What Is Shiba Inu (SHIB)? Should You Invest? And Where to Buy
One of the issues some people have against the cryptocurrency market is that it is like a mill, churning out new coins continuously. To be honest, there are just too many coins out there, making it a little difficult for both experienced traders/investors and newbies to decide on the coin(s) to buy.
One of the major determinants of success is knowing the right coin to invest in. You can’t tell how valuable a coin can be by its name. Shiba Inu, for instance, is a name of a pet dog breed, but it is also the name of a cryptocurrency that is attracting several investors.
Commonly called Shiba, the Shina Inu coin has caught the attention of many investors. While some have already bought significant tokens, others are still considering whether it is the right investment for them.
As already mentioned, it is important to research a coin properly before deciding to invest in it. So, what is Shiba? Should you invest in Shiba? And where can you buy Shiba?
The three questions above are the most important questions any smart investor/trader must ask before venturing into Shiba Inu investment. Here, we are going to provide honest answers to the three questions and more. It is important that you read carefully because you will have to make the decision to invest or not.
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What Is Shiba Inu Coin?
Shiba Inu is an Ethereum-based token that is native to the ShibaSwap platform. It is a somewhat strange coin that has the same theme as Dogecoin but is independent in many ways. It is one of the pet coins that has grown so much in popularity and has attracted many crypto enthusiasts recently.
There are a few pet coins that are making waves, and Shiba Inu is one of the successful ones, so far. The digital currency is named against a dog breed that is native to Japan but has become a global force, thanks to the popularity of cryptocurrencies and online trading.
There are clear indications that the founders of Shiba were inspired by Dogecoin. However, they did not build their network and its tokens based on Dogecoin. Rather, the network and its native currencies are based on Ethereum, which is a very successful platform and the foundation of the fast-growing DeFi industry.
Shiba Inu is expected to be a vibrant ecosystem in Decentralized Finance (DeFi), and many crypto enthusiasts are positive about the potentials of the coin. Like other cryptocurrencies, it has had its fair share of criticism and doubts. Against all odds, it has strived and we know many traders/investors, including experienced players and newbies are still considering investing in the coin.
A Strange Beginning
The cryptocurrency universe has a strange and rather controversial beginning, so it is understandable that Shiba has its own story in this regard. It’s important we briefly discuss this so that you understand what you are getting into and disregard any story or myth that can lead you to a bad investment decision.
Shiba Inu was launched by an anonymous person (simply called Ryoshi) in August 2020. It is worthy to note that even Bitcoin, the mother of all cryptocurrencies was also created by an unknown person.
From the very beginning, Shiba Inu was seen as a challenge to Dogecoin. You don't need a soothsayer to tell you this. The two digital coins use the same mascot – the lovely Japanese dog breed that has won the hearts of many. While Dogecoin is believed to have started as a joke of a viral canine internet meme, Shiba Inu obviously started as a challenge.
Another unique thing about the Shiba Inu coin is that the founder decided to go for a massive supply of 1 Quadrillion token – after all, it was all about challenging DOGE. To make the crypto and its platform unique, Ryoshi decided to lock half of the tokens in Uniswap, a decentralized finance protocol.
To take the challenge to a whole new level and attract more goodwill, the founder of Shiba Inu “burned” the other half of the supply to Vitalik Buterin, the co-founder of Ethereum. Though it appears Buterin had no hands in the proceedings, he accepted the offer and donated trillions of SHIB to India to help curtail the spread and effects of the coronavirus pandemic.
Buterin’s donation is recognized as the largest cryptocurrency donations of all time. The real value is yet to be determined. After the donation, 40% of the total supply was "burned" to a "dead wallet".
Obviously, Shiba has a rich history, deeply buried in positive controversies. Let’s delve further.
A Complicated and Volatile Coin
From what we’ve discussed so far, you can tell that Shiba Inu is a complicated cryptocurrency. Be warned, there is more to come.
