Pros and Cons of Investing in Shiba Inu Coin

Is It a Good Idea to Invest in Shiba Inu Coin?

Last Updated January 28th 2022
31 Min Read

It would be in your interest to learn to get to know more about the pros and cons of investing in Shiba Inu Coin that will give you an extensive insight as to whether it is a good idea to invest in Shiba Inu Coin. 

Shiba Inu Coin is one of the relatively newer tokens that could serve as one of the best hedges on your portfolio of investments. In this article, we are going to take an in-depth look at why you may consider investing in Shiba Inu, the pros and cons, and other vital details to look out for before risking your hard-earned money. 

Before investing in Shiba Inu, you must go deep into the crypto project and get to know its future potential in the market. With no prior knowledge about the possibilities of the digital asset, investing in Shiba Inu Coin increases your chances of suffering massive losses within a short period. 

First and foremost, Shiba Inu isn’t one of the newest cryptos with huge technological innovation. Instead, it offers something similar to what cryptocurrency users are used to. Shiba Inu, unlike Cardano, Tron, EOSIO, Binance Smart Chain, Ripple, or Stellar, is an entirely new kind of payment system that facilitates transactions over the internet without intermediaries such as traditional banks, clearinghouses, and insurance companies. What’s more, Shiba Inu does not have a Chief Executive Officer (CEO) or a transparent team that guides the project. It is entirely decentralized. 

While this new project which seems to be taken the crypto finance space by storm presents a great opportunity for investments, you must know what Shiba Inu is, the primary purpose behind the creation of Shiba Inu, and any potential red flags to watch out for which can be a detriment to the success of the cryptocurrency. This is because no cryptocurrency has a perfect price history. 

Contents:

What is Shiba Inu?

Shiba Inu is a decentralized protocol that can be used to send and receive money globally via the internet. Shiba Inu was built and runs on the Ethereum Network as an ERC20 token. It was created by a man or group of people with the pseudonym RYOSHI and released to the general public in August 2020. Due to its high decentralization, the project is overseen by its community.

Shiba Inu effectively exists as three separate but interconnected entities. 

  • The Shiba Inu Protocol: This is the digital payment network that facilitates financial transactions. 
  • SHIB: This is the digital currency that works on the Shiba Inu Protocol. It is also the ticker symbol, Shiba Inu trades on the various cryptocurrency exchanges worldwide. 
  • Shiba Inu Community: This is the community behind the project since the founders have made the project transparent with control in the hands of its fans. 

The main idea behind Shiba Inu is to join the meme-inspired currency hype which has so far been enjoyed by Dogecoin. As per the details of its Woof Paper, SHIB was created by RYOSHI because “We love Shiba Inu Dogs, the brilliant minds behind SHIB had never collaborated before, and we started from zero, with zero.” Moreover, the website of Shiba Inu invites artists who are fascinated with Shiba Inu dogs globally to foster an artistic Shiba movement.

Due to the non-fungible token (NFT) craze that started in 2021, such a movement brings the Shiba Inu Community extremely close to the multi-billion dollar NFT market. Aside from this, using Amazon Smile, Shiba Inu has created a campaign to help with the collection of donations for the rescuing of real live Shiba Inu Dogs in collaboration with the Shiba Inu Association. This gives the project huge mileage which can positively reflect in its valuation.

Ready to invest in Shiba Inu Coin? 

In little more than a year after its release and crypto trading experience, SHIB has returned a staggering 3,300,000% for early investors who believed in its potential in the market. 

Slowly but surely, SHIB has become one of the most trending cryptocurrencies online. Across social media feeds, millions of people continue to ask questions as to whether it has the potential to cross $1 in the future. Several others have purchased millions of SHIB due to its price and the fear of missing out on gains since most of them could not profit from the rallying of Dogecoin in 2021. 

Currently, SHIB continues to see huge investor interests as more and more people pour liquidity into the cryptocurrency. For many crypto and financial analysts, Shiba Inu has the potential to replace Dogecoin as the number one meme-inspired cryptocurrency for secure, standardized, and reliable global payments. That is what the founders are aiming for as it tagged itself Dogecoin Killer in its inception. 

