Is Shiba Inu A Buy?
A low-value coin but with a strong association and potential for future growth
- Shiba Inu has a solid association with other coins, such as Dogecoin.
- Although relatively new, Shiba Inu is useful as a currency
- Shiba Inu has a low processing fee an opportunity to have more returns
- Shiba Inu has a high liquidity ratio
With so many cryptocurrencies available, it becomes hard to decide which of those currencies to invest in with limited capital.
There are now more than 5000 cryptocurrencies and counting. Before you invest in any digital coin, and especially the altcoins, ensure that you carry out extensive research to understand what those coins have to offer.
Shiba Inu (SHIB) is one of the altcoins that has been making up roads since 2020. The coin was established or developed by an anonymous person called Ryoshi. It is an ERC-20 token built on the Ethereum network.
Shiba has quite an interesting story. It was developed not for any other purpose but to surpass its predecessor Dogecoin. It was even referred to as the ‘Doge Killer’. Its association with Dogecoin saw its price shoot up significantly.
Another interesting story associated with Shiba Inu was its association with Vitalik Buterin Ethereum network developer. After it was developed, the developers locked half the tokens into Uniswap to enable liquidity providers in Shiba pools to earn some rewards, the other half of the tokens they sent to Buterin.
Ryoshi was hoping that Buterin would keep the tokens making them worthless. Instead, those tokens accrued a value of $1 billion which Buterin donated 20% to charity. This donation transformed Shiba and the digital currency industry giving it legitimacy and a much larger following.
Having known that, do you still consider Shiba is a buy? There are a few reasons that make Shiba an attractive investment. Some of those reasons are:
Shiba Inu Has a Strong Association with Dogecoin
Shiba Inu's close association with Dogecoin is driving its value up. Dogecoin was developed as a parody coin, making fun of individuals that bought cryptocurrency that they did not understand.
Shiba followed in its footsteps with the sole aim of surpassing its value. However, SHIB has branded itself as a 100% community-based cryptocurrency. Even then, it is not very clear what its purpose is, but the Shiba community is still rooting for it.
As long as Dogecoin continues to grow, so will Shiba as it seems to follow into Dogecoin’s path. However, it is unlikely that Shiba will surpass its counterpart anytime soon or ever.
Shiba Inu is Listed as a Payment Option by GrupoCinco
Most cryptocurrencies have no real-world use cases. They rely on their online communities to push their prices up.
Only a few like Bitcoin and Ethereum are used as currencies. Shiba Inu is joining this list of currencies having been listed as a payment option in GrupoCinco. This listing gives the coin some credibility, making it a nice option to consider adding to your list of cryptocurrencies.
Check Out: Is Now the Right Time to Buy Shiba Inu?
Shiba Inu Price is Too Low
Shiba Inu is retailing at a very low nominal price. At the time of writing this article, one token was selling at above $0.00002.
You can buy a lot of tokens for just $100. Compared to bitcoin and ether that are now trading at thousands of dollars, it seems like a safe bet if you are just starting out investing in crypto.
You might not make a lot, but Shiba is still a buy if you are going in for the long term. With that $100, if Shiba was to $1, you would make upwards of $1.4 million. If the coin never makes it there, you will only have lost $100.
SHIB Has Low Processing Fees
When you buy established cryptocurrencies such as Bitcoin, you will pay quite a large processing fee. Even when buying just one Bitcoin, you will pay a lot in fees considering the current price of Bitcoin.
Buying SHIB is so easy and almost free. You will not even notice the commission you get charged when buying SHIB from the various exchanges on which it is listed.
The low transaction fee means that you will make more money since you will not have the commission eating into your profit.
Shiba Has a High Liquidity Ratio
It might not be a very popular coin, but Shiba is riding high nonetheless when you consider its liquidity ratio.
The liquidity ratio is the ease with which you can transform your assets into cash.
The easier it is, the better. If you want to know how fast you can convert your coins into cash when you need it, you check its trading volume in the last 24 hours.
Shiba’s trading volume in the last 24 hours was just above $1 billion. It is an impressive ratio considering the price of this coin. That means if you want to sell like 1,000,000 coins in a day, you will do so with ease.
So, should you still invest in Shiba Inu? The best person to make this decision is you. Shiba's growth trend is not as impressive, but it still has some potential. You need to carry out extensive and intensive research before investing in any coins. This article gives you just an overview, so ensure you read a bit more before finally deciding to invest in Shiba Inu.
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