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| how to buy Shiba Inu ( photo: VIO ) |
Shiba Inu (SHIB) is a cryptocurrency that evolved from the persistent popularity of the "doge" meme among the crypto community. Although it draws some inspiration from Dogecoin, it operates on a different system that can handle more complex transactions.
You can purchase Shiba Inu on various popular cryptocurrency platforms and on decentralized exchanges where you can trade it for other cryptocurrencies.
Additionally, SHIB can be obtained through staking, but this requires you to already own some of the cryptocurrency. In theory, Shiba Inu can also be accepted as payment for goods or services.
Before making any investment decisions regarding Shiba Inu, it's advisable to have a basic understanding of how it operates.
What is Shiba Inu?
Shiba Inu is a cryptocurrency that was introduced in late 2020, but saw little activity until the spring of 2021, when the crypto market experienced an upward trend and many digital assets reached their highest value ever. However, like many other cryptocurrencies in 2022, SHIB's popularity has declined as investors move away from risky investments.
Shiba Inu was inspired by the popular "Doge" meme, which features a picture of a shiba inu dog, just like crypto classic Dogecoin. It is one of the largest among several crypto projects that have adopted the dog as their mascot.
The distinction between Dogecoin and Shiba Inu lies in their underlying technology. Shiba Inu operates on the Ethereum blockchain, allowing for more sophisticated financial operations compared to Dogecoin.
Shiba Inu uses a proof-of-stake system, in contrast to Dogecoin which uses a proof-of-work system similar to that of Bitcoin. Though the technical details can be intricate, the practical impact for the average user is that they can earn more tokens through "staking" SHIB.
Shiba Inu does not shy away from its origins as a meme and aims to straddle the line between practicality and humor. For example, its "whitepaper" which outlines its mechanics and economics, is referred to as a "woofpaper." The act of staking Shiba Inu is referred to as "burying" it, and when it is used to power a decentralized exchange, it is referred to as "digging."
The Shiba Inu economy also includes two complementary tokens, "Leash" and "Bone," which are relatively rarer than SHIB and incentivize users to maintain the underlying network.
Investing in SHIB:
SHIB has experienced a significant drop in value in recent months, causing its market capitalization to fall from over $40 billion at its peak to below $5 billion by mid-June 2022.
SHIB, like other cryptocurrencies, is known for its high degree of volatility. It has seen dramatic fluctuations in price, both increasing and decreasing rapidly.
Investing in SHIB involves taking a gamble that the demand for products built with its technology will increase, and that its community of users will attract more people away from more traditional cryptocurrencies. These outcomes cannot be guaranteed.
Acquiring Shiba Inu is similar to buying other cryptocurrencies, following a similar process.
Read More: VeChain: What It Is, How It Works, Examples, and History
Shiba Inu in the Digital Economy
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| photo: assets.pikiran-rakyat.com |
The Risks of Investing in Shiba Inu
The price of cryptocurrencies, such as Bitcoin and Ethereum, can be intimidating with their costs running into thousands of dollars. In comparison, Shiba Inu currently trades at a fraction of a penny. Despite having potential for growth, according to Daniel Polotsky, co-founder and chairman of CoinFlip, a leading Bitcoin and cryptocurrency ATM provider, Shiba Inu is extremely volatile and presents a high-risk investment.
In October 2021, the price of Shiba Inu reached an all-time high after Tesla CEO Elon Musk tweeted about it. However, as of late April, its price had fallen by over 65%. Senior research analyst at Morningstar, Madeline Hume, warns that the financial services firm is cautious about Shiba Inu and other so-called meme coins, calling it a speculative return pattern that is difficult to predict with accuracy.
Shiba Inu supports a number of projects, such as ShibaSwap, a decentralized exchange, and non-fungible tokens (NFTs). Despite its ecosystem, it should not be considered an investment as its value comes from other investors' enthusiasm rather than any fundamental factors, says Hume.
Where Can I Buy SHIB?
SHIB can be purchased on various cryptocurrency exchanges. A few exchanges that offer the option to exchange U.S. dollars for SHIB include:
- Coinbase
- FTX
- Bitfinex
It's important to understand the concept of "trading pairs," such as SHIB to Tether (USDT). In the case of SHIB/USDT, SHIB can be converted into Tether, a stablecoin whose value is linked to the U.S. dollar. Some exchanges that offer the SHIB/USDT trading pair include:
- Binance
- KuCoin
How to buy SHIB
You can buy SHIB in four steps:
1. Decide Where to Purchase Shiba Inu (SHIB)
Shiba Inu is a widely sought after cryptocurrency and can be purchased on several centralized exchanges such as Coinbase, Kraken, and Gemini. If you do not possess any other cryptocurrency, you can purchase SHIB in cash through one of these centralized exchanges.
If you already own cryptocurrency, you will have more options to buy Shiba Inu. Many centralized exchanges allow trading of SHIB with other cryptocurrencies, while decentralized exchanges such as Uniswap offer SHIB as well. Shiba Inu also has its own decentralized exchange named ShibaSwap.
Ethereum holders have a variety of options to acquire SHIB. For instance, the well-known MetaMask wallet enables you to convert ETH directly into SHIB.
Regardless of which method you choose to buy Shiba Inu, be mindful of the associated costs. While centralized exchanges may charge trading fees, decentralized exchanges necessitate paying network fees on the Ethereum blockchain, which can sometimes be substantial.
2. Funding Your Account
When using a centralized exchange, you must deposit either fiat currency or another cryptocurrency into your account.
For fiat currency such as U.S. dollars, centralized exchanges typically offer bank transfers, debit card transactions, and credit card transactions. However, be cautious when using a credit card as high interest rates may compound your losses in case of a market downturn. Also, take note of the fees that the exchange charges for depositing funds into your account.
If you prefer to use another cryptocurrency, verify if your exchange offers the option to convert it into SHIB. This applies to both centralized and decentralized exchanges. Keep in mind that not all exchanges offer the specific cryptocurrency trading pair that you may want to use.
3. Executing Your Purchase
After deciding on your purchase, you will be given the opportunity to review the amount of SHIB you will receive and at what price. This process is similar on both centralized and decentralized platforms. It's important to also take note of the transaction fees.
Once you have verified that all the details are in order, you can submit your transaction. In a matter of minutes, the SHIB will be credited to your account or crypto wallet, and the payment will be deducted from your balance.
4. Safely Storing Your Shiba Inu (SHIB)
When it comes to storing cryptocurrencies like SHIB, you have two main options. You can either store it on an exchange or in a cryptocurrency wallet. Keeping your crypto on an exchange can be convenient and less complex for beginners, but it also poses a risk as exchanges can attract hackers due to the value they hold.
Alternatively, storing your SHIB in a cryptocurrency wallet gives you complete control over the information required to trade or spend your crypto. While wallets require a bit more technical knowledge, they offer enhanced security as you are responsible for it. When selecting a wallet, ensure that it supports SHIB, as not all cryptocurrency wallets work with every type of crypto.
Bottom Line
If you're considering investing in Shiba Inu, it's important to approach it with caution. The popularity of Shiba Inu, especially on social media, does not necessarily equate to a safe investment. If you are interested in investing in cryptocurrency, consider exchange-traded funds (ETFs) as an alternative. There are now ETFs that track the price of Bitcoin and funds that invest in companies utilizing blockchain technology.
Read More: 10 Best Long-Term Investments for 2023
Source:
https://www.nerdwallet.com
https://www.forbes.com
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