Beginner’s Guide: How To Start Investing In Safemoon?

How Can I Buy Safemoon?

Last Updated November 5th 2021
13 Min Read

In this article, Trading Education will give you detailed information that will help you begin a journey of investing in Safemoon. More importantly, you will get the know-how to buy Safemoon from centralized and decentralized exchanges. This will embolden you to choose an exchange that will provide you with the safest way to invest in Safemoon tokens. 

Safemoon is a digital currency that is considered a medium-cap digital asset since it’s valued at over $2 billionSafemoon as a cryptocurrency is housed on the Safemoon Protocol which also runs on the Binance Smart Chain. 

The blockchain helps in the creation, distribution, storage, and trading of Safemoons without any third parties such as clearinghouses, traditional banks, or insurance companies over the internet. 

As a decentralized application (DAPP), the Safemoon Protocol thrives on the possibilities of the blockchain technology of the Binance Chain. This way, the protocol is safe from extensive cybersecurity issues. 

This is because founder Chanpeng Zhao built his innovation on a multi-tiered and multi-clustered architecture technology that has been employed by several blockchain platforms in the decentralized finance space today. 

This means that the Safemoon Protocol benefits from the capability of the Binance Smart Chain since it moved away from being an ERC 20 token on the Ethereum Network in 2020. 

The Binance SMART Chain processes approximately 1.4 million orders per second which is better than Ethereum 1.0 (15 to 30 transactions per second) and Ethereum 2.0 (approximately 100,000 transactions per second). 

According to the official website of Safemoon, as of Thursday, 4th November 2021, 572 trillion Safemoons are circulating on the market. More than 420 trillion Safemoons have been burned, from a total supply of 1 quadrillion.

The Safemoon Protocol was created by an individual called John KaronyThe Safemoon Protocol was created for 2 purposes.

The main idea of developing Safemoon was to join the decentralized applications on smart contracts blockchains to serve as one of the innovative methods through which huge annual percentage yields (APYs) could be realized. 

What’s more, the Safemoon Protocol was developed to bring the Safemoon Community closer to the multi-billion empires of decentralized finance (DeFi) and non-fungible tokens (NFTs) that promise huge returns for investors.

Because of price fluctuations, the cryptocurrency market is regarded as a highly volatile asset class

This volatility encompasses all cryptocurrencies including Safemoon

You should know that Safemoon became a tradable token in March 2021. The native asset of the Safemoon Protocol began its trading journey with an infinitesimal figure of around $0.00000002

In 2021, the crypto boom has taken the market values of several coins to standards that are far and wide above several mainstream companies. This has made it difficult for analysts and experts to make accurate forecasts of Safemoon and other altcoins. 

The cost of Safemoon depends on several essential factors. Among others, the most important of them all is the TRUST OF INVESTORS.

Aside from that, there are several factors that a new Safemoon investor must take into consideration. 

These factors are depositing methods accepted by exchanges, personal identification documents, digital wallets, secure internet connections, and cryptocurrency exchanges.

Here in this article, we will understand the steps that are included in investing in Safemoon. This is essential for first-time investors and beginners. 

  • Select an Exchange that lists Safemoon. 
  • Investing in Safemoon through a Centralized Exchange. 
  • Investing in Safemoon through a Decentralized Exchange. 

Select An Exchange That Lists Safemoon 

The first step towards investing in Safemoon is finding a cryptocurrency exchange and signing up for an account. 

As a novice, you should know that there are 2 forms of cryptocurrency exchanges to consider when investing in Safemoon and other altcoins. 

They are centralized exchanges normally abbreviated as CEX and decentralized exchanges normally abbreviated as DEX.

Centralized Exchanges (CEX)These are online trading platforms that facilitate the buying and selling of cryptocurrencies, between two crypto coins such as Safemoon/SHIB, or ETH/BTC, and as well for fiat currency. 

Most CEXs have been in the market for more than a decade while others have survived for less than one year. On CEXs, all trades are facilitated through intermediaries. 

Therefore, you are going to register for a custodial account. This means you would be able to create a password for the account BUT you would have no control over the private keys that facilitates access to your Safemoon holdings. 

Centralized Exchanges that list Safemoon include but are not limited to Gate.io, BitMart, Hotbit, ZB Global, Bitrue, DeCoin, BitForex, LBank, KickEx, Bitbus, WhiteBIT, BHEX, Jubi, Biki, Biswap, Hoo, and MEXC.

Decentralized ExchangesThese are online trading platforms specifically created for the trading of multiple cryptocurrencies. DEXs allow users to place orders on new types of pair-matching (Safemoon/BTC, SAFEMOOB/ETH, Safemoon/TRX, and Safemoon/BNB among others). 

