Shiba Coin: A Beginner's Guide To Investing

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 has already taken over some Dogecoin markets.

Shiba Inu is a good investment option for those looking to diversify their holdings. However, it is a highly speculative asset, and its value is heavily influenced by social media buzz and celebrity endorsements.

If you are considering investing in Shiba Inu, it is important to understand the risks involved. The cryptocurrency market is highly volatile, and the value of Shiba Inu has fluctuated significantly since its creation in August 2020. While it reached an all-time high of $0.00006916 in November 2021, it also experienced a sharp decline during the Crypto winter of 2022-2023.

As of July 2024, Shiba Inu is priced at around $0.0000165, with a market cap of $9.6 billion, and it is ranked within the top 20 largest cryptocurrencies by market capitalization.

If you decide to invest in Shiba Inu, you can purchase it on cryptocurrency exchange platforms such as Binance, Crypto.com, and KuCoin, or through software wallets like ZenGo. To store your Shiba Inu coins safely, it is recommended to use a hardware wallet such as Ledger or Trezor.

Where to buy Shiba Inu coins

There are several platforms where you can buy Shiba Inu coins. Here are some of the most popular options:

Coinbase

Coinbase is a trusted platform for people and businesses to buy, sell, and manage SHIBA INU. It is available in the United States and offers a quick and easy way to purchase SHIBA INU. To buy on Coinbase, you will need to create an account, verify your ID, add a payment method, and then select SHIBA INU from the list of assets. You can then enter the amount you want to buy and finalise your purchase.

Binance

Binance is a centralised exchange that offers a range of cryptocurrencies, including Shiba Inu. To buy on Binance, you will need to create an account and verify your identification. You can then choose your preferred payment method and follow the steps to purchase Shiba Inu. Binance offers several payment options, including debit/credit card, Google Pay, and Apple Pay.

Kraken

Kraken is a well-established cryptocurrency exchange that offers Shiba Inu and over 60 other cryptocurrencies. To buy on Kraken, you will need to create an account, verify your identity, and connect a payment method. You can then check the current price of Shiba Inu and use the SHIB to USD converter to determine how much you want to purchase. Kraken offers a user-friendly app that allows you to buy Shiba Inu instantly with a bank account or credit card.

EToro

EToro is a secure and easy-to-use platform that offers over 100 crypto assets. It is trusted by millions of crypto users and provides a beginner-friendly interface for those new to crypto investing.

Bitcoin.com.au

This platform caters to beginners in crypto and investing, offering instant deposits using credit cards, PayPal, and bank transfers.

Independent Reserve

Independent Reserve is a platform designed for sophisticated investors, SMSFs, businesses, and trusts. It offers fast deposits and advanced trading tools for those with more experience in the crypto market.

How Shiba Inu works

Shiba Inu (SHIB) is a decentralised, community-led cryptocurrency. It was launched in 2020 and has since become a worldwide phenomenon, with some retailers accepting it as a form of payment.

SHIB is an ERC-20 token based on Ethereum, a proof-of-work blockchain currently transitioning to proof-of-stake. It was created by an anonymous developer known as "Ryoshi", who has stressed that no one person is accountable or responsible for the token.

Shiba Inu has a few core tokens and purposes within its system:

• Shiba Inu (SHIB) – the native and fundamental project cryptocurrency.
• Leash (LEASH) – the second token in the ecosystem, issued to supporters of the ecosystem, which provides various perks to its holders.
• Bone (BONE) – a governance token used in the Shibarium to reward validators and delegators.
• Treat (TREAT) – a mysterious coin within the Shiba Inu ecosystem whose purpose has not yet been discovered.

Shiba Inu also has a decentralised exchange called Shibaswap, with two new tokens: Leash and Bone. Leash is a scarce supply token used to offer incentives on Shibaswap, while Bone is the governance token that allows holders to vote on proposals on Doggy DAO.

Shiba Inu has no official roadmap, but there have been a few significant events in its history. One notable event is the creation of Shibarium, a Layer-2 solution to help avoid expensive transaction fees, as Shiba Inu uses the Ethereum blockchain for its transactions. Another is the creation of the Shiboshi game, which provides strategic play and unique benefits.

