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Shiba Inu, an Ethereum-based cryptocurrency and popular memecoin, is often compared to Dogecoin as they share the same fluffy Shiba Inu dog mascot. Despite its ironic name and symbol, Shiba Inu is a cryptocurrency with a lot of money behind it and is among the top 15 largest cryptocurrencies by market cap.
Here is some background information on the origins of Shiba Inu and a guide on how to buy Shiba Inu (SHIB).
What is Shiba Inu and how does it work?
Shiba Inu was created in 2020 by a founder named Ryoshi. Like other cryptocurrencies, the coin runs on the blockchain, a running receipt for transactions that can be validated and viewed later. The blockchain manages the coin’s transactions and records each purchase. Shiba Inu, in particular, runs on the Ethereum blockchain.
In August 2024, one coin was trading for about $0.00001323 and the total market cap of the memecoin was $7.8 billion, according to CoinMarketCap. So how can a coin that is worth so little have such a large market cap? That’s because there are nearly 590 trillion Shiba Inu coins in circulation across the entire decentralized finance universe.
How to buy Shiba Inu
If you want to buy Shiba Inu, there are a few steps you need to follow.
1. Determine where you want to trade Shiba Inu
There are a few options for buying cryptocurrencies, but each of them comes with different fees. You can buy and sell Shiba Inu in two ways.
2. Open an account
Once you’ve found a platform that meets your needs, create an account and familiarize yourself with what the platform offers. Take your time to browse the coins and determine how much Shiba Inu you want to buy.
3. Deposit money
Add your credit card, debit card or bank details to your account. This is the money you will use to buy your coins. Note that each platform’s fee structure is different and more or less money may be required depending on the payment method used.
4. Buy Shiba Inu
On your chosen platform, search for Shiba Inu using the ticker symbol “SHIB”. Once you check the price and buy the coin, it will be stored in your crypto wallet. If you already have wallets, you can transfer the coins there as well.
How to sell Shiba Inu
When you feel it’s time to get rid of your coins, go back to the same platform you bought them on and make the trade. You can then transfer the proceeds to your bank account.
What you should consider before buying a Shiba Inu
Before you get a Shiba Inu, however, there are a few important things you should consider.
- Volatility: Cryptocurrencies are notoriously volatile. Assess how much risk you are willing to take and at what point your financial stability might be affected.
- Market trends: Crypto prices can rise or fall for a number of reasons, such as viral social media posts. Keep an eye on market trends and community activity to gauge potential price changes.
- Why invest: Take a minute to think about why you want to buy Shiba Inu and how a memecoin fits into your financial situation. What you plan to do with Shiba Inu may influence how much you buy.
- Transaction fees: Each platform comes with its own transaction fees, which can add up and eat into profits in the long run.
- Delivery: Shiba Inu has a maximum of 1 quadrillion coins approved, but 40 percent of them have been burned, making them worthless. This limited supply affects both the price per coin and their market cap, which investors use to gauge interest, accessibility, and potential value growth.
Is Shiba Inu a good investment?
Cryptocurrencies are considered the riskiest investments. Most cryptocurrencies are not backed by cash flow or assets, with the exception of stablecoins. This is different from stocks or bonds, which are backed by the cash flow and assets of a company or government.
This means that the price of cryptocurrencies, including Shiba Inu, depends entirely on what other investors are willing to pay for the coin. Before you buy Shiba Inu or any other cryptocurrency, you should be aware that your investment is likely to have no coverage, and only trade with money you can afford to lose.
Conclusion
Shiba Inu is similar to its memecoin counterparts, including Dogecoin, and has gained enough traction to build a market cap of nearly $8 billion. Before you consider buying Shiba Inu, keep in mind that memecoins are a highly speculative investment and how volatile cryptocurrencies can be.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making any investment decision. Investors are also advised that past performance of investment products is no guarantee of future performance.
