Want to learn to trade Shiba Inc cryptocurrency but don't know where to start? This ultimate guide teaches you everything you need to know about SHIB trading and review the best crypto broker to get started.
In this How to Trade Shiba Inu Guide, we have provided all you need to know as a beginner looking to make profits from this exciting token. We will also walk you through different strategies to hedge your risks and make meaningful profits while trading Shiba Inu.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
What Is Shiba Inu (SHIB) Trading
The Shiba Inu token was created as an experiment in building a decentralized community. According to the whitepaper, the token is the first of three coins in the ecosystem the Shiba Inu protocol is building.
When you’re contemplating how to trade Shiba Inu, your goal is to speculate on the token’s price movements. This means that you’ll be placing numerous trades within short intervals whenever you find an opportunity in the market.
This makes it important to consider why the value of Shiba Inu fluctuates that often.
A fundamental feature of the cryptocurrency market is that the prices of tokens are not stable. Since the market is volatile, there’ll be numerous highs and lows. Therefore, you’ll make a profit if you can predict the market correctly when trading Shiba Inu.
Meaning, the most important consideration is how well you can speculate the markets. To do this, experienced cryptocurrency traders rely on technical indicators and in-depth market analysis to determine price movements. This is complemented by adequate research to understand the trajectory of Shiba Inu.
Ultimately, when more traders are entering the Shiba Inu market, the token will witness a price increase. On the flip side, if more traders are selling off the coin, then the market price will equally witness a drop. Once you have this basic understanding, you’ll realize that trading Shiba Inu is a lot simpler than you might have first thought.
Let’s put this in context:
- Suppose Shiba Inu is currently trading at $0.0000074.
- Based on your assessment of the market, you conclude that it’s the right time to go long.
- So, you place a $100 buy order on Shiba Inu hoping the coin’s price increases soon.
- By the following day, Shiba Inu is worth $0.0000082, indicating about a 10% increase.
- To secure this profit, you proceed to sell your Shiba Inu tokens and close your position.
From this trade, you’d have made a $10 profit on your $100 stake. This shows that the key to trading Shiba Inu is predicting the market correctly. After all, if the market had moved in the opposite direction, you’d have incurred losses on the trade.
Additionally, even when you use technical indicators to assess the Shiba Inu market, always consider the amount of risk you’re willing to bear. This is an important step when creating a trading plan to make profits from SHIB tokens.
Having understood this, let’s proceed to the other important aspects you need to know when learning how to trade Shiba Inu.
How Does Shiba Inu (SHIB) Trading Work?
The main concept of trading cryptocurrencies like Shiba Inu is simple and straightforward. Essentially, you’re buying and selling the token at strategic points. However, not everyone will understand how this plays out in the market, especially if you’re a beginner.
Therefore, it’s important to understand the fundamental elements necessary for trading Shiba Inu before getting started. Knowing these will make trading the token a smooth ride for you.
Shiba Inu Price Movements
When learning how to trade Shiba Inu, you need to understand the factors that cause the token’s price to move. Once you know the forces of demand and supply that trigger price movements in the market, you’d be more informed on how to open your Shiba Inu positions.
Some of the key factors include circulating supply, market capitalization, and significant updates on Shiba Inu. Therefore, if a market update portrays Shiba Inu in good light, you can expect that more people will jump on the token.
Therefore, a token’s appeal and wider media goodwill will go a long way in determining its price movement.
Consequently, you must understand that the price of Shiba Inu will continue to fluctuate across the day. This fluctuation can mean two things for traders.
On the one hand, it presents you with several opportunities to secure a profit from the constant price movements. On the other hand, the constant price movement also increases the risks that come with trading Shiba Inu.
Don't Miss: Shiba Inu Price Predictions
Shiba Inu Trading Pairs
Think of a pair as having two assets trading against each other. That is, if you’re trading Shiba Inu, you’ll be doing so against another asset which can be a fiat currency or another crypto token entirely.
Based on the above, there are two types of Shiba Inu trading pairs:
- Shiba Inu fiat pairs - which include SHIB/USD (US dollars), SHIB/EUR (euros), or SHIB/GBP (British pounds), and more.
- Shiba Inu crypto pairs - which include SHIB/ETH (Ethereum), SHIB/BTC (Bitcoin), or SHIB/BNB (Binance Coin)
So, essentially, trading any pair means that you’re speculating the value of Shiba Inu in terms of the other asset.