Unlike CEXs, DEXs allow you to trade cryptocurrencies without any intermediaries (regulated financial institutions). 

The popular decentralized exchange that lists Safemoon is PancakeSwap.

Several Novice Traders and Investors prefer Centralized Exchanges to DEXs because CEXs prioritize adhering to protocols such as countering terrorism financing (CTF), anti-money laundering (AML), and knowing your customer (KYC). 

Many novices and established traders and investors believe in the safety of using CEXs since they work in tandem with several regulators, have great reputations, provide efficient security systems, and are insured by the Federal Deposit Insurance Corporation (FDIC). 

In this case, should something bad happen, users have representatives of the CEX they can hold accountable.

On the other hand, some novice and established traders that do not want to share their personal information with anyone prefer Decentralized Exchanges to Centralized Exchanges. 

They like DEXs because they are free of the time-consuming Knowing Your Customer (KYC) verification process that can take more than a day to complete. 

To many, the verification process can deny them a chance of buying Safemoon and other coins at a price that could bring them enormous rewards. 

Due to the unpredictability of the crypto market, an investment that could purchase 20 million Safemoons could ONLY purchase 10 million Safemoons after the verification process has been completed.

Check Out: The 5 Best Ways To Buy Safemoon

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How To Invest In Safemoon Through A Centralized Exchange 

Investing in Safemoon through CEXs is the best way since liquidity can be thoroughly accessed. Millions of active users can also share reviews about the quality of service provided by the centralized exchanges. 

Whatever happens, CEXs will always perform the same functions. However, they differ in features. Therefore, when you want to invest in Safemoon, you should consider factors such as speed of processing, limits, volume, geographical restriction, customer service, and fees (deposit, processing, and withdrawal).

Apart from this, registering for an account on a centralized exchange comes with similar steps. 

Whether you choose to invest in Safemoon through Gate.io, ZB Global, BitForex, Bitrue, or BitMart, and others, you will be required to go through a mandatory 4 step process that has been summarized below. 

Step 1: Create an Account on a Centralized Exchange 

As a novice, you should know that centralized exchanges prioritize authenticity. 

As a result, input details of your full legal name as it appears on your government-issued identification card (first, middle, and surname). 

Aside from this, provide details of a consistently used email address that can be verified. 

In addition to this, provide an active phone number that can receive messages daily. 

Lastly, provide accurate details of your residential address that have supporting documents to prove its authenticity.

Step 2: Verify Your Account 

Most centralized exchanges will ask you to provide supporting documents that confirm the information you earlier input during the signing up process. 

The primary document that will be requested if you are in a developed country such as the United States and the United Kingdom is a government-issued identification card such as Driver’s License or National ID Card. 

For traders from what is respectfully termed as remote countries, most CEXs will accept primarily your PASSPORT

If they are open to other cards, you may be requested to send scanned images of your National ID CARD

Aside from proving your identity, more than 90% of exchanges would require proof of residence. 

As per the residential address you provided during the signing up process, provide scanned copies of your bank statements, credit card statements, internet bill, or other utility bills that have your residential address embossed on them. 

You should know that such a bill or statement should not be more than 6 months old.

Although the verification process can take up to a day to complete, depending on how cooperative you are as a customer, it can be done within 30 minutes to an hour.

Step 3: Deposit Funds

On most of the centralized exchanges that list Safemoon, few of them support bank transfers, debit and credit cards, as well as online payment services like PayPal and co as deposit methods. Most of them accept direct crypto deposits from supported wallets such as TrustWallet, MetaMask, Trezor, and Free Wallet among others. 

After doing thorough research about an exchange and getting to know its pros and cons, you can finally settle on your preferred deposit method.

Step 4: Navigate To the Safemoon Page and Place Your Order 

After locating the Safemoon page on the exchange of your preference, you can place a buy order for several Safemoon tokens that are part of your crypto budget. 

Depending on the processing speed of the exchange, the order would be executed, processed, and added to the wallet created on your account.

Centralized exchanges differ in terms of reliability, exchange rates, and processing fees. 

For what’s worth, to upload an amount that can help you purchase the worth of Safemoon tokens you have in mind, we recommend Gate.io. This is because you can deposit funds at a 0% fee. 

Gate.io has been operating for more than 8 years without incident. What’s more, they support more than 500 cryptocurrencies which are great for crypto pairings. 

Gate.io also has a great reputation, complies with regulation, has an efficient trading system, and uses centralized and decentralized methods to protect your funds

After conducting independent research of the Safemoon Protocol, you can invest in Safemoon through Gate.io and you will enjoy free deposits and many benefits.

