In a vast sea of cryptocurrencies, Safemoon, the lunar-inspired token, appeared and created a whirlwind of activity from crypto investors. Safemoon rapidly gained traction in the cryptocurrency market, overtaking thousands of other cryptocurrencies.
The popularity of Safemoon could be because Safemoon holders can earn rewards from staking SAFEMOON tokens. Safemoon prices also surged when Internet celebrity David Portnoy endorsed the meme token as his favourite.
Lou Bagel, a crypto Blogger, suggests that Safemoon holders gain because they earn rewards when new investors buy into Safemoon. All well and good, but if nobody buys Safemoon, they cannot receive rewards. If sales of Safemoon fall, the price drops and returns for Safemoon investors plummet.
Many people wonder, "is Safemoon the next Dogecoin?" and the thousands of Safemoon supporters believe it could be so.
In mid-April 2021, Safemoon traded at around $0.000002, but a few days later, you could buy Safemoon for $0.00014, returning almost 7,000% gains. If you invested $1,000 in SAFEMOON tokens, you'd have produced $70,000.
Of course, these whopping profits are not unusual for cryptocurrencies, but it's essential we don't get swayed by promises of huge returns.
It's still early days for Safemoon. Right now, if you search for "How to stake Safemoon?" or "How to buy Safemoon?" there's not a lot of information available online.
This post will show you how to stake Safemoon and provide a step-by-step guide to buying Safemoon. Because it isn't yet available on the leading cryptocurrency exchanges, it can be a tricky process.
But, in conclusion, you will know exactly how to add Safemoon to your portfolio and make money from staking Safemoon.
Contents
- What Is Safemoon?
- How Does Proof Of Authority Work For Safemoon?
- How Does Safemoon Work?
- How To Buy Safemoon
- How To Convert Smart Chain To Safemoon On PancakeSwap
- How To Stake Safemoon
- Recap Of How To Stake Safemoon
- FAQs
What Is SafeMoon (SAFEMOON)?
Launched in March 2021, Safemoon opened with 777 trillion Safemoon tokens and a starting price of $0.0000000010.
SafeMoon is a community-driven, auto-liquidity generating, decentralised finance (DeFi) protocol with a utility token SAFEMOON. It is built on the Binance Smart Chain (BSC), using proof-of-authority consensus. It runs on the BEP-20 token standard.
According to the SafeMoon website, SafeMoon has three core functions occurring during each trade:
- Reflection – fees for Safemoon transactions distributed to SAFEMOON token holders.
- LP Acquisition – transaction fees go to liquidity pools (LP) on PancakeSwap and a few other platforms.
- Burn – a token burn occurs with each trade which helps stabilise SAFEMOON prices.
As a fairly new token to the crypto market, SAFEMOON now ranks #206 on CoinMarketCap. The circulating supply is 585,536,366,402,812 SAFEMOON coins.
Unlike many crypto tokens, Safemoon has a massive maximum supply of 1,000,000,000,000,000 SAFEMOON coins. Compare this supply to Bitcoin with a max of 21 million coins, which means there will not be a shortage of SAFEMOON coins any time soon. As Safemoon supply exceeds demand, it results in a lower price.
Today's SAFEMOON price is $0.00000419.
Safemoon recently branched out into the NFT (non-fungible tokens) world and created eleven Safemoon NFTs on Opensea.io. Currently, prices range from 0.01 to 0.04 Ethereum. You can also buy Safemoon merchandise such as T-shirts.
Safemoon has a lot of plans for the future
- Launch educational apps
- Charity projects
- Coin launchpad platform - for users to create cryptocurrencies
- Want to be listed on the leading cryptocurrency exchanges
- Launch a decentralised exchange (DEX)
- Increase partnerships before the end of the year
SafeMoon offers a simplified solution to the DeFi process with high levels of security for yield farming or liquidity mining, generating a good APY for Safemoon investors.
CertiK vets Safemoon's smart contracts for top-level security, which adds to peace of mind for Safemoon users. CertiK is "a pioneer in blockchain security, utilising best-in-class AI technology to secure and monitor blockchain protocols and smart contracts."
