Introduction
Meme coins, the crypto-assets developed solely for the purpose of amusing the blockchain community, saw huge value gains over the course of 2021 led by the flagship cryptocurrency in that category, Dogecoin (DOGE). The price of DOGE rallied at the beginning of the year which helped draw the focus onto other similar cryptocurrencies including the Shiba Inu coin (SHIB). Despite having been created several months earlier, SHIB didn’t hit the limelight until May 2021, when one of its biggest stakeholders donated more than $1 Billion worth of the tokens to the fight against COVID-19 in India. Vitalik Buterin, who at the time held half of the SHIB’s total supply, donated 10% and burnt the rest of the Shiba Inu tokens in his wallet. Following this act, Shiba Inu became a household name amongst the blockchain community. Its market value, since it was launched, has skyrocketed, making it one of the best performing crypto assets of 2021. In this guide, we’ll discuss what makes Shiba Inu unique, why you may want to pay attention to it, and how to invest in the so-called ‘Dogecoin killer.’ Due to its growing popularity, SHIB can be accessed across multiple crypto trading platforms, a few of which we will highlight below.
What is Shiba Inu (SHIB)?
Shiba Inu is a meme token that was created in August 2020 by an anonymous individual or a group of people named Ryoshi. The main idea behind its development was to create an alternative to Dogecoin through a community of like-minded individuals.
According to its whitepaper, the project was created to answer one question: “What could happen if a cryptocurrency project was 100% run by its community?” Once the project launched, the community got a nickname – ShibArmy – and created an Ethereum-based ERC-20 token dubbed Shiba Inu token ($HIB) based on the Shiba Inu dog breed famously used as the Dogecoin mascot. Ryoshi created one quadrillion SHIB tokens, half of which were locked within the UniSwap decentralized exchange (DEX) to provide liquidity, and the other half was sent to Ethereum co-founder Vitalik Buterin. Shiba Inu has since grown into a fully-fledged ecosystem comprising a decentralized token exchange called ShibaSwap, and two extra tokens; Other SHIB ecosystem features are The Shiba Incubator for Art, the aforementioned decentralized autonomous organization (DAO) DoggyDAO, and the Shiba Inu Rescue Association. Through the rescue association, the #ShibArmy donates funds to help dogs in need globally, especially the Shiba Inu breed.
Why buy Shiba Inu Coins?
Shiba Inu may have started out as an experiment with the hope to replace DOGE, but the community behind the asset has been working to give the token some real-world utility. As a result, it is no longer just a meme token. Here are some of the reasons why a number of investors find value in the Shiba Inu token:
Speculation – most crypto investors are speculative traders looking for the next token that will give them the highest returns. SHIB’s price had a particularly impressive trajectory in 2021, showing that it has the potential to replicate a similar performance going forward.Passive income – SHIB investors have the option to stake their tokens and earn a passive reward for their efforts. In the Shiba Inu community, staking is referred to as burying tokens, in reference to the dog theme.Provide liquidity – stakeholders can use SHIB tokens by depositing them into a liquidity pool within the ShibSwap DEX or UniSwap, another DEX thereby making it easier for traders to get in and out of positions. In exchange, the liquidity providers earn rewards in the form of interest. The ShibArmy calls this action ‘Digging.’Participate in Shiba Inu governance – with SHIB, LEASH, or BONE tokens, stakeholders can vote on proposals to be implemented in the DoggyDAO entity and the general Shiba Inu ecosystem. Having any of the three tokens entitles one to identify as a member of the ShibArmy which does have some cache in certain crypto circles.
Pros and Cons of Investing in Shiba Inu
Pros
Shiba Inu has a vibrant and passionate decentralized community;The project continues to grow beyond its initial purpose of serving as an amusement i.e., meme coin;SHIB, LEASH, and BONE tokens offer stakeholders chances of earning passive income;Shiba Inu is hosted on the Ethereum network, the leading smart contract platform with one of the most active development communities;SHIB token is widely supported across some of the leading crypto trading platforms.
Cons
Unlike Dogecoin which runs on top of a proprietary blockchain, SHIB is an ERC-20 compliant token that exists on top of Ethereum. It is not independent and has to comply with ERC token standards which also means that it also inherits Ethereum’s drawbacks such as high gas fees and slow transaction speeds.
However, the Ethereum blockchain is undergoing one of the biggest and most important upgrades that will see it become cheaper, more eco-friendly, and much faster to transact on. As a result, all ERC tokens will inherit these qualities including SHIB, BONE, and LEASH.