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How To Invest In Safemoon Through A Decentralized Exchange 

Decentralized Exchanges (DEXs) have become popular in 2021 thanks to the buzz and mania around decentralized finance (DeFi) and decentralized applications (DAPPS) specifically.

Because of the privacy DEXs bring their users, they continue to see billions in volume. 

According to Dune Analytics, a platform that tracks decentralized finance activities; DEXs have recorded more than $25 billion in volume over the last seven days (28th October to 4th November 2021). An impressive $3 billion of this volume was recorded in the last 24 hours up to the time of writing this article.

The most popular and largest DEX by volume is Uniswap, which is based on the Ethereum Network. 

Aside from Uniswap, other best-performing DEXs include but are not limited to Curve, dYdX, Kyber, DDEX, LINKSWAP, Bancor Network, Mooniswap, SushiSwap, AirSwap, Gnosis Protocol, Ox Native, Synthetix, Balancer, 1inch LP, AND Dodo.   

Although these DEXs continue to contribute immensely to the trading of digital currencies, none of them list Safemoon for trading and investing. 

As a result, our primary focus would be on PancakeSwap, a decentralized application that also exists on the Binance Smart Chain and supports Safemoon. 

If you choose to invest in Safemoon through PancakeSwap V2, kindly follow the 2 steps below to purchase Safemoon.

1. Register For A Wallet  

You need to choose a wallet that will store your Safemoon coins. There are many types of wallets on the market today but you need a wallet that can be connected to PancakeSwap

Therefore, Trading Education recommends using TrustWallet or MetaMask

Although the two wallets differ in terms of navigation and features, the process of registration follows the same pattern.

Firstly, on a smartphone that is powered by Android or iOS, visit the Google Play and Apple Stores page, search for TrustWallet or MetaMask, and install the APPLICATION.

Secondly, tap the open button of your installed application on your store. 

After that, the homepage of the wallet will appear. 

Once this happens, you will see the words “create a new wallet”. Throughout this process, private keys which are also termed passcodes will be provided for you. 

They come in the form of at least 12 words and a maximum of 24 words that are arranged in a particular order. This is the key to your Safemoon holdings as well as other coins you hold in the wallet. 

The passcodes must be kept a secret. 

If you can, write the codes in at least 4 different places so that you can retrieve them in case you lose access to your phone and need a new phone to restore your account. 

Without your private keys, you will lose access to your wallet no matter the size of your Safemoon and entire crypto holdings.

2. Buy Safemoon Coins Through PancakeSwap V2  

On the HOMEPAGE of your TrustWallet, you will see other options such as DApps, DEX, and Settings. 

Tap on the DApps icon. This will take you to a new page where you can find decentralized applications under staking, utility, marketplaces, games, yield farming, smart chain, DeFi, and others. You can scroll through and you will find PancakeSwap Exchange. 

If you are not interested in scrolling through the list, you can search for PancakeSwap Exchange on a SEARCH tab. 

Tab on PancakeSwap and it would take you straight to PancakeSwap Finance. 

On the Homepage of PancakeSwap, you will find options such as NFT, Win, Earn, and Trade. Because you want to trade Safemoon, you tap on TRADE

Since the Safemoon Protocol runs on the Binance Smart Chain, the only way you can buy Safemoon tokens is through the novel token of the Binance Chain, Binance Coin (BNB). 

Calculate the amount of BNB that can allow you to buy the number of Safemoon tokens that can help meet your investment goals.

Select the currency you would like to trade Binance Coin (BNB) for, in this case, Safemoon

A pop-up will appear on your screen that will direct you to “Click on the settings icon, set your slippage tolerance to 12%. This is because Safemoon taxes a 10% fee on each transaction”. 

Once you are done with the settings, you can buy Safemoon and it will be transferred to your TRUST WALLET.

Don't Miss: 15 Reasons You Should Invest in Safemoon Today

Conclusion 

As a novice, you should watch out for unsolicited offers across social media (Twitter, Reddit, Quora, Facebook, and Telegram) that claim to help you invest in Safemoon and earn enormous gains. 

Despite the highly resourceful information Trading Education has provided, you should supplement our research with your own fundamental analysis on CEXs and DEXs.

So, should you choose CEX or DEX when investing in Safemoon

For starters, use centralized exchanges since they are like social media applications that are easy to understand. As you gain more experience, you can then combine using DEXs with CEXs. 

Whether you choose to invest in Safemoon through a CEX or DEX, you should know everything about the Safemoon Protocol before risking funds. 

This is because Safemoon is a highly volatile asset class that brought huge returns to holders in April and wiped out huge gains from the portfolios of others that patronized the asset in the months after. 

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