Bitcoin and other cryptocurrencies which are quite popular are rising like a storm with massive valuations. Similarly, Safemoon is a form of cryptocurrency. It was launched last year i.e. in March 2021 and a month later in April, its price started to skyrocket, which started attracting the attention of the people. It was specifically designed to reward holders for a longer period and charge sellers on the other hand. And the same is going back to the existing holders for fees charged from sellers. In this article, we will know whether it is safe or not and whether it will prove to be a good investment. Click here for more essential cryptocurrency tips.
What is Safemoon?
Safemoon was a new cryptocurrency to hit the market. It is a decentralized approach to the crypto project with a community-driven approach to financial systems. One of the highlights of Safemoon Crypto is that its future success with developers is a long-term vision. Holders begin to earn passive rewards over time and are discouraged with penal sales.
How does Safemoon work?
Safemoon is a cryptocurrency digital currency that exists only online, meaning that you can only use it online. Safemoon is a distributed ledger technology. There are some digital currencies like bitcoin and other cryptocurrencies like Litecoin, Ethereum, etc. which are popular and are powered by blockchain. Safemoon is built on the Smart Chain blockchain on Binance. With Safemoon one can encourage investment over a long period as well as it is designed to discourage selling. In which sellers can collect up to 10 percent fee, and half of the fee goes to the holders of Safemoon and the other is used for the liquidity pool.
Is SafeMoon a Good Investment?
SafeMoon is considered to be the only hope of profits for the future, as more and more people continue to buy it, which may not sound like a good investment. Make sure you choose only wallets that work according to your needs. So that you can be fully prepared to bounce with success. But at the same time, you also have to keep in mind that no one knows whether there will be a fall in its price or not. Keep in mind that investing in cryptocurrencies is going to be very risky for you, so whenever investing in it, first consult a professional advisor.
Risks to consider
Just like the Safemoon cryptocurrency, it is also a speculative asset and does not have any intrinsic value. If you are also considering buying Safemoon then you have to prepare yourself for the possibility of losing the entire investment with it. Below we’ve listed some other risks for you to consider.
- Regulation — Cryptocurrencies are still fairly new in this respect, with many people and governments still trying to understand what it is and the impact they can have. Regulation can be seen in the form of higher tax rates for higher profits with crypto.
- Liquidity — Safemoon has seen high liquidity, as well as discouraging all traders to quickly enter or exit, selling for a fee of around 10 per cent of the same fact, hence making liquidity a challenge. Safemoon never conducts its trading on crypto exchanges, but it allows you to buy and sell pancake swaps, allowing trading of a wide variety of cryptocurrencies.
- Speculative Bubble
The bubbles are easily seen with sight, so it is a sign that these cryptocurrencies may be in a speculative frenzy. Safemoon has chosen to capitalize on the naming frenzy, and it’s a safe asset rather than an underlying purpose.
Safemoon encourages a long-term investment that is specifically designed to discourage selling. At the same time, it is a majorly volatile asset.