Investing in a cryptocurrency could be a simple way to have some stake in blockchain technology. Such an investment might carry some promise if you get in on the ground floor of a coin that could potentially take off in the future.
One of the cryptocurrencies that generated interest in 2021 is safemoon (SFM). Enthusiasts of this digital currency hoped it would have significant gains. However, investing in safemoon is challenging since it's not readily available on every major cryptocurrency exchange.
Does this put the cryptocurrency in a position suitable for early adopters? Reaching an educated decision requires learning how to invest in safemoon. Let’s take a closer look at this crypto.
What is safemoon?
Safemoon is a cryptocurrency or digital token built on the BNB chain — previously known as the Binance Smart Chain (BSC) — a blockchain created by the Binance exchange.
Safemoon was founded in March 2021 by SafeMoon US LLC, a private company currently headquartered in Pleasant Grove, Utah. SafeMoon’s CEO is John Karony, a former analyst for the U.S. Department of Defense (DoD).
However, a recent exposé video by popular YouTuber Coffeezilla, known for uncovering crypto scams, claims that the cryptocurrency was created by Kyle Nagy, who copied the original code from a cryptocurrency called bee token (BEE). However, this claim isn’t confirmed.
Safemoon V2 upgrade
Safemoon previously had the SAFEMOON ticker, but it began using the SFM ticker in December 2021 following an upgrade to safemoon V2. This upgrade focused on blockchain technology expansion through metaverse development and non-fungible tokens (NFTs) production.
The upgraded version of the currency also aims to develop decentralized finance (DeFi) applications, which operate on a peer-to-peer network without a central authority.
One of the unique features of safemoon is that it’s supposed to have a more stable value that should, in theory, make it a sustainable investment. Safemoon uses four main events that happen with each trade to keep the cryptocurrency stable through a 10% tax:
4% of the trade goes to all existing safemoon holders
3% of the trade is added back to a liquidity pool to ensure that there is always enough safemoons
2% of the trade is burned to reduce the impact of inflation
1% of the trade goes to a growth fund designed to help the safemoon ecosystem grow
As a result, holding safemoon provides you more rewards the more people use the blockchain for various applications and transactions.
Safemoon fraud allegations
However, despite its promises, it’s important to note that there are currently accusations of fraud against safemoon.
This includes allegations that its founders have been involved in pump-and-dump schemes. This is a type of fraud where a person or a group of people sell as many crypto coins as possible before abandoning their crypto project.
What’s the hype about safemoon?
The initial hype surrounding the safemoon token was about its relatively big trading volumes and high liquidity for a new coin after its launch in March 2021. On top of that, there was a lot of hype around safemoon in the wake of the GameStop short squeeze.
The excitement that began with GameStop soon hit the cryptocurrency market since people could buy large amounts of new coins for a relatively small amount of money. Several cryptocurrencies, such as dogecoin (DOGE) and safemoon, increased in price under a campaign titled “to the moon.”
Safemoon's holding philosophy
Safemoon’s promise to establish liquidity pools and offer a safe way to transact further supported the excitement surrounding the cryptocurrency in 2021. Founders of the cryptocurrency positioned it as a crypto to hold since the fee structure is designed to distribute a portion of the trading tax sellers pay to those who hold the coin.
As a result, people could buy a large amount of safemoon, hold it, and watch their portfolio grow as they benefited from that trading tax. Additionally, the leadership at safemoon promised to get involved in various ventures, including philanthropic endeavors and clean energy projects.
Safemoon's past and present
This excitement pushed the original version of safemoon to reach its all-time high at $0.00001399 on April 20, 2021. The cryptocurrency had a 24-hour trading volume of more than $173 million on that day.
Following the upgrade in December 2021, the currency was consolidated at a rate of 1,000 to one. Its peak price would have equaled $0.01399 following the consolidation. However, the current safemoon V2 price is at $0.0006264 as of June 10, 2022, with a 24-hour trading volume of $1.49 million.
How to invest in safemoon V2
Learning how to invest in safemoon V2 might take you over a bit of a learning curve. Safemoon V2 isn’t available on the Coinbase exchange, which is one of the best cryptocurrency exchanges for beginners who want to make coin purchases using fiat currency.
Buying safemoon V2 usually requires using another cryptocurrency. For example, you might need to buy BNB coin (BNB), previously known as Binance coin. You could also use tether (USDT), a stablecoin pegged to the U.S. dollar (USD). You could then buy safemoon V2 using one of these cryptocurrencies.
Here are three ways to buy safemoon V2:
1. Safemoon wallet
Safemoon offers a crypto wallet that you could use on iOS and Android. To make a purchase using the safemoon wallet, you need to:
Download the safemoon wallet and set it up.
Use the wallet to buy BNB coin. You can buy BNB coin using fiat currency via a credit card or a debit card.
Exchange your BNB coin for safemoon V2.
2. Trust Wallet or MetaMask
Trust Wallet allows you to buy and store safemoon V2 via its mobile app. Trust Wallet is available to download on iOS or Android but doesn’t support a browser extension.
If you’d like a crypto wallet with a browser extension, you could use MetaMask. This wallet is available for your Chrome, Firefox, or Edge browsers. It’s also available on the App Store and Google Play.
Both these wallets are compatible with the BNB Chain. Since safemoon V2 is built on the BNB Chain, you should be able to store your safemoon V2 on either of them. Simply follow these steps:
Use your fiat currency on an exchange such as Binance.US to buy BNB coin.
