cryptocurrency exchange binance safemoon

Buying dips and dollar cost averaging into positions has been a great strategy for many crypto investors. This way, you can average into your positions during dips to lower your cost basis. For the most up to date cryptocurrency prices, check out our crypto pricing table below.

Cryptocurrency Wallets for Binance Smart Chain

That means if you sell cryptocurrency at a profit, you’ll have to pay capital gains taxes. If you receive a greater value for it than you paid, you’ll owe taxes on the difference. When choosing the best cryptocurrency to invest in, it is important to consider your individual goals, investing timeline and risk profile, just as you would with any investment.

How To Choose the Best Crypto To Invest In

cryptocurrency exchange binance safemoon

In February 2022, a class-action lawsuit against SafeMoon was filed, alleging the company is a pump and dump scheme. Jake Paul, Nick Carter, Soulja Boy, Lil Yachty, and Ben Phillips were accused of promoting the SafeMoon token with misleading information. In May 2022, multiple SafeMoon investors filed another class action lawsuit for security fraud. Additionally, if you hold your SafeMoon tokens on an exchange, you don’t have to switch to the V2 tokens. This is because the exchange handles the migration process and gives an update on the status of the process. If you hold original SafeMoon tokens in a wallet and choose to switch them to SafeMoon V2, it can only be done manually.

Disadvantages of Buying SafeMoon

  1. Smith has spent the past two years working with different organizations on blockchain and decentralized financial products.
  2. Once verified, allows you to buy, sell, swap, and store a variety of coins.
  3. After purchase, the Ether (ETH) coins will be stored in the Ethereum wallet.
  4. It’s important to do your research into SafeMoon before deciding to invest.

As well, the white paper notes that their “reflect mechanism” adds incentive for SafeMoon holders to keep their tokens for longer, or HODL. SafeMoon’s Automatic LP also adds stability to the protocol by providing a price floor/cushion for token holders. SafeMoon’s manual burn strategy also helps SafeMoon token holders in the long term, according to their white paper.

SafeMoon: Soon (with some patience), you’ll be a proud “Hodl’er”

Additionally, you should do your due diligence to make sure that any crypto project you are interested in is legitimate and secure. It can technically still be purchased through decentralised exchanges. However, the project’s legal and financial issues may impact token availability and liquidity, making it harder to purchase. Given the project’s bankruptcy and criminal charges against its executives, investing in SafeMoon could be seen as equivalent to burning your money.

From bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you’re first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies to invest in based on their market capitalization or the total value of all the coins currently in circulation. When covering investment and personal finance stories, we aim to inform our readers rather than recommend specific financial product or asset classes.

Smith has spent the past two years working with different organizations on blockchain and decentralized financial products. SafeMoon’s chief operating officer, Jack Haines-Davies, based in the United Kingdom, lists two companies on LinkedIn, LikeandShare and Ben Phillips Global, as his former employers. Transfer some ETH (as noted, I used about ~$275 worth) from your ETH wallet to your newly created wallet. To do this, you’ll copy your wallet address (“to”) and paste it into the wallet that contains your Ethereum (“from”).

cryptocurrency exchange binance safemoon

But if you follow the steps in order, soon (with some patience), you’ll be a proud Hodl’er (a deliberate misspelling of the word “hold” used in the crypto industry) of this new, fast-growing digital token. Despite a recent and ongoing industrywide price correction, cryptocurrencies are still the future of finance. In November 2022, the world’s Binance cryptocurrency exchange second-largest crypto exchange, FTX, collapsed and immediately filed for bankruptcy. Its books showed the exchange lacked tangible reserves and court filings alleged the exchange indiscriminately used customers’ funds for both operational and personal use. Every exchange has a range of deposits that users must fund their accounts with.

While there’s fear, uncertainty, and doubt (FUD) about crypto, it’s quite easy to acquire some of the larger, more tried-and-tested coins like Bitcoin (BTC) and Ethereum (ETH). After downloading a wallet and setting up the username, a 12-word recovery phrase will be presented to you for safekeeping. This recovery phrase is a key to your crypto that helps you retain your wallet should your device get damaged or lost. It is important to note several allegations against SafeMoon as part of your research on deciding whether SafeMoon is the right investment for you.