This has caused several analysts to shed opinions about the project. According to the Head of Research and Strategy at cryptocurrency exchange, AAX, Ben Caselin, “Rather than simply dismissing the hype outright, it’s important to realize that what we’re seeing is the mass movement of traders new to crypto moving into space.” Most of these traders come from Asia and the majority are unsophisticated. Thus, they do not embark on any fundamental or technical analysis to make investment decisions. This has contributed to huge spikes in the price of digital assets such as SHIB.

The Chief Executive Officer (CEO), Jay Hao, at one of the high volume cryptocurrency exchanges globally, OKEx has weighed in on Shiba Inu. He pointed out that, “The Shiba Inu Community has been gaining strong momentum from the weekend deposits, and we look forward to witnessing its robust development.” This means that there is a high volume trading on SHIB and this has so far contributed to its thriving trading volume as well as increasing market capitalization.

So, to help you make an informed decision about your next move in such a saturated market, here are the pros and cons of investing in Shiba Inu Coin. 

Trading Education is the leading e-learning organization for trading and investing. As such, we take a lot of pride in bringing you the best information on digital assets. If you want to know the pros and cons of investing in Shiba Inu Coin so that you decide if it is a good idea to invest in SHIB, you can rest assured of being on the right platform.

Read Also: Will Shiba Inu (SHIB) Make Me Rich?

The Pros of Investing in Shiba Inu Coin

What are the benefits of investing in Shiba Inu Coin?

The various price forecasts of several crypto news and prediction portals point to a bullish direction for SHIB. This makes investing in SHIB an attractive option for novice and experienced traders and investors. Let us take an extensive look into the pros of investing in Shiba Inu Coin and why SHIB is a good investment. 

 Shiba Inu Coin is Very Cheap

Currently, SHIB has a trading price of $0.000020. The price of a crypto trading asset is highly essential since it plays a valuable role in helping you as a trader or investor use percentage change to predict the gains you could make in an asset depending on the number of coins purchased. 

At such a price, you can see a 100% profit if SHIB reaches $0.00040 in the future. This is better than, say investing in Ether or Bitcoin.

At Ether’s current price of around $2,400, Ether would have to see huge investor interest to see its price re-tests $4,800 before you can double your money. In the same way, as per the current price of Bitcoin which is trading at around $36,600, Bitcoin will have to rally to a new all-time high price of $73,200 to see a return of 100% for its traders and investors. Using simple mathematics, it would be relatively easier for SHIB to double, triple, or quadruple in price in the short and long term than it would for the first-mover of blockchain and cryptocurrency Bitcoin and the token behind the first-mover of smart contracts, Ethereum. 

As such a trading price, buying 10 SHIBs costs $0.0002, 100 SHIBs ($0.002), 1000 SHIBs ($0.02), 10,000 SHIBs ($0.2), 100,000 ($2) and 1,000,000 SHIBs will deplete your savings by $20. This means that for you to fork out more than $100, you would have more than 5,000,000 SHIBs in your wallet. In the event SHIB should cross $1 in the future, you could be making huge gains in the region of $5,000,000

According to Digital Coin Price, the relatively lower cost of SHIB will see more activity on the digital currency in the short and long term which would drive its price up. According to the experts, SHIB could command a trading price of $0.000028 by the end of 2022, soar to $0.000037 (2023), and settle at $0.000030 to close out 2024 in the short term. The technical analysis-backed crypto portal estimates Shiba Inu Coin could test new highs by reaching average prices such as $0.000047 (2025), $0.000043 (2026), $0.000059 (2027), and $0.000075 by the end of 2028 in the long term.

Read More: Why Shiba Inu (SHIB) Is So Cheap?

 Shiba Inu Coin is a Medium-Cap Asset 

Currently, SHIB has a market capitalization of $11 billion and a diluted market cap of $12 billion. Trading Education wants you to know that according to the categorization of assets, from $300 million to $2 billion is small-cap, $2 billion to $10 billion is medium-cap, and more than $10 billion is large-cap.

This means that the current market cap and diluted cap of SHIB make it a large-cap asset. For an asset to reach such a status, it means it was a small-cap asset that survived, succeeded, and broke out into another zone. While competitors either stayed in the zone or fell off into extinction zones. What this should tell you is that SHIB has moved a lot of places in the global rank of cryptocurrencies. 

