What Is SafeMoon And How Does It Work?
How Do I Use SafeMoon?
In this article, Trading Education will share insights into the SafeMoon project, how new coins are created, why they are valuable, and how the protocol secures itself. This will help you know if SafeMoon is safe and if its native asset, SAFEMOON is a good investment.
When millions of people throw their support behind a cryptocurrency which is reflected in its daily trading volume across popular cryptocurrency exchanges, then you should know that it is an asset worth investing in.
With the more than 11,000% returns, SAFEMOON has provided its holders with less than a year’s trading experience, we can all agree that the digital asset is one of the hottest cryptocurrencies in the market today.
In fact, SAFEMOON is one of the DeFi tokens that is about to explode to new high highs.
The soaring prices of cryptocurrencies are down to huge purchases by institutional investors/individual crypto whales, exchange listings on popular platforms, and upgrades to protocols.
Since SAFEMOON is not listed on popular exchanges such as Binance, eToro, Kraken, Mandala Exchange, Huobi Global, and FTX, the rise in the value of the token can be attributed to the roadmaps the project continues to accomplish and increasing demand by traders and investors.
So much so, that a single SAFEMOON coin has gone from being worth $0.00000002 on 13th April 2021 to more than 0.0000052 in November 2021.
As the cryptocurrency and its protocol continue to trend online, several industry experts have made forecasts that the eight (8)-month old cryptocurrency can replace Shiba Inu (SHIB) as the next golden goose for up-and-coming traders and investors.
However, not everyone is sold into the craze, buzz, and mania around cryptocurrencies. This is why there has been a wide crackdown on the use of all forms of digital currencies by China and Turkey.
In addition to this, the Head of the Bank of England, Andrew Bailey continues to warn citizens of the United Kingdom about the dangers associated with trading and investing in SAFEMOON and other forms of digital currencies. Seeing young investors see decentralized finance as the new way of making passive income makes Mr. Bailey nervous.
With all the hype that sees millions of results displayed on Google, Yahoo, and Bing when SAFEMOON is included in any keyword, you may have been wondering, what is SafeMoon and how does it all work?
What Is SafeMoon?
SafeMoon is a protocol that combines Reflect Finance (RFI) tokenomics and auto-liquidity for its users. Its native asset is called SAFEMOON (capital letters). It is a type of money that is completely virtual (that is why we refer to them as digital currencies).
SAFEMOON is an online version of cash.
Based on the Binance Smart Chain, SAFEMOON can be swapped with primary supported token Binance Coin (BNB) and other coins for trading.
Due to the popularity of the use of cryptocurrencies as investment instruments, many investors are beginning to buy into the growing annual percentage yields (APY) digital assets such as SAFEMOON could bring to their portfolios.
As a result, SAFEMOON is one of the cryptocurrencies that millions of investors are considering because of the returns it has already brought early investors.
Several discussions have been made on economic forums as to the impact of cryptocurrencies on the lives of the underbanked and unbanked.
As a result, millions of people think digital assets should be accepted as a medium of exchange as well as a legitimate way of making investment income.
You should know that as of November 2021, there are no physical representations of SAFEMOON tokens.
The coins created online do not have any real value of their own. Their value comes from the private codes printed inside them.
How Does SafeMoon Work?
Each SAFEMOON coin is a computer file that is stored on wallets on cryptocurrency exchanges as well as software and hardware wallets.
Digital Wallet Holders of SAFEMOON on platforms such as MetaMask, Free Wallet, and TrustWallet can send and receive SAFEMOONs over the internet without any help from intermediaries such as traditional bank accounts, insurance companies, or clearinghouses.
Blockchain is the public ledger in which every single transaction is recorded. Although the use of decentralized protocols is to ensure privacy, one of the defects of blockchain is that transactions can still be traced online. One of the advantages of the use of blockchain is that it helps prevent double-spending of digital tokens as well as fraud.
How Do People Get SAFEMOON Coins?
There are 3 main ways of getting SAFEMOON.
- You can buy SAFEMOON on cryptocurrency exchanges that list FIAT as a payment method in the form of the United States Dollar (USD).
- You can sell things physically and digitally and request payments by SAFEMOON.
- You can get SAFEMOON through rewards from mining using personal computers and application-specific integrated circuit (ASIC) systems.
How Are New SAFEMOONs Created?
As of 1st November 2021, 585 trillion SAFEMOONs were circulating on the market from a maximum supply of 1 quadrillion.
For new coins to be created and added to the number already circulating, a process called mining is employed.
SAFEMOON Mining is the process by which new SAFEMOONs are entered into circulation. It is also the way that new transactions are confirmed by the network and a critical component of the maintenance and continuous development of the SafeMoon Protocol.