- Suppose SHIB/USD has a price of $0.0000074. The meaning of this is that one Shiba Inu token is worth 0.0000074 US dollars.
- Similarly, if the SHIB/ETH pair has a price quoted at $0.00000001, this means that one Shiba Inu token is worth 0.00000001 ETH.
Clearly from the above, the fiat-pair is the simpler option for you to predict, especially if you’re just getting started with trading Shiba Inu. Additionally, fiat pairs offer you access to tighter spreads and larger liquidity levels, which makes trading Shiba Inu more profitable.
For instance, BTC/USD has the tightest spreads and largest liquidity levels. So, you can understand why most beginners use this pair.
Trading Shiba Inu for the Long or Short-Term
You can choose to trade Shiba Inu in the short or long term. When you decide on this, you can then create a trading plan accordingly. This trading plan will then form the basis of how you make profits from Shiba Inu.
Let’s explain this further.
- You can decide to trade Shiba Inu in the long term. In that case, you might want to consider it as an investment.
- This means that you’ll buy the token and hold the coin till it increases in value.
- This is long-term - because you’ll be leaving the coin until it increases significantly even if that only happens after several months or years.
- In the cryptocurrency space, this strategy is referred to as ‘buy and hold’, which is highly suitable if you’re a beginner in the trading scene.
On the flip side, you might want to make regular returns on your Shiba Inu trades even if it’s small. In that case, you can trade in the short-term. You can do this by either day or swing trading, depending on the system you find most suitable.
- Here, your task will be to predict market movements with the aim of making small but consistent returns.
- But to do this, you’ll need to understand how to make a careful analysis of the markets and leverage technical indicators.
- You’ll also have to stay updated with the market at all times.
Looking at these two options, long-term Shiba Inu trading appears more convenient for a beginner. This is because you don’t require much experience. Additionally, you don’t have to constantly monitor price movements in the market, making the strategy somewhat stress-free.
Trade and Own Shiba Inu
When you decide to trade Shiba Inu in the long-term, this means you’re looking to take ownership of the tokens. In this sense, your goal is to buy the tokens and hold them for a long period. This also means you’d need somewhere safe to store your digital assets.
Therefore, for a long-term trading plan, you must use a credible broker alongside a reliable wallet for that purpose. There are numerous options online, but you can make things easier by choosing a broker that comes with an in-built wallet.
Here, a credible broker for trading Shiba Inu is eToro as you can buy the token and have it stored on the platform.
As a regulated broker with transparent market conditions, eToro allows you to trade Shiba Inu without paying a dime in commission. Some of the financial authorities regulating this broker include the FCA, SEC, and CySEC. This indicates the broker’s credibility for buying Shiba Inu. We will discuss this more extensively later on.
Shiba Inu Trading
On the other hand, short-term trading means that you’ll close several positions within 24 hours or perhaps a few days. Therefore, in this case, it’s not practical to take ownership of Shiba Inu tokens when you’ll be selling them off within a period that could be minutes or hours.
Therefore, a better alternative is to use CFDs when trading Shiba Inu in the short-term. When you utilize CFDs, you can speculate on the value of Shiba Inu without having to take ownership of the tokens.
This allows you to trade swiftly when you’re operating on a short-term plan, making it possible to take advantage of both bullish and bearish markets.
- You can decide to go long if you speculate that Shiba Inu’s price will increase.
- Alternatively, you can choose to go short if you anticipate that the price of Shiba Inu will fall.
Furthermore, CFDs allow you to use leverage when opening your positions. When you trade Shiba Inu with leverage, you can multiply your returns.
Notably, you should know that crypto CFDs are not legal everywhere. Therefore, if these instruments are illegal in your region, your other option to trade Shiba Inu in the short-term might be to use a traditional cryptocurrency exchange.
However, most of these exchanges are not regulated, making them less credible and more susceptible to nefarious activities that might compromise your money.
How To Trade Shiba Inu (SHIB) Online - Setting Up A Trade
After understanding the use of CFDs and the best broker for that purpose, you need to learn how you can set up your Shiba Inu trade. This is essentially how you instruct your broker on what to do concerning your position.
That is, this is the stage you input your stake and determine when the broker should open your position, whether immediately or at a target price.
As a beginner in the cryptocurrency trading world, you must learn about buy and sell orders.
Buy or Sell Order
When setting up your Shiba Inu trade, you need to specify whether you’re using a buy or sell order.