At the time of writing, SHIB is in the top 20 digital assets by the market. This is the primary reason while it continues to remain fairly stable in terms of price. 

The recent surge in the price brings extensive coverage in the financial news portal which leads to popularity and 100s of articles being written about the cryptocurrency. This is one of the primary reasons why investing in SHIB in the short and long term is likely to be a good idea. This is because interests in the digital asset will reflect in daily trading volumes. This could rally its price and see to an increment in the valuation of the digital asset as well.

 SHIB Can Interact With DeFi Projects on Ethereum 

Ethereum is the king of smart contracts and decentralized finance. At the time of writing, Ethereum is 5th with 161 in developer activity over 30 days (12 October to 12 November 2021). Kusama & Polkadot (209), Solana (191) and Cardano (183) are the projects seeing more developer activity than Ethereum. Ethereum already comprises at least 1.75 million users and controls more than 68% of the decentralized finance (DeFi) space with regards to the total value locked through decentralized applications (DAPPS).

Aside from this, the estimated number of global crypto users has passed 100 million. Ethereum is the first option of choice for most developers. This is the primary reason why decentralized lending platforms (Aave, Compound, and Maker), as well as yield aggregating platform Yearn Finance, run on the network as ERC20 tokens. This exposes the cryptocurrency (SHIB) to a huge number of people in terms of trading and investing. 

According to the website of Shiba Inu, after Ethereum founder Vitalik Buterin burned 50% of the total supply of SHIB, the remaining 50% of the total token supply has been locked on one of the biggest decentralized exchanges in the space, Uniswap. Uniswap added 58,000 users in July 2020 and by December had surpassed 300,000 monthly active users. What’s more, in January 2021, Uniswap once hit $20 billion in monthly volume.

This was relatively higher than the volumes recorded by some mainstream cryptocurrency exchanges. Going forward, aside from Uniswap, other DAPPS across the space could employ SHIB as an option of payments when making a deposit. This would add up to the activity the crypto token is already receiving on Uniswap and centralized cryptocurrency exchanges. With the rise of DeFi and more developers adding to the ecosystem of Ethereum, the potential for the usage of the cryptocurrency is endless. 

Wallet Investor continues to make bullish forecasts on Ether due to the possibilities of decentralized finance and has made bullish predictions on SHIB. According to the experts, Shiba Inu Coin could command an average price of $0.000058, the least possible price of $0.000045, and the best possible price of $0.000070 by the end of 2022.

At the end of 2023, SHIB could trade for a coin at an average price of $0.000097, the least possible price of $0.000081, and the best possible price of $0.00011. In the long term, Wallet Investor expects SHIB to test the best possible prices of $0.00016 (2024), $0.00020 (2025), and $0.00026 (2026).  

 SHIB Has an Impressive Trading Volume

One of the factors that determine if an asset is going to be a great investment and more essentially have a great future is its trading volume. Since it appeared on cryptocurrency exchanges on 1st August 2020, SHIB has recorded a steady volume. While some cryptocurrencies record 10s and 100s, the crypto trading asset has been impressive. 

On its opening day price, SHIB recorded a volume of $1,604,789. After that day, investors looked elsewhere and volume plummeted to $6,653 on 31st August 2020. Shiba Inu Coin began 1st September on a bright note and recorded $16,378 as its volume for the day. Towards the end of the year, SHIB was trading at an insignificant price with no volumes recorded at all as per data retrieved from CoinMarketCap

Times changed and almost all altcoins have followed Bitcoin into reaching new all-time highs in 2021. Shiba Inu recorded a trading volume of $1,226 on 16th June 2021 and rallied to a new all-time high in trading volume towards the end of the year.

The volumes for 30th and 31st January 2021 stood at $5,708,932 and $23,921,741 respectively. With more unsophisticated traders and investors looking forward to benefiting from the crypto boom, Shiba Inu ended 1st February 2021 at $18,665,191 and closed the last day of the month at $3,832,192

On Monday, 1st March 2021, SHIB recorded a diminishing but impressive volume of $991,095. Most of the meme-inspired currencies started to fade off during the end of the 1st quarter of 2021. In the middle of March, interest in the cryptocurrency soared as more than $11 million was poured into it. As of 31st March 2021, Shiba Inu Coin’s volume stood at $1,022,750.

