How to Buy Shiba Inu (SHIB) – Beginner's Guide

2021/06/24 03:14:31

Shiba Inu (SHIB) is a token that has found itself to be among the hot topics of conversation, not just in the cryptocurrency space but beyond. The Shiba Inu coin initially started as a meme coin that was launched as an alternative to Dogecoin.

However, the project has since grown to be much more than just that, and its listing on the KuCoin and Binance crypto exchanges has ushered in unprecedented levels of interest and liquidity.

In this article, you will learn how to buy Shiba Inu and the various peculiarities associated with the Shiba Inu coin that has led to its popularity.

The Creation of Shiba Inu

As mentioned earlier, the Shiba Inu coin was launched as a tribute to Dogecoin by an anonymous person known only as Ryoshi. Initially, 50% of all the available Shiba Inus were sent to the Ethereum co-founder Vitalik Buterin, and the other 50% were available to buy and sell on the Uniswap crypto exchange.

The crypto gained popularity at the same time as Dogecoin and is widely touted as the 'DOGE killer' due to the fact that it is DOGE's biggest competitor. It currently stands at a market capitalization of $16.33 billion, as opposed to DOGE which has a market cap of $20.88 billion.

The Shiba Inu Ecosystem

Shiba Inu is widely known as the cryptocurrency that answered the question, "What would happen if we created a coin that was run 100% by its community?"

The Shiba ecosystem is run completely by its community, who collectively go by the name ShibArmy. The name of the project originates from the white Shiba Inu dog breed.

However, the Shiba Inu project comprises more than just Shiba Inu coins. In fact, there are three tokens that trade on the Shiba project, including Shiba Inu itself. These include LEASH and BONE. All of these tokens can be bought through the ecosystem via a variety of centralized and decentralized exchanges.

Where to Buy Shiba Inu Tokens

The easiest and safest way for you to buy and sell SHIB is through a cryptocurrency exchange. There are several such exchanges that you could choose from, therefore it is crucial that you make the right choice.

It is advised that you do your research on the variety of coins offered, the transaction fees, payment method supported, as well as the exchange commission associated with the different exchanges in your region before you make your choice. One of the most popular exchanges that support Shiba Inu coins is KuCoin.

The ShibaSwap Platform

In addition to this, an alternative is to trade buy Shiba Inu coins directly through ShibaSwap, which is the project’s native decentralized exchange. The ShibaSwap platform is different from standard cryptocurrency exchanges, as it only allows you to purchase the digital assets that are a part of the Shiba project.

A Step-By-Step Guide on How to Buy Shiba Inu

The process to buy Shiba Inu is quite simple and straightforward, involving very few steps. The four steps of the process have been discussed below:

Step 1: Register an Exchange Account

The first step in the process of buying Shiba Inu is for you to select the exchange that suits your trading needs. Different cryptocurrency investors have their own unique requirements, and their preferred exchanges differ accordingly.

Owing to the popularity of the Shiba Inu coin, it is available for trading at several cryptocurrency exchanges around the world. Of these, perhaps the best platform to buy Shiba Inu is KuCoin. Therefore, all you need to do is to register an account on KuCoin.

Registering an exchange account is a very straightforward process, and it will only take a couple of minutes.

Step 2: Deposit Funds to your Account

The second step involves depositing funds to your account, which will then allow you to purchase Shiba.

Funding Your Account with Crypto

You can use other cryptocurrency assets and digital currencies that you own, and exchange them for Shiba Inu. On KuCoin, for example, you can buy Shiba Inu through the SHIB/USDT trading pair, exchanging your USDT for the Shiba Inu coin.

At the current price of Shiba Inu, which is $0.0000297, you will be able to buy 33,670 SHIB for every USDT that you own.

Funding Your Account with Fiat

The other way is to fund your account using fiat currency. This can be done through a bank transfer, which takes time as the funds have to be transferred from your bank account. An alternative is to use a credit or debit card. This is one of the most commonly used methods of buying crypto, due to its convenience and the speed of the transaction.

Step 3: Buy Shiba Inu Token

The third step is to actually purchase the Shiba Inu token.

This is a very simple step, and all you have to do is to go to KuCoin's trading section. Search for the USDT/SHIB pair, and enter the number of USDT that you wish to exchange for SHIB. The exchange will display the Shiba price, the fees you will incur on the transaction, and the amount of Shiba Inu that you will receive.

