like any other cryptocurrency in the blockchain network, Safemoon’s developers evaluate its circulation to maintain its value.
Many exchange platforms like LetsExchange allow trading of this DeFi crypto. Investing and trading Safemoon is easy, safe, and anonymous. You can exchange Safemoon without signing up. Here is how you can trade:
- Choose an exchange medium that allows trading of this token like LetsExchange.io.
- From the category, choose Safemoon.
- Choose the amount you want to exchange and counter-check to confirm if it’s correct.
- Submit a deposit or recipient’s address.
- Confirm and wait for the transaction to be processed. You should receive the Safemoon in your wallet almost instantly
All you should know when investing in Safemoon
Cryptocurrencies are always speculative in that you cannot accurately estimate their value. This means that you can earn huge returns or still lose your investment. Some of the risks that come with trading Safemoon include:
- Volatility: Safemoon has been volatile since its inception. The token started at a high of over 20,000% to 80% recently. As a blockchain investor, you should know that the value of crypto is the amount you earn from selling it to another trader. But because it’s speculative, there’s no guarantee that it is profitable.
- Regulation: common with other cryptocurrencies, there is no government regulating this ecosystem. The lack of a central governing body makes Safemoon a risky venture. On the flip side, no regulation could mean reaping more in cryptocurrencies because there are no higher tax implications.
- Speculative: though the name Safemoon is coined to mean that you are safe and going to the moon, serious investors have to think twice about this venture.
- Liquidity: Unfortunately, you cannot exchange or trade Safemoon in major exchange sites except Pancake Swap. Besides, traders are discouraged from exchanging their tokens, making it difficult to maintain liquidity.
Safemoon is here to stay. It is a long-term investment for crypto investors who wish to earn by stanking their tokens. So if you are indicisive, you should watch this pace.