Shiba Inu's price history has been volatile, with extreme highs and lows influenced by external factors such as social media sentiment and celebrity endorsements.

Shiba Inu price history

Shiba Inu's price history has been a rollercoaster, with extreme highs and lows. The cryptocurrency was launched in August 2020 by an anonymous developer known as 'Ryoshi', and its price has been heavily influenced by social media buzz and endorsements from celebrities such as Elon Musk.

Shiba Inu's price surged by 4,000% in the first three months after its launch, reaching a peak of $0.000035. This was largely driven by Musk's endorsement of the coin. However, this high was short-lived, and the meme coin soon plunged, losing 90% of its value.

There was a second, even larger rally six months later, in 2021, when Musk announced that Tesla electric cars could be purchased with Dogecoin. This caused the price of Shiba Inu to soar once more, this time by 1200%, reaching $0.000075.

However, the crypto winter of 2022 saw a steep drop in value for many cryptocurrencies, including Shiba Inu, which lost around 90% of its peak value. The coin hit a low of $0.00002052 before a short upwards correction, and then continued to fall, reaching its lowest price in June 2023 at $0.000006773.

Despite these losses, Shiba Inu has maintained its popularity, and as of May 2024, its price stands at $0.00002419, which is still down over 70% from its all-time high in 2021 but up almost 300% since the beginning of the year.

Shiba Inu's price history illustrates the volatile nature of meme coins and the impact of external factors such as social media sentiment and celebrity endorsements.

Pros and cons of investing in Shiba Inu

Shiba Inu is a decentralised cryptocurrency, which emerged in 2020. It is a fork of Dogecoin, built on the Ethereum network. It is a peer-to-peer digital currency, which allows users to send and receive payments without a central authority.

Shiba Inu has experienced extreme highs and lows, influenced by social media buzz and mentions from celebrities, such as Elon Musk.

Pros

• Good diversification of investments
• Low cost for small investment options
• Potential for significant financial growth
• Shiba Inu has announced the launch of its own blockchain network, Shibarium
• Shiba Inu is planning to release its own metaverse, SHIB: The Metaverse
• Shiba Inu is developing a play-to-earn game, with gaming veteran William Volk leading the project
• The launch of the Shi stablecoin, which will be pegged at $1
• Potential to be the top meme coin, as a competitor to Dogecoin
• The anonymous nature of Shiba Inu's founder(s) has been a contributing factor to its success

Cons

• No guarantees of long-term growth
• Historically, the value has fallen by more than 90% on several occasions
• Mystery and lack of transparency surrounding the project
• Unconfirmed tokenomics
• Competition in the metaverse, layer-2 blockchain, and play-to-earn gaming space
• Stablecoin dramas
• Shiba Inu lacks differentiating features, resulting in limited adoption
• The opportunity for exponential gains may be gone
• Shiba Inu operates on the Ethereum blockchain, so when Ethereum experiences a drop in value, ERC-20 tokens like Shiba Inu are likely to follow
• Shiba Inu is not an independent blockchain
• Infinite competition in the transactional currency space

Shiba Inu's future

The future of Shiba Inu is uncertain, and price predictions vary widely. The cryptocurrency has experienced extreme volatility, with its value increasing by 4,000% in three months, only to lose 90% of its value shortly after.

Shiba Inu's value is heavily influenced by external factors, including social media trends, celebrity endorsements, and the broader crypto market. For example, tweets from Elon Musk have caused the coin's price to surge by almost 15%.

Some experts believe that Shiba Inu's price will continue to increase, with a potential maximum price of $0.0000220 by the end of 2024, and even higher prices in the future. However, others caution that Shiba Inu is a highly speculative asset with a volatile nature, and its future performance is challenging to predict.

The introduction of Shibarium, a Layer-2 blockchain network built on Ethereum, has the potential to transform Shiba Inu from a simple meme coin into a comprehensive ecosystem. This could positively impact its value and enhance its longevity.

Overall, Shiba Inu's future is highly uncertain, and investors should carefully consider the risks before investing.

Frequently asked questions