Once you confirm the transaction details, all that is left to do is wait for a few seconds as KuCoin processes this transaction. As the KuCoin is a centralized rather than a decentralized exchange, the transaction is processed instantly.

Step 4: Store in a Crypto Wallet

Once you have confirmed the transaction, you will be able to see the Shib tokens in your crypto wallet within a few minutes. After buying Shiba Inu on KuCoin, you need a place where you can store them safely.

You can either store it on KuCoin itself or transfer it to an external cold wallet or you can join KuCoin Earn, or create a trading bot to earn passive income with your Shiba Inu instead of leaving it idle.

Using an Online Crypto Wallet

If you are a trader, the best option for you is to store your Shib tokens somewhere where you can access them easily. If you wish to regularly trade crypto, then you must hold it in a wallet that makes it easier to sell Shiba Inu whenever you wish. The trade-off here usually comes in the form of lower security for a higher level of convenience.

Using Offline/Hardware Wallets

On the flip side, if you wish to purchase Shiba Inu and hold it instead of utilizing it, then you may want to consider something more secure. If you use hardware or an offline wallet, your Shiba Inu will be as safe as possible, however, selling Shiba Inu will take much longer than normal. Just like choosing a cryptocurrency exchange, your choice of wallet must reflect your requirements.

Should I buy Shiba Inu (SHIB) tokens?

The high level of market risk and uncertainty associated with trading altcoins means that it is almost impossible to know whether or not something makes a good investment. With all the different factors that have to be considered, such as the fundamentals, technicals, as well as sentiment analysis of the crypto prices, there simply is no way of reliably getting accurate investment advice.

What this means for crypto investors is that they often have to trade with their gut when they buy or sell cryptocurrencies. This is especially true for meme coins, whose prices are usually propped up as a result of high public interest.

While it might be a good time to buy the Shiba Inu coin right now when everyone is buying, what happens when the music stops? Therefore, it is essential to understand if the Shiba Inu coin has any intrinsic value.

Shiba Inu Analysis

Fundamentals of the SHIB Token

As an Ethereum-based cryptocurrency that operates on the Ethereum blockchain, there are a variety of factors that make it a fundamentally good investment.

Firstly, the Shiba Inu coin does not operate on its own blockchain, meaning that all the infrastructure compatible with Ethereum also works for the Shiba Inu coin.

An additional fundamental reason why buying Shiba Inu coin is a good idea is because of the fact that you can stake it. Staking is the process of using your Shiba Inu coin to earn more of them, much the same way as earning interest on the money you deposit to your bank account.

Therefore, the Shiba Inu coin is compatible with most existing cryptocurrency infrastructure, and also has a utility. Not only can it be used on the ShibaSwap NFT platform, but it can also be staked, leading to additional rewards.

Technicals of the SHIB Token

Even in terms of the technical analysis of the SHIB token, it fares well. SHIB has done very well in 2021, recording a gain of almost 18,000% during the year, almost unheard of for any other coin at this level.

After its peak in Oct 2021, the cryptocurrency was trending down, with some ups and downs (mostly dictated by the broader market). In 2023, SHIB is showing signs of slowly turning bullish again.

While past performance is no guarantee of future results, the high gains combined with the fundamental strengths of SHIB indicate that there is little reason why this rally would not continue into the future. This suggests that it might be a wise idea to consider buying SHIB.

Sentiments Surrounding SHIB

At its core, SHIB is a meme coin, and therefore, there will always be a higher risk associated with it than with other more established crypto assets, such as Bitcoin.

While SHIB had a very high degree of media attention over the past year, it is not necessary that this will be the case going into 2022 as well.

All this is compounded by the fact that new cryptocurrencies are launched everyday, making it very likely that the fundamental advantages that the SHIB technology might be overridden by future cryptocurrencies. The crypto space is highly active and dynamic, therefore, making predictions about its future is not an easy task.

Verdict

On the whole, there are some definite advantages, which indicate that it might be a good time to buy SHIB tokens right now. The fundamental and technical analyses both point to this being the case. However, you should only purchase it in the SHIB ecosystem, or any reliable crypto exchange that matter, if you are sure that you understand the risks involved with it.

Conclusion

Shiba Inu is a meme-inspired coin whose value has tremendously grown in recent weeks and months. The token has been competing with the DOGE coin for the place of the top meme coin in the cryptocurrency market. With the community of investors built around the project, this project that started off as a joke might see some major gains in the future. While it might not be as popular as Bitcoin, SHIB has surely established itself as a force to reckon with among cryptocurrency markets.