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4 Steps to Safely Buying Safemoon

Safemoon took the crypto world by storm earlier this year. It launched on March 10 and rewarded early investors with returns of over 20,000%. After hitting an all-time high in April, it dropped by over 70%, but it still has the attention of crypto investors looking for the next big thing.

If you're interested in Safemoon, the tricky part is learning how to buy it. As a new cryptocurrency, it's not available on the top cryptocurrency exchanges. But once you know where you can purchase Safemoon, the process is straightforward enough.

Before we get into that, a word of warning: Safemoon is a very high-risk cryptocurrency. Many have called it a pump and dump, and the only thing that makes it unique is a 10% fee for selling it. If you want to give it a try, look at it like buying a lottery ticket. Don't put in too much money, and keep in mind that there's only a slim chance it will pay off.

1. Download Trust Wallet

Safemoon's developer recommends buying it using Trust Wallet, which is a crypto wallet application. You can download it on your smartphone, either from the App Store or Google Play.

After installing Trust Wallet, open it and select "Create a new wallet" (unless you've used it before and you already have a wallet).

Trust Wallet will provide your recovery phrase. This phrase is extremely important, because it's a readable form of the private keys to your crypto wallet. If you lose access to your wallet, you can still get your crypto back with the recovery phrase. However, if anyone else gets your recovery phrase, they could use it to steal all your crypto.

Write down your recovery phrase, store it in a safe place, and never share it with anyone.

2. Purchase Binance Coin

Safemoon can't be purchased directly with cash. Instead, you're going to need another cryptocurrency that you can trade for Safemoon. Binance Coin (BNB) is the recommended option.

Here's how to buy Binance Coin using Trust Wallet:

  • From the home screen, tap "Smart Chain." If it isn't available, use the icon in the upper-right corner of the app to search for it. This takes you to Binance Coin's page within Trust Wallet.
  • Tap "Buy."
  • Enter the amount you want to purchase in U.S. dollars and select "Next" to go to the payment page.
  • Enter your payment information and confirm the transaction.

You may need to verify your identity to complete the purchase.

If you have an account with Binance, you can purchase Binance Coin there instead. After that, you can use the Binance Smart Chain wallet to trade for Safemoon.

3. Go to the Pancake Swap exchange

Pancake Swap is an exchange that lets you trade many different cryptocurrencies, including Binance Coin and Safemoon. Select "DApps'' from the bottom menu of Trust Wallet. Note that if you have an iPhone, this option is labeled "Browser." Scroll down until you find Pancake Swap and select it. This takes you to Pancake Swap's exchange page, where you can trade one crypto for another.

The process is different if you're using the Binance Smart Chain wallet. Go to Pancake Swap, click "Trade," and then click "Exchange" to reach that same exchange page. You'll also need to connect your wallet, which you can do using the "Connect" button in the corner of the page.

4. Trade Binance Coin for Safemoon

On Pancake Swap, enter the amount of Binance Coin that you want to trade. Choose "Max" if you want to trade all the Binance Coin in your wallet.

Use "Select a currency" to choose the cryptocurrency you want to receive. Enter "Safemoon" in the search bar and select it when it appears.

Pancake Swap will show you the estimated amount of Safemoon you'll receive. When you're ready, select "Swap" to make the trade.

Note that you may need to adjust the slippage tolerance to get the trade to process. Slippage is when the price of a crypto moves between the time you submitted the trade and when it executes. If the slippage tolerance isn't high enough, the trade may not go through. Safemoon's developers advise a slippage tolerance of 12%. You can adjust this by tapping the settings icon on Pancake Swap.

To recap, here's how to buy Safemoon:

  • Download a crypto wallet. Trust Wallet is the one that Safemoon's developers recommend.
  • Purchase Binance Coin. If you buy it through an exchange, transfer it to your crypto wallet.
  • Visit Pancake Swap and go to its exchange page.
  • Enter the amount of Binance Coin you want to trade and select Safemoon as the cryptocurrency you'll receive.

Safemoon is a big gamble, so take that into account when deciding how much you'll buy. It's fine to purchase a bit if you like the concept or just want a very high-risk crypto in your portfolio. Make sure you only put in money you can afford to lose. And if you want to make crypto a part of your portfolio, look for other cryptocurrency investing strategies with better long-term potential.

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Lyle Daly owns Bitcoin and Binance Coin.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Lyle Daly owns shares of Binance Coin and Bitcoin. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Bitcoin. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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