How to Invest in Safemoon 2021
Investing in Safemoon is easier than beginners might think - all you need is an online account to get started.
If you are thinking about investing in cryptocurrencies, one of the hottest options you have at the moment is Safemoon. This DeFi project has managed to become a $2 billion asset in terms of market cap within about three months of launching.
For those who are looking to tap into Safemoon, you will first need to arm yourself with sufficient knowledge regarding this cryptocurrency as well as the associated markets.
By reading our How to Invest in Safemoon Guide, you will be able to learn everything you need to know about this digital coin and how you can start investing in this asset via a regulated crypto broker.
- How to Invest in Safemoon in 5 Easy Steps
- What is Safemoon?
- How Does the Invest in Safemoon Process Work?
- Why Should you Invest in Safemoon?
- How to Invest in Safemoon - Various Options Available
- How to Choose a Platform to Invest in Safemoon
- How to Invest in Safemoon Today - Step-by-Step Walkthrough
- How to Invest in Safemoon - The Bottom Line
How to Invest in Safemoon in 5 Easy Steps
If you are already familiar with the ins and outs of cryptocurrency investments, then you might want to jump right into the process of investing in Safemoon.
In its most basic form, investing in Safemoon involves buying the digital coin from a secure crypto platform and storing it in a safe wallet.
To invest in Safemoon, the first step is to open an accout with a regulated exchange, depost funds, select Safemoon from the platform list, and lastly confirm that the coins have added to your Wallet.
Here is a quick run-through of how to invest in Safemoon in five easy steps:
- Step 1: Find a regulated crypto broker that allows you to buy Safemoon and set up an investment account with the provider.
- Step 2: Transfer funds into your brokerage account.
- Step 3: Select Safemoon from the list of supported digital tokens.
- Step 4: Enter the amount you want to invest in Safemoon and confirm your order.
- Step 5: Store your Safemoon in a secure crypto wallet until you want to sell the coins for a profit.
It is evident that if you choose the right online crypto broker, investing in Safemoon can be extremely convenient.
With this in mind, let us explore the fundamentals of what Safemoon is and why you might be interested in investing in this digital token.
What is Safemoon?
The Safemoon protocol is designed in a way to benefit long-term investors of its native token.
At the time of its launch, in March 2021 - there was a total volume of 1 quadrillion Safemoon tokens available. However, in order to drive demand - the developers of this project have decided to consistently eliminate a portion of this circulating supply with each transaction.
As per the White Paper of the Safemoon protocol, the developers will manually execute these systematic burns. The conditions of this will be consistently notified to the owners of the token.
There will also be complete disclosure of how many tokens have been burned so that investors can keep track of the number of Safemoon tokens that are in circulation at all times.
Additionally, to encourage holding, investors of Safemmon are also charged a 10% fee for selling this token. This, in theory, is expected to reduce the price volatility.
Every time someone sells their Safemoon holdings, half of this aforementioned fee will be distributed among other investors, much like a dividend payment. And the rest of it will be used to provide liquidity.
According to the creators of Safemoon, this scarcity can help increase the value of the token. This way, Safemoon is adopting a similar approach to that of Binance Coin - which has launched a similar mechanism of regular automated burning.
That said, before thinking of how to invest in Safemoon, you should also be aware that this digital token does not have any real utility - at least not at the moment. This could have a significant impact on the long-term performance of the coin.
Additionally, Safemoon is also built on the Binance Smart Chain, which makes it different from other DeFi ecosystems that are based on Ethereum. Ultimately, since Binance is centralized and controls its blockchain technology, it has the authority to alter anything about this system at any moment.
All things considered, it is crucial that you do thorough research and consider your risk tolerance before investing in Safemoon.
Read Also: Is It Worth Investing in Safemoon?
How Does the Invest in Safemoon Process Work?
Investing in Safemoon means using your money to buy this digital asset with the hope that its value will increase in the future. If and when it does, you will have the chance to cash out your investment at a profit.
However, in order to make well-informed investment decisions, you need to have sufficient knowledge of the asset. If you are a complete beginner to the cryptocurrency market, then it might take you some time to learn the ropes.
For those unaware, the price of any cryptocurrency such as Safemoon is driven by a number of market factors. As we discussed earlier, this can be anything from the total supply of the coin or its utility. Nonetheless, it ultimately comes down to the supply and demand of Safemoon.
That is - if there is a widespread interest towards Safemoon from investors and traders, this could lead to the price of the coin going up. On the contrary, if more and more Safemoon owners are choosing to dispose of their investments - then you are looking at a drop in the value of this token.
If the value of Safemoon increases after you make an investment, then you will make a profit. Otherwise, you might be looking at losses.
