When Shiba Inu cryptocurrency was first created and introduced to the market, nobody thought much of it. Meme coins were often dismissed as a passing trend. However, now, with Bitcoin hitting its all time high of $73000 in March 2024 and meme coins like Shiba Inu posting 160%+ surge YTD, perceptions are shifting. Many investors are pondering whether Shiba Inu is poised for another historic run in 2024. However, it's crucial to note that investing in cryptocurrency and meme coins or trading CFDs also carries risks, and past performance is not indicative of future results.
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What is Shiba Inu (SHIB) cryptocurrency?
Shiba Inu (SHIB) cryptocurrency is a digital asset inspired by the popular dog breed, the Shiba Inu. It was created as a meme coin on the Ethereum network. It's similar to the crypto meme coin Dogecoin (DOGE), and aims to provide a fun and decentralised alternative in the crypto market.
SHIB was created anonymously in August 2020 by someone using the pseudonym "Ryoshi." It was launched as an experiment in community building and decentralised finance DeFi. The creators of SHIB intended it to be a decentralised ecosystem where users can hold, trade, and use SHIB tokens for various purposes within the ShibaSwap decentralised exchange platform.
SHIB gained popularity quickly due to its low price and the meme culture surrounding it. It was also designed with features like token burns and decentralised governance to increase its appeal to investors and traders.
Trading Shiba Inu? Is Shiba Inu worth it in 2024?
As at the time of this writing in May 6th 2024, Shiba Inu is valued around $0.00002556 per coin, with a market cap of $14.6 billion, marking a 160% increase year-to-date. However, like all cryptocurrencies, Shiba Inu's value hinges on market dynamics—supply, demand, and investor sentiment. This year witnessed a surge in meme coins, with newcomers like Dogwifhat (WIF) and Pepe (PEPE) coin boasting over 1000% returns. So, is trading Shiba Inu worth it in 2024? Let's delve deeper into its potential risks and rewards amidst the volatile cryptocurrency landscape.
Trading Shiba Inu or any meme coins comes with inherent risks due to their speculative nature and rapid price fluctuations. Here are some risks associated with trading meme coins:
- Volatility: Meme coins like Shiba Inu are highly volatile, with prices capable of experiencing significant swings in short periods. This volatility could lead to substantial gains but also exposes traders to potential losses.
- Lack of utility: Many meme coins lack real-world utility or underlying fundamentals. Their value is primarily driven by hype, social media trends, and speculative trading rather than intrinsic value.
- Market manipulation: Meme coins are susceptible to market manipulation, including pump and dump schemes orchestrated by large holders or coordinated groups. Traders may fall victim to artificially inflated prices followed by sharp declines.
- Regulatory risks: Regulatory scrutiny and interventions pose risks to meme coins and their trading platforms. Changes in regulations or crackdowns by authorities could impact liquidity, accessibility, and legality of trading meme coins.
- Liquidity issues: Some meme coins may suffer from liquidity issues, especially those traded on smaller exchanges. Thin order books and low trading volumes could lead to difficulties in buying or selling large amounts without significantly affecting prices.
- Lack of fundamental analysis: Unlike traditional assets, meme coins often lack fundamental analysis metrics, making it challenging to assess their long-term viability and investment potential.
Shiba Inu and Dogecoin: Are they the same?
Shiba Inu and Dogecoin might seem similar, but there are some important differences:
- Mining networks: Shiba Inu (SHIB) is more complex than Dogecoin (DOGE). SHIB runs on the Ethereum blockchain and uses a method called Proof of Stake (PoS), while Dogecoin has its own blockchain and uses Proof of Work (PoW), which is similar to Bitcoin's system.
- Token issuance: SHIB has a clear limit on the number of tokens that will ever exist, set at 1 quadrillion. Dogecoin, on the other hand, doesn't have a cap, so new coins can be created indefinitely.
- Community focus: Shiba Inu is more focused on building a sustainable community. It aims to maintain its relevance in the long term and has features like staking and decentralised exchanges to support this.
- Ecosystem: Shiba Inu has expanded its ecosystem beyond just being a meme coin. It has additional tokens like LEASH and BONE, a decentralised exchange, and plans for an NFT market and a proprietary wallet. Dogecoin doesn't have this level of complexity in its ecosystem.
Other cryptocurrencies you might find interesting
Here are some other cryptocurrencies that traders might find interesting:
- Bitcoin (BTC): Bitcoin is the first and most well-known cryptocurrency. It's often seen as a store of value like digital gold.
- Ethereum (ETH): Ethereum is a blockchain platform that allows developers to build decentralised applications (DApps) and smart contracts. It's the second-largest cryptocurrency by market cap.
- Binance Coin (BNB): Binance Coin is the native cryptocurrency of the Binance exchange. It's used for trading fee discounts and accessing various services on the Binance platform.
- Cardano (ADA): Cardano is a blockchain platform known for its focus on scalability, interoperability, and sustainability. It aims to provide a more secure and scalable infrastructure for the future of finance.
- Solana (SOL): Solana is a high-performance blockchain platform designed for decentralised applications and crypto projects. It aims to provide fast, secure, and scalable solutions for developers.
- Polygon (MATIC): Polygon is a protocol and framework for building and connecting Ethereum-compatible blockchain networks. It aims to improve Ethereum's scalability and usability.
- Chainlink (LINK): Chainlink is a decentralised oracle network that connects smart contracts with real-world data. It provides reliable and tamper-proof data feeds for decentralised applications.
- Polkadot (DOT): Polkadot is a multi-chain blockchain platform that enables interoperability between different blockchains. It aims to create a decentralised internet where different blockchains can communicate and share information.
- Ripple (XRP): Ripple is a digital payment protocol that enables fast and low-cost cross-border payments. It's designed to be a bridge between traditional finance and blockchain technology.
- Litecoin (LTC): Litecoin is a peer-to-peer cryptocurrency that's similar to Bitcoin but with faster transaction times and lower fees. It's often referred to as the silver to Bitcoin's gold.
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