Shiba Inu Cryptocurrency: Price, Benefits And How To Buy Them?
After the exponential rise of various meme-oriented tokens like Dogecoin and GameStop, Shiba Inu is one such cryptocurrency that has now become popular among crypto investors. The name is derived from a dog breed in Japan, and interestingly, it is the same dog which is the mascot of Dogecoin.
Despite being based on a dog meme, Shiba Inu supports more projects than Dogecoin, especially NFT art. It is also intentionally abundant, with a total of one quadrillion tokens in supply. Keep reading to know more about Shiba Inu cryptocurrency, its working and other aspects.
What is Shiba Inu?
The Shiba Inu coin was developed in August 2020 by an anonymous person or a group referred to as Ryoshi. It was primarily inspired by Dogecoin (DOGE), which is the original meme-oriented cryptocurrency.
Similar to other cryptocurrencies, Shiba Inu crypto also runs on a blockchain algorithm. However, it does not have its own hashing algorithm and functions on the Ethereum blockchain network.
There are three coins under Shiba Inu available for trading, namely – SHIB, BONE and LEASH. One of the unique features of this cryptocurrency is that it has its own decentralised exchange system known as ShibaSwap that allows its users to bury (stake coins), dig (provide liquidity), fetch (retrieve coins) and swap the coins.
A major difference between DOGE and Shiba Inu is that the latter has its own decentralised exchange system. It allows users of SHIB (SHIB Army or people engaged in managing this network widely use Bone tokens) and other coins to indulge in swapping, staking and other activities.
How to Use Shiba Inu Cryptocurrency?
We have already discussed the basic premise of Shiba Inu tokens. Let’s discuss the workings of the three coins issued under Shiba Inu.
- SHIP: It is the main currency of the entire Shiba ecosystem, and many consider this the fountainhead of Shiba Inu. It runs on an Ethereum-backed blockchain network. SHIB started its journey with around 1 quadrillion coins in August 2020. Out of these, around 50% of the coins were locked in Shiba Inu’s exchange ecosystem – Shibaswap.
- LEASH: There are only 107646 units of LEASH tokens available in the markets. It is one of the least supplied Shiba Inu tokens, and users receive this as a staking reward for validating crypto-related transactions.
- BONE: There are about 250 million units of BONE available for trading and investment. This is often classified as a governance coin of the Shiba Inu ecosystem. Traders can use these tokens to vote and take part in the decision-making process of this ecosystem. SHIB Army, or people engaged in managing this network, widely use BONE tokens to express their opinion on various proposals.
In addition to the three tokens mentioned above, the Shiba Inu network also supports NFT (Non-fungible Token) art projects. There is a Shiba Inu incubator in this ecosystem which allows for nurturing of artists from around the world. Many users and artists can use this tool to come together and create different artworks, which the Shiba Army will display on the ecosystem. The network will also provide training to budding NFT artists.
Also Read: Understanding Tax On Crypto In India And How It Is Calculated
Price of Shiba Inu
Shiba Inu is one of the most popular cryptocurrencies. The market capitalisation of Shiba Inu tokens as of 27.06.2022 is more than $6 billion. The current trading price of Shiba Inu coins (SHIB) is $0.000011, and there are more than 500 trillion SHIB coins in circulation.
It is currently ranking in 14th place in terms of market capitalisation. Additionally, the price of Shiba Inu coins in rupees (INR) fluctuates between $0.0006 and $0.0009.
It reached its all-time high of $0.00008845 during its peak valuation in October 2021. The Return on Investment (ROI) provided by SHIB coins is more than 683846%. However, Individuals planning to buy SHIB should be careful as it is a highly volatile cryptocurrency.
How to Buy Shiba Inu Tokens?
Shiba Inu is listed on various Indian crypto trading exchanges. Once you select your preferred crypto exchange, you can follow these steps to buy Shiba crypto.
Step 1: Create an account on the crypto exchange platform by completing the registration and KYC process.
Step 2: Once your account is verified, search ‘Shiba Inu’ on the platform.
Step 3: After checking the current price of Shiba Inu, click on ‘BUY’ and enter the number of tokens that you wish to purchase.
Step 4: Transfer the required funds from your bank account to the digital wallet.