To provide you with a clearer picture - we have prepared an example for you:
- Let's imagine that you are looking to invest a sum of $1,000 in Safemoon.
- When making the investment, the value of a Safemoon coin is $0.0000030.
- When the purchase is complete, you choose to hold on to your coins by storing them in a digital wallet.
- Two years later, the price of Safemoon has increased to $0.0000100.
- This indicates a gain of over 200% in the value of Safemoon.
- Eager to capitalize on this price, you decide to sell your Safemoon investment.
In this trade, your profit will come to 200% of your $1,000 investment - which translates to $2,000.
By keeping yourself up-to-date on how your Safemoon investment is performing, you will be able to capitalize on an opportunity that might be profitable to you. However, the main thing is to not get swayed by the short-term volatility of the coin.
Why Should you Invest in Safemoon?
Whether you want to invest in Safemoon should be determined by your financial goals and appetite for risk. That said, here are some of the reasons that might help you arrive at a decision.
Safemoon has a Micro-Price Qualification
As of 4th June 2021 - the price of a single Safemoon coin stands at $0.00000346. This allows investors to take a risk on this coin and purchase a large number without having to invest substantial capital.
Moreover, the price of Safemoon has made considerable progress since its launch. The coin entered the market at $0.00000001 on March 9th, 2021. When compared to its current price at the time of writing, the value of the coin has increased by over 30,000%.
This demonstrates that even if you had made a $100 investment in Safemoon when it was launched, you might have made a profit of over $30,000 by now.
Safemoon has a Fair Distribution Policy
When it comes to small altcoins, tokenomics plays a significant role in an investor's decision-making process. Typically, token distributions favour the developers, allowing them to profit more than an outsider that invests in the coin.
However, the case of Safemoon is different. When the project was launched, the founding team made it clear that they burnt all their tokens. This brings more fairness as well as transparency to the distribution process.
In other words, there will not be a scenario of developers dumping their coins. This characteristic makes Safemoon more attractive for new investors.
Safemoon has Great Plans for the Next Quarters
According to the Safemoon roadmap, the upcoming quarters of the coin have much more potential for development.
To begin with, the project aims to launch its own cryptocurrency exchange in Q3 - which is likely to raise its profile as well as the utility of the coin. Furthermore, this will also expand liquidity to a new level.
By Q4, Safemoon developers intend to set up a charity project that will accept community donations in the coin on notable cryptocurrency exchanges such as Binance and Coinbase.
If these plans are executed at the right time, it can increase not only the visibility of the coin but also its value.
Safemoon can be a Stepping Stone to the DeFi Market
If you have been looking for affordable cryptocurrencies to capitalize on the decentralized finance market, then Safemoon can be an interesting prospect for you. Its Automatic LP ensures that more liquidity is added with every trade.
This liquidity is then used by decentralized exchanges to process transactions for clients. With the demand for DeFi platforms growing, Safemoon might also benefit from this.
All things considered, Safemoon indeed holds an allure for investors who want to benefit from the DeFi market without having to risk significant investment capital.
How to Invest in Safemoon - Various Options Available
There are several ways for you to invest in digital tokens such as Safemoon with ease. The coin has been launched on a number of prominent cryptocurrency platforms - allowing you to buy this token from the comfort of your home.
When you are ready to invest in Safemoon - here is how you can do it.
One of the most common ways to invest in Safemoon is through a cryptocurrency exchange.
However, when you take a closer look, you will notice that a majority of these crypto exchanges are unregulated.
This means that there will be no financial authority overlooking the actions of such platforms. In other words, when you invest in Safemoon with such platforms - you will be putting your capital at risk.
Not only that, but when using the aforementioned cryptocurrency exchanges, you will not be able to buy Safemoon directly with your fiat money. Instead, you will have to exchange another digital asset to get your hands on Safemoon coins.
If you didn't know this already, you can purchase cryptocurrencies from a crypto ATM with the same convenience of withdrawing a fiat currency.
Typically, this process requires you to locate a crypto ATM that supports your chosen digital asset - in this case, Safemoon. You can then follow the instructions on the screen to enter how much you want to invest in the coin.
In return, the machine will send you a receipt on how you can claim your Safemoon coins.
Although the process might sound simple, the main catch is that Safemoon is yet to launch on cryptocurrency ATMs. Given that it has been only a few months since the coin became available in the market, you might have to wait a little longer to use this option.
Additionally, if you are to choose this method to invest in Safemoon in the future, you should also be aware that cryptocurrency ATMs typically charge you high trading fees - often higher than 10-15%. Moreover, you will also have to continue the process online to claim your Safemoon coins and transfer them to your digital wallet.
As such, even if there comes a time when Safemoon is available via crypto ATMs, you might want to think twice before adopting this method.
