Complete Guide to Shiba Inu Crypto
Posted by Frank Gogol in Crypto | Updated on May 29, 2023
The current focus of a lot of speculative trading in the cryptocurrency world is Shiba Inu (SHIB). The Shiba Inu token has risen rapidly in popularity and price in 2021. It has even become known in mainstream news outside of cryptocurrency. Read on to learn more about Shiba Inu crypto.
Table of Contents
What is Shiba Inu Crypto?
Shiba Inu is one of a group of meme-based cryptocurrency assets called memecoins. These are tokens and coins with no particular purpose. Their popularity and value are derived purely from the association of their branding with something popular among a large group of people.
An example of a well-known memecoin is Dogecoin, based on the doge meme from the early 2010s. The Shiba Inu token is closely related to the doge meme (Shiba Inu is the breed of the Japanese dog whose photograph first gave rise to the doge meme).
Unlike Dogecoin, which is native to its blockchain, Shiba Inu crypto is a token on the Ethereum blockchain. This is an important distinction when it comes to buying and selling crypto.
Crypto coins are the native currency of their blockchain protocol. Examples of this are Bitcoin (BTC), which is native to the bitcoin protocol, and ether (ETH), which is native to the Ethereum network. Coins are the fundamental unit of value of a crypto blockchain.
By contrast, tokens are not fundamental to the blockchain they exist on. They are more like apps installed on the blockchain. You can think of the difference between coins and tokens as the difference between an app on a smartphone, and the operating system that the app is installed on. For example, a social media app is installed on Android. In turn. Android is installed on the phone’s hardware.
Both of those pieces of software are on the phone (the blockchain) but without the operating system (coin), the phone is just a plastic and glass paperweight.
Tokens are much, much easier to create than coins. This is because coins require the software to operate a stable blockchain, and they only have meaning on that blockchain. By contrast, a very simple token can be created with a few dozen lines of code in an hour or two.
Shiba Inu is an ERC-20 token on the Ethereum blockchain.
The ERC-20 standard requires that all tokens conforming to it have a set of minimum capabilities, such as transferring, keeping track of balances, and a few others. This standard allows token smart contracts to interact predictably with numerous other smart contracts, even when the programmers that created them were not working together.
Standards such as ERC-20 are one of the reasons that decentralized finance (Defi) on Ethereum has grown so quickly. It is easier to build on other people’s work and innovate when the basic building blocks are standardized. Creating a new cryptocurrency no longer requires creating an entire blockchain protocol for it.
Integration with the ERC-20 standard has allowed the Shiba Inu crypto community to grow rapidly and develop an ecosystem of Shiba Inu-related products that are fully compatible with thousands of other Ethereum crypto assets.
How to Buy Shiba Inu Crypto
SHIB is an ERC-20 token, which means you can exchange it for another ERC-20 token on any of the major decentralized exchanges (DEXs) like Uniswap. All you need is a wallet with enough tokens or ETH in it to exchange.
Simply visit the exchange’s official website and connect your Ethereum wallet. You will then be able to swap the token for the crypto of your choice.
Shiba Inu crypto is also available to buy on centralized exchanges like Coinbase, Kraken, and Binance.
To purchase Shiba Inu crypto on a centralized exchange, simply create an account with the exchange, then complete the KYC (know your customer) requirements.
To combat criminal activities like money laundering, many countries have KYC (know your customer) regulations. These regulations require financial institutions to record the identity and personal or business details of all the customers they do business with. This process allows government officials to trace the identity of account holders if a crime is committed.
Since they provide crypto in exchange for fiat currency (normal cash), centralized exchanges based in the United States and many other countries require you to provide some form of official identification before you are allowed to use the platform.
Once you have met the KYC requirements you can use your credit or debit card to fund the account with crypto at the offered exchange rate.
If you have a crypto wallet, you can transfer the crypto from the centralized exchange to it. If you intend to hold crypto for a long time, it is generally considered safest to keep it in your wallet. You can also leave it on the exchange.
How to Sell Shiba Inu Crypto
The process of selling SHIB is the same as buying, just in the opposite direction. You can always sell SHIB crypto at the same exchange you bought it from. Just choose what kind of currency you want to buy with your SHIB.
Considerations When Buying Shiba Inu Crypto
The main consideration with Shiba Inu, and any other memecoin, is popularity. The sole reason for the value of this token is that a lot of people know about it, are talking about it, and are expecting its price to increase. Since the token does not provide any particular innovation and is not a utility token (required for a specific service), its price is linked directly to public opinion. Since public opinion can change quickly, this can give rise to rapid price rises. However, since fads can change quickly, they also present the risk of a quick drop in value without warning.
Memecoins are speculative assets and should not be relied upon as the basis of an investment plan.
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Shiba Inu crypto (SHIB) is an ERC-20 token on the Ethereum blockchain. Unlike the other popular crypto based on the same meme, Dogecoin, SHIB is a token and not a coin on its own blockchain. This makes SHIB very easy to buy and sell. SHIB has gained several thousand percent in value in 2021. It is important to remember that the price of a memecoin can change with little warning as interests change.