Step 5: Once you confirm the payment, the purchased tokens will be reflected in your wallet.
Additionally, you can also purchase Shiba Inu cryptocurrency by exchanging other Ethereum-based cryptocurrencies.
Benefits of Shiba Inu Cryptocurrency
The benefits accrued to the holders of Shiba Inu tokens are as follows:
- Chance to earn rewards: Users of Shiba Inu crypto have an opportunity to earn rewards through staking. Staking is the process of locking up Shiba Inu coins in your crypto wallet in order to maintain the stability of the blockchain. In exchange for their commitment, you are liable to receive rewards.
- Liquidity: Cryptocurrency Shiba Inu is one of the most popular digital currencies across the world and ranked 14th in terms of total market capitalisation. Hence, it offers great liquidity for its users. These tokens can be used as a medium of exchange on various platforms.
- Return potential: The SHIB token is priced very low; its present price is not even one dollar. Therefore, investors can buy a huge volume of these coins at a very low cost which offers them substantial gains when the price of these coins rises.
Disadvantages of Shiba Inu Cryptocurrency
- Volatility: Just like any other crypto asset, Shiba Inu is also highly volatile. They are unstable and are unreliable forms of investment. It is not considered suitable for investors who have a low-risk appetite and are looking for a stable income.
- Lack of creativity: Another aspect that goes against Shiba Inu crypto is that they are not original. This creates doubt about its longevity and whether it will be able to evolve and come out of the shadow of its predecessor.
- Less real-world use: Apart from being traded on various online platforms, these coins do not have much real value in the outside world. SHIB is accepted as a means of payment by very few people. This creates an impediment to its development and acceptability.
Are Shiba Inu Tokens a Good Investment Option?
Unlike traditional investments, Cryptocurrencies are not backed by any underlying assets or cash flow. The value of a cryptocurrency is based on the speculation and optimism associated with this sector.
If Shiba Inu is high in demand, its value will rise. You can earn significant returns on your investment if another trader offers a high price. However, his decision is purely based on speculation that the price of these tokens may rise further in future. When the demand for these coins starts falling or the pool of traders looking for Shiba Inu goes dry, then this token will be worthless.
However, the value is purely speculative. Due to its low credibility, volatility and lack of substantial backing in the form of the underlying asset, it may not be an ideal investment option. However, if you have a high-risk tolerance and have great market knowledge about it, then you may consider investing in Shiba Inu.
Also Read: What Is The Future Of Cryptocurrency? Is It Dim, Bright Or Just Another Puzzle?
Final Word
Shiba Inu cryptocurrency has shown remarkable growth in the short time that it has been functioning. It has some uniqueness in the form of its own decentralised exchange system that allows the ecosystem to flourish. The low trading price may be tempting for prospective buyers; however, before pooling their money in these, they must do thorough market research and take expert guidance.
FAQs on Shiba Inu
Ans: The process of selling SHIB tokens involves the following steps:
Step 1: Log in to the trading platform with your credentials.
Step 2: Once you select Shiba Inu, click on the option of the Sell order.
Step 3: Select the quantity and price at which you want to sell the token.
Step 4: SHIB tokens will be sold when a matching buyer comes ahead with an offer.
Ans: From 1st April 2022, all income earned from digital assets like cryptocurrencies will be taxable. The rate of taxation on these is 30%. Moreover, from 1st July 2022, all crypto transactions are subject to TDS deduction at the rate of 1% on all transactions.
Ans: There are four fees or charges levied by crypto exchanges in India. They are joining fee, deposit fee, trading fee and withdrawal fee. Out of these four, the trading charge is the most expensive fee. Every exchange charges a percentage of the trading amount as a fee on every transaction. Hence, investors must be very careful with their transactions as more transactions mean higher costs and vice versa.
Ans: Some of the world’s leading players in their sectors have started taking cryptocurrencies as a medium of exchange. These companies are – Microsoft, Starbucks, PayPal, AT&T, Rakuten, Newegg, etc. These companies primarily accept Bitcoins as a medium of exchange.
Ans: Bitcoin, or BTC, as we all know, is the most valuable digital currency in the world. The current trading price of 1 BTC is around the $20000 mark. Many companies have started taking this as a payment option.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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