How to buy Shiba Inu (SHIB)

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Shiba Inu, an Ethereum-based cryptocurrency and popular memecoin, is often compared to Dogecoin thanks to the fact that they have the same fluffy Shiba Inu dog mascot. Despite its tongue-in-cheek name and icon, Shiba Inu is a cryptocurrency with serious money behind it and sits in the top 15 cryptocurrencies ranked by market cap.

Here’s some background on how Shiba Inu came to be and a guide to purchasing Shiba Inu (SHIB).

What is Shiba Inu and how does it work?

Shiba Inu was created in 2020 by a founder called Ryoshi. Like other cryptocurrencies, the coin operates on the blockchain, which is a running receipt of transactions that are validated and can be viewed later. The blockchain manages the transactions of the coin and records every purchase. Shiba Inu, specifically, operates on the Ethereum blockchain.

As of August 2024, one coin traded for about $0.00001323 and the total market cap value of the memecoin was $7.8 billion, according to CoinMarketCap. So how can a coin worth so little have such a big market cap? That’s because there are nearly 590 trillion Shiba Inu coins circulating throughout the decentralized finance universe.

How to buy Shiba Inu

If you want to purchase Shiba Inu, you’ll need to follow a few steps.

1. Determine where to trade Shiba Inu

There are a few options when it comes to purchasing cryptocurrency, but they each come with varying fees. You can buy and sell Shiba Inu in two ways.

2. Open an account

Once you’ve found a platform that suits your needs, create an account and get yourself acquainted with the platform’s offerings. Take time to browse the coins and determine how much Shiba Inu you’d like to purchase.

3. Deposit money

Add your credit card, debit card or bank information to your account. You’ll use this money to purchase your coins. Note that each platform’s fee structure is different and may require more or less money depending on which form of payment you use.

4. Buy Shiba Inu

Search for Shiba Inu by its ticker symbol “SHIB” on the platform you’ve chosen. Once you check the price and purchase it, the coin will be stored in your crypto wallet. If you have preexisting wallets, you can transfer the coins there too.

How to sell Shiba Inu

When you feel like it’s time to let go of your coins, you’ll head back to the same platform you purchased them on and place the trade. You can move the earnings to your bank account when finished.

What to consider before buying Shiba Inu

Before purchasing Shiba Inu though, there are a few important things to remember.

• Volatility: All cryptocurrencies are known to be highly volatile. Assess how much risk you’re willing to take on and at what point your financial stability may be impacted.
• Market trends: Crypto prices can go up or down for any number of reasons, including things like viral social media posts. Keep an eye on market trends and community activity to gauge potential price changes.
• Why you’re investing: 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 erode profits in the long term.
• Supply: Shiba Inu authorized a maximum of 1 quadrillion coins but 40 percent have been burned, rendering them useless. This finite supply influences both the price per coin and its market cap, which investors use to gauge interest, accessibility and potential appreciation value.

Is Shiba Inu a good investment?

All cryptocurrencies are notorious for being among the most risky investments. Most cryptocurrencies aren’t backed by any kind of underlying cash flow or asset, excluding stablecoins. That’s a departure from stocks or bonds, which are supported by the underlying cash flow and assets of a company or government.

This means that the price of cryptocurrencies, including Shiba Inu, are completely driven by what other investors are willing to pay for the coin. Before you buy Shiba Inu or other cryptocurrencies, understand that your investment likely doesn’t have any backing and only trade with money you’re comfortable losing.

Bottom line

Shiba Inu is similar to its memecoin counterparts, including Dogecoin, and has gained enough traction to build a nearly $8 billion market cap. Before you consider purchasing 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 an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.