Safe moon aims to remove some of the volatility in the cryptocurrency market and reward long-term token holders. Its price rose in April 2021 but has since fallen as investors worry about the fee structure and are looking for actual uses for the digital currency.
There are many digital currencies. If you want to know more about Worldcoin and whether it’s worth buying, check out our world coin article here.
What is Safemoon?
Safe moon describes itself as decentralized finance (DeFi) token. This means that it is part of an alternative financial system that allows trading through networks of peer-to-peer chains without the intervention of centralized systems such as banks or governments. Like bitcoin and other digital currencies, it runs on a blockchain network.
However, the critical difference between the Safemoon token and other cryptocurrencies is that investors are encouraged to hold rather than sell their tokens.
Anyone who deals Safemoon coins will receive a 10% commission, half of which will be paid as dividends to current investors. The founders of Safemoon say the idea behind this sell penalty is to discourage intraday trading and smooth out the significant price volatility that other cryptocurrencies face. They claim that it is safe for investors to shoot the moon with the currency, but this will take some time.
According to CoinMarketCap, the price of Safemoon at the time of writing, March 4, is a fraction of a dollar: $0.000001. The cost of one token peaked on April 20, 2021, at $0.00008615. Find out how a Times Money Mentor reader made PS8.500 from bitcoin.
How to buy safemoon in the UK
Buying Safemoon in the UK isn’t easy, but it’s possible. Potential investors must first create a crypto wallet on the Binance cryptocurrency exchange and then purchase binance coins. Later they can be exchanged for Safemoon coins. Please note that Safemoon is part of the Binance smart chain ecosystem, and Binance is not licensed to operate a regulated business in the UK.
Also, keep in mind that your funds will not be protected if something goes wrong. Download the Trust Wallet app available on the App Store, Google Play or Android.
Should you invest in Safemoon?
Cryptocurrency investing is like gambling, so don’t invest all of your savings in this asset class. If you are not sure, talk to a financial advisor. As with investments in stocks and stocks or other currencies, the value of the Safemoon coin may decrease.
If investors were to sell shares after the economic downturn, they would suffer a capital loss and receive a 10% penalty.
The Financial Conduct Authority has warned consumers about investing in high-return cryptocurrencies. There is a lack of consumer protection beyond basic anti-money laundering measures. Investors are unlikely to use the Financial Services Compensation Scheme, which protects investors up to PS85,000 in a supplier failure, and the Financial Ombudsman service. In addition to making it difficult to accurately assess crypto assets, the regulator said this increases the risk of loss. Due to the complexity of crypto assets, it is difficult for consumers to properly understand the risks of investing in them.
It is also important to note that it can be difficult for potential investors to convert Safemoon holders or any other cryptocurrency into cash without any assurance that the market will offer the liquidity that investors want. Digital currency analysts seem to be cautiously optimistic about Safemoon’s price. WalletInvestor expects the value of the Safemoon coin to rise to $0.000051 in a year and to $0.000237 in five years. Meanwhile, Digital Coin estimates its Safemoon forecast at $0.00000870 in one year and $0.00001690 in five years.
However, these are obviously only predictions. And if looking at any cryptocurrency price chart can tell you one thing, it is likely to be a very bumpy road. It’s also probably too early to say what effect the Safemoon sales tax will have on potential investors’ appetites.