Less than two years that Shiba Inu has been around, its value has shot up by more than 1,294,881.3%, effectively making its earliest investors super-rich and capturing every crypto trader/investor’s attention. But it hasn’t been all rosy for the meme currency investors. A significant number of Shiba Inu investors and traders have lost a lot of money invested in the coin.
The last thing you want is drowning your capital in the coin’s hugely volatile price action and ways through which SHIB token investors have lost money. That’s why you need to familiarise yourself with not just the different ways of making money with Shiba Inu, but also the ways in which you can lose this money and how to avoid them.
Ways To Make Money With Shiba Inu
For starters, we must mention that though highly risky, Shiba Inu is also one of the crypto industry’s biggest success stories for the year 2021. Here then are the three primary ways in which you can share in this success and profit from its explosive ROI.
1. Investing (HODLing)
You can make money by buying and holding on to Shiba Inu tokens for the medium to long term. In this case, you make money when the value of Shiba Inu tokens rises. Take, for instance, an individual who invested in Shiba Inu on 1st April at $0.000000053 per coin, and just as its popularity was taking shape, you would have grown that investment by more than 39,371.7% today.
To go long-term with Shiba Inu, however, you first need to believe in the token’s sustainability and back this conviction with research that shows that Shiba Inu token prices will continue rising in the foreseeable future. To illustrate how you can make money with Shiba Inu, we start by assuming that your analysis of the coin aligns with Wallet Investor’s five-year forecast of the token’s price action, and you both project a 1,166.73% price increase. If you then invest $1000 in SHIB tokens today, this investment could be worth $13,060 by 2027.
Shiba Inu’s volatile price action makes for one of the most sought-after investment products by active crypto traders. Because of this volatility, traders are able to enter into multiple trades throughout the day.
It is not surprising for the token to make double-digit percentage moves in a day. In such a case, then, making money trading Shiba Inu involves buying the tokens at a relatively low price and booking small profits by closing it when its price rises and right before the trend reverses.
You could also choose to stake your Shiba Inu tokens and earn interest. Today, there are numerous DeFi platforms that let you stake your SHIB Tokens for onward lending to other SHIB token traders/investors. In return, you earn an interest in the form of additional SHIB tokens that you can redeem for fiat cash, trade, or simply invest.
Some of the most popular DeFi platforms that let you stake Shiba Inu tokens include ShibaSwap, Crypto.com which pays upwards of 5% interest, and Binance via the Trust Wallet. One of the key benefits of staking Shiba Inu is that it lets you earn doubly; from the token’s value appreciation as well as the staking reward.
Ways To Lose Money With Shiba Inu
It is equally easy to lose money with Shiba Inu. Here are the three most popular ways in which individuals have lost money with Shiba Inu and tips on how you could keep your Shiba Inu tokens safe.
Trading Shiba Inu, one of the most volatile meme currencies, is as risky as it is profitable. In such a highly unpredictable market environment, chances of getting your analysis wrong or negative market news throwing you out of a winning position are relatively high. Trading Shiba Inu carelessly is, therefore, one of the fastest of losing money, and the internet is not short of examples of individuals who lost a lot of money trading SHIB tokens.
What can you do: To protect yourself against losses emanating from volatile price actions, ensure that you use the risk management tools (stop loss, take profit, guaranteed stop loss) provided by your crypto broker. Secondly, don’t trade Shiba Inu actively unless you are confident of your crypto trading skills. And most importantly, only trade what you can afford to lose.
The potential for massive gains when investing in cryptocurrencies like Shiba Inu didn’t just draw in investors and traders, it also attracted hackers who continue wreaking havoc on this nascent industry. These target digital wallets and exchanges with the aim of stealing the cryptocurrencies stored therein. Coinbase clients, for instance, are currently decrying a largescale theft of digital assets held in the Coinbase mobile wallet apps.
What can you do: The surest method of guarding your crypto assets against loss to hackers is by investing in and storing all your digital coins offline in a reliable hardware wallet. You could also deter hackers by activating all the security features provided by the wallet or crypto exchange, such as multi-factor authentication.
Cryptocurrency scams are on the rise and have become one of the easiest ways of losing your crypto investment. In 2020, the FTC’s crypto crime report indicated that crypto-related frauds had hit record levels. In May, they went on to indicate that thousands of Americans had lost more than $80 million to crypto scammers between October 2020 and May 2021. They mentioned that the number of reported crypto crime cases had gone up by more than 12X while the median loss per reported case rose by more than 1000% to hit $1900.
What can you do: You could start by ensuring that you do not click on unsolicited and suspicious links. You could also avoid being entangled in Ponzi and pyramid schemes by keeping off get-rich-quick schemes. Lastly, you could also start vetting each investment platform, whitelisting URLs for key exchanges and wallets, and keeping off unsolicited freebies.
Bottom line: Is Shiba Inu (SHIB) Worth Investing?
Every cryptocurrency investment is risky. But you put your funds at even greater risk when you hop onto and invest in a digital currency whose value is derived primarily from social media buzz. However, with little luck and strict adherence to the safety measures we have highlighted above, you will be able to safeguard your Shiba Inu investment and retain a significant portion of the earnings made from trading, investing, or staking Shiba tokens.
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Virtual currencies are highly volatile. Your capital is at risk.