Research may sound boring but reading up and doing your homework is one of the best ways to ensure that you avoid making a bad investment, whether it may be traditional investments or cryptocurrencies.
When you look at the cryptocurrency market, it may seem like it's constantly churning out new coins to draw a lot of excitement.
An example of these new coins is the Shiba Inu Coin, named after the dog breed, that is the face of another highly popular cryptocurrency, Dogecoin. Dogecoin is a crypto asset that started as a joke but became popular with fans of the memes.
Shiba Inu is less than a year old but reached a market value of US$3.8 billion last June 2021. It is still relatively small, but it is currently the 31st largest cryptocurrency by market capitalisation. Each token would only cost around US$0.000009677, making it an attractive prospect for cryptocurrency investors.
Is Shiba Inu a good investment?
But just because something is popular, it doesn't necessarily mean it's a good investment. Like with any investment, experts would recommend doing your research first before getting into the cryptocurrency market.
But what exactly is Shiba Inu Coin?
This new coin was founded by a somewhat mysterious person going by "Ryoshi," who stated that Shiba Inu was an experiment on community building using decentralisation. Unlike Dogecoin, which has no limit on the maximum number of units available, Shiba Inu does have a cap, at a considerable amount of 1 quadrillion.
Like other meme-related investments, Shiba Inu gained value among investors who like to discuss their merits online and in other aspects of society. The creators have dubbed the white paper for Shiba Inu as "woof paper" that cites a list of meme makers, social media influencers, and international meme groups as part of the new cryptocurrency's success.
It's very far from being accepted as a method of payment for goods and services, though, so all of its current value is almost entirely a result of all the social media buzz behind it.
But if you have done your research, decided to look past the media buzz, and think that investing in a digital currency is for you, then you can visit this trusted and user-friendly trading platform that can help you get started.
Benefits of Shiba Inu Coin
Aside from the social media hype, part of Shiba Inu's appeal lies in the desire for passive income from those who missed out on the Dogecoin gold rush and want to stake into a new coin.
Meme tokens have gained the potential for short-term gains largely thanks to the widespread effect of Dogecoin's popularity.
There are other more meaningful benefits to Shiba Inu, though, like in the philosophical sense. Meme tokens may be treated as nothing more than a joke, but for some cryptocurrency newbies, it is a stepping stone that makes them more likely to invest in other projects in the future. In the long run, the cryptocurrency market can see further growth.
Because Shiba Inu has such a low price, beginning investors can join in the action while risking convenience store sandwich prices. For those wanting to dip their toes into crypto, Shiba Inu is the perfect low-cost avenue.
And if you are in the proper financial position and want to try your hand at investing in a cryptocurrency, you can get started with this easy-to-use and trustworthy platform. They are a beginner-friendly platform that can help set you up with the tools you need.
Still, keep in mind that cryptocurrencies are a high-risk asset class, and Shiba Inu is no different. Newly established currencies carry even more risk. With any new and upcoming technology, there will always be more losers than winners. As such, it is advised that you have a high-risk tolerance for investing in any cryptocurrency.
Analysts warn that the hype over meme tokens will not be around for long, and if the initial interest starts to fade, investors might face sudden losses. A good example would be the dip that Dogecoin experienced when Tesla CEO Elon Musk made tweets about the cryptocurrency in early May. Prices can quickly go up and down, and investors will be taken on a ride.
How do you decide if Shiba Inu is for you?
Like always, doing research and reading up is your best bet at avoiding a lousy investment. Thorough research is always crucial if you want to invest in any cryptocurrency. Generally, making impulsive investments doesn't bode well for anyone.
For cryptocurrencies, you need to read the currency's white paper, note the coin supply, and listen to the advice of different experts from varying sources.
You'd also need to be very, very patient.
Only invest with the mindset of long-term success. Never invest to make a quick buck. Just like what stock market analysts would say, your time in the market beats timing the market.
Tom Murphy a SEO manager at Adsy.