A new type of cryptocurrency called SafeMoon is gathering interest amongst enthusiasts, search trends show. CRYPTO-SAVVY is an occasional series from Inverse that explains the world of cryptocurrency and where it’s going next. Furthermore, despite the fact that in just two months SafeMoon has appreciated more than the S&P 500 has over the last decade, there is no guarantee that these gains will continue moving forward. I would advise that you don’t invest money you aren’t willing to lose.

For example, a Twitter account called WarOnRugs, which identifies itself as a “community based, grassroots movement” that aims to expose crypto scams, criticized SafeMoon last month. SafeMoon, which debuted in March, has received increased buzz recently, based on a pitch that it will avoid the wild price fluctuations endemic to Bitcoin, Ethereum, and more recently, Dogecoin. A relatively new cryptocurrency is trying to reach the moon, like Bitcoin, Ethereum, and Dogecoin before it. This feature implements a token burn strategy for SAFEMOON such that the supply of tokens reduces to increase its price and demand. Some cryptocurrency enthusiasts are excited about the coin, whilst some are skeptical. The mechanism by which SafeMoon rewards participants involves issuing a 10 percent penalty tax fee on sellers and redistributing five percent of this to people who already own the currency.

Cardano’s ADA token has had relatively modest growth compared to other major crypto coins. SafeMoon also says it opts for manual burns versus continuous burns, which is when digital coins are purposefully removed from circulation. Manual burns, according to the creators, give SafeMoon more control over the coin’s supply.

To prevent issues such as this, decentralized exchanges may just be a great fit. These exchanges are built on-chain and all information regarding them is available to the public. Above all, decisions can only be made after token holders have voted in favor of them. While centralized exchanges are more regulated, support several coins, have more liquidity, are less secure, have a great user experience, and take custody of users’ private keys, decentralized exchanges are not. Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC).

Safemoon is a cryptocurrency that was designed to encourage long-term investment and discourage selling, but it’s an extremely volatile asset that comes with a number of other risks too. Those who buy this kind of risky asset should be prepared to lose their entire investment. Safemoon is a cryptocurrency that launched in March 2021 and attracted attention after its price skyrocketed in April of that year. It has since lost essentially all of its value, falling nearly 99 percent since its April 2021 peak. It was designed to reward long-term holders and charges sellers a 10 percent fee, with part of that fee going back to existing holders. In December 2021, SafeMoon developed Version 2 of their token, SafeMoon V2, and set a deadline for token migration to avoid a 100% tax.

You’ll then have to withdraw the coins from the exchange, place them in a downloaded wallet and then interact with a decentralised exchange. Despite its initial buzz, SafeMoon has seen its token value plummet to near-zero levels following a series of devastating events. The project filed for chapter seven bankruptcy in late 2023, signalling its insolvency, while key executives now face criminal charges in the United States. SafeMoon, a once-popular cryptocurrency project, rode the hype of the 2021 bull run with promises of “going to the moon”. However, the project’s fortunes have since taken a dramatic turn for the worse and these days SafeMoon is rarely seen as a safe pair of hands.

Since tokens are redistributed proportionally to the amount of SafeMoon token one holds, those with the most tokens earn the most money. Since large holders make a significant amount of money each day, they’re incentivized to sell their rewards and lock in profits. Conversely, smaller holders make pennies each day, and they’re incentivized to hold these rewards in hopes of growing their base number of tokens. Cryptocurrency is a form of currency that exists solely in digital form. Cryptocurrency can be used to pay for purchases online without going through an intermediary, such as a bank, or it can be held as an investment. offers more detailed instructions on how to deposit cryptocurrency into their platform here. Though there may be a bit of controversy, SafeMoon works to encourage long-term investment and discourage selling by charging users a 10% fee, with 50% of this being distributed to existing SafeMoon users. Even though the crypto industry is at its early stage in terms of regulation, centralized exchanges are striving to comply with financial regulations. Beyond speculative trading and holding for potential price appreciation, SafeMoon has limited practical use cases. Also, even though it has existed for several years, SafeMoon is a relatively new project compared to more established cryptocurrencies with undefined schedules and unproven roadmap execution. Despite several advantages, there remain a vast number of downsides to SafeMoon.

For users with any other type of crypto wallet, visit the SafeMoon Swap site to consolidate. SafeMoon is a cryptocurrency token that launched in early 2021, using blockchain technology developed by Binance. SafeMoon has integrated interoperability into its token, allowing users to bridge their tokens across the Binance Smart Chain, Ethereum, and Polygon. Which means that holders of the SafeMoon Token can now seamlessly transfer their tokens between these blockchain networks.