Check Out: Pros and Cons of Investing in SafeMoon
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How Does Proof Of Authority Work For Safemoon?
SafeMoon is built on the Binance Smart Chain (BSC), which uses proof-of-authority as its consensus mechanism. BSC pre-approves validators who then create blocks. Validators must prove their identity (to BSC) and invest actual money to demonstrate a long-term commitment, which means that proof-of-authority is reputation-based.
Effectively, this validator model means that the blockchain is centralised, with BSC in complete control of validators. So platform users must trust and rely on BSC and hope that they don't abuse their power to alter the Safemoon ecosystem, which they could do at any time if they wished.
How Does SafeMoon Work?
The SafeMoon protocol works around the BEP-20 SafeMoon token, which operates with a mix of auto-liquidity generation and reflection tokenomics (meaning token and economics).
Each SAFEMOON transaction charges a 10% fee, thereby distributing 5% of the fee to SAFEMOON holders, while the other 5% splits in two. Half is paired to BNB (Binance Coin) and added to PancakeSwap's liquidity pool, and half sells via a smart contract into BNB.
Users who HODL SAFEMOON receive rewards, and Safemoon disincentivises those users who sell their tokens. This process helps to stabilise the token price.
What Makes SafeMoon Unique?
The Safemoon whitepaper discusses the problems caused by high APY LP-farms in the emerging DeFi industry, making it challenging for newcomers to access.
Safemoon aims to use a reflect mechanism via static rewards to remove pressure on the SAFEMOON token when sold. The levels of reward are conditional upon the volume of SAFEMOON traded. This incentive encourages users to HODL SAFEMOON.
Safemoon has an automatic LP that creates protocol stability by providing a price cushion for token holders. The manual burn strategy is also a benefit for long-term Safemoon token holders. To date, Safemoon's deflationary mechanism has burned over 400 trillion tokens.
To sum up, the four main features of Safemoon are:
- Static Rewards - the 5% tokens distributed to Safemoon holders.
- Manual Burn – SAFEMOON tokens are burned to reduce supply, so the price increases with demand.
- Automatic liquidity pool – a self-sustaining liquidity pool that takes tokens via fees from SAFEMOON transactions and adds them to PancakeSwap. This process stabilises prices and discourages large whale investors from selling off vast quantities of SAFEMOON in the crypto market, which could significantly affect prices.
- SafeEarn – this is a decentralised application on the Binance Smart Chain network. SAFEMOON holders can stake their tokens or convert them to SafeEarn tokens, to earn more SAFEMOON rewards.
How To Buy SafeMoon
Buying Safemoon is a bit challenging as it's not available on the leading cryptocurrency exchanges.
The easiest method to buy SAFEMOON at the moment is with Trust Wallet, using PancakeSwap as the primary SAFEMOON exchange and buying with Binance Coin (BNB).
Be patient as the process of buying SAFEMOON is a bit tricky. You may want to copy and paste these step-by-step details for buying SAFEMOON to print off to use as a guide.
There's a lot of fiddly steps to follow.
Here is a step-by-step guide to buying SAFEMOON
- Download the Trust Wallet – you can get it on iOS and Android on the app stores.
- Open the app – click on "create new wallet."
- Review the terms of service & privacy policy – tick "I've read and accept the Terms of Service and Privacy Policy" before you can proceed.
- You are assigned a dozen recovery words – list these sequentially and either copy and paste somewhere safe or write them in a notebook for safekeeping. They must be in sequential order.
- The app shows your 12 recovery words out of order – you must click on each word in the correct order you received them. After that, you will be taken to Trust Wallets main page
- Go to "BNB" – click on "Buy BNB" and add how much USD you would like to exchange, then click on "next."
- Purchase BNB with a debit or credit card – wait for the order to be processed.
- Return to Trust Wallet's main page – The BNB should now show in your wallet. Click on "BNB" and "Swap to Smart Chain."