Shiba Inu is one of several penny coins that anyone can trade or invest in with very little money. It is trading at a price that is a negligible fraction of the price of popular coins like Bitcoin and Ethereum. There is a general belief that this was done to attract a large audience to the coin and its platform.
Regardless of the price of Shiba and its history, it is still a complicated coin. In its few months of trading, volatility has been another issue traders and investors are deeply concerned about. However, you should know that volatility is the second name of the cryptocurrency universe.
Shiba Inu has recorded huge swings. On the day Buterin made the donation to India, the coin lost as much as 50% of its value. Of course, this was naturally based on the emotions and reactions of investors. It is undeniably huge, but that is not really unusual in the cryptocurrency universe.
Even when Shiba rose to its all-time high OF $0.000035 on May 09, 2021, many industry insiders expected that it will lose value in time. It didn’t take too long to happen as it crashed in less than ten days. Evidently, the coin is for risk-loving investors who have the stomach for extreme volatility.
More about the SHIB Token
Before we start discussing the viability of SHIB as an investment vehicle, it is important that we discuss the coin further.
One of the important things you need to know is that there are actually three coins in the entire Shiba Inu ecosystem, namely SHIB, LEASH, and BONE.
SHIB is the digital asset you need to focus on at the moment. It is the digital asset you need to buy to trade or invest in the Shiba platform. LEASH and BONE will become more important once Shiba Swap, the decentralized exchange is fully launched. At that point, it is expected that investors will be able to stake their tokens and earn. The whitepaper says as much.
At the moment, you need to look at SHIB as your sole ticket to investing in the Shiba Inu platform. In the light of the above, we are going to focus on SHIB for now.
Should You Invest In Shiba Inu?
There are several things to consider before making any Shiba investment. At the moment, the Shiba Inu platform is one of the fastest-growing communities in the crypto universe. This is expected, considering the exploits of Dogecoin, the almost-identical coin. However, you are not going to base your investment decision on the current exceptional growth indexes.
At Trading Education, we want to make sure that every reader has the right information to make a good investment decision. Because of that, we will focus on the things that matter most:
Is Shiba Inu Safe?
Safety is the most important factor to consider when investing in cryptos. Of course, the entire system is risky, but you want to make sure that you minimize your risks as much as possible when making a commitment.
At the moment, it is difficult to confidently declare Shiba Inu safe. Though the coin is trading in major exchanges and has attracted several investors already, there are still lots of things that have to happen before the coin can be termed safe. ShibaSwap, for instance, is yet to launch successfully.
We expect that ShibaSwap, the proposed decentralized exchange can launch successfully. When this happens, the coin and its platform would have crossed one major bridge. At the moment, SHIB doesn't offer anything tangible to the all-important DeFi ecosystem. We can also argue that Dogecoin is in this category but has been relatively doing well when compared to popular coins.
It is also important to remember that Shiba is based on Ethereum. The implication is that there is always room for improvement. Again, tokens that are built on the Ethereum platform are considered to be relatively safe because they are likely to succeed and contribute meaningfully to solving real-world problems.
We also need to recognize the impact of the huge SHIB donation Buterin made at the height of the COVID-19 pandemic in India. Honestly, it must have impacted the nation positively, but the effect it had on the performance and future of the coin is undeniable. The charities that received the donations would have to sell the coin at a relatively lower price. It will continue to affect the price of the coin, so SHIB may take time to reach a new all-time high.
We can’t also overlook the inherent security risks in anonymous cryptocurrencies, which SHIBA is part of. It is not proper to question the motives of the founders, but there is still a possibility that the code can allow the creator(s) to scam investors in the future. The chances are slim, but we can’t rule it out. We can only hope that experienced code auditors access the code. But as it stands, Shiba Inu is yet to be audited.
Major Reasons to Invest In Shiba Inu
Regardless of the risks involved in trading or investing in Shiba Inu, many have invested already. Some have made reasonable profits and some have lost money, which is normal in cryptocurrency trading.