- Suppose you’re speculating on a price increase. In this case, you’ll be starting with a buy order on Shiba Inu. Then, you’ll close the position with a sell order.
- However, if you’re going short, you’ll be using a sell order first. Then once you’re ready to close the trade, you’ll do so with a buy order.
To put this simply, the order you use to open a Shiba Inu position will be the opposite of the one you’ll be closing the trade with.
Your entry price refers to the particular point at which you enter a market. So, if Shiba Inu is selling for $0.0000074 per token and you enter the market at that value, that will be your entry price.
There are essentially two methods to execute your Shiba Inu entry price. You can either use a market or a limit order.
Concerning a market order, the entry price is not determined by you. You simply need to enter your stake and the broker will execute your Shiba Inu trade at the next available price.
This means that there might be a slight difference between the quoted price you see on the broker and the value at which your Shiba Inu trade will be opened. After all, the market constantly fluctuates.
However, even though market orders don’t allow you to determine the entry price, they are the best option if you need to jump on an opportunity immediately.
Limit orders, on the other hand, will allow you to determine your entry price while setting up your trade. This makes limit orders more suitable for when you have a well-researched Shiba Inu trading plan.
However, you should note that if you set a target price and the token never reaches that point, then your position will not be opened.
When you open a Shiba Inu position, you’ll eventually have to close it to exit the market. This is why you need an exit strategy and this can happen in two ways.
Here are the two orders for that purpose.
- Take-Profit Order - This is what you use to instruct the broker on when your position should be closed. Therefore, once Shiba Inu increases up to the particular price you set, the broker will close your position.
- Stop-Loss Order - On the flip side, the market might not go as you desire. In that case, this order is how you instruct the broker on the amount of loss you’re willing to bear. Therefore, once Shiba Inu’s price reaches the set stop-loss point, the broker will close your trade.
Let’s contextualize this to show you how it works
- You decide to trade the SHIB/USD pair.
- Suppose the pair is currently valued at $0.0000074 and you intend to go long.
- Consequently, you elect to buy the token using a limit order. Therefore, you set $0.0000076 as the entry price.
- You’re looking to make about 40% profit, so you create a take-profit order at $0.0000106.
- Also, you don’t want to incur more than a 20% loss below your entry price, so you set your stop-loss is set at $0.0000015.
From this hypothetical case, if the market moves in your favour, then the broker will close your position once Shiba Inu reaches $0.0000106.
However, if the market moves in the opposite direction, your stop-loss order will be executed once Shiba Inu reaches $0.0000015. This will prevent you from losing too much of your trading capital.
Essentially, the benefit of these orders is that you can automate the process of opening and closing positions. That way, you don’t have to constantly watch the markets when trading Shiba Inu.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How To Make Money Trading Shiba Inu (SHIB)
As you might have realized so far, the process of how to trade Shiba Inu is not difficult. You only have to make informed predictions to secure a profit.
However, certain factors contribute to how much profit you can make when buying and selling digital tokens. Therefore, we will consider all these factors so you can further understand how to trade Shiba Inu.
Shiba Inu Stake
When setting up your Shiba Inu trade, you’ll need to determine your stake. This refers to the amount you’re putting behind the asset. As you can imagine, the higher the stake, the more returns you stand to make from your Shiba Inu trade.
In the same manner, a high stake would also mean a substantial loss if your market prediction is wrong.
Considering the importance of your stake, it’s crucial that you exercise some care when making that decision. More importantly, ensure you don’t decide on your Shiba Inu stake based on instincts. Always make sure you have a clear strategy that will serve as a guide for all subsequent positions.
An effective way to keep your stake in check is to set a maximum amount you’re willing to put behind Shiba Inu for each trade.
- For instance, you can decide not to go beyond 2% of the amount in your trading account.
- This means that every time you open a Shiba Inu trade, your stake won’t surpass the set 2% level.
- That is, if you have $10,000 in your account, your maximum Shiba Inu stake would be $200
If you’re utilizing a strategy like this, it’s only right that you choose a broker that allows you to trade Shiba Inu with small amounts. For instance, with eToro, you can trade Shiba for as little as $25. This reduces your risk exposure while trading SHIB tokens.
Shiba Inu Trading Leverage
When you use leverage while trading Shiba Inu, you can enter a position worth more than you have in your brokerage account.
- You might assess the Shiba Inu markets and decide to open a position valued at $1,000.
