7 Things to Know Before You Buy EverReflect

Because of the apparent profitability that cryptocurrencies bring to people, plenty of their kind is sprouting here and there. One of the hottest and most promising among these is EverReflect. In this post, let’s delve into seven key points you need to know before investing in this token.

1. Understanding What a Reflection Token Is

There is a new trend of DEFI tokens on the rise, and they’re integrating a method called reflection. Let’s figure out how it works. DEFI charges a set fee for each transaction made with these tokens. Basically, it’s a small percentage of tax one must pay every time a reflection coin is bought.

The money collected will then be distributed automatically through a smart contract. How it gets distributed depends on the project behind it. Most of the time, a large portion of the collected fees goes back to the currency holders.

As you can see, this encourages users to hold their tokens instead of trading them. This is meant to decrease the volatility of the token price.

2. Understanding the EverReflect Tokenomics

There has been a rapid rise of decentralized finance projects that use reflection token mechanics. To deeply understand the concept of a refection coin better, let’s look at SafeMoon as a very popular example.

SafeMoon is a cryptocurrency created in March 2021, which makes it one of the newest and most promising tokens. It was created under the Binance Smart Chain. Its popularity stems from its rapid price increase in just a few days. Its inner workings are worth checking out, so let’s do that.

When selling the SafeMoon token, a user is charged a 10% fee. 5% of the collected fee goes back to the holders of SafeMoon, in proportion to the amount they hold. The other 5% goes to the liquidity pools on pancake swap.

3. EverReflect’s Similarity to SafeMoon

The increase of liquidity on the SafeMoon pool stabilizes the coin that circumvents the volatility. In SafeMoon’s whitepaper, it is declared that one of the goals of its creators is to attain manual token burns. These token burns do not appear to be a default function in the protocol of SafeMoon but will be done at the creators’ discretion. In effect, this makes the token deflationary.

With SafeMoon gaining market momentum, many projects also rose to prominence using the same mechanism that’s now used by EverReflect. Examples of such projects are Glass and GMR Finance.

Another similar token to EverReflect and SafeMoon is EverGrow. This crypto-coin surpassed the 130,000 mark after distributing more than $32 million worth of BUSD rewards. It was launched in September 2021. It’s also very similar to EverReflect as it encourages investors to keep their coins and wait for them grow, while earning rewards on the process.

4. The Benefits of EverReflect

If you have looked at the price chart of SafeMoon before, you might disagree that EverReflect has low volatility. In theory, however, the model prevents short-term trading, undermining strong price fluctuations.

This encourages participants to hold their tokens since they have to pay a certain amount each time they sell their coins. On the other hand, they receive yields if they hold on to their tokens. Reflection tokens like EverReflect are designed to promote stability.

Long-term trading has been highly preferred by serious investors because they believe that playing the short game doesn’t prove to be very profitable.

Long-term trading has been highly preferred by serious investors because they believe that playing the short game doesn’t prove to be very profitable.

If you have been investing in other currency markets like the Stock market and Forex, you might have known already that holding on to a currency form for a certain duration can make you reap benefits. The same principle remains beneficial for EverReflect, and that same concept is applied to this new token.

5. EverReflect’s Resilience to Price Manipulation

Another good thing about EverReflect is its price can’t be easily manipulated. Reflection coins can do this in 2 main ways. The first is by making users hold on to their tokens as market capitalization takes place, and this reduces the impact of whales on their token prices.

The second is by adding value to the liquidity pools. By doing so, each transaction generates more validation, which is always helpful to increase the value of any economy that includes cryptocurrency in general.

6. The Uniqueness of EverReflect’s Security Measures

There will always be the likelihood of getting scammed whenever you invest in any crypto-token or any other investment for that matter. To address the issue, the makers of EverReflect have announced its unique bot-deterrent strategy.

Having made the announcement just 24-hours after the launch on January 20, 2022, EverReflect declared the strategy to ensure fair-measure protocols. Scammers have been known to automate their money-making and money-scamming endeavors a lot, and one of the most prominent ways of doing this is via the unleashing of malicious bots – unwanted software working behind the scenes of every digital session.

With those bots gathering sensitive information that they will pass on to cyber-criminals, you, as a novice investor, will be placed at considerable risk.

To reduce that possibility, the bot-deterrent of EverReflect came up with strategies like these: No investor may sell or purchase more than once within a 60-minute duration. The maximum amount for that period must not exceed 2T tokens pre-tax. This means that each wallet holder will only receive a net of 1.6T tokens from Pancake Swap.

7. Putting EverReflect in High Consideration

As of now, refection tokens are relatively new in the realm of cryptocurrency and blockchain technology. As an investor and token enthusiast, it would be wise that you proceed with caution. While the tokenomics behind EverReflect might be sensible, you could end up getting more losses than what you can handle.

But like the top-notch cryptocurrencies today, which were just small cogs in the field of commerce just a few years ago, EverReflect could be the next most profitable digital money you could ever come across. Feel free to utilize its potential. Who knows? It might just give you the financial freedom you greatly hope for.