For effective mining to take place, several developers have built special computers (ASICS) to enable the generation of SAFEMOON tokens.
The computers responsible for the creation of new SAFEMOON tokens normally solve complex problems. The result is a reward of SAFEMOON that is kept by miners.
If you decide to go into the mining of SAFEMOON independently, you will need what we earlier pointed out, application-specific integrated circuits (ASICs).
These machines are more efficient than the personal computers we have in our homes. If you do not use such machines and decide to become an independent miner through personal computers, it could take a long time before seeing the real rewards of mining SAFEMOON.
This is because to see profits in mining, you need to perform a cost-benefit analysis. This factors the cost of electricity, the number of SAFEMOONs in reward, and the price of SAFEMOON at the time of converting the value of the coins into fiat currency.
Several individuals with personal computers went into SAFEMOON and crypto mining as a whole and ended up spending more money on electricity than the rewards earned.
In becoming an individual miner without the necessary technological infrastructure, the risk outweighs the rewards.
On the other hand, you can contribute to the sharing of energy to mine SAFEMOON.
You can do this through mining pools. Under this process, the central processing units (CPUs) and graphical processing units (GPUs) of personal computers play a great role in helping you mine and add more SAFEMOONs to the circulating supply.
This way you share profits and losses.
Why Are SAFEMOONs Valuable?
SAFEMOONs are valuable because they have all the attributes of a successful currency.
They are transportability, counterfeitability, divisibility, durability, utility (medium of exchange), and scarcity (store of value).
In line with what several experts symbolize value with; SAFEMOONs are valuable because millions of people are willing to exchange the token for other digital assets, and even cash at the point of selling off holdings to make profits or losses.
Aside from that, people are willing to buy thousands, millions, billions, and trillions of SAFEMOON to make gains in the long term when the cryptocurrency reaches new price milestones.
Don't Miss: Will SafeMoon Reach $1?
Why Do People Want SAFEMOON?
SAFEMOON recorded daily volumes of at least $5 million in October 2021. This means that millions are being thrown into the coin for specific reasons.
Among the reasons why people want SAFEMOON tokens are:
- A consistent stream of income SAFEMOON holdings brings through long-term investment and earning multiple percentage returns from day trading activities.
- Transactions involving SAFEMOON will not be monitored by traditional financial systems such as central banks and others.
- SAFEMOON coins can be swapped on cryptocurrency exchanges for more transactional currencies such as Binance Coin (BNB) and Ether (ETH). The converted tokens can be used across merchants that support them as payment methods. The tokens can be used to pay for goods and services.
- Want to be a part of this financial revolution where decentralized finance competes with centralized finance for customers. Millions just want to enjoy the buzz, craze, mania, and unpredictability of the whole crypto sphere.
Is SafeMoon Secure?
SafeMoon is a secure protocol. Security is gained from the Binance Smart Chain which goes through upgrades periodically to strengthen the base layers as well as smart contract features.
Aside from the possibilities of the Binance Smart Chain, SafeMoon secured itself when the developers behind the token burned all tokens in the developer wallet before launching the project.
In addition to this, the Liquidity Provider (LP) is locked on DxLocker for 4 years.
Moreover, an LP is generated with every trade and locked on decentralized exchange PancakeSwap.
Although the decentralized protocol (SafeMoon) and the blockchain technology it runs on (Binance Smart Chain) are doing all they can to secure SAFEMOON, you have a right to play in securing your holdings.
If you choose to buy SAFEMOON through cryptocurrency exchanges, you should prioritize having a strong password such as a combination of names, numbers, and symbols (for example, Amanda1995!).
Also, you should set up two-factor authentication (2FA) so that a friend or hacker will need more than one way of accessing your account.
On the other hand, if you choose to store your SAFEMOON on software and hardware wallets such as MetaMask and TrustWallet, you should hold onto your password and private keys (passcodes). Passcodes are generated for you during the signing up process for a digital wallet.
They normally come in the form of at least twelve (12) names arranged in a particular pattern.
Do all you can to write down these names and store them in multiple places.
In the event you lose your phone and have to log into your wallet via another phone, failure to provide these private keys (passcodes) renders your wallet inaccessible (it does not matter the worth of your SAFEMOON holdings).
Since cryptocurrencies are categorized as highly volatile assets, you should invest $100 or more in SAFEMOON with caution.
This is because the token fluctuates in price daily.
With that said, SAFEMOON continues to make strides into the mainstream, it is extremely cheap and has great roadmaps that can take the coin to new high highs.
Although forecasts are based on possibilities and NOT certainties, SAFEMOON is a digital asset for the long term. You should consider investing in SAFEMOON and see where it can take you in the short, medium, and long term.
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Virtual currencies are highly volatile. Your capital is at risk.