- Wait for the process to complete – go back to Trust Wallet's main page and check the order is fulfilled
That's the first stage complete. The next step is to convert the Smart Chain to Safemoon.
Read Also: Is SafeMoon A Good Buy?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How To Convert Smart Chain To Safemoon Using PancakeSwap
For the next step, you can ignore #1 if you have an Android device.
If you aren't familiar with PancakeSwap, it's a decentralised marketplace where you can buy, stake and swap cryptocurrencies like SAFEMOON.
- iPhone users – visit PancakeSwap by opening Safari. Click on "connect", "Trust Wallet", and "trust." You will have to log in to your Trust Wallet. Click on "connect" when the message "PancakeSwap wants to connect to your wallet." iOS users can now skip ahead to step #4.
- Click on dApps in the Trust Wallet app – it's on the bottom taskbar. Click on "PancakeSwap."
- Click on "connect" – it's in the top right corner. Click on "Trust Wallet." Your Smart Chain tokens should now be in PancakeSwap.
- Select a currency – enter SAFEMOON in the search bar.
- A pop up appears – informing you of the Safemoon 10% transaction fee, and it will also mention possible slippage fees, which means the price you begin the transaction with could be different to the final price. It suggests a buffer of 12%.
- Set the slippage – as mentioned, set the tolerance to 12%. Click on "X", which saves and exits this window.
- Click on "swap" – and click on "confirm swap". A "transaction submitted" message should appear.
- Click on "view on BscScan – the status bar should show "success", which means the transaction is complete and you managed to convert the Smart Chain into SAFEMOON.
Well done if you managed all of that in one go.
Compared to buying other cryptocurrencies from the leading crypto exchanges, it is a bit of a palaver buying SAFEMOON. Hopefully, in time, you will be able to buy Safemoon from established crypto exchanges and eToro, the world's leading social trading platform.
How To Stake Safemoon
After creating a wallet and converting Smart Chain to Safemoon, the next stage of staking Safemoon is simple.
Here's a step-by-step guide to staking Safemoon.
- Go to safemoon.io
- Login to Trustwallet
- Click on "liquidity"
- Go to "Pools"
- Click on "stake."
- Enter the quantity of Safemoon to stake and "approve." Remember the 10% fee will apply at this stage (and allow 12%)
- Once the transaction clears, you have now staked Safemoon.
Recap Of How To Stake Safemoon
Safemoon is a relatively new cryptocurrency. Over the last few months, it's made significant progress by reaching #206 on the list of cryptocurrencies by market cap.
However, there are concerns that Safemoon could be a Ponzi scheme. It has no genuine utility, and other than users making money from Safemoon rewards, it's hard to predict how this cryptocurrency can be sustainable.
Binance Smart Chain (BSC) holds the reins of control, and Safemoon has zero power if BSC suddenly changes the rules. It is totally reliant on the BSC platform. For Safemoon investors, that's a bit of a red flag, and even if you plan to stake Safemoon, there's no guarantee of longevity.
Safemoon's idea of preventing crypto whales from dropping significant amounts of Safemoon into the market seems like a good idea. But it's not easy to measure how effective that would be. A 10% penalty, if you have millions of Safemoon tokens, is a mere drop in the ocean, the cost of doing business if you like.
The more SAFEMOON you stake, the greater the rewards and Safemoon supporters believe Safemoon is the next Dogecoin (DOGE). But let's remember that Dogecoin has been around since 2013.
Dogecoin is an established cryptocurrency in the top ten listed cryptos. You can buy Dogecoin (DOGE) on all leading crypto exchanges, including eToro, the world's leading social trading platform.
Dogecoin (DOGE) also has a function to reward content creators with an open-source, peer-to-peer protocol. It has enormous support from its followers and prominent investors like Elon Musk, CEO of Tesla.
Until Safemoon achieves these kinds of results, it has a long way to go to convince Safemoon sceptics that it's anything other than a money-making venture (Ponzi).
Please note that the above information is not providing advice on tax, investment, or financial services. We provide the above information without consideration for risk tolerance and a specific investor's financial circumstances.