How to Buy Shiba Inu token (Step-by-Step Guide)
Buying SHIB is a simple and straightforward process depending on the channels you use. However, BONE and LEASH tokens may be harder to acquire as they are not as widely supported as SHIB. For simplicity purposes, we will focus on the Shiba Inu token in this step-by-step guide, however, the same process could apply to the other two in some instances. Investing in SHIB involves four steps, which are: It’s worth noting that the process highlighted above only applies to centralized exchanges. If you are using a decentralized exchange (DEX) such as UniSwap or ShibaSwap, you should use the following process: Let’s consider the two processes in more detail.
Using a Centralized Exchange (CEX) to buy Shiba Inu token
Step 1 – Identify a cryptocurrency exchange that supports trading of SHIB tokens and create an account. To help you identify a good platform, consider the following factors:Safety & Security – How safe is the platform? What are its security provisions and policies? Does it insure its customers’ deposits?Regulations – Is it regulated? Which regions is it authorized to operate in and is your location among them? How compliant is it to your local regulator’s laws?Trading fees – What are the costs of performing transactions on this platform? Is it affordable? Are there any discount incentives? Which fee payment model does the platform use (either maker/taker or arbitrary.)Payment methods – How will you fund your online account? Which payment methods are available? Is your payment channel supported?User interface – Is the platform easy to use – considering your usage needs? Can you access the exchange on other platforms such as mobile or desktop? Is this a priority for you?
These are a few of the most important factors to consider while choosing a trading platform to use when buying SHIB or any other cryptocurrency. In the section on where to buy SHIB, we will provide an example of how you can use Coinbase, the leading US-based crypto trading platform. Note: For more information on how to choose a secure platform to invest in digital assets be sure to read our ‘Best Cryptocurrency Trading Platforms‘ guide.
Step 2 – Plan your investment strategy. This step entails that you define your investment goals then aim to align your activities to achieve those goals. If you are a speculative trader or investor, you might opt to choose one of the strategies ideal for such an investor including day trading, position trading, dollar-cost averaging, or HODLing.
Note: For more information on investment strategies, read our comprehensive ‘Cryptocurrency Trading for Beginners’ guide.
Step 3 – Deposit funds or connect a payment method to your online account. Now that you have chosen a trading platform and planned your investment strategy, it’s time to start investing. Depending on which payment method you are using to fund your account, you may have to transfer the money to your account or connect a payment card (debit/credit card.)
If you opt to use a bank transfer channel such as SWIFT or wire transfers, that could take some days to reflect on your account. Payment cards are typically instant purchase channels and funds are directly traded for crypto rather than being transferred from your bank to your online account. Most crypto exchanges, if not all, have the option of crypto deposits too where you can transfer your digital assets from an external wallet or exchange and use your crypto balance to trade against SHIB tokens. Crypto deposits provide a compromise between instant purchases that are typically very expensive and bank transfers that are cheap but slow.
Step 4 – Purchase SHIB. With the funds in your online account, or once you successfully link a payment card, go ahead and buy the Shiba Inu tokens.
Using a Decentralized Exchange (DEX) to Buy Shiba Inu token
The procedure to buy tokens through a DEX varies slightly from using a centralized exchange because the latter has to comply with global KYC regulations. Every platform that accepts fiat funds transfer has to comply but DEXes don’t support fiat to crypto swaps. Therefore, decentralized platforms can operate without requiring to comply with any KYC provisions. This one feature makes the process of buying Shiba Inu tokens through a DEX very different. These are the steps to follow in buying SHIB tokens on a DEX:
Step 1 – Choose a favorable decentralized exchange. Like there are myriad centralized crypto exchanges, there also are several decentralized options in the market. The most popular is UniSwap which comes highly recommended for its simplicity and liquidity provisions but you can also choose ShibaSwap, the proprietary Shiba token exchange platform. They operate in a similar way so either platform will work for purchasing SHIB tokens.
Warning: Little value trades on Ethereum-based DEX platforms can get very expensive because transaction fees are too high. It is currently not uncommon to be charged transaction fees that are higher than the value of the transaction (for example, higher than $100 fee per transaction). However, Ethereum core developers are working to fix this challenge by upgrading the network from mining to staking.
