Cryptocurrencies and other terms related to investment have become a prominent part of every household. How this particular asset has risen in ranks is phenomenal. The growth has left many people scrambling to get their hands on cryptos. This started with the surge to buy bitcoin as it shot up in its prices swiftly. Being the first cryptocurrency to ever be introduced, it gained heights and saw a rise in its value that no other asset had seen before. Since then, newer cryptocurrencies have been launched and are increasing in popularity.
Altcoins – Any coin that is not bitcoin is called an Altcoin. The emergence of thousands of altcoins has opened several different opportunities among people and has created a great path for investors to find their footing in terms of where and what they see potential. One such altcoin, Shiba Inu, came into being as a parody and joke. It was meant to be a competitor to Dogecoin. Irrespective of the story of its origin, the Shiba Inu graph was worth marveling upon.
Pros and cons of investing in Shiba Inu – Before investing in any asset, it would be primal for people to research and find out more about the potential benefits and associated losses in the area. Whether you are looking for a stable and renowned opportunity and something that is known for its unprecedented success, you can look to buy bitcoin, however, even that would be associated with certain risks. Here are 5 pros and cons of Shiba Inu:
Pros:
- Cost-effective – The price of an investment asset plays a huge role in predicting the gains and losses that can accompany it. Since it is a low-cost cryptocurrency, it attracts several investors. It would be easier for the cost of SHIB to exponentially increase as opposed to other cryptos.
- Medium-cap asset – The market cap of this cryptocurrency is around 11 billion dollars. To be categorized as a medium-cap asset, the coin would have to survive the small-cap zone. This means that this coin has moved upwards in the global ranks
- Interaction with Ethereum – Shiba Inu has a good and interactive relationship with Ethereum. The DeFi projects and smart contracts work in tandem on the two networks.
- High trading volume – Since the appearance of this crypto in the market, the Shiba Inu graph has seen a steady trading volume. The opening day price and volume were very high. It is also attractive to newer investors owing to the low prices.
- Short-term gains – Owing to the low prices and volatility, this particular crypto is great for profits after a short span of investing. Predict the trends and anticipate the highs for a better and higher profit margin.
Cons:
- Volatile – As with all the other cryptos too, SHIB prices and patterns are extremely volatile. This was seen on the very next day of its launch. The trading volume dropped suddenly and drastically. This factor can cause certain issues
- Not an independent blockchain – Since the premise of Shiba Inu is based on the Ethereum blockchain, it is not independent. This has its cons like the lack of innovation and the unchanging infrastructure of the network.
- Lower reward potential – Essentially, each crypto is mined based on the demands associated with it. Even though SHIB has had its share of record-breaking performances, the increased number of coins can cause a dive in prices and sales.
- Not the first-mover memecoin – The first memecoin that was launched was DOGE, even though it did not take much time for Shiba Inu to overthrow Dogecoin, the victory was not for long. However, its supportive community provides a blanket of support.
- Faces severe competition – Regarding memecoins, the competition is just DOGE, however, in the metaverse, some multiple cryptos and networks can pose stiff competition to the innovation and growth of Shiba Inu. Several altcoins in the crypto space are also above SHIB in the charts.
Looking at the Shiba Inu graph, several positives can be noted and those can act as motivating factors for people to begin to invest. Holding on to the coins patiently can also lead to certain rewards as highs in the value are predicted in the future. External factors, market trends, economic factors, etc can affect the prices. Day traders also seem to make a profit off the spikes that are seen on these occasions. Invest in altcoins like SHIB for better returns.