In spite of the ups and downs, there are several concrete reasons to invest in Shiba SHIB. The major ones include:
Shiba Has the Support of Notable Personalities
The founder of Shiba made a very smart decision by burning a good portion of the coin to Ethereum Co-founder, Vitalik Buterin. Though many saw this as a way to court attention, it has yielded many positive outcomes, including popularity for the coin and helping to combat COVID-19 in India.
The fact that Shiba’s success is pegged on Dogecoin has also attracted some goodwill. Dogecoin is one of the coins that has been hyped by Elon Musk and supported by others like Guy Fieri and Mark Cuban. The goodwill, hype, and attention can help grow the Shiba Inu coin, and who says it cannot compete favourably with DOGE in the future.
Shiba Is Based On Ethereum
SHIB is an Ethereum-based coin, which gives it a higher chance of succeeding. Ethereum is changing the entire cryptocurrency universe through the rapidly-developing DeFi ecosystem. Shiba will definitely benefit from this if things go according to the plans outlined in the whitepaper.
Shiba Has Reached an Impressive Market Capitalization in a Short While
For a coin that was launched just about a year ago, Shiba Inu has done so well in terms of market capitalization. Though many can argue that this is due to the huge supply of the token, we can't take anything away from what the coin and its token have achieved in such a short time. In fact, it is one of the best performing cryptocurrencies in the past 12 months, in this regard.
Shiba Is Available In Major Exchanges
One of the ways to tell that a coin has been accepted by the community of cryptocurrency traders and investors is its availability in major crypto exchanges. Shiba is already available in some of the best crypto exchanges. Even top full-service brokers like eToro allows users to invest/trade in SHIB.
SHIB Is a Penny Coin
There is something about penny coins that make them attractive to cryptocurrency traders/investors. You can start trading with very little capital, which is also a way to minimize your risks. You can test the waters of SHIB investment with a small amount and see if it is the right coin for your portfolio. It can be particularly good for beginners.
Shiba Requires Very Low Trading Fees
In addition to being cheap, SHIB can also be traded with a very little fee. This is likely to even get lower when the ShibSwap decentralized exchange is fully functional. Of course, this will improve the profit margins of traders and investors.
Shiba Currently Has High Liquidity Ratio
At the time of writing this piece, Shiba has a 24-hours trading volume of $210,430,722. In the past, it has recorded trading volumes of more than $2 billion dollars, which is super-impressive for a coin in its class. The implication is that it already has several buyers who are spending reasonable money trading and investing in it. A high liquidity ratio is also an indication that the coin has been accepted.
Shiba Already Has a Massive Community
Shiba Inu’s acceptance can also be seen through the massive online support it has earned. The coin and its platform have one of the fastest-growing online communities. In fact, it is truly massive, which is a good indication of the potentials of dog-themed coins.
Shiba Is Easy To Trade and to Invest In
It is very easy to trade or invest in Shiba Inu. The hype is matched by acceptance, and many platforms make it super easy for anyone to buy and sell the token. The fact that it is a very cheap coin also makes it an attractive digital asset that you can trade with ease.
Check Out: Will Shiba Inu (SHIB) Make Me Rich?
Reasons to Think Twice Before Investing In Shiba
Clearly, there are so many reasons to invest in the Shiba Inu coin, but you shouldn't get carried away. There are also some drawbacks you need to consider before making your final decision. The major ones include:
In recent times, coins with anonymous founders are not considered too safe. Bitcoin is a trailblazer and has overcome a lot of obstacles. It is not proper to compare it with Shiba. Again, Shiba’s code is yet to be audited. It will become safer once audited – for now, it is relatively risky.
Shiba No Real Ties with Buterin
Some people erroneously assume that Vitalik Buterin was or is a part of the Shuba Inu project. This is far from the truth. The Ethereum-co-founder was only gifted half of the total SHIB supply and has seen donated the majority of it and burned the rest to a dead wallet. It is kind of misleading to project that the coin is tied to this notable personality.
