Shiba Inu Crypto: A Beginner's Guide To Investing

Shiba Inu (SHIB) is a decentralised, community-led cryptocurrency and Ethereum-based altcoin. It was created in August 2020 by an anonymous individual or group called Ryoshi and is now led by Shytoshi Kusama. It features the Shiba Inu, a Japanese breed of hunting dog, as its mascot. It is considered an alternative to Dogecoin and is touted as the Dogecoin killer by its supporters, a community calling itself the SHIBArmy.

SHIB is intentionally abundant, with a total supply of one quadrillion, and is compatible with the Ethereum ecosystem. It can be purchased on several exchanges, including Binance, Coinbase, and Kraken, as well as on decentralised exchanges like UniSwap.

Where to buy Shiba Inu

There are several exchanges where you can buy Shiba Inu (SHIB). Here are some of the most popular options:

Coinbase

Coinbase is one of the largest cryptocurrency exchange service providers in the world. It is a good option for beginners due to its simple and easy-to-use interface and wallet support. Setting up an account on Coinbase is straightforward, and the platform offers security, accessibility, and ease of use. You can buy SHIB on Coinbase using a credit card or bank account.

Binance

Binance is another popular exchange for buying SHIB. It offers a wide range of trading pairs and impressive liquidity, making it an ideal choice for those looking to trade SHIB for other cryptocurrencies. Binance also has a user-friendly interface, making it accessible to beginners.

Robinhood

Robinhood is a well-known exchange platform, especially for stock and options trading. It is also suitable for big investors with portfolios in stocks, exchange-traded funds (ETFs), bonds, cryptocurrencies, and commodities. Robinhood has an intuitive interface, making it accessible to beginners.

Gate.io

Gate.io is an American cryptocurrency exchange launched in 2017. It offers a wide selection of trading pairs and impressive liquidity, with a daily trading volume of approximately USD 100 million. Gate.io is available in both English and Chinese, catering to a global audience.

BitMart

BitMart is a crypto exchange based in the Cayman Islands, offering impressive liquidity. It is user-friendly and has a wide range of tradable altcoin pairs, making it a good option for those looking to trade SHIB.

Other Options

In addition to the above, you can also buy SHIB on other exchanges such as Huobi, Uniswap (V2), and OKEx. When choosing an exchange, it is important to do your research and consider factors such as security, fees, payment methods, and user reviews.

How to store your Shiba Inu

There are several ways to store your Shiba Inu (SHIB) tokens, each with its own advantages and disadvantages. Here are some of the most common methods:

Hot Wallets

Hot wallets are digital wallets that operate on internet-connected devices like phones, tablets, or computers. They are convenient and allow for quick transactions, but they are also more vulnerable to hacking attempts as they operate in the same space as malicious programs. Examples of hot wallets include exchange custody wallets, web, desktop, and mobile wallets. It is recommended that you do not store all your SHIB tokens in a hot wallet due to the security risks.

Cold Wallets

Cold wallets, also known as hardware wallets or offline wallets, are considered the safest option for storing Shiba Inu tokens or any other digital assets. Cold wallets are not connected to the internet, making them less susceptible to attacks. They store the user's address and private keys on a program that does not require an internet connection to operate, allowing users to access their portfolios without putting their private keys at risk. Examples of cold wallets include hardware devices such as the Ellipal Titan, which can store SHIB and other major cryptocurrencies.

Paper Wallets

Paper wallets are another way to store Shiba Inu tokens offline. Specific websites generate paper wallets, which produce public and private keys that are printed on a piece of paper. The only way to access the holdings associated with a paper wallet is to have physical access to that piece of paper, so it is important to keep it safe, such as by laminating it and storing it in a safe or a safety deposit box at a bank.

USB Drive Devices

Another way to securely store private keys for your Shiba Inu tokens is through a USB drive device. This method offers advantages over hot wallets as once the information is copied to the USB drive and ejected from the computer, it is no longer vulnerable to malware or viruses that may affect that particular device.

When choosing a wallet, it is important to consider your own needs and risk tolerance. Additionally, it is always recommended to have a backup of your Shiba Inu wallet and to use strong passwords for all your backup files.

The risks of investing in Shiba Inu

Shiba Inu is a highly volatile cryptocurrency, and investing in it carries significant risks. Here are some key points to consider:

Extreme Volatility and Price Fluctuations:

Shiba Inu's value has experienced extreme ups and downs, influenced by external factors such as social media buzz and celebrity endorsements. The price can surge or plunge within a short period, leading to potential gains or losses for investors.

