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Wondering if you should buy Shiba Inu coin? This article will guide you on what to do.
Shiba Inu is a token that is found on the Ethereum blockchain. According to the founder of the coin, it is “an experiment in decentralized spontaneous community building.”
Just like other meme investments, Shiba Inu and Dogecoin have increased in value as investors share their views on their merits online and in other places.
Read Also: Why Is Bitcoin’s Price Falling?
Benefits of Shiba Inu Coin
Apart from the hype created by influencers, Shiba Inus is also appealing to investors due to the desire for passive income that is gotten from staking as well as FOMO (fear of missing out).
The increase in the price of Dogecoin also helped other meme tokens, including Shiba Inu, thereby creating short-term profits.
Although many people see Dogecoin and Shiba Inu cryptocurrency projects as a joke, Shiba Inu grabbed the attention of many newcomers into the crypto space due to its low price. The coin’s low price encourages investors to get in while risking small amounts of money.
Risks of Shiba Inu Coin
Don’t forget that cryptocurrencies are risky assets. In that asset class, we have speculative altcoins, such as Shiba Inu, which are associated with more risks. This type of coin is only meant for investors that have a high tolerance for risk.
According to the Chief Marketing Officer of Sarson Funds, Jahon Jamali stated that “Cryptocurrencies, and digital assets as a whole, are still very much in a nascent stage of development. As with any emergent technology, there will be more losers than winners.”
Volatility is the most apparent risk with Shiba Inu (the same way it is with other cryptocurrencies).
While sharing his views on the coin, Tatibouet stated that the meme token buzz will not last long, thereby making some investors suddenly notice losses as interest fades off. A good example is Dogecoin’s dip which occurred after Tesla CEO, Elon Musk, hosted “Saturday Night Live” in early May.
According to Ben Weiss, the CEO of CoinFlip, Shiba Inu’s price could certainly go higher, but it could just as easily come down, bringing many investors with it.”
How Can You (And Other Investors) Decide?
Although it may sound, you need to do your homework. This is one of the best ways to stay ahead of a bad investment in the cryptocurrency industry and elsewhere.
Tabitouet stated that; “Thorough research is a must if you’re looking at investing in any cryptocurrency. Investing on a whim has ended in tears for many.”
There are many ways that you can use to research crypto investments. For instance, you can check coin supply and go through white papers. Weiss also advised that people need to gather sentiment from various sources.
While advising investors to exercise patience, Weiss said “Don’t invest to get rich quickly; invest in things you believe will be successful in the long run. There’s a saying in the stock market, and from what I’ve seen it certainly translates to crypto: ‘Time in the market beats timing the market.'”