Shiba Has a Lot to Do To Become Mainstream Ecosystem
There is nothing tangible about Shiba Inu as a platform. The anonymous founder and his/her team are yet to build a robust system – even the proposed exchange is still not ready. Indeed, there is yet to be any real reason to describe it as an ecosystem.
Shiba May Take a While to Reach New Highs
Indeed, Shiba has achieved a lot in terms of popularity and market capitalization. However, the coin will take time to reach new highs, after Buterin’s huge donation of the tokens to charity. The coin has also shown signs of extreme volatility. Investors have to be cautious.
Where Can You Buy Shiba Inu Coin?
These days, buying cryptos is basically like ordering a piece of cake online. There are several platforms where you can buy cryptos, including exchanges, brokerages, and cryptocurrency-focused apps that are not official exchanges.
As mentioned earlier, Shiba Inu is available in most frontline cryptocurrency exchanges, including Coinbase and Binance. It is also available in some of the best brokerages like eToro and Robinhood. Of course, most unregulated apps offer almost every cryptocurrency, including Shiba. CashApp is one such app.
Though you have several options when it comes to buying and selling Shiba, we advise that you choose wisely.
Best Platform to Buy Shiba
It is difficult to authoritatively assert that a particular platform is the best to buy a cryptocurrency, but we all know that some platforms are not safe. There are so many factors to consider before choosing a platform, including security, fees, and added features that make trading/investing easier.
From experience, we know that exchanges are great in terms of the availability of coins. But many exchanges are not very secure. In fact, many have been hacked in the past. Unregulated apps are also not safe, leaving brokerages as some of the best platforms to buy and sell digital assets.
There are a few cryptocurrency exchanges that offer users opportunities to safely invest in cryptocurrencies. Etoro is the most prominent one at the moment. It is a safe and reliable place to buy Shiba. It offers one of the most user-friendly interfaces, making it easier for traders and investors of all experience levels to buy any digital asset of their choice.
Read Also: Is Shiba Inu (SHIB) A Good Buy?
What Next After Buying Shiba?
You are likely to lose your digital asset when you leave them for too long in exchanges, which is why we recommend using eToro. The brokerage offers a digital wallet where you can safely keep your digital asset till the time you decide to sell.
You can also use another digital asset to save your Shiba Inu coin. There are several wallets out there, but you still need to check to be sure that the one you want to choose is safe and reliable.
How long to keep your cryptocurrencies in a wallet is your decision. You can sell a few hours, days, or weeks after buying, once the conditions are right.
You can also decide to keep your Shiba coins till the price appreciates significantly. This is called HODLing, and you can do it for several years before deciding to sell. As it stands, Shiba Inu is not one of the best coins to HODLe.
Key Points to Keep In Mind
If you have followed diligently, you have enough information to decide if Shiba is the right coin for you. It is all about how risk-loving or risk-aversive you are. However, here are key points to guide you:
- Shiba Inu is a new cryptocurrency that was launched as a challenge to Dogecoin.
- Shiba is based on Ethereum and can be recognized as a part of DeFi.
- Shiba Inu was invented by an anonymous person and has no real ties with Vitalik Buterin.
- Shiba Inu is a complicated coin that may take a long while to reach new heights.
- Shiba has achieved a lot in terms of market capitalization and popularity.
- Shiba can be a good investment, depending on the strategy you adopt.
- Etoro may be the best place to buy the Shiba Inu coin.
Are You Ready To Invest In Shiba? Do It the Smart Way
The cryptocurrency market can be very profitable when you trade smartly. We’ve discussed Shiba Inu and briefly explained why eToro is one of the best platforms to buy your digital assets. It is imperative to also mention that Trading Education is the best place to study cryptocurrencies and other investment vehicles. You can also take courses to advance your trading skills, thereby minimizing your risks and improving your chances of success.
eToro – Best Exchange to Buy Shiba
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
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