Trading volume recorded for 1st April 2021 was $1,238,056, $161,689,870 (17th April), and $133,732,362 (30th April). In May when the price hit $0.00003503 the trading volume reached $19 billion. SHIB reached a new all-time high price of $0.000088 on 28th October 2021, recorded a trading volume of $32 billion, and at the time had a market capitalization of $37 billion by the end of the day. SHIB had risen from 1000s to billions trading volume in November.

With more than 17,000 coins at the disposal of traders, this is a huge sum that shows long-term holders still have faith in the cryptocurrency.

With an average trading volume of at least $7 billion in the last month, if more cryptocurrency exchanges list SHIB so that it can add up to the millions of people it already reaches, Shiba Inu Coin can rally to new price highs being forecasted by analysts and experts.

With the impressive trading volumes being recorded, PICK A CRYPTO has made positive forecasts of the cryptocurrency. According to the experts, SHIB could command prices of $0.0002000 to $0.005000 from 2022 to 2025. 

Investing in Shiba Inu Coin based on the direction of experts at the online portal could see you make gains of at least 260% at the end of 2022. 

Check Out: Is Shiba Inu (SHIB) Expected to Reach $10 or More in the Next 5 Years?

 SHIB Has Impressive Exchange Listings

You do not want to struggle before you can find a digital asset online. This is the main reason why the ease of accessing a cryptocurrency plays an instrumental role in driving its price. Whether you want to buy, hold, or sell, it would be extremely exciting to have buyers who are willing to meet your selling price. 

SHIB is currently listed on the largest cryptocurrency exchange, Chanpeng Zhao’s Binance, Huobi Global, OKEx, FTX, and subsidiary of Binance, WazirX. One of the largest exchanges globally, eToro, also listed Shiba Inu (SHIB) in 2021.

The CEO of eToro, Yoni Assia in an interview with Business Insider pointed out that, initially Dogecoin did not seem sensible for investment purposes. Ultimately, eToro decided to list the first-mover in the meme-inspired currency space because DOGEs fanbase is one of the largest, loudest, and funniest communities in the space. In July last year eToro listed Shiba Inu due to high demand.

Earlier alliances such as sending half of the coin’s supply to Vitalik Buterin did not go well. This does not mean the end has come for Shiba Inu. In the future, more partnerships would be formed and other well-known personalities will throw their support behind the coin. This will force the hand of eToro to list the cryptocurrency for trading and investing purposes. 

You should know that eToro’s listing of Dogecoin helped the meme cryptocurrency soar around 50% to a new all-time high. Having one of the top exchanges list Shiba Inu could propel the coin to new all-time highs which will bring huge gains to long-term holders of the cryptocurrency. 

Trading Beasts believe accessibility leads to more liquidity, high volume, and a positive reflection in the price of digital assets. According to the experts, SHIB could trade for a coin at an average price of $0.000031, the least possible price of $0.000026, and a best possible price of $0.000039 by the year’s end of 2022. At the end of 2023, Shiba Inu Coin could have an average price of $0.000033, test a minimum price of $0.000028, and a maximum price of $0.000042 in the short term. 

In the long term, Trading Beasts projects Shiba Inu to trade for a coin at an average price of $0.000035 the least possible price of $0.000030, and the best possible price of $0.000044 by the close of 2025. 

 Shiba Inu Coin Provides a Great Vehicle for Short-Term Gains

Due to its volatility, SHIB is a great financial instrument for day traders, cryptocurrency traders, and arbitrage traders. During bullish and bearish seasons, day traders can take advantage of multiple percentage swings and make huge gains in a short period. SHIB can soar 20% within an hour; gain more than 30% within another hour and plunge by more than 35% in the next hour.

