Beginner’s Guide: How To Start Investing In Shiba Inu?

How Can I Buy Shiba Inu?

Last Updated October 13th 2021
13 Min Read

In this article, Trading Education will give you detailed information that will help you begin a journey of investing in Shiba Inu. More importantly, you will get the know-how to buy Shiba Inu from centralized and decentralized exchanges. This will embolden you to choose an exchange that will provide you with the safest way to invest in Shiba Inu Coins. 

Shiba Inu Coin (SHIB) is a digital currency that has value, just like the other native tokens of more than 11,000 crypto projects. Shiba Inu Coin is used as a medium of exchange that allows its users to send and receive digital funds over the internet without any intermediaries such as traditional banks, insurance companies, or clearinghouses. 

As an ERC 20 token, the Shiba Inu Protocol thrives on the possibilities of the blockchain technology of the Ethereum Network. This helps prevent cyberattacks that call the safety and security of protocols into question. This is because Ethereum founder Vitalik Buterin created his innovation based on the proof-of-work (POW) algorithm feature that was employed by Bitcoin's Satoshi Nakamoto.  

As a result, hackers can't break into the protocol since they will have to gain more than 51% computational power. Something practically impossible considering the high amounts of energy needed to mine proof-of-work blockchain-backed coins such as BTC and Ether (ETH).

The number of SHIB circulating in the market stands at 394,796.00B SHIB from a total supply of 1,000,000,000,000,000 (1 quadrillion). 

The Shiba Inu Protocol was created by an individual or group of individuals named RYOSHI in 2020. Shiba was created for two purposes. 

The main idea of making Shiba was to join the train of meme-inspired currencies such as Dogecoin and serve as a transactional digital currency for the payment of goods and services. What’s more, Shiba was brought into the saturated market of crypto to bring its fans (Shiba Inu Community) closer to the multi-billion dollar non-fungible token (NFT) market that promises great returns for artists. 

The cryptocurrency market is highly volatile and volatility cuts across all coins including Shiba Inu. When SHIB began its journey as a tradable token in 2020, its value was insignificant. 

In 2021, the crypto trading asset was able to climb the price ladder and reach numerous milestones in the process. This has made it difficult for so-called cryptocurrency experts and analysts to accurately predict the price of Shiba Inu and other coins. The cost of Shiba Inu Coin depends on several factors but the most essential one is the trust of investors. 

There are numerous factors that a new Shiba Inu investor must take into consideration. Those factors are cryptocurrency exchange, secure internet connection, personal identification documents, digital wallets, and depositing methods accepted by numerous exchanges. 

Here in this article, we will understand the steps that are included in investing in Shiba Inu Coins. This is especially for first-time investor or beginner.

  • Select an Exchange That Lists Shiba Inu 

  • Investing in Shiba Inu Through a Centralized Exchange 

  • Investing in Shiba Inu Through a Decentralized Exchange

 

Select an Exchange That Lists Shiba Inu 

The first step towards investing in Shiba is to open a crypto account.

As a beginner, you must know that there are two forms of exchanges in the current space of cryptocurrency investing. They are centralized exchanges normally abbreviated as CEX and decentralized exchanges normally abbreviated as DEX. 

Centralized Exchanges are online trading platforms that facilitate the buying and selling of digital assets between two crypto tokens such as SHIB/ETH, or ETH/BTC, and as well for fiat currency. CEXs have been in the financial markets for more than a decade. All trades are facilitated through intermediary institutions which control the funds. Popularly centralized exchanges that list Shiba Inu Coin (SHIB) include but are not limited to eToro, Binance, Coinbase, Huobi Global, Gate io, OKEX, and FTX.

Decentralized Exchanges are online trading platforms that allow their users to place orders on a new type of pair-matching (ETH/BTC, SHIB/BTC, or SHIB/ETH) and trade cryptocurrencies without any intermediaries (regulated financial institutions). The popular decentralized exchange that lists Shiba Inu Coins is Uniswap.   

One of the most trending questions online is which exchanges support Shiba Inu? Several centralized exchanges and few decentralized Exchanges list SHIB on their platforms.

Most beginners prefer Centralized Exchanges to DEXs because CEXs prioritize Knowing Your Customer (KYC), countering terrorism financing, and anti-money laundering protocols. Many beginners and even experienced traders and investors trust CEXs due to their working with regulators, being insured by the Federal Deposit Insurance Corporation (FDIC), having a reputation to lean on, and designing multi-layered security trading platforms that safeguards and protects their accounts.

On the other hand, some beginners and experienced investors who do not want to give much of their personal information to regulated financial institutions prefer Decentralized Exchanges (DEX) to centralized exchanges. They trust DEXs because those exchanges free their users from going through a Knowing Your Customer (KYC) phase that can be very intensive and time-consuming. Sometimes, the verification process of certain CEXs can take at least 24 hours. This can be detrimental to traders who wanted to invest in Shiba Inu Coins when it was trading at a relatively lesser price than they purchased it for after the verification process was completed.

Read Also: The 5 Best Ways to Buy Shiba Inu Coin (SHIB)

 

Investing in Shiba Inu Through a Centralized Exchange 

Centralized Exchanges have millions of active users who can vouch for their quality. The hundreds of CEXs available to help you invest in Shiba Inu have different features when it comes to speed and the number of coins available to trade. 

Apart from this, their registration process follows the same steps. Whether you choose to invest in Shiba Inu through Coinbase, eToro, Binance, and the others, you will be required to go through a 4-step process that has been summarized below.

1st Step Create An Account on Centralized Exchanges

As a beginner, you should know that authenticity is extremely crucial in holding an account with these financial organizations. 