- However, you only have $100 in your trading account.
- Here, leverage of 1:10 is all you need to make this trade happen.
- With leverage, you’ll only be using the $100 in your account while getting the rest from the broker.
- Therefore, if the market moves in your favour and you make a 20% profit, that’s a return of $200 on your $1,000 position.
- However, if you had opened the trade without leverage, a 20% profit would have amounted to just $20 on the $100 position.
However, as enticing as leverage might appear, you must have an adequate understanding of risk management before using it.
Additionally, you’ll need to research thoroughly on Shiba Inu before trading the project with leverage, because if your speculation is wrong, you can equally incur a substantial loss.
Fees to Trade Shiba Inu Online
A broker’s fee structure can affect the profitability of your Shiba Inu trades. This is why you should consider cost-effective brokers like eToro - where you trade Shiba Inu on a 0% commission basis.
When learning how to trade Shiba Inu, here are some of the fees you should note. Knowing more about these fees will ensure you’re not taken aback when you come across them on your chosen broker.
Shiba Inu Trading Commission
The trading commission refers to the fee charged by a broker for facilitating your Shiba Inu trades. This fee is determined by a few factors such as the class of asset you’re trading, the size of your stake, and more.
- Some brokers charge a fixed fee on all your Shiba Inu trades.
- Therefore, if the fixed fee is 2%, you’ll be paying $20 on a $1,000 Shiba Inu stake.
- When you close the trade as well, the same fee will apply.
- Meaning - if your Shiba Inu trade is now worth $1,400 by the time you close the position, then you’ll be paying $28 (2% of $1,400) in fees.
But while many platforms will charge commissions, there are certain brokers that don’t. For example, at eToro, you can trade Shiba Inu on a 100% commission-free basis. Here, all you need to concern yourself with is the spread.
Shiba Inu Spread
The spread refers to the difference between the buying and selling price of Shiba Inu. Therefore, as a cryptocurrency trader, you want the tightest spread possible so you can make a meaningful profit.
Once you obtain a tight spread, you won’t have to expend so much of your profits to cover the loss created by opening a Shiba Inu position.
For instance, if you choose a broker that offers you a 5% spread between the ask and bid price of Shiba Inu, that means you need to make a profit that’s above the 5% level to break even and secure some returns.
Other Shiba Inu Fees
Apart from the spread and commissions, there are some other fees you should know about when learning how to trade Shiba Inu.
We have discussed the most common ones here.
- Deposits and Withdrawals - Some brokers might charge you a fee for adding funds to your account. In the same manner, when you process a withdrawal, you might also be charged a fee. The rate at which each broker will charge these fees depends on some factors such as the size of the transaction and the payment method utilized.
- Overnight Fee - This will be charged on every Shiba Inu CFD position you leave open for more than 24 hours. For each day after that, you’ll be charged an overnight finance fee until you close the trade.
- Fees for Inactivity - There is a chance that a broker will have a policy on minimum trading activity. If you are not trading as expected, the broker might charge you fees for inactivity.
Essentially, you’re expected to familiarize yourself with the fee policy of the broker you’ve chosen. That way, you won’t be caught off-guard concerning any potential charges.
How To Trade Shiba Inu (SHIB) - Step-by-Step Walkthrough
In this section of our How to Trade Shiba Inu Guide, we will take you through the steps to get started with making a profit from this token.
Here, we will discuss how to choose the right Shiba Inu broker and the steps involved in utilizing the platform.
Step 1: Select a Shiba Inu Broker
As we have covered in this How to Trade Shiba Inu Guide, the importance of a credible broker cannot be overemphasized. With a regulated broker like eToro, you can trade Shiba Inu in a safe and cost-effective manner.
So, when you’re looking to choose a broker, here are some of the crucial factors to consider.
- Regulation: When looking to trade Shiba Inu, your goal is to do so with a credible broker. Regulated brokers are crucial - because they are often authorized by leading financial bodies like the FCA.
- Fees: It’s important to consider a broker that allows you to trade Shiba Inu in a cost-effective manner. Therefore, you must examine the fee structure of the broker you’re choosing.
- Payments: You don’t want to sign up on a broker only to realize you cannot easily fund your account. Therefore, you should go for a broker that supports different payment options such as debit/credit cards, e-wallet options, and wire transfers. eToro supports all these options.
- User Interface: You should consider whether a broker has a friendly design that makes it convenient for you to navigate your way around. The best brokers will provide you with prompts to guide you through your trading journey.
- Minimum Deposits: With most Shiba Inu brokers, there’s a required minimum amount of funds you must first add to your account. This is referred to as the minimum deposit requirement, and it varies across brokers. For eToro, the minimum deposit is $200 ($50 for US clients)
- Supported Markets: The best brokers will support different Shiba Inu trading pairs. This means you’ll be able to trade Shiba Inu in both fiat-pairs and crypto-pairs.
- Mobile Application: A broker with an app offers you more convenience. You can simply open the mobile app anywhere and trade Shiba Inu on the go.
As a beginner looking to choose the right broker, it might take you some time before you find a platform that ticks all these boxes. As such, we’ve done the research for you and found eToro to meet all the criteria listed above.
The trading platform is a credible broker that’s regulated by leading financial bodies like the SEC, CySEC, and the FCA. Additionally, as a 0% commission broker, eToro allows you to trade Shiba Inu in a cost-effective manner.
eToro is also suitable for both short and long-term Shiba Inu trading strategies. If you intend to trade Shiba Inu in the short-term, eToro allows you to do so via CFD instruments. If you also decide to trade Shiba Inu in the long-term, the broker has an in-built wallet for you to store your tokens, making it seamless to buy and hold your coins.
Therefore, we shall use eToro to show you how convenient it is to start trading Shiba Inu.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Step 2: Open a Shiba Inu Trading Account
Opening your trading account on eToro can be done in a few minutes. Simply sign up with an email address and set a password. You’ll also have to provide some personal details such as your full name, home address, and date of birth.
Following that, you’ll have to verify your identity by providing a government issued-ID such as a driving license/passport.
You’ll also need to provide proof of residence by uploading a document containing your address. This can be a utility bill or your bank statement.
Step 3: Add Funds to Your Account
Once you’ve set up your account, the next thing is to add funds to it. On eToro, there’s a minimum deposit requirement of $200, which you can add to your account through a debit/credit card, e-wallet, or wire transfer.
Step 4: Choose a Shiba Inu Trading Market
After funding your account, you can now proceed to look for Shiba Inu using the search box. From there, you’ll find your chosen Shiba Inu pair.
Step 5: Place Shiba Inu Trade
Once you get to the Shiba Inu trading page, you can choose the order by which you intend to enter the market. Also, you’ll need to decide on what your stake will be.
Once you do all that and confirm you’ve made the right inputs, you can click the ‘Open Trade’ button.
In doing so, you have successfully opened your Shiba Inu trade on eToro - commission-free!
How To Trade Shiba Inu (SHIB) Guide - The Verdict
When researching how to trade Shiba Inu, you might find the process a bit cumbersome, especially if you’re a beginner. However, you can ease this process when you use the right broker. eToro is a good example of a broker that makes trading Shiba Inu convenient for you.
All you need to do is ensure you research adequately before you start trading Shiba Inu. That way, you’ll know enough about the project to make informed decisions. With eToro, you get to trade Shiba Inu on a 0% commission basis and the minimum stake is just $10.
eToro – Best Platform To Trade Shiba Inu
eToro have proven themselves trustworthy within the crypto industry for years – highly recommend them.
How To Trade Shiba Inu FAQs
How to trade Shiba Inu?
With a regulated broker like eToro, you can trade Shiba Inu seamlessly. The broker allows you to trade the token 100% commission-free and at a minimum stake of just $25.
How much should I risk on Shiba Inu?
eToro allows you to start trading Shiba Inu for as little as $25. Therefore, how much you risk on the token is ultimately dependent on your trading plan, risk appetite, and financial standing.
How to make money from Shiba Inu trading?
You can make money from trading Shiba Inu when you predict the markets correctly. Therefore, if you decide to go long on Shiba Inu and the token’s price increases, you’ll be able to secure a profit from that market movement.
Can I trade leveraged Shiba Inu CFDs?
When you trade Shiba Inu CFDs, you get access to leverage that you can use to magnify your positions. First, however, you’ll have to choose a broker that supports CFD trading. One such broker is eToro - which is regulated by several reputable financial bodies.
Which is the best broker for trading Shiba Inu?
The market is filled with numerous brokers, which you can use to trade Shiba Inu. However, your best bet is to use a broker like eToro that’s both regulated and cost-effective. This way, you can make a profit on your Shiba Inu trades in a secure and low-cost manner.