Trading or investing in financial instruments such as cryptos may not be suitable for all investors. It does involve risk and the possibility of a loss of capital. There are no guarantees for profiting from cryptocurrencies, and it's advisable only to risk what you can comfortably afford to lose.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
FAQs
Who Founded SafeMoon?
John Karony is SafeMoon's CEO. Previously, Karony worked as an all-source analyst for the US Department of Defense. Thomas Smith, former CIO at Goldsmith Blockchain Consulting, is listed as Safemoon's CTO. The former manager of Likeandshare Ltd, Jach Haines-Davies, is listed as the COO.
Should I Invest In SafeMoon?
Whether to invest in Safemoon is a personal choice but remember that Safemoon is relatively new to the cryptocurrency market, and it's not easy to buy tokens. To a degree, Safemoon needs to prove longevity and purpose to the leading cryptocurrency exchanges. At first glance, Safemoon could appear to be a money-making cryptocurrency with no real purpose. Also, consider that Safemoon depends on Binance Smart Chain (BSC) to operate. BSC has absolute control and could pull the rug out from under Safemoon on a whim. Safemoon's team and the entire community is reliant on BSC. Compare it to renting a house. Your landlord can suddenly decide to sell the property and give you notice. Should this happen to Safemoon with BSC, it would likely signal the end of the project.
Where can I buy Safemoon?
It's not yet easy to buy Safemoon as it's not available on multiple cryptocurrency exchanges. Currently, you can buy Safemoon at the following exchanges: ZTZ, BG, Gate.io, PancakeSwap (V2), Bitrue.
Is Safemoon a scam?
To answer the question "is Safemoon a scam?" let's look at the facts:
1. Safemoon generates a lot of hype (but so do many other cryptos).
2. The focus appears to be on making money from staking Safemoon (a classic Ponzi red flag).
3. Safemoon HODLers receive rewards, and Safemoon sellers receive punishments for daring to sell their tokens. We understand the concept of preventing crypto whales from dumping vast quantities of Safemoon into the market. But is that the real reason?
4. Safemoon has no real utility or purpose and doesn't deliver economic value.
We're not saying Safemoon is a scam, but we advise you to proceed with caution. Maybe a year down the line and more accessibility to buy Safemoon from leading cryptocurrency exchanges could indicate a bit more token stability for Safemoon holders.
Does Safemoon have an online community?
Safemoon is developing cross channel platform social media communities. Twitter is the most popular channel to date. You may find it helpful to connect with a crypto community to assess the general feeling about the crypto project and check for continued support for Safemoon.
Discord – 122,651 members
Facebook – 151,678 followers
Twitter – 1.1 million followers
LinkedIn – 9269 followers
Twitch.TV 75.6k followers
Reddit – 292k astronauts
How does the token burn affect SAFEMOON prices?
The Safemoon white paper states that their team actuates manual token burns, but it seems to be a discretionary practice rather than having prebuilt mechanisms the protocol. The Safemoon website says, "Having burns controlled by the team and promoted based on achievements helps to keep the community rewarded and informed. SafeMoon aims to implement a burn strategy that is beneficial and rewarding for those engaged for the long term. Furthermore, the total number of SAFEMOON burned is featured on our readout located on the website.". The criteria for token burns are unclear, and the team's level of autonomy in deciding on Safemoon's maximum supply is not known either. As a result of unclear protocols, Safemoon could easily manipulate supply and affect the market prices on a whim.
Is SafeMoon different from Bitcoin?
Yes. SafeMoon is a BEP-20 token issued on the Binance Smart Chain (BSC), centralised and uses proof of authority consensus. Safemoon is 100% reliant on BSC because they have absolute control of everything concerning Safemoon on the platform. Bitcoin is a 100% decentralised cryptocurrency that uses proof of work (PoW) consensus to validate transactions and secure the network. Bitcoin miners do the work and receive Bitcoin (BTC) rewards.
Read More:
Best Methods On How To Earn Safemoon Coins Fast
Why Do Safemoon Coins Have Value?
Is SafeMoon A Good Investment And Should I Invest In it?