Limited Utility and Use Case:

As of now, Shiba Inu has limited utility beyond allowing non-fungible token (NFT) trading and limited gaming options. Its value is primarily driven by speculation, sentiment, and community dynamics rather than fundamental use cases or technological advancements.

Regulatory and Exchange Risks:

Cryptocurrencies, including Shiba Inu, operate in an unregulated market. This lack of regulatory oversight can expose investors to potential scams, market manipulation, and limited consumer protection. Additionally, exchanges that list Shiba Inu often do so with a hint of caution, as its value is highly speculative.

Meme Coin Nature:

Shiba Inu is categorised as a meme coin, which are known for their unpredictable nature. Meme coins are often launched as parodies or inside jokes, and their value is heavily influenced by social media trends and celebrity endorsements. This makes it challenging to predict their long-term performance and stability.

Competition and Market Share Dilution:

The meme coin market is highly competitive, with new coins being created frequently. Shiba Inu's popularity could be its advantage and disadvantage, as the constant emergence of new coins could dilute its market share and push it out of the spotlight.

High-Risk Asset:

Shiba Inu is considered a high-risk investment due to its extreme volatility and lack of fundamental value drivers. Its price fluctuations can lead to significant gains or losses, and it may not be suitable for risk-averse investors.

In conclusion, investing in Shiba Inu carries considerable risks due to its volatile nature, limited utility, regulatory uncertainties, and the inherent unpredictability of meme coins. Potential investors should thoroughly research, understand the risks, and proceed with caution before investing in Shiba Inu or any other cryptocurrency.

How Shiba Inu differs from Dogecoin

Shiba Inu (SHIB) is a cryptocurrency that is widely considered to be an alternative to Dogecoin (DOGE). It is an Ethereum-based altcoin, while Dogecoin is the next largest meme coin. Here are the key differences between the two:

• Shiba Inu is a community-led cryptocurrency that aims to answer the question: "What would happen if a cryptocurrency project was 100% run by its community?". Dogecoin, on the other hand, does not have the same community-driven approach and is not as focused on decentralisation.
• Shiba Inu was created in August 2020 by an anonymous individual or group called Ryoshi, who emphasised the importance of a decentralised, community-led project. Dogecoin, however, does not have the same level of anonymity in its creation and is not as focused on community input.
• Shiba Inu is compatible with the Ethereum ecosystem, which has allowed the community to create crypto apps like ShibaSwap, a decentralised exchange (DEX) running on the Ethereum blockchain. Dogecoin does not have the same level of compatibility with the Ethereum ecosystem and does not offer the same decentralised exchange capabilities.
• Shiba Inu has a different tokenomics structure to Dogecoin. Shiba Inu has a total supply of one quadrillion, while Dogecoin has a circulating supply of about 19 billion coins. This makes Shiba Inu more abundant and accessible to investors.
• Shiba Inu has a strong focus on NFTs and gaming, with Shiba Inu-based NFTs available and plans for a metaverse project. Dogecoin, on the other hand, does not have the same focus on NFTs and gaming and does not offer the same level of interaction with its ecosystem.
• Shiba Inu has outperformed Dogecoin in terms of trading volume and interest, especially in early 2024. This trend is expected to continue, indicating that Shiba Inu is gaining more traction and popularity in the market.

The history of Shiba Inu

Shiba Inu is a decentralised cryptocurrency that was created in August 2020 by an anonymous individual or group known as 'Ryoshi'. It was created as a joke to poke fun at Dogecoin, another cryptocurrency with meme origins. The Shiba Inu is a Japanese dog breed that is also the mascot for Dogecoin.

The Shiba Inu ecosystem is based on the Ethereum blockchain and includes other tokens like Leash and Bone, as well as a decentralised exchange called ShibaSwap. The Shiba Inu community is known as the SHIBArmy or the Shiba Army, and they have been one of the reasons for the spike in the popularity of the meme coin.

In May 2021, Vitalik Buterin, the co-founder of Ethereum, donated Shiba Inu coins worth over $1 billion to a COVID-19 relief fund in India. Buterin then burned 40% of the total supply of Shiba Inu coins, permanently removing them from circulation, and increasing their rarity.

In October 2021, the market price of the cryptocurrency experienced a significant rise, reportedly increasing by 240% within a week. This price surge led to increased adoption across token holders, and retailers also started adopting SHIB as a means of payment.

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