shiba inu coin One of the most important trends in the cryptocurrency space over the past year is meme coins. The rise of Dogecoin has led to the creation of a wide range of other meme coins as investors flocked to them in hopes of making money.
One of the biggest meme coins in the market is Shiba Inu (SHIB), the coin designed to “kill Dogecoin” and overtake it in the market. Shiba Inu is one of a newer wave of cryptocurrencies, riding a surge of interest in digital assets. If you’re looking to trade the cryptocurrency — or really any digital currency — it’s important that you understand what you’re investing in and what the potential risks are. if you are hearing about it for the first time, here is everything you should know about Shiba Inu and how to invest.
What is Shiba Inu?
Shiba Inu coin (SHIB) is a meme-based cryptocurrency named after a dog breed. It was created in 2020 by an anonymous developer named Ryoshi as part of a group of dog-themed cryptocurrencies. It is designed to be an Ethereum-compatible alternative to Dogecoin (DOGE).
Shiba Inu is a cryptocurrency that’s similarly themed to Dogecoin. However, the Shiba Inu token seeks to do much more than it’s doggy-themed counterpart. Since the token leverages Ethereum’s robust network, the token has created a DeFi ecosystem driven by their decentralized exchange, ShibaSwap.
Shiba Inu tokens are used on Shiba Inu’s “ShibaSwap” platform, where users can stake their tokens for interest via staking rewards. Also, ShibaSwap recently released its NFT platform, where users can collect Shiba Inu themed NFTs called Shibatoshis. All-in-all, there are 3 different tokens native to Shiba Inu’s platform: Shiba Inu (SHIB), Leash (LEASH) and Bone (BONE).
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SHIB is the largest token by market capitalization, while BONE and LEASH have higher per-token prices due to the limited supply of these coins. As of October 2021, Shiba Inu has an enormous market cap of over $20 billion, ranking it as the 11th most valuable cryptocurrency by market cap.
How it works
Because SHIB is issued as an Ethereum token, it’s compatible with the vast Ethereum ecosystem. Advantages include compatibility with Ethereum wallets like Coinbase Wallet or Metamask, availability on decentralized exchanges (or DEXs) like UniSwap, the potential for SHIB to be incorporated into ETH-based DeFi applications like lending and savings products and NFT marketplaces.
Keep in mind
SHIB, unlike DOGE, is compatible with the Ethereum ecosystem — which has allowed the community to create crypto apps like ShibaSwap, a DEX that allows users to trade and stake tokens without an intermediary.
The Shiba Inu Ecosystem
Shiba Inu is divided into multiple tokens that help the entire cryptocurrency ecosystem function:
Shiba Inu (SHIB): This is the project’s foundational currency that can be traded and used as a medium of exchange.
Leash (LEASH): The second token in the Shiba Inu ecosystem, Leash represents the other end of the ecosystem’s spectrum, with a total supply of only 107,646 tokens compared with the trillions of Shiba Inu tokens making it the most limited of the Shiba Inu-related coins. It provides staking rewards for those validating transactions in the cryptocurrency.
Bone (BONE): Bone fits in between the other two tokens in terms of circulation supply, with a total supply of 250,000,000 tokens. It is designed to be a governance token that will allow the SHIBArmy to vote on upcoming proposals.
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The Shiba Inu Ecosystem also includes:
ShibaSwap: The goal of the DeFi platform ShibaSwap is to provide a safe place to trade cryptocurrencies while remaining decentralized. SHIB and LEASH are best purchased and sold through ShibaSwap.
Shiba Inu Incubator: The incubator aims to shift the focus beyond popular art forms such as painting, photography, and digital rendering and discover ways to honor creativity and ingenuity.
Where to buy Shiba Inu coin
There are several platforms where you can buy Shiba Inu, including Binance, Crypto.com, Atomic Wallet and KuCoin.
You can also buy SHIB on Uniswap (via Trust Wallet), which requires you to exchange Ethereum for SHIB.
How to buy Shiba Inu coin
Open an Exchange Account
eToro, Voyager and Coinbase offer customers access to Shiba Inu. SHIB is also available through Ethereum-based decentralized exchanges (DEXs) like Uniswap and Sushi.
If you’re a US resident you’ll need to provide identity verification in-line with the SEC’s Know Your Customer (KYC) guidelines. This means you’ll want to have your social security number, drivers license and potentially even proof of income handy. The SEC has been cracking down lately, and some exchanges are getting a step ahead by requiring additional steps.
Use Uniswap or a Centralized Exchange.
There are 2 main ways to buy Shiba: centralized exchanges and decentralized exchanges. If you are using a centralized exchange like eToro, you can skip to the next step.
Decentralized exchanges (DEXs) are great for coins like Shiba, since they support almost every Ethereum-based asset. The leading decentralized exchange is Uniswap, and it’s powered by Ethereum’s blockchain. Uniswap has over $2 billion locked into its protocols, and thousands of investors use the platform to trade their Ethereum based tokens. Once you’re on Uniswap, you’ll pick your base currency (ETH or whatever you have handy in your wallet) and you’ll enter SHIBs contract address into the other field.
To use a DEX, you’ll need a software wallet like MetaMask or Coinbase Wallet. These crypto wallets are free to use, and they let you truly own your cryptocurrency, unlike certain centralized exchanges.
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Buy a Crypto Wallet (Optional).
Before you get yourself some Shiba Inu tokens, you should consider where you’ll be storing your precious asset. Unless you’re actively trading your crypto, it’s not recommended to store your tokens on an exchange. Cryptocurrency exchanges are large targets for hackers, and several platforms have been hacked in the past.
Software wallets are free to download, and they give you much better protection than crypto exchanges. Also, you’ll need a software wallet to interact with Uniswap, and the best options are Coinbase Wallet and MetaMask.
If you want to store your cryptocurrency assets in the most secure way possible, then you should opt for a hardware wallet. Hardware wallets are physical devices that store your cryptocurrency offline, making it impossible for your funds to be hacked.
Make your purchase.
If you are using eToro, you’ll have to connect your bank account after verifying your identity. Once this is done, find the SHIB order book and place your order. There are a few types of orders you can place depending on how much patience you have. The fastest type of order is a market order – this will execute immediately at the current price. If you can afford to wait a little bit, you may opt to place a limit order. A limit order lets you set the price you’re willing to pay per token, then it will execute if and when that price is reached. Spreading out market orders at multiple price levels typically prevents a trader from going all in at the beginning of a dip. Market orders allow you to execute trades with precision, if you know what you’re doing.
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Uniswap doesn’t use order books like other exchanges. Instead, Uniswap uses liquidity pools to calculate the price of crypto assets. Once your wallet is connected to Uniswap’s website, you can swap your Ethereum tokens for Shiba Inu tokens. If you’re in it for the long run, you may want to consider simply holding onto your Ether tokens.
The easiest way to buy Shiba Inu coin is via the KuCoin exchange. Before you can get your hands on Shiba Inu, you’ll need to purchase something called USDT (Tether). I know this may sound complicated, but I can assure you that the process is super easy. Once you’ve made a KuCoin account, here’s how to buy Shiba Inu.
Is Shiba Inu a Good Investment?
Shiba Inu’s recent surge in price is likely due to the hype over SHIB being listed on Coinbase more than anything else. Although ShibaSwap offers some interesting products, the protocol doesn’t have many clear advantages over other projects, like Uniswap or SushiSwap. Shiba tokens are necessary for mining Shibaswap’s Bone tokens, so if you’re interested in Bone, then you’ll need to buy Shiba Inu.
While the coin’s price may eventually reach the moon – the odds against it are astronomically high. If you’re into dubious speculation, Shiba Inu may be for you