Send your BNB coin to your wallet, and then connect it to an exchange to trade your BNB coin for safemoon V2. One such exchange is SafeMoon’s own Swap exchange.
Next, use the Swap exchange to send your safemoon V2 to your Trust Wallet or MetaMask wallet.
3. PancakeSwap and other exchanges
PancakeSwap is a popular choice when looking for an exchange to trade your BNB coin for safemoon V2. PancakeSwap requires connecting your crypto wallet to the exchange. Once it’s connected, you can exchange BNB coin for safemoon V2.
Several other exchanges allow you to buy safemoon V2 with other cryptocurrencies, particularly tether. Some of these exchanges include:
How to store safemoon V2
You can store safemoon V2 in any crypto wallet compatible with the cryptocurrency. Safemoon offers a wallet that’s available on iOS and Android.
Alternatively, you could set up a different crypto wallet to store safemoon V2. Both Trust Wallet and MetaMask allow you to store the safemoon V2 once you set up your crypto wallet accordingly.
Should you invest in safemoon V2?
Now that you know how to invest in safemoon V2, you might wonder whether you should invest in this cryptocurrency or just avoid it. There are several things to consider before making a decision.
Safemoon V2 longevity and future
You could consider whether safemoon V2 is likely to have staying power. Think about whether you can trust its system, development, and founders. There have been allegations of fraud surrounding safemoon, and several class-action lawsuits are currently playing out in court. However, no legal conclusion has yet been reached.
Additionally, several key safemoon members departed the project when facing troubles. SafeMoon US LLC CTO Hank Wyatt and COO Jack Haines left the company in September 2021 without offering an explanation for their departures. Ryan Arriaga, the Global Head of Products, also left the project in March 2022.
It’s also important to note that investing in safemoon V2 takes extra effort and additional steps. Determine if accessing safemoon V2 is worth the process of buying other cryptocurrencies and exchanging them for safemoon V2.
There is also the added complication of having two versions of safemoon. Ensuring that you’re buying the correct version is essential since the original safemoon is no longer supported. Further developments will be exclusive to the upgraded version.
All cryptocurrencies — including safemoon V2 — can be volatile in price. There is a risk of losing your investment. Considering any cryptocurrency as an alternative or speculative investment might make sense.
Limiting the amount you devote from your portfolio to any cryptocurrency might limit your risk. You could also seek financial advice from a professional before allocating significant sums of money for crypto assets.
Safemoon V2 isn’t for you? Here are some alternatives
Safemoon received a lot of interest from crypto enthusiasts in 2021. However, there are several alternatives to consider if you aren’t quite sold on its promises.
1. Bitcoin (BTC)
Bitcoin is the first cryptocurrency and is considered the gold standard of cryptocurrencies. That’s why bitcoin is the most traditional choice when trading cryptocurrencies. It is available on all major cryptocurrency exchanges and can be stored in most wallets.
Learn how to buy bitcoin.
2. Ether (ETH)
Ether is newer than bitcoin, but it’s still considered a more traditional and established cryptocurrency than many other coins. Ether powers the ethereum blockchain, which offers decentralized finance applications. Ether is available on most major exchanges and can be stored in most wallets.
Learn how to invest in ether.
3. Dogecoin (DOGE)
Dogecoin is a more speculative cryptocurrency. It’s relatively small compared to bitcoin and ether despite having a great deal of popularity in 2021. It‘s available on many major exchanges, and it’s relatively easy to store it in various wallets.
Learn how to buy dogecoin.
4. BNB coin (BNB)
BNB coin is the native cryptocurrency of the Binance exchange and its BNB Chain. This blockchain aims to develop metaverse and DeFi apps. As a result, BNB coin has the potential to be a valuable cryptocurrency in the future.
Read our Binance.US review.
Where can I buy safemoon V2?
You could buy safemoon V2 using the safemoon wallet. You could also buy it using some crypto exchanges by exchanging your BNB coin or tether for safemoon V2. Some exchanges where you could buy safemoon V2 include PancakeSwap, BitMart, and Gate.io.
Can I buy safemoon V2 with bitcoin?
In most cases, you wouldn’t be able to buy safemoon V2 with bitcoin and may need to exchange your bitcoin for another cryptocurrency, such as BNB coin.
Is safemoon a legit cryptocurrency?
The legitimacy of safemoon is neither confirmed nor denied. Many crypto enthusiasts consider safemoon to be legitimate. However, there have been accusations that the safemoon team of founders, executives, and developers might be committing fraud.
There are several class-action lawsuits against safemoon founders, but none of the allegations have been proven in a court of law yet. Safemoon V2 supporters are still committed to it, and selling the cryptocurrency is still allowed on several exchanges.
Safemoon is a speculative cryptocurrency that has raised many expectations. However, it is far from its peak price, and the December 2021 upgrade it received failed to support its price.
Investing in the safemoon V2 coin might provide a return if the cryptocurrency grows in popularity. However, there’s also a chance that you could lose your investment. Be careful when investing money in speculative digital assets, and avoid investing more than you could afford to lose.
If you’d like to invest in crypto assets, you could learn how to buy cryptocurrency. You might also want to explore some of the safemoon crypto coin alternatives that could be easier to buy, sell, and store, such as bitcoin and ether.
Disclosure: The author owns coins mentioned in this article, including ethereum, bitcoin, BNB coin, and dogecoin.
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This article How to Invest in SafeMoon: Should You Put Your Money in this Token? originally appeared on FinanceBuzz.