The IRS formally launched crypto taxes in 2014, during which they recognized virtual currencies as capital assets (just like property, bonds, or stocks). Based on tax laws, capital assets are taxed whenever they are sold at a profit. This means if you were to use cryptocurrency to purchase goods or services and you wind up making a profit, you are going to incur capital gains taxes. Some examples of crypto actions that are taxable include using cryptocurrency to purchase goods and services, selling cryptocurrency for fiat, and trading or swapping one crypto asset for another. Transactions such as interest earned from decentralized finance, crypto earned from staking and liquidity pools, crypto mining income from transaction fees and block rewards, crypto received from airdrops, and cryptocurrency received for work done are usually taxed as regular income tax.

That said, you will be expected to keep a record of all buying, selling, investing, or usage transaction related to cryptocurrencies. Failure to do so may put you at risk of tax liabilities resulting in penalties, interest, or even criminal prosecution. 

However, most earlier adopters of this coin have used a different way to buy this coin. The process has some steps, and I’ll attempt to explain just that here in this article. Remember, this is not investment advice, and please do your due diligence before investing in cryptocurrencies. Personally, I have some investment in SafeMoon as with a few other cryptos, and I’d not have written the article if I did not have tried this purchase process myself.

First, you have to create an account with Binance.us or Bittrex.com if you do not have an account with either of them. I use both the exchanges and they are both very good. They both have KYC (know your customer) and they will verify your identity. I found the ID verification process at Bittrex to be a little quicker. Quicker as “Same day- quicker”. At least that’s what it was for me!

Feel free to use my referral links above to register on either of these platforms.

Now:

1) Install TrustWallet App on your smartphone

2) Buy BNB (Binance Coin) on Binance or Bittrex

3) Withdraw your BNB to your BNB wallet on TrustWallet (Please make sure you’re withdrawing to your BNB wallet)

To do this, click on BNB from your list on TrustWallet and click Receive (It will show you the address you need to withdraw BNB)

4) The process may take a few minutes for your BNB to appear on TrustWallet due to network congestion and trading volume

5) Once you have your BNB on TrustWallet, convert it to Binance Smart Chain (similar icon as BNB). To do it, click on BNB on TrustWallet > More > Swap to Binance Smart Chain

6) Now, it won’t let you swap 100% of your BNB all at once. Do it in 50% increments until you’ve swapped almost all of it…You will NOT be able to swap 100% and will have a few dollars left on BNB.

7) Now, click DApps at the bottom of your screen (on Android)

8) Find PancakeSwap from the list and then switch your BNB (Max) to Safemoon (choose Safemoon from the list) Please let your slippage to 11% for it to process!! Confirm the transaction!!

There you have it!! Now, you should see your SafeMoon balance on TrustWallet.

If you have an iPhone, you just have an extra step because you have to “activate” DApps on TrustWallet.

To do this, follow everything until #6 in the above process and then open Safari Browser and then type in the URL: trust://browser_enable then hit Go!

Go back on TrustWallet and you will now see DApps at top-right corner!