Instead, the more convenient and safer alternative would be to stick to an online crypto broker that can give you easy access to Safemoon.
The emergence of online crypto providers has made it extremely easy for investors to purchase and sell digital tokens with unparalleled ease. For one, you can access these platforms from anywhere.
And secondly, the fees for buying Safemoon from a crypto provider are considerably low when compared to ATMs.
That said, within the realm of online crypto providers - you will find that there are platforms that operate in both a regulated and unregulated manner.
For instance, most of the cryptocurrency exchanges you find online are unregulated. Meaning - there is no authority watching over their actions. In other words, when you invest in Safemoon with such platforms - you will be putting your capital at risk.
Not only that, but when using the aforementioned cryptocurrency exchanges, you will not be able to buy Safemoon directly with your fiat money. Instead, you will have to exchange another digital asset to get your hands on Safemoon coins.
At the other end of the scale - you will find fully regulated online brokers that hold licenses from one or more regulatory authorities. It goes without saying that this option is much safer for the security of your investment.
You will also have the convenience of funding your Safemoon investments using a payment method such as a debit card, credit card, or bank transfer. These days, you can even find several online brokers that support e-wallets, such as PayPal and Neteller.
Above all, you will also be saving a considerable amount in fees when using a regulated online broker. Some brokerage platforms also allow you to place Safemoon investments on a commission-free basis.
As much as it sounds extremely easy to use the services of an online broker, the challenge comes in finding the most suitable platform for you to invest in Safemoon.
How to Choose a Platform to Invest in Safemoon
In the previous section of our How to Invest in Safemoon Guide, we established why choosing a regulated crypto broker is the best way for you to purchase this digital currency.
However, before you land on a specific online broker, there are some considerations that you need to analyze carefully. After all, you are trusting the platform with the safety and security of your funds.
In order to help you make an informed decision, we have outlined some of the most important factors you should examine when looking for an ideal online crypto broker.
Licensing and Reputation
As we touched upon earlier, regulation is one of the first things that can help you shortlist the best online brokers out there. If a brokerage platform holds a license from a reputable financial authority - it is a clear sign that it takes its clients' security seriously.
Put otherwise, a regulated online broker is always monitored by its respective licensing authority. This means that it will have to keep your funds separate and regularly provide its order books for audits, among other things.
Additionally, these platforms are also required to clearly state the risks involved with investments. This can be crucial - especially if you are a beginner investing in Safemoon for the first time.
By choosing a regulated online broker, you can rest assured that you have handed over the safety of your investments to a trustworthy and transparent platform.
Some of the most well-reputable financial authorities in the cryptocurrency investment world include:
- FCA in the UK
- SEC in the US
- ASIC in Australia
- CySEC in Cyprus
- IIROC in Canada
- FFAJ in Japan
Additionally, there are several other governing bodies spread across the world that you can look for.
To sum up - when thinking about how to invest in Safemoon safely, always make it a point to choose a regulated online broker.
Fees to Invest in Safemoon
Once you have created a list of regulated crypto brokers, you can then proceed to compare their fees. It goes without saying that brokerage platforms are businesses that need to make a profit. They accomplish this by charging you for their services.
When investing in Safemoon, you want to choose a broker that offers you competitive fees without compromising on the quality of its features.
The types of charges on brokerage platforms vary widely from one to another. The most common fee that you need to watch out for is the commission.
The trading commission is typically charged every time you buy or sell Safemoon. This will often be denoted as a percentage fee that is calculated against the size of your stake.
For instance, if your chosen broker has a commission policy of 2% per trade, then you will have to pay this 2% fee once when you buy Safemoon and again when you sell your holdings.
Depending on the size of your stake, this commission can easily add up.
That said, you can also avoid this fee by looking for a commission-free crypto broker. Such types of platforms are becoming increasingly common these days - making it possible for you to save money when investing in Safemoon.
Aside from commission, you might also be liable to pay transactional fees for every deposit and withdrawal you make on the platform.
Overall, the key takeaway is that you need to be completely aware of what the charges are before signing up with an online broker to start investing in Safemoon.
Minimum Safemoon Investment and Payments
As we covered already, Safemoon is currently quoted at a low price. In fact, as per the quoted rate at the time of writing, a single Safemoon coin costs only a small fraction of a cent.
This means that you will be able to buy millions of Safemoon coins for just $100. That said, not every brokerage platform will allow you to do that.
A large share of online brokers have set a minimum investment policy in place. This means that you will have to put up a minimum stake to start buying Safemoon.
On the other hand, there are also brokers that have no such minimum investment policy.
Now, when thinking about how to invest in Safemoon, you should also look into what payment methods are accepted by your chosen broker. As we discussed earlier, your options could range from time-consuming wire transfers to more flexible debit/credit cards and e-wallets such as PayPal.
