Launched less than a year ago, SafeMoon easily passes for one of the most popular and lucrative crypto investments, especially noting that its value has already shot up by more than 10000% since its launch. This has a lot of crypto investors and enthusiasts asking, how can I make money with SafeMoon? More importantly, what are the different ways through which I can lose my SAFEMOON investment?
Speaking to Vice.com, a construction worker named Gabe describes how he invested $40 in SafeMoon in March and watched it grow to more than $3400 in less than a week. But yet another SafeMoon investor and mortgage broker named Brandon wasn't as lucky and described how he invested $100,000 in the meme currency in March, only to have this investment shrink to about $35,000, losing him $65,000 in less than 24 hours.
These two contrasting outcomes to investments in SafeMoon within the same month go to show just how easy it is to make or lose money with the meme currency.
It also tells you that it takes more than succumbing to FOMO or luck to make money with SafeMoon - and virtually any other currency. That it takes tact to keep as much as you earn from your SafeMoon investment. It all starts with learning the different methods of making money with SafeMoon and then mastering all the loopholes through which you can lose money and how to avoid them.
In this SafeMoon investment guide, we will teach you how to keep as much as you make from a SafeMoon investment. We will start by telling you about the four most common ways of making money with the meme coin and then look at the different ways through which investors have lost their cash in the past and how you can safeguard your cash from similar losses.
How To Make Money With SafeMoon
Investing simply refers to putting money/capital into a venture and expecting to earn a profit. In this case, it refers to buying SafeMoon tokens with the hope that you earn a profit when the token’s value appreciates. It is the easiest and most beginner-friendly way of making money with SafeMoon as you only need to find a crypto trading platform that lists SafeMoon, create an account with them, deposit cash or another crypto in your trader account, convert this cash to SafeMoon tokens, and watch as their value rises.
In most instances, investing is also referred to as HODLing - or buying and holding on to an asset for a relatively extended period of time - say several years. Here is an illustration of how Investing works:
If you had bought SafeMoon worth $1,000 as soon as it started trading in the open market on 10th March 2021 when it was trading for $0.000000000898, you would have grown this investment by more than 10000% to reach $1 Million today - based on data from CoinMarketCap. And if you continue holding onto this investment and the SafeMoon token price reaches $0.00002071 by 2025 as forecasted by PricePrediction.Net, your investment will have appreciated by 2.3 million per cent to reach $23 Million.
Trading is a form of short term investing. This implies unlike investors/HODLers who wait for years before selling their investment and realizing profits, traders sell their investment as soon it reaches optimal profitability - could be after a few seconds, minutes, days or months. SafeMoon traders profit from leveraging the meme coin’s volatile price action by buying when the altcoin prices drop and selling as soon as they recover.
Trading, unlike investing, is a tad more complicated and calls for expertise in analyzing the markets, reading and interpreting charts, access to advanced analytical and trading tools, and the ability to cut out emotional bias in the trading process.
To get started, you will need to create an account with a crypto trading platform that lists SafeMoon, deposit cash or another crypto, buy SafeMoon when its price dips, and sell when it rises and just before it reverses and starts dropping again.
Check Out: How To Trade Safemoon With $100
Staking involves locking your SafeMoon token holdings in DeFi protocol and earning a reward or interest on these assets. It works like the conventional savings account with a local bank where you deposit your funds, the bank loans the cash out in a safe manner and reward you with interest on your savings.
In the crypto-verse, DeFi apps and protocols serve the role of banks and lend out your locked SafeMoon tokens to traders and investors while paying you interest on your locked assets. Today, there are numerous crypto trading platforms like the KickEX exchange that let you stake SafeMoon.
4. SafeMoon token redistribution
Every time a trader/investor person makes a SafeMoon transaction, they are charged a 10% transaction charge. 5% is locked away in different liquidity pools, and the other 5% - also known as reflection - is shared amongst all SafeMoon token holders. You will, therefore, get to earn SafeMoon tokens every time anyone makes a trade, just because you hold some SafeMoon tokens.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Ways To Lose Money With SafeMoon
We have already mentioned that it is easy to make money with SafeMoon, but it is even easier to lose it. Here are some of the three most common ways through which past SafeMoon investors have lost their capital and how to avoid it.
Trading is one of the riskiest forms of making money with SafeMoon and one of the easiest ways to lose money with the meme coin. That is why we insisted in the investing section above that you need expert level skills, deep trading experience, and access to advanced analysis and research tools if you are to make money with SafeMoon. If you go into the practice blindly, without enough trading skills, and without a solid strategy, you will most definitely lose.
Therefore, before you even consider creating a trader account with a SafeMoon trading platform, first hone your trading skills, gain some trading experience, and come up with a trading strategy that you improve on regularly.
Crypto theft and hacking
Hacking has become a menace in the crypto sphere in the recent past as hackers target both individual investor wallets, crypto exchanges, and the DeFi programs. According to the FTC, the rate of cybercrime has been increasing at an average rate of 312% per annum since 2016. Cipher Trace, on the other hand, says that more than $681 Million of crypto investor funds were lost to hackers between January and July 2021.
Most of these losses are, however, preventable, as indicated by a report finding by Verizon that suggested that as much as 80% of hacks were made possible by weak passwords. Granted, some losses - especially emanating from hacks to exchange or DeFi protocol - are out of your control.
The rest, like the compromise of your wallet or exchange account, are, however, preventable. Learn to use multi-factor authentication, strong passwords, and, where possible, store your SafeMoon tokens offline in the more secure offline wallet.
Don't Miss: Is Safemoon Safe to Invest In?
Crypto scams like the pyramid and Ponzi schemes and even fake websites and fraudulent social media promotions are also on the rise. They all promise above average, often abnormal, returns on investment but vanish with your SafeMoon tokens as soon you make a deposit or lure you into revealing the login credentials for your wallet or exchange account.
Every day, different cybercriminals are gathering to come up with newer and more efficient tricks of conning investors out of their SafeMoon and other crypto investments. But as soon as they emerge, such crypto crime investigative agencies as CipherTrace and even the FTC are quick to call them out and tell you how to avoid them.
You can, therefore, avoid falling for scammers and fraudsters by shunning shady investment schemes with too good to be true investments and by keeping tabs with crypto news to learn of merging scams.
Conclusion: How To Make Or Lose Money With SafeMoon
SafeMoon is one of the most popular and one of the most promising meme currencies today, and there are numerous ways of making money with the altcoin today. But you also need to understand that there are equally numerous ways of losing your SafeMoon investment.
At the moment, the most practical ways of earning with SafeMoon for both beginner and experienced traders are through investing, trading, staking, and SafeMoon reflections. You can then lose this investment through reckless trading, crypto theft and hacks, or through crypto frauds and scams.
To ensure that you retain as much as you make from your SafeMoon investment, you need to learn how to shield your investment from all of the different risks. You will, for instance, want to use strong and unique passwords for your wallet and exchange accounts, gain enough experience before you can start trading, use a hardware wallet, and avoid the get rich quick approach to crypto investing.