Shiba Coin Investment: Getting Started And Strategies

Shiba Inu is a decentralised, community-building cryptocurrency that has exploded in popularity over the last few years. It is a meme coin launched as a rival to Dogecoin, and it is currently in the top 20 largest cryptocurrencies by market capitalisation.

Shiba Inu is a good investment option for those looking to diversify their holdings. However, it is a highly speculative asset with a volatile market. Its value has fluctuated a lot since its creation in August 2020, and it is susceptible to social media sentiment and celebrity endorsements.

If you are considering investing in Shiba Inu, it is important to remember that it is a risky asset. Only invest what you are willing to lose, and do your own research to determine if it is a suitable investment for you.

Where to buy Shiba Inu coins

Shiba Inu coins can be purchased on several crypto exchange platforms, including:

• Binance
• Crypto.com
• Coinbase
• Kraken
• Robinhood
• EToro
• Atomic Wallet
• KuCoin
• Uniswap (via Trust Wallet)

You can also consider purchasing Shiba Inu coins through a crypto broker or a crypto app.

How Shiba Inu works

Shiba Inu (SHIB) is a decentralised, community-building cryptocurrency developed within the Shiba Inu Ecosystem. It is a fork of the popular cryptocurrency Dogecoin (DOGE) and was launched in August 2020 by an anonymous person named Ryoshi. It is an altcoin of Dogecoin, which itself is an altcoin of Bitcoin.

The Shiba Inu Ecosystem is an open-source ecosystem of decentralised applications (DApps), protocols, and platforms that enable the creation of smart contracts and DApps on the Ethereum blockchain. The Shiba Inu Ecosystem is also home to the Shiba Inu token (SHIB), an ERC-20 token created as a parody of Dogecoin. SHIB can be traded on a decentralised cryptocurrency exchange and is used to purchase goods and services within the ecosystem.

The Shiba Inu network is secured through the process of staking SHIB and is based on the Ethereum network, which employs the Proof-of-Work (PoW) consensus mechanism. The network also has a very active and engaged community that quickly responds to any potential threats. Additionally, it has several built-in mechanisms that make it difficult to mount a successful attack.

Shiba Inu has three flagship coins: SHIB, BONE, and LEASH. SHIB is the foundational Shiba Inu currency that can be traded and used as a medium of exchange. LEASH is limited to 107,646 units and provides staking rewards for those validating transactions in the cryptocurrency. BONE has 250 million units and is used to allow users to vote on various proposals.

Shiba Inu also has a decentralised platform for trading coins called ShibaSwap and a type of non-fungible token (NFT) called Shiboshis. The cryptocurrency refers to its white paper as a "WoofPaper" and its community as the "Shib Army".

Shiba Inu is unique because its project is run by the Shiba Inu community, which believes in a decentralised system that removes control from centralised authorities. The community is attempting to see if decentralisation can work when a coin has no centralised team, funding, or direct leadership.

Shiba Inu presents several factors that add to its overall value. It is designed to maximise value for the SHIB community, with a total supply of one quadrillion SHIB and a circulating collection of one hundred quadrillion SHIB. There is a hard cap of one hundred quadrillion SHIB, and the burn rate is four percent per year. Additionally, as Ethereum moves from a Proof-of-Work to a Proof-of-Stake consensus mechanism, Shiba Inu will benefit from cheaper and faster transactions.

Shiba Inu price history

Shiba Inu's price history has been a rollercoaster, with extreme highs and lows influenced by external factors such as social media sentiment and celebrity endorsements. The cryptocurrency was created in August 2020 by an anonymous developer known as "Ryoshi" and quickly gained popularity due to its dog-themed branding and support from celebrities like Elon Musk.

Musk's endorsement drove its price up by 4,000% in three months, reaching a peak of $US0.000035. However, the high was short-lived, and the meme coin soon plunged, wiping off 90% of its value. A second, larger rally occurred six months later when Musk announced that Tesla electric cars could be purchased with Dogecoin, causing Shiba Inu's price to surge to $US0.000075, a 1,200% increase.

The bear market of 2022 saw another steep drop in value, with the coin losing around 90% of its peak value. Last year, crypto assets performed well, and this momentum continued into the new year, partly due to the approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the US. As of May 2024, the price of a Shiba Inu is $US0.00002419, still down over 70% from its all-time high in 2021 but up almost 300% since the start of the year.

Shiba Inu's price has continued to fluctuate throughout 2024. In September, its value increased by 6.66% over seven days, reaching $0.00001316 USD. Cryptocurrency experts predict that the SHIB rate might reach a maximum of $0.0000281 in September 2024 but could drop to $0.0000122. The average trading price is expected to be around $0.0000201.

Looking further ahead, the minimum and maximum SHIB prices are expected to be around $0.000031 and $0.000038, respectively, in 2026. In 2027, the minimum price might drop to $0.000044, while the maximum could reach $0.000053. By 2028, the average trading price is forecast to be around $0.000070, with a minimum of $0.000067 and a maximum of $0.000078.

Shiba Inu's price history illustrates the volatile nature of meme coins and the impact of external factors on their value. While celebrity endorsements and social media trends can drive up prices, the popularity of these coins can be fleeting, making future price predictions challenging.

How to store Shiba Inu safely

Shiba Inu (SHIB) is a cryptocurrency that can be used for peer-to-peer digital payments or as a payment method where businesses accept it. It is built on the Ethereum network, so it can be stored using any ETH-compatible wallet.

There are several options for storing your SHIB safely, each with its own advantages and disadvantages. Here are some of the most popular ways to store your Shiba Inu tokens:

• Hardware wallets: These are physical devices that store your private keys, offering an offline, cold storage solution. Hardware wallets are considered the most secure way to store your cryptocurrencies and are ideal for those holding large amounts or planning to hold long-term. Examples include the Ledger Nano S and Trezor One.
• Software wallets: These are applications that can be downloaded on your desktop or mobile device, providing a convenient way to access and manage your SHIB. Examples include MetaMask, Trust Wallet, and Freewallet.
• Exchange wallets: You can also store your SHIB on the exchange where you purchased it. However, it is generally recommended to use a dedicated wallet for better security and long-term storage.

When choosing a wallet, it is essential to consider the level of security, ease of use, device compatibility, and any associated fees. Additionally, always remember to do your own research (DYOR) and never invest more than you are willing to lose, as the cryptocurrency market is highly volatile.

Pros and cons of investing in Shiba Inu

Shiba Inu is a unique investment opportunity with the potential for huge returns, but it doesn't come without risk. Here are some pros and cons to help you decide whether to invest in Shiba Inu.

Pros of Investing in Shiba Inu

• Good diversification of investments
• Low cost for small investment options
• Potential for significant financial growth
• Shiba Inu is a medium-cap asset
• SHIB can interact with DeFi projects on Ethereum
• SHIB has impressive trading volume and exchange listings
• Shiba Inu provides a great vehicle for short-term gains

Cons of Investing in Shiba Inu

• No guarantees of long-term growth
• Historically, the value has fallen by more than 90% on several occasions
• Shiba Inu is not the first-mover in meme-inspired currency
• Shiba Inu is not an independent blockchain
• Infinite competition in the transactional currency space
• Shiba Inu lacks innovation and a strong team

Frequently asked questions