SAFEMOON launched earlier this year – and it's already attracting attention from cryptocurrency investors.
We explain what you need to know about SafeMoon and how its price is predicted to change in 2021.
But first, a word of warning: buying cryptocurrencies and decentralised finance tokens as well as stocks and shares is a risky business.
Investing is not a guaranteed way to make money, so make sure you know the risks and can afford to lose the money.
Cryptocurrencies and decentralised finance tokens are also highly volatile, so your cash can go down as well as up in the blink of an eye.
What is SafeMoon?
Not a huge amount is known about SafeMoon meaning the risk to your investment may be even higher.
SafeMoon technically isn't a cryptocurrency but a DeFi token, according to its website.
DeFi stands for decentralised finance token. They are very complex but essentially aim to disrupt the finance world to enable people to follow and lend in peer-to-peer networks, without needing a bank.
Like Bitcoin they use a complicated method called blockchain technology.
SafeMoon claims it will reward people who buy and hold onto the cryptocurrency.
While those who sell the currency will be slapped with a penalty.
What is cryptocurrency?
CRYPTOCURRENCIES are a form of payment that can be exchanged for goods and services.
They work using a technology called blockchain.
Blockchain is a decentralised technology spread across computers that manages and records transactions. Find out more about cryptocurrencies below..
- What is Bitcoin and will BTC's price rise?
- What is Ethereum and will ETH reach $10,000?
- What is Cardano and will ADA reach $10?
- What is Litecoin?
- Why is Bitcoin bad for the environment?
- Who is Bitcoin creator Satoshi Nakamoto and what's his net worth?
- Best crypto wallets to use for Bitcoin: From Coinbase to Exodus
- Where to buy cryptocurrency?
- What is Dogecoin and will DOGE reach $1?
- Will Polygon (MATIC) reach $10?
Its Facebook page states: "Remember, getting to the moon takes time and the longer you hold the more tokens you pick up."
This is known as multi-level marketing or a pyramid selling scheme.
Experts warn that these can sometimes be a sign of a scam and make it a very high risk investment.
Laith Khalaf, financial analyst at investment platform AJ Bell, previously told The Sun that although long-term investment is encouraged, SafeMoon "doesn't sound too different from a pyramid selling scheme".
He added: "You’re simply reliant on someone further down the line being willing to pay more than you did to turn a profit, which is a risky bet indeed."
Safemoon price prediction for 2021
The value of Safemoon is currently sitting at $0.000002337 – up by 2.48% over the past 24 hours, according to CoinMarketCap.
In comparison, it hit its peak on April 20 when it reached $0.000014.
SafeMoon recorded a 99% rise in one day in April after Bitcoin had its biggest single drop for months.
Going forward, it's impossible to know for sure how the value will change and whether it could rise further.
However, plenty of experts and cryptocurrency fans have still made predictions.
For example, Wallet Investor has set a one-year forecast of $0.000008 and a five-year forecast of $0.000028.
While Digitalcoinprice expects it to reach $0.0000034644 this year and $0.0000102506 in 2028.
In other words, if you're waiting for Safemoon to hit $1, you'll likely be waiting for a long time.
What are other risks with crypto?
Cryptocurrency firms aren't regulated, which means that you won't have any protection if things go wrong.
Investing is always a risk but investing in cryptocurrency is an even higher risk as they are VERY volatile.
UK crypto asset businesses must register with the Financial Conduct Authority – and you can check to see if they are on the Financial Services Register or if they are on a list of firms with temporary registration.
There is also a list of businesses not registered. If they are on this list then they may be operating illegally.
Even if they are on the list the city watchdog is not responsible for regulating them and they don't have any power over how they conduct business with customers.
Essentially it is very hard to tell which firms are real and which ones are scammers.
Brits are being warned they risk losing all of their money if they invest in bitcoin and other cryptocurrencies.
It comes after a ban on some crypto-related investment products.
People considering investing in Bitcoin or shares and stocks have also been warned over "risky" tips being shared on TikTok.
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