Step 2 – Choose a compatible Ether wallet. It’s worth mentioning that typically DEXes do not hold a users’ funds during a trade but instead facilitate the transfer of digital assets from one counterparty’s wallet to the other. Therefore, before executing any trades, the platform will request you to connect a compatible wallet such as MetaMask or Coinbase Wallet. Make sure to fund your wallet because this process entails swapping from an initial coin or token such as Ethereum to another, in this case, $SHIB. You can easily buy Ethereum from a CEX then transfer it over to a self-custody wallet such as the ones mentioned above.
Some crypto wallets, such as MetaMask, allow you to purchase digital assets by providing an instant purchase feature, in partnership with third-party payment processors. However, if you use this route, you have to sign up for an account with the payment processor before buying any crypto.
Step 3 – Plan your investment strategy. This step is similar to Step 2 of buying $SHIB from a centralized exchange that we discussed in the previous subsection. We recommend that you revisit that section.Step 4 – Connect your wallet to the DEX. As discussed in Step 2 above, you need to link your Ether wallet to the DEX of your choice to enable transactions. This step can get confusing for beginners, however, we will give you a step-by-step guide on how to buy SHIB tokens on UniSwap as an example.Step 5 – Swap your tokens to acquire $SHIB. The last step is to convert your available coins to your desired tokens. If you got Ether, you can now swap ETH for Shiba Inu. Again, refer to the example given below to understand how to do this.
Where to buy Shiba Inu token (SHIB)
Currently, Shiba can be bought, sold, and traded on a majority of the leading crypto trading platforms. Below are some of the exchanges that support it. Best for residents in the United States:
1. Coinbase
Coinbase is a fully regulated US-based cryptocurrency exchange that was launched in 2012. It offers crypto brokerage, trading, staking, custody, e-commerce solutions, and a Visa debit for users to easily spend their account balances offline. You can buy, sell and trade $SHIB coin any time and pay using a variety of methods including PayPal, SWIFT bank transfers, and debit/credit cards.
2. Kraken
Kraken is another US-based crypto exchange headquartered in San Francisco, California. It was established in 2013 and unlike Coinbase, which has reported a minor security incidence, Kraken has not suffered any. This is a testament to its impressive security measures. On Kraken you can buy, sell and trade $SHIB, you can stake other coins and tokens. You can also trade on margin, spot, and futures for several digital assets. Best for residents outside the US:
3. Binance
Binance is the leading crypto trading platform by daily trading volume, supported coins/tokens, coverage, and products/features. Whatever blockchain-related product or service that you need, Binance probably has it. Everything from staking, trading, brokerage, custody, lending, early-stage investment (or initial exchange offerings), charity, Visa card, e-commerce solution, among several others. $SHIB token is among the supported digital assets.
4. KuCoin
KuCoin exchange was launched in 2017, around the same time as Binance, and similar to its counterpart, it has grown to be a worthwhile crypto trading platform. It is now based in Singapore and serves more than ten million users across the world. Shiba Inu is among the hundreds of coins and tokens supported on the exchange. You can buy, sell, trade, and HODL, $SHIB tokens on KuCoin. Best decentralized exchange (DEX) to buy Shiba Inu tokens
5. UniSwap
UniSwap is a decentralized crypto trading protocol for providing liquidity and trading ERC20 tokens on Ethereum. The platform employs a unique trading model, unlike its predecessors, called automated liquidity protocol. Through this model, the exchange incentivizes users to provide liquidity which makes trading on the platform fast and efficient. This means that on UniSwap, you can earn by contributing towards the liquidity of the various tokens supported and also swapping between assets.
How to Buy Shiba Inu token on Coinbase (Step-by-Step)
Step 1 – Login to Coinbase.
The first step is to access the Coinbase homepage and log in using your username and password. If you do not have a Coinbase account, you will have to sign up and verify your identity before coming back to proceed with this tutorial.
Step 2 – Search for Shiba Inu Token.
Once you access your Coinbase account, click on the Trade tab on the left side of the screen and search for Shiba Inu using the search box. Alternatively, you can scroll down until you get to it.
Step 3 – Buy Shiba Inu tokens.
Click on the three vertical dots to the extreme right that align with the Shiba Inu row to reveal extra options. Select the [Buy SHIB] option. This action will load up the purchase wizard pop-up screen.
Step 4 – Provide transaction details.