Storage and Cashing Out
Once you purchase Safemoon coins, you will need a secure private wallet to store them in.
One of the best parts of choosing a regulated broker is that you might be able to find a platform that comes with an in-built wallet. In this case, your Safemoon coins will be automatically added to your portfolio.
Moreover, it will also be secure under the watchful eye of the respective financial authority that regulates the provider.
On the other hand, if you do not have access to an integrated wallet, you will have to do your research to find a safe third-party service for storing your Safemoon tokens. Furthermore, you will have to withdraw the coins from the brokerage platform and move it back at the time of selling.
However, this might not be an issue for those who already have a secure external cryptocurrency wallet. The only concern for beginners is that you will have to take full responsibility of the safekeeping of your private key.
How to Invest in Safemoon Today - Step-by-Step Walkthrough
In the last section of our guide, we will walk you through the step-by-step process of how to invest in Safemoon via a regulated online broker.
Step 1: Open an Account
If you stick to our checklist, you will have no difficulty in finding a suitable online broker for your Safemoon investment.
Once you have chosen a platform, you can visit its website to set up your investment account. You can do this by signing up using your email address and creating a username and password.
Step 2: Provide Some ID
If your chosen Safemoon broker is regulated, then you will also be required to complete an identity verification before you can access the full features of the platform.
This Know Your Customer (KYC) process is another mandatory step as enforced by financial authorities.
As important as it is, the procedure is quite simple. You will need to provide a valid government-issued ID card to prove your identity, as well as a recent utility bill or a bank account statement as proof of your residence.
You can upload copies of these documents online. Most brokers have automated this process, so you will receive a notification within a few minutes once your account has been confirmed.
Step 3: Make a Deposit
When your investment account is ready, you can go ahead and make your first deposit to purchase Safemoon. Depending on your chosen broker, you might be able to choose from a debit/credit card or e-wallet.
Remember that if you opt for a wire transfer, you might have to wait for up to seven business days for the funds to be transferred to your account.
Step 4: Search for Safemoon
With your account completely set up, you can search for Safemoon on your brokerage platform. You will be redirected to the respective trading page of this digital token, where you can place your first investment.
Step 5: Complete Safemoon Investment
Now you can proceed to enter how much money you want to invest in Safemoon. Some brokerage platforms also allow you to enter how many Safemoon coins you want to purchase instead of specifying the investment amount.
Since Safemoon has a low-price qualification, you might want to make sure that you are meeting the minimum investment amount required by the broker - if there is any.
Lastly, confirm the order to process your first Safemoon investment.
Step 6: Cash Out Your Safemoon Investment
Depending on the nature of your chosen online broker, you might already have access to an in-built digital wallet.
On the other hand, if your crypto provider does not offer this function, the platform will give you detailed instructions on how you can withdraw Safemoon coins to your private external wallet.
Based on your investment strategy, you can choose to hold on to your Safemoon coins for months or even years. When the time is right, you can move the tokens to the same crypto broker and hopefully - sell them for a profit.
The proceeds from the sale will then be made available for you to withdraw upon request.
How to Invest in Safemoon - The Bottom Line
Your decision to invest in Safemoon will rest entirely on your financial goals. The coin is fairly new to the market and is yet to offer any real functionality. However, Safemoon's design might favour you as an investor if you choose to hold it in the long term.
That said, the most important takeaway from our How to Invest in Safemoon Guide is that you need to do thorough research before proceeding.
This is not only regarding the DeFi token in question and wider cryptocurrency markets, but you should also be careful about which regulated broker you choose to use. With the right platform, the process of investing in Safemoon can be not only convenient but also cost-effective.
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What is the safest way to invest in Safemoon?
The most practicable way to invest in Safemoon is via a regulated online crypto broker. The platform can give you access to Safemoon by investing with a debit/credit card or an e-wallet such as PayPal.
Where can I store my Safemoon coins?
Unlike fiat currencies, you need a secure digital wallet to store digital assets such as Safemoon. It is always best to choose a regulated online broker that offers integrated storage services - especially if you are a beginner.
Can you make money with Safemoon?
Safemoon has a lower price qualification that allows you to buy millions of coins with a $100 investment. However, whether or not you will make a profit in the process is impossible to predict.
Is there a minimum deposit amount needed to start investing in Safemoon?
Your chosen online brokerage platform will determine whether there is a minimum purchase amount you need to make to start investing in Safemoon.
Is Safemoon a safe investment?
Safemoon was launched in March 2021. In a matter of months, it has since created a buzz within the crypto community. That said, there is very little information to predict whether the value of the coin will rise in the future. Therefore, when thinking of how to invest in Safemoon - it is best to do so with small amounts.