Understanding the financial metrics and knowing the kind of trader or investor you are can help you make more money. For cryptocurrency traders, doing fundamental research and reading technical analysis on Trading Education can help you understand the future price patterns of Shiba Inu Coin. For arbitrage traders who take advantage of the price differences in similar assets, since Dogecoin and SHIB are meme-inspired currencies, you could be making double profits by taking advantage of price changes in the two cryptocurrencies.

It doesn’t matter how bullish or bearish a market is, there are enormous sums of money to be made. There is so much hype around Shiba, it has a high liquidity ratio which affirms investor interest and it’s easily accessible. This way, you can rest assured that there are many people in the Shiba Inu movement who would propel the growth of the protocol as well as its cryptocurrency. 

Don't Miss: 15 Reasons Why You Should Invest in Shiba Inu Today

The Cons of Investing in Shiba Inu Coin

What are the disadvantages of Investing in Shiba Inu? 

You shouldn’t be tempted to look at the pros of investing in SHIB and forget about the cons of investing in SHIB. There is no perfect digital asset. Although the fundamentals and technical analysis point to a bullish pattern, there are pressing issues that could affect the performance of the cryptocurrency. Let us look at the risks associated with investing in Shiba Inu Coin. 

 Shiba Inu Coin Is Not First-Mover in Meme-Inspired Currency

Although Shiba Inu is making waves in the space as another meme-inspired currency or a cryptocurrency poking fun at another joke currency, it is not the first to do this in such a saturated market. Once you make mention of meme-inspired cryptocurrencies, the first name that comes to mind is Dogecoin. 

Aside from this, the name of the crypto is extremely difficult to separate from the Japanese dog. Searching for Dogecoin online means that you are going to find news content on the cryptocurrency as well as the various predictions made by analysts and experts. 

Unfortunately, searching for just “Shiba Inu” leads to several search results which include the dog. You can search for “the pros and cons of buying Dogecoin” and crypto-related articles would pop up directing sceptics of the meme-inspired currency to articles to authentic articles that can help guide them to deciding on the cryptocurrency. 

Unfortunately, if you search for “the pros and cons of buying Shiba Inu”, because of the newness of the crypto, Google, Yahoo, Bing, and other search engines display the pros and cons of buying the Japanese dog and not the cryptocurrency. This is not helping the cryptocurrency’s course in climbing up the cryptocurrency ladder. 

What’s more, you always have to include “coin” to Shiba Inu to make Shiba Inu Coin before you can find investment-related articles on the digital asset. With that said, Dogecoin is to meme-inspired currencies what Bitcoin is to blockchain technology and cryptocurrencies, and Ethereum is to smart contracts and decentralized finance. It would take a great deal of time for Shiba Inu protocol and Shiba Inu Coin to surpass DOGE in all areas (listed on cryptocurrency exchanges, integrated with millions of merchants, price, trading volumes, and market capitalization).

 Shiba Inu Is Not an Independent Blockchain 

Dash, Bitcoin, Ethereum, Dogecoin, Litecoin, Cardano, Tron, and Binance are independent blockchains. Binance and Tron started as ERC 20 tokens just like Shiba Inu. Currently, Justin Sun of Tron and Chanpeng Zhao of Binance decided against staying on the Ethereum Network due to its relatively low processing speed.

But that was not all; they wanted to use their independent blockchains to compete with Ethereum in the future of the possibilities of blockchain technology. Today, they run on the Tron Network and Binance Smart Chain respectively, and have enabled smart contracts with JustSwap and PancakeSwap competing with Uniswap of Ethereum in the decentralized exchange space. 

Since Shiba Inu lacks innovation and does not have a strong team that is trying to change its infrastructure, it may continue to remain as an ERC20 token for the foreseeable future. More cryptos are being added to the market. One vital thing you can see is that new projects which run on independent blockchains such as Internet Computer (ICP) in May tested 100s of dollars within a short period. 

In the future, it would be wise for RYOSHI to follow in the footsteps of Justin Sun and Chanpeng Zhao and move the project to an independent network so that they can contribute to the smart contracts path the whole space is currently heading.

Even Bitcoin through its miners voted for an upgrade called TAPROOT which enabled smart contracts in November 2021. If Shiba Inu continues to stay where it currently finds itself relying on speculation, there could be doom and irrecoverable losses for traders and investors when it heads to extinction zones. 

 Infinite Competition in the Transactional Currency Space 

Shiba Inu is basic. It does not have a strong infrastructure and as a result, does not add any substance to the crypto finance space. Because of this, it can only function as a transactional currency. Popular transactional currencies that see high use rates include but are not limited to Bitcoin, Litecoin, Bitcoin Cash, Ether, Monero, ZCash, Dash, XLM, and Dogecoin.

Millions of people are used to these cryptocurrencies and prefer to use them in their day-to-day transactions. This does not help SHIBs course in trying to break into such a saturated market dominated by an elite few. Once SHIB is involved in relatively lower transactions over an extended period, people may shun it. This could gradually lead to a drop in liquidity being poured into the asset, trading volumes will be hit hard, prices will plunge to new high lows and market capitalization would sink back into the lower side of the small-cap category.

Read Also: The Top 21 Cryptocurrencies to Buy

Will Shiba Inu Coin Become A Millionaire Maker?

YES! Shiba Inu Coin could become a millionaire-maker in the future. With a market cap of more than $30 billion, this continues to go up as more exchange listings are announced and more partnerships that will see SHIB integrated with several merchants online are formed.

With a thriving community behind its continued success, SHIB will likely continue to grow significantly. Always, remember that investments come with risks. Invest in Shiba Inu Coins with an amount of money you can write off as bad debt. 

Shiba Inu Coin could become a millionaire-maker in the following way. At $0.00002, you can purchase 5,000,000 SHIBs and it would set you back $100. In the event SHIB reaches a price of $0.20 (20 cents) in the future, 5 million SHIBs multiplied by a new price of $0.20 equals $1,000,000 (Millionaire Maker).

Check Out: Could Shiba Be A Millionaire-Maker Coin?

Is Shiba Inu Coin a Good Investment?

YES! Shiba Inu Coin could be a good investment according to Gov. Capital. According to the experts, SHIB could reach a price of $0.00012 by the end of 2022. Although the forecasts give a positive light on the cryptocurrency, you must know that most investments come down to two factors which are risks versus reward. Do the potential rewards exceed the possible consequences of the risks? 

Shiba Inu certainly has some risk factors. The crypto lacks innovation, faces infinite competition from mainstream players in its basic function, and it does not run on an independent blockchain to help upgrade the platform to the demands of users.

Have you considered investing in Shiba Inu Coin? 

On the other hand, Shiba Inu continues to gain traction in the space due to the hype from its fans across Twitter, Reddit, and Facebook. Plus, its infinitesimal trading price presents a low barrier of entry for novice traders and investors. Additionally, experienced and sophisticated investors can take advantage of the relatively lower price of the digital asset and buy millions of SHIB without forking out large sums of money. In this way, SHIB can help serve as a hedge on their portfolio of investments. 

To put it simply, Shiba Inu Coin is a low-risk investment that has lots of hidden rewards. You must supplement the thesis provided by Trading Education with independent research from other investment circles to help you make a better decision. 

Therefore, the real question is, does investing in Shiba Inu Coin work? For traders and investors who believed in the asset right from the start, it has returned more than 1,200,000%. Perhaps you can buy millions of SHIBs below $100 and see where it can take you based on your investment goals in the short and long term. 

The pros and cons of investing in Shiba Inu Coin have been explained. If you are feeling inspired enough to start investing in SHIB or other digital assets, eToro has up to 90+ cryptocurrencies that can serve your trading and investing needs. 

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.

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

FAQs

Will Shiba Inu Coin Reach $1? 

Shiba Inu Coin could reach $1 in the future. This price can be breached once millions of merchants adopt SHIB as an option of payment, when a large institution buys a huge chunk of the coins of the market, or if there are more exchange listings to help buy off the coins.

At the time of writing, no analysts using fundamental or technical analysis have made such a forecast. The highest price milestone we should expect SHIB to reach is 10, 20, 30, 40, 50, 60, 70, 80, and 90 cents before we can think of it crossing the $1 milestone. 

Shiba Inu Coin Price Prediction 2025

According to experts at Digital Coin Price, SHIB could command a trading price of $0.000047 by the end of 2025.