As a result, you would be required to enter details of your full legal name, an email address that exists and can be verified, an active contact number that can receive messages, and a residential address that has supporting documents to prove its realness. 

2nd Step Verify Your Account

All CEXs will ask you to upload documents that can confirm the information earlier on input. The primary document that will be requested is a government-issued identification card. 

While some exchanges prefer a Passport as the sole method for verification, others are open to accepting a soft copy of your driving license or a national ID card. 

More than 90% of CEXs require proof of residence. You would be made to upload an internet bill, utility bills, credit card, or bank statements that are dated not more than 6 months up to the time of the creation of the account. This will help confirm your residential address. 

Depending on how cooperative you are as a trader or investor, the verification process can take a minimum of 1 hour to a maximum of 24 hours. 

3rd Step Deposit Funds

On most centralized exchanges (eToro and Coinbase to be precise), fiat currencies (USD, EUR, and GBP) are relevant in uploading funds. Others such as Binance prioritize fiat currencies, in addition, to direct deposits via crypto through its official wallet (Trust Wallet). 

Choosing from a range of options such as Debit/Credit Cards (Visa, Visa Electron, or Maestro), online payments wallets such as (Skrill, Neteller, Rapid Transfer, iDEAL, and PayPal, etc.), and bank transfer, you can deposit money into your account. 

4th Step Place The Order 

After locating the SHIBA page on the respective exchange of your choice, you can place a buy order for several SHIB coins that meet your investment budget. The order will be executed, processed, and added to your account. 

Kindly note that centralized exchanges differ in terms of reputation, exchange rates, reliability, security, and more importantly processing fees. As an e-learning organization, we would recommend eToro as the centralized exchange of choice. 

This is because the company has been operating for more than 15 years without incident. What’s more, they serve millions of customers in over 100 countries and have the necessary certifications to operate. 

After conducting independent research on the Shiba project, you can invest in Shiba Inu coins through eToro and you will enjoy free deposits and many benefits.

 

Investing in Shiba Inu Through a Decentralized Exchange

Decentralized Exchanges have been on the rise in 2021 thanks to the boom in decentralized finance and decentralized applications (DAPPS). 

Due to the privacy it brings to its users, DEXs continue to see more than 200,000 active users daily. In addition to this, the cumulative volume of DEXs topples $2 billion daily.

The most popular and largest DEX by volume is Uniswap. Aside from Uniswap, other best-performing DEXs include but are not limited to Sushiswap, Curve, Ox Native, PancakeSwap, Balancer, Stellar DEX, Bancor Network, 1inch LP, dYdX, and Synthetix.

Although these DEXs have contributed massively to the trading of cryptocurrencies, few of them list Shiba Inu Coins for trading and investing. As a result, our focus would be on Uniswap, the DEX that lists SHIB. 

If you choose to invest in Shiba Inu through Uniswap, kindly follow 2 separate steps below to the details. 

STEP ONE 

You need a wallet. There are many types of wallets but for Uniswap, we’d recommend you use TrustWallet, MetaMask, or Coinbase Wallet. Although they are different in terms of features and navigation, their registration process is almost the same.

Firstly, you must register for a wallet. On your phone, visit the Google Play Store page, search for MetaMask or TrustWallet, and install the application.

Secondly, open the installed application and create a new wallet. A set of keys called passcodes will be provided for you. Kindly copy and paste the codes into a word document or write them in your diary. The passcodes must be kept a secret, losing the codes would make it difficult for you to access your account. 

Thirdly, place an order to buy Ether (ETH). As described earlier in the article, the Shiba Inu Protocol is an ERC 20 token (it was built on Ethereum). As a result, you can only buy SHIB with Ethereum’s native asset ETH. Based on your investment budget, buy an amount of ETH that can be converted to the number of SHIB tokens you want to hold. 

Fourthly, go through a mild verification process. Depending on your preferred depositing method (which is mostly debit or credit card), wallet providers will ask you to input your email and phone number. Codes will be sent to these addresses which will be used to verify the transaction. Once this is done, your fiat will be converted to Ether.

STEP TWO     

Firstly, navigate to Uniswap. On the portal, you can launch the app. On the app, there is a feature titled Connect to a wallet. A list of supported wallets will pop up. You can select your wallet and the Uniswap app will synchronize details of your wallet and ensure connection takes place. 

Secondly, you input the number of ETH coins you will want to swap for SHIB. 

Lastly, the exchange rate will appear on the Uniswap app. This will help you get to know the number of SHIB coins you are going to hold. After this, the swapping order between Ether and SHIB will be executed, processed, and added to your account. 

Read Also: 15 Reasons Why You Should Invest in Shiba Inu Today

Conclusion

As a beginner, you should watch out for cybercriminals who would send you unsolicited offers all in the quest of investing in Shiba Inu with this or that exchange. 

The information Trading Education has provided should be used as a supplement to independent research you must conduct on CEXs and DEXs. 

Some beginners normally ask the question, is CEX better than DEX? 

For starters, you should patronize a centralized exchange so that if something should go wrong, you will be indemnified in full or have the ability to press charges against your preferred exchange. If you want to maintain anonymity, then DEX is the way to go. 

Whether you choose to invest in Shiba Inu through a CEX or a DEX, you should get to know everything about the protocol and the possibilities of SHIB before throwing your hard-earned money into it. This is because Shiba Inu falls into a highly volatile asset class that has made millionaires out of some and brought irrecoverable losses to others. 

eToro – Best Exchange to buy Shiba Inu

eToro have proven themselves trustworthy within the crypto industry for years – highly recommend them. 

Virtual currencies are highly volatile. Your capital is at risk.

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