5 Things to Consider if you Want to Buy Shiba Inu
Before you go ahead and make your first Shiba Inu purchase, make sure that you pay attention to certain important considerations. Keeping these points in mind will ensure that you are well-prepared to make a problem-free and quick crypto transaction.
Carefully choose your preferred secure payment method
Not all countries have all payment methods available for making crypto purchases. Hence, you should first ensure that the platform you have in mind does offer the payment mode convenient to you. In case there are multiple options offered, you must choose the best based on its cost, speed and convenience.
Will you need to set up your own wallet?
In case you choose to buy Shiba Inu ownership and not just speculate on its price, you may need to set up a crypto wallet to safely store your purchased SHIB coins. Although you can also leave your crypto funds in the exchange-provided web wallet, it’s not recommended to do so, as these are cloud-based wallets that are highly vulnerable to thefts and hacks.
On the other hand, if you use a derivative like CFD to simply bet on SHIB’s future price movements, there will be no need of setting up a wallet as no exchange of SHIB coins will be involved.
Comparing costs
Shiba Inu, being an Ethereum based ERC-20 token, every purchase of the cryptocurrency will involve a certain transaction fee (called Gas fee) for using the Ethereum blockchain’s resources. There will also be some platform related charges like deposit fee, withdrawal fee and transaction fee levied on the respective trading platform as well. You must always learn about and compare such costs before deciding on a specific website for Shiba Inu purchase.
Safety and security
As mentioned earlier, Shiba Inu is an Ethereum-based cryptocurrency and hence inherits all the security traits of Ethereum, thus making it an extremely safe crypto coin from the blockchain technology’s perspective. Other than the safety and security aspect of the coin itself, you’ll also need to factor in the security measures implemented by the platform used for Shiba Inu purchase. Majority of the regulated portals provide multiple security mechanisms like Two Factor Authentication and more, to ensure the complete safety of their traders’ and investors’ interests.
Can you understand and navigate the platform?
The trading platform’s ease of usage is another very important, but often neglected consideration that must be paid heed to before buying Shiba Inu through it. You must learn about the workings of the online exchange or broker you’re planning to use. Get acquainted with its charges, navigation features, and the time taken for transactions. The best service providers usually offer in-depth tutorials to make crypto buying and selling easy for new investors/traders. Please remember, there’s no scope for a refund in cryptocurrency transactions, as these are immutable by design.
Ultimate Beginner’s Guide to Trading Shiba Inu
What is a Shiba Inu Broker?
Simply put, cryptocurrency brokers are intermediaries that execute crypto trades on behalf of traders and investors. Though conventionally speaking, a broker can be a company or an individual, in the domain of cryptocurrencies, the term is normally used to refer to an online platform that facilitates crypto trading activity. These online service providers have gained a lot of popularity over the years because of how they have made crypto trading accessible even to non-technical and novice traders.
A Shiba Inu broker would normally make available financial derivatives like Futures, Options and CFDs, to help you speculate on the meme coin’s price movements without engaging in any actual token purchase.
What is a Shiba Inu CFD?
CFD is the acronym for ‘Contract for Difference’, a financial derivative product that allows you to bet on a tradable asset’s future price changes, without owning or exchanging any of it. Hence, when you trade cryptocurrencies through a CFD, no actual crypto coins are exchanged; it is a purely speculative activity.
CFDs are one of the main offerings of online crypto brokers, who also normally provide the leverage option for CFDs, enabling traders to borrow funds for taking bigger market positions. Please note, when using the leverage facility, both your losses and profits are magnified to the same extent.
What is the Benefit of Shiba Inu Regulation?
Though regulation is looked down upon by a great majority of crypto purists, it’s a necessary evil for protecting the interests of investors and traders. The conventional trading markets which normally deal with fiat currencies are treated as safe and legitimate mainly because they’re subjected to thorough regulations via laws that have been amended and improved over the decades.
When you use a broker or exchange regulated by a well-known global authority, you’ll have someone to turn to in case of a mishap and will be able to take an appropriate legal recourse, to recover your losses.
What is the Best Payment Method for Buying Shiba Inu?
You can buy Shiba Inu using any of the payment options provided by the concerned trading platform. Please know, the options offered to you may vary depending upon your location, hence, it is always better to cross-check this aspect before signing up with any portal. Furthermore, there may be certain pros and cons associated with each mode of payment. Let’s go over some of the popular payment methods used for purchasing Shiba Inu in the market.
Buying Shiba Inu with PayPal: Though a very popular option as it offers a good mix of cost and convenience, PayPal may not be available in all the countries and crypto trading platforms. What sets it apart is that it does away with the need of providing your banking details to the trading portal.
Buying Shiba Inu with bank transfer: Bank transfers are preferred by many crypto traders and investors because of their low fees, which makes them ideal for large crypto purchases. Additionally, this mode of payment is accepted by almost all the platforms and countries where you can legally buy cryptocurrency. However, funds deposited through bank transfer may take multiple business days to show up in your exchange/broker account.
Buying Shiba Inu with debit/credit cards: There are many crypto platforms that readily accept credit/debit cards as they offer a high degree of convenience and security for fund deposits. However, the transaction fee especially for credit cards is generally higher than other modes of payment.
Buying Shiba Inu with crypto transfer: Another well-known option to buy Shiba Inu, this is primarily used on cryptocurrency exchanges. You simply need to locate an exchange platform that offers a trading pair of your choice, for instance, BTC/SHIB, ETH/SHIB, XRP/SHIB or ADA/SHIB, sign up with it, deposit the required amount of crypto, and then execute the exchange/purchase using that particular trading pair.
The Verification Process for Trading Shiba Inu
All reputed crypto brokers and exchanges, regulated by leading authorities, will require you to complete a verification process, as per their KYC (Know Your Customer) norms, before allowing you to use their services.
This verification process usually entails uploading a copy of a photo identity card, for example, passport, driver’s license or national ID, and then accepting a video call or uploading a selfie, to verify that it’s you whom those documents belong to. Some trading portals may also require you to upload a copy of a separate proof of address, such as a utility bill or bank statement. The whole idea behind carrying out such verifications is to keep the bad actors away from the trading platforms.
Shiba Inu: Long vs Short Term Investment
People interested in investing in Shiba Inu can take a long-term or short-term investment route. Short-term investments involve using some trading strategy like swing trading, scalping, trend trading or day trading, to exploit Shiba Inu’s price fluctuations. Trading also allows you to use a derivative like CFD to only speculate on Shiba Inu’s price changes, without any actual SHIB exchanging hands. Please note, to be a successful short-term crypto trader, you may need to be a vigilant and active participant in the market.
Taking the long-term investment route is more about adopting a passive trading strategy wherein you buy a certain amount of Shiba Inu coins and hold on to them for many months or years, in the hope that their value will appreciate someday. Such investments are less-risky, but require a lot of patience, as you may have to stay invested amidst volatile market movements. You should also have a good understanding of the crypto market, learn to time your entries and exits, and make the most of your long-term investments.
Why Buy Shiba Inu rather than Trade?
Whether you should buy SHIB cheap and then hold onto it for the long-term, or indulge in short-term SHIB trades via a broker, is something that will depend a lot on your investment goals. As emphasised in the section above, buying Shiba Inu with a longer investment horizon, is usually less risky, but more of a passive method as compared to short-term trading.
There is no need to constantly tracking the market movements and adjusting your strategy. However, please keep in mind, there’s a learning curve involved in every crypto purchase. You’ll need to set up crypto wallets for the safe long-term storage of your purchased SHIB coins. Additionally, you’ll have to study the historical price movements of Shiba Inu, as well as multiple fundamental and technical factors, to enter and exit the market at the right times, to maximise your profit potential.
What Fees are Involved in Buying Shiba Inu?
Please note, while there may be certain Ethereum Gas fees involved in Shiba Inu transfers, you may have to make certain platform-specific payments too for buying or trading SHIB. We briefly delved into the importance of carrying out fee comparisons and studying the costs associated with Shiba Inu purchase, before selecting any trading platform. Let’s now go over some of the commonly-known fees charged by crypto brokers and exchanges.
Deposit fees – Many trading platforms take a small percentage of the deposited funds, as a deposit fee. While it’s a common practice among online crypto exchanges, brokers often waive this charge to attract more signups.
Withdrawal fees – This is the fee charged by an exchange or broker whenever you cash out your crypto funds. Once again, it’s a small percentage of the total withdrawal amount, but can also be fixed by some service providers.
Transaction fees – In addition, there will be a transaction fee which is the cost of using a particular blockchain service.
Safely Storing Your Shiba Inu
As we’ve emphasised time and again, security is of utmost importance while you are handling cryptocurrencies. You should always ideally store your crypto holdings in a secure, self-owned crypto wallet of your choice. This is all the more important if you’re a long-term investor. Below-detailed are some commonly used crypto wallets in the market.
Web Wallet
Integrated into the trading platforms, these are cloud-based wallets that can be accessed from anywhere through a web browser. They offer a high level of convenience but are not recommended for long-term storage as they’re based online, and the hosting platform usually has access to them. Furthermore, you stand to lose your entire crypto coins if the platform gets hacked or goes bankrupt.
Mobile Wallet
These are basically crypto storage apps designed specifically for mobile devices, including tablets and smartphones. They are more secure than web wallets, but aren’t the safest option in the market, owing to their Internet connectivity. Additionally, if someone gains unauthorised access to your mobile device, or steals your smartphone, you’ll be at the risk of losing all your crypto coins. Coinomi and Exodus are two popular mobile wallets used for Shiba Inu storage.
Desktop Wallet
These are cryptocurrency wallets created for personal computers and laptops. Far more secure when compared to web wallets, desktop wallets are also often equipped with advanced-level security protocols. However, these are also a form of hot storage medium and are thus exposed to thefts and cyber hacks. Some of the frequently used desktop crypto wallets for SHIB storage include Exodus and Atomic.
Hardware Wallet
Sold in the form of tiny physical devices that bear a lot of resemblance to USB flash drives, hardware wallets are the safest for crypto storage as they maintain your private keys in an offline environment. They are usually the first choice of long-term crypto investors, but the good ones are expensive.
Trezor is a well-known and highly secure hardware wallet used by a large number of SHIB investors.
Wallet Combinations
It’s not uncommon for crypto investors to use multiple wallet types to obtain higher convenience and security for their crypto transactions. For instance, you can link a desktop wallet to a hardware wallet and ensure secure and quick crypto transfers between them. Furthermore, you may also use a mobile wallet such as Coinomi to store a certain quantity of SHIB coins for immediate transactions, with the majority of your holdings stored in a hardware wallet like Trezor.
What Other Coins Can I Trade or Use to Buy Shiba Inu?
The daily trading volume of Shiba Inu was well over $400 million at the time of writing, implying that you can easily use a wide variety of cryptocurrencies to buy SHIB on a well-known exchange platform. Exchanges may offer you multiple trading pairs involving SHIB, such as BTC/SHIB, ETH/SHIB, XRP/SHIB and ADA/SHIB, making it easy for you to buy Shiba Inu with Ethereum (ETH), Bitcoin (BTC), Cardano, Ripple (XRP) and many other cryptocurrencies.
What’s the Smallest and Largest Amount of Shiba Inu I Can Buy?
Considering that Shiba Inu was trading at $0.0000066 at the time of writing, it may not be feasible to buy small amounts of SHIB. In fact, some exchanges and brokers may even place a lower minimum SHIB buy limit for the cryptocurrency. Whether you can buy SHIB without an upper limit, will depend on the local regulations and laws in your country. There might be a certain upper cap placed by the exchange or broker too, to abide by such regulations.
Can I Buy Shiba Inu Anonymously with no ID? Is it Safe and Legal to Buy Shiba Inu?
Wondering if it’s possible to buy SHIB anonymously, with no verification? We’d like to emphasise here that even though there might be websites out there promising you an absolutely anonymous purchase, you’ll be on your own when you transact on such unregulated platforms. These portals that allow you to buy SHIB without ID, may not be the best places to make a secure SHIB purchase.
The ideal way to buy SHIB safely is through a well-regulated and reputed trading platform that uses the most stringent security protocols to safeguard investors/traders’ interests.
Will Buying Shiba Inu Make Me Money?
One of the most frequently asked questions on Shiba Inu forums is: “Does buying SHIB make you money?” While it’s natural for crypto investors to buy SHIB to get rich, there aren’t any guarantees in the crypto trading world. The best you can do is master certain investment strategies and learn about various technical and fundamental indicators, to make sound investment decisions. However, you can never cover all the grounds and eliminate every single risk. If you’d like to learn how much does it cost to buy SHIB today, or what is the best price to buy SHIB right now, please visit our Shiba Inu price page.
How to Spend your Shiba Inu
Shiba Inu is essentially a meme coin that was created as a joke. It’s a relatively new coin and it is not currently possible to buy goods and services with it in many parts of the world. The best you can do is cash out your gains from Shiba Inu trading, in the form of BTC, LTC or some well-known fiat currency, to then make online and offline purchases.
How to Sell your Shiba Inu
In order to sell your Shiba Inu coins, you’d be best served by the same platform that you used to buy/trade them in the first place. For example, if you had purchased SHIB through a certain crypto exchange and moved them to a hardware wallet, you’ll need to transfer those assets back to your exchange account (by paying a small fee perhaps), and then place a sell order for their disposal.
In case you chose a CFD to invest in SHIB, through a regulated online broker, all you need to do is to close the respective CFD trade.