In this step, you will specify which coin or token you want to buy and how much you want to spend. Starting with the first option, click on the Bitcoin tab next to the Buy form field description to open the list of assets to purchase. Bitcoin is preselected by default so search for Shiba Inu by typing out the name in the search box and selecting it. Once you do, Coinbase will automatically close the asset selection box and take you back to the original screen to select the number of SHIB tokens you wish to buy. Notice that the form field next to the [Buy] button now shows that SHIBA INU has been selected. Choose the amount you want to spend in your purchase from the available options or specify a custom amount by clicking on the [Custom] button and entering an amount you are looking to spend.
Step 5 – Confirm the transaction.
As soon as you provide the amount you want to spend, Coinbase will automatically load up the confirmation screen showing the coin or token you have elected to purchase and the amount you wish to spend. Additionally, the exchange will show you the transaction fee for performing the trade. Here, you will also notice that Coinbase will show you the number of Shiba Inu tokens you will receive for the amount of fiat you are willing to spend. The payment method is preselected but you can change it from the previous screen. Click the [Buy now] button to authorize the transaction. You have successfully bought some $SHIB tokens. Coinbase exchange will typically process the transaction immediately and you can check your SHIB balance by going back to the assets page or the dashboard section and scrolling down to the SHIB asset listing.
How to Buy Shiba Inu on UniSwap DEX (Step-by-Step)
Step 1 – Access UniSwap exchange.
Open your browser window and visit https://uniswap.org/. Click either of the [Launch App] buttons on the page to open the swap web application.
Step 2 – Connect Metamask wallet.
On the Swap app page, you will need to link your Ethereum wallet to UniSwap. Click either of the two [Connect wallet] buttons found on this page to load up the available wallet options to which you can connect. Choose Metamask or any of the other supported wallets that you prefer. Once you click MetaMask, UniSwap will send a connection request to the Metamask browser extension (assuming that you have already installed the extension to your browser.) Log into Metamask and accept the connection request.
Step 3 – Import SHIB token to Metamask.
Shiba Inu will not be listed within your Metamask wallet by default, so you have to add it to view any tokens that you swap to SHIB later. Otherwise, your wallet address will show that you have Shiba tokens but they will not be visible in your wallet interface. To add SHIB to Metamask, you will need the Shiba Inu ERC-20 contract address. You can get this contract address from CoinGecko or CoinMarketCap. Click to copy the address as shown in this image. With the contract address, open the Metamask extension by clicking on its icon on your browser addons list, then clicking the [import tokens] link. Use the [Custom Token] tab to paste the contract address. Click the [Add Custom Token] tab to add the $SHIB token to your wallet. Metamask will show you a preview of the custom token for you to confirm before importing it. Click [Import Tokens]. You will notice that now you have the $SHIB token listed on the Metamask wallet dashboard screen as shown below. At this stage, ensure that you transfer some Ethereum to your Metamask wallet to use as the swap asset on UniSwap.
Step 4 – Swap ETH for SHIB on UniSwap
Head back to the UniSwap application and select the two assets you wish to swap. The platform will have Ethereum preselected by default but if you need to swap from another token click on the first selection tab and choose the correct asset. Similarly, also choose the SHIB token in the second section. In the pop-up search box, search for the Shiba Inu token and select it. Notice that it has the ‘Added by user’ description next to its title showing that we have added it to Metamask wallet. Input the number of $ETH coins you want to swap to $SHIB or provide the number of SHIB tokens you want to swap into and the platform will automatically prefill the other box. Click the [Swap] button to load the confirmation screen. Run through the details as shown on the screen and confirm if you are comfortable with the terms. Click the [Confirm Swap] button which will send an authorization request to your Metamask wallet. Next, click the [Sign Transaction] tab on your wallet request to commit to the swap transaction. UniSwap will deposit the Shiba Inu tokens into your wallet as soon as the transaction is confirmed on the blockchain by the miners.
Final thoughts
All in all, depending on your level of crypto expertise, you may find that either of the two step-by-step methods for purchasing the Shiba Inu token is more suitable for you, but regardless of whatever technique you pick, always exercise caution to avoid making preventable errors that might result in the loss of your assets. For instance, when transferring tokens between wallets, avoid typing out the wallet addresses and choose to scan instead. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
As a speculative asset, it can be bought, sold, and traded for a profit;As a store of value, it can be held within a crypto wallet over the long term;As a governance token, it can be used to vote on development proposals; andAs a reward token for liquidity providers on the ShibaSwap DEX.
Defining your goals to determine whether to invest in Shiba Inu;Considering the time or period in which you wish to invest;The price action of the token in the secondary market; andUtility of the token i.e., what you can do with Shiba Inu outside speculation and store of value.
