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ID Shiba Inu is one of the most active cryptocurrencies on global crypto exchanges. However, does this coin really have promising profit potential, or is it just relying on popularity alone? Let's get acquainted with the SHIB token in more depth to find the answer.
Daftar Isi.
What is Shiba Inu Crypto?
Unlike other cryptocurrency projects that are full of careful planning, the Shiba Inu token was initially just a fad meme coin launched in 2020 by an anonymous party called “Ryoshi”. The launch of the SHIB token was in response to the trending Dogecoin token, which is also a meme coin with a Shiba Inu dog mascot.
Unexpectedly, this cryptocurrency actually attracted the attention of many parties. A more stable and stronger crypto network was then developed from this meme coin. In a short time, SHIB assets also experienced an increase in market capitalization until they were among the most active crypto assets on various exchanges.
When most other cryptos were still regulated by the developer company, Shiba Inu was released by 100% to the community. Without central control like this, the public considers the SHIB coin to be successful in fulfilling the concept of decentralization.
SHIB was initially released with one quadrