Is it worth investing in Shiba Inu, or is it better to trade SHIB right now?
According to the website, Shiba Inu is 'A Decentralised Meme Token that Evolved into a Vibrant Ecosystem.' Shiba Inu is the network, and the native token is SHIB.
It's the first crypto community solely run by members and without leaders. The community, known as the ShibArmy, has a mission is to build a decentralised global financial standard.
The question is, can a community drive the Shiba Inu project without leadership? Only time will tell, but the ShibArmy are determined to disrupt centralised finance.
Created by an anonymous founder named Ryoshi, half of the SHIB token supply went to Vitalik Buterin, founder of Ethereum. The remaining 50% is locked on Uniswap, a decentralised crypto liquidity platform.
According to various online sources, in 2021, Vitalik burned 90% of the SHIB tokens, valued at $6.7 million at the time, and sent the remaining 10% to an Indian Covid-19 relief fund.
In October 2021 Shiba Inu made significant headway, reaching an all-time high. Shiba Inu price gained 300% in just a few days, making it one of the top-performing cryptos for that month. The following week, Shiba Inu (SHIB) pushed Dogecoin (DOGE) off the #9 position of listed cryptocurrencies.
However, months later, SHIB has lost market gain and is now sitting at #15, losing 4.43% of value in 24-hours and 50% over the last week (Coinbase).
What happened to cause such a decline in SHIB's value? Along with the market drop, the primary reason is that a crypto whale moved almost $3 billion of SHIB tokens.
A crypto whale is an investor with a large amount of crypto sufficient to influence market prices when they withdraw their tokens.
This whale made four transactions of 10,000,000,100,000 SHIB in November 2021 to four different crypto wallets. Moving almost $3 billion worth of SHIB is enough to influence crypto market prices. Moves like this worry anyone invested in SHIB that large holders of the token may be about to cash out, which means further price drops.
Tom Robinson, the co-founder of Elliptic, a blockchain forensics company, said, "It looks like there were four transactions out of that account yesterday, each sending $695 million of SHIB to a different account—so a total of $2.78 billion," and went on to add "Whoever it is purchased the shib on Uniswap about a year ago, for not very much."
In 2021 this SHIB whale invested $3,400 in SHIB tokens which turned to almost $3 billion. And had you invested $10 in SHIB tokens in August 2020, by 21st October, you'd be sitting on $1.27 million worth of SHIB.
Yes, by November 2021 Shiba Inu (SHIB) had made 12,733,233% increases. These spectacular gains are every crypto investor's dream.
But, how about now? Has the bubble burst for Shiba Inu (SHIB)? Is it worth investing in Shiba Inu, or is it better to trade SHIB right now? This post will help you decide whether to invest or trade Shiba Inu.
Contents
- Who Founded Shiba Inu?
- How Does Shiba Inu Work?
- Investing In Shiba Inu
- How To Trade Shiba Inu
- How To Set Up A Secure Wallet For Shiba Inu
- Recap Of Is It Better To Invest Or Trade Shiba Inu
Shiba Inu is a self-proclaimed challenger to Dogecoin (DOGE), and the ShibArmy promotes SHIB as the "Dogecoin Killer" The two tokens have been battling for the top ten position for several weeks.
Shibu Inu's recent success may have resulted from the speculation of Robinhood crypto exchange adding SHIB to its platform. Robinhood offers zero fees for buying and selling cryptocurrencies, making it popular with crypto traders as most other platforms charge around 4%.
Getting listed on Robinhood would open the SHIB market to potentially millions of crypto traders. However, Vladimir Tenev, Robinhood CEO, has denied any truth to the rumours.
Kraken, a popular crypto exchange, in November 2021 tweeted that if it (the tweet) gets "2,000 likes, we will list SHIB tomorrow." The post got over 80,000 likes, but Kraken backed up on their first tweet, saying, "There's more work for us to do as we move through our listing review process." However, the exchange listed SHIB at the end of that month, boosting its price.
Who Founded Shiba Inu?
Ryoshi remains the anonymous founder of Shiba Inu. Earlier last year, he posted on the Medium platform, saying, "I am nobody. I am not important. The efforts to unmask my "identity", even if successful, would be underwhelming. I am just some guy of no consequence tapping at a keyboard, and I am replaceable. I am Ryoshi."
Whoever "he" is, Shiba Inu has gained staggering support from followers. Shiba Inu has over one million ShibArmy members and thousands of followers on Twitter, Reddit, Discord, Instagram and the Shiba Ecosystem Telegram channel.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How Does Shiba Inu Work?
The SHIB coin is an ERC-20 token powered by Ethereum on the Ethereum network. It leverages smart contracts to create decentralised financial products.
Shiba Inu is an ecosystem with two other tokens:
- BONE – limited to a supply of 250,000,000 tokens. When you own BONE tokens, you have voting rights on anything essential for Shiba Inu. The more BONE tokens you have, the greater the weight of your vote. Shiba Inu believe that the BONE token will take Decentralised finance (DeFi) to the next level
- LEASH – an independent ERC-20 token, limited to a supply of 100,000
The Shiba Inu network is secured with a PoS (proof of stake) consensus, which means that SHIB users add to the network's security by buying and staking their SHIB, with no need for expensive proof of work (PoW) consensus for mining, such as with Bitcoin.
In July last year, Shiba Inu launched ShibaSwap exchange, a decentralised platform trading cryptocurrency. Users can stake SHIB for BONES, mined by staking SHIB on the exchange.
Investing In Shiba Inu (SHIB)
Before investing in Shiba Inu (SHIB), it's worth remembering that sentiment drives crypto prices. With almost $3 billion moved off the market, numerous small investors are running scared and may pull out their SHIB investment. With each price decline, investors lose more confidence. It becomes a vicious cycle.
The essential thing is to take an overview of Shiba Inu as a whole. Does the project have utility and purpose? Is it sustainable, and what is ShibArmy's mission, apart from getting rid of Dogecoin?
When prices drop for any financial instrument, it can present an opportunity, which means you can buy SHIB at a better price, wait for it to come back up and take profit on the way. However, there are some concerns to explore before investing in Shiba Inu (SHIB).
According to Coinbase, the cryptocurrency exchange and ecosystem, SHIB investors hold SHIB for only ten days. Compared to other cryptos like Cardano (ADA) 68 days, Litecoin (LTC) 97 days, and Ethereum (ETH) 79 days, SHIBs poor median holding times could suggest a lack of confidence from investors.
This data is concerning for potential investors. With the arrival of ShibaSwap in 2021, SHIB holders can stake their coins and earn interest. One would expect to see the median hold time rise significantly, as SHIB holders have the chance to make money from their SHIB tokens. But, so far, this is not the case.
You can look at this situation in two ways. Either you buy SHIB now and hold for the long term, refusing to be influenced by the hype that SHIB is currently in an inevitable decline. Or you can wait for a better price by waiting to see if SHIB breaks below the support level. If it breaks $0.0004500, the chances are that further price drops are inevitable.
Check Out: Pros and Cons of Investing in Shiba Inu Coin
How To Trade Shiba Inu (SHIB)
Trading Shiba Inu (SHIB) for most of 2021 was a dream come true for crypto traders.
With massive price rises, the overarching upward trend brought significant gains.
Image above: SHIBA INU /USD daily chart
The above chart shows SHIBA INU/USD from 21st August to November 2021. In such a short period, trading the SHIB growth gave huge returns for crypto traders. But, if we're looking at trading SHIBA INU/USD in November, let's take a closer look at the chart.
Below is the 4-hour chart for SHIBA INU/USD in November 2021
On November 7th, SHIBA INU/USD was $0.00005073, and you can see the support level at around $0.00004500 (black horizontal line). Many crypto traders anticipate that this support level is strong enough to resist further price drops to the downside.
However, if you look at the green horizontal line below, there is significant support at $0.00002352, where the SHIBA INU/USD price hovered for several months before the price rocketed to new highs.
Experienced crypto traders know that if the SHIBA INU/USD price breaks below $0.00004500, retests, and retracts from support (now resistance), there's a high probability that SHIBA INU/USD will retrace to around $0.00002350
What will Shiba Inu do next?
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Image: 4-hour chart for SHIBA INU/USD in November 2021
Trading Shiba Inu right now isn't an option. With so much uncertainty created by dropping off the top ten list and the whale shifting millions of SHIB, any trades would be purely speculative and nothing more than a gamble.
In the chart image above, we saw two potential outcomes for SHIB INU/USD, which was forming a descending triangle pattern:
- SHIB INU/USD breaks out of the triangle (scenario 1) – typically, when a crypto price breaks out of a descending triangle or trendline, it will return to the breakout point, retest, and then gain bullish momentum. The target exit point is at the top of the triangle's left side, at $0.00008918.
It's an idea to split your trades into two or three lots, taking profits at various points before the high. Today, the SHIB price has seen a rally from buyers, but a wick is forming. If the price retraces from the top of the descending triangle, it may try again, gradually squeezing the price into the tip of the triangle. - SHIBA INU/USD breaks through the support level (scenario 2) – If SHIBA INU/USD breaks below support at $0.00004500, wait for a retest and look for bearish momentum, such as a large red candle with no wick. Your ultimate target is the next support level at $0.0002352.
Reduce your risk by splitting your trades into two or three lots and taking profit on the way down. Crypto trading is challenging at the best of times, and regardless of probabilities, it's easy to find yourself on the wrong side of a trade suddenly.
Keep an eye on the crypto news sources, tweets from high profile investors or any sudden, dramatic price shifts that could indicate a whale selling their SHIB or making a significant investment.
It takes millions of dollars to shift a crypto price, which can be cumulative with hundreds of thousands of crypto traders. But when a crypto whale leaves or enters the market, prices can go crazy.
Whether you invest or trade Shiba Inu (SHIB), it's essential to have a secure wallet for safe storage.
How to Set up a Secure Wallet for your Shiba Inu (SHIB)
Whether you decide to invest or trade Shiba Inu, you need a secure wallet to protect your SHIB so as to reduce the risks of hackers on an open cryptocurrency exchange.
- Create a MetaMask wallet – you can do this with a desktop PC or laptop or an IOS/Android device. Once you have the wallet, you can buy and sell or send and receive SHIB and LEASH tokens.
- Send ETH to your wallet – You can buy Ethereum (ETH) from most crypto exchanges, such as Binance, Kraken, Etoro and Coinbase. Transfer the ETH to your MetaMask wallet using the ERC-20 network.
- Connect your wallet to ShibaSwap – from your MetaMask wallet, click on "Connect to a wallet" and connect to ShibaSwap.
- Swap your ETH for SHIB, BONE or LEASH – as soon as you have available ETH, you can begin swapping. Click on "select a token" and enter the token address. If you don't know the address, you can search on the tokens list.
Don't Miss: What Are The Safest Ways To Store Shiba Inu Coins?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Recap of is it Better to Invest or Trade Shiba Inu
We started by asking the question, "is it better to invest or trade Shiba Inu?"
The thing is that neither is much of a viable option right now.
Shiba Inu made spectacular gains this year. Shoving Dogecoin off the #9 position must have felt like a massive achievement for the ShibArmy and the loyal band of followers. The "Dogecoin killer" had won the first battle. But losing market gain by 14% overnight must have hurt and seeing Dogecoin back in the top ten.
Let's remember, however, there are over 17,100 listed cryptocurrencies, so Shiba Inu is not down and out just yet.
It appears that the primary cause of the rapid SHIB exit from #9 was a massive whale moving his SHIB off the crypto market.
What does the future have in store for Shiba Inu?
Technical analysis determines that one of two things needs to happen.
- Shiba Inu must break out of the descending triangle to make further gains
- Shiba Inu may break the support level at $0.0000450 when the price will likely halve as the next support level is $0.00002350.
Shiba Inu investors need their confidence restored. Most investors are not holding onto SHIB for more than ten days, even though they can make money on ShibaSwap by staking their tokens.
Shiba Inu traders must also wait to see what happens with the price of SHIB before actively trading Shiba Inu (SHIB) again.
As the time of writing, so far, Shiba Inu has made 7% gains. If momentum continues over the coming days and weeks, more Investors may get involved in Shiba Inu and push the price back up, creating a more productive trading environment.
It's tricky to answer our opening question because of so many potential scenarios.
Weighing up the pros and cons of whether to invest or trade Shiba Inu, the choice, right now, can only be determined by your long-term and short-term requirements for investing in Shiba Inu or trading Shiba Inu.
Please note that the above information is not providing advice on tax, investment, or financial services. We provide the above information without consideration for risk tolerance and a specific investor's financial circumstances.
Trading or investing in financial instruments such as cryptos may not be suitable for all investors. It does involve risk and the possibility of a loss of capital. There are no guarantees for profiting from cryptocurrencies, and it's advisable only to risk what you can comfortably afford to lose.
Where Can I Buy Shiba Inu (SHIB)?
You can buy SHIB from multiple cryptocurrency platforms such as Binance, Kraken and many more.
Earlier this year, the world's leading social trading platform, eToro, added SHIB to its extensive list of cryptocurrencies. eToro is a user-friendly platform for buying SHIB, which is excellent for beginners as some of the cryptocurrency exchanges are a bit of a challenge to navigate.
To buy Shiba Inu (SHIB) from eToro
- Sign up on the eToro website and provide proof of identity (passport or driving licence) and a recent utility bill
- Deposit funds – the minimum deposit is variable between $50 - $200, depending on your country
- Buy SHIB.
- Click on "Trade Markets", "Crypto", and "SHIB"
- eToro has a proprietary crypto wallet where you can add SHIB and most other cryptocurrencies
eToro – Best Exchange To Buy Shiba Inu
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Is It Better To Invest Or Trade Shiba Inu - FAQs
Will SHIB dip below $0.0000450 before the end of the year?
When a cryptocurrency has a sudden price dip, it shakes investor confidence, especially while other cryptos rally and make new highs. If investors withdraw SHIB to invest in other cryptocurrencies, it will cause further price declines. Today's SHIB price is $0.00005005, not far from the $0.00004500 support level, and as other cryptos are rallying, SHIB will likely test the support level over the next few days.
Does Shiba Inu have a real-world utility?
Cryptotwerk, an online business directory, lists 100 global merchants that accept SHIB tokens, a surprisingly low number for a coin focused on payments. The fact is there's nothing distinctive about Shiba Inu. Other cryptocurrencies offer faster and cheaper transactions than Shiba Inu and have better utility. Much of Shiba Inu's success has been emotion-driven, with the ShibArmy and a legion of social media followers focused on making money from the massive price movements rather than investing in the utility and purpose of Shiba Inu. But, today, the same can be said for many cryptocurrencies because they have become a recognised vehicle to riches, and everyone is jumping on the crypto bandwagon, hoping to become a crypto millionaire.
Is it worth investing in Shiba Inu (SHIB)?
Whether to invest in Shiba Inu (SHIB) is your decision. Right now, the uncertainty about the price direction of SHIB is causing crypto investors to wait and see what happens next. Look at the SHIBA INU/USD chart examples above and consider investing when scenario 1 or 2 plays out.
Is it worth trading Shiba Inu (SHIB) right now?
Trading cryptocurrencies requires considerable trading skills, but the essential criteria for trading SHIB are that you need price movement and an assessment of the probability of a trade's success. Today, Shiba Inu (SHIB) is stuck between a rock and a hard place. Nothing much is happening until the price breaks support or breaks out of the descending triangle. Watch the market, set alerts for Shiba Inu news reports and check CoinMarketCap to see if Shiba Inu (SHIB) is gaining or losing market cap.
How do I join the Shiba Inu community?
Shiba Inu has over a million members of the ShibArmy and almost 600k social media followers. Check them out - Reddit: r/SHIBArmy; Twitter: @shibacommunity; Facebook private group: Official Shibatoken Community; Discord: Official Shibatoken Community; Instagram: @shibatoken_official; Telegram: /ShibaInu_Dogecoinkiller
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