Cryptocurrency is having a big year. While the largest names in crypto like Bitcoin and Ethereum are getting most of the news, there are many new cryptocurrencies.

Among them is SafeMoon, which started in March and has already gotten over 2 million buyers.

It’s CoinMarketCap page is the fifth-most-visited page on the price-tracking platform. Based on these rankings, SafeMoon is now searched more than Ethereum, which is one of the top cryptocurrencies.

Although SafeMoon is making waves, that alone does not mean it’s a smart investment. Here is what you should know about the new trendy cryptocurrency.

What is it?

Safemoon is different from other cryptocurrencies because holders are charged a 10% fee if they decide to sell their tokens.

The reason for this is to encourage holders to keep their tokens for a longer time. In theory, that could lower SafeMoon’s volatility, because there will not be as many traders buying and selling.

Every time a person sells SafeMoon and pays their 10% fee, a part of that money is given to other SafeMoon holders, and some of it is removed permanently. So as more holders sell SafeMoon, there is less supply available. SafeMoon’s designers believe this scarcity will mean an increase in the crypto’s value.

Is it really safe?

Every cryptocurrencies has some risks, but SafeMoon is among the riskiest since it is new. And to survive long term, it needs more acceptance among businesses and better security.

If you decide to invest in SafeMoon, make sure to look at your personal tolerance for risk. If you have cash to lose and are willing to gamble, you might be able to make some money from this interesting new cryptocurrency that is gaining popularity very quickly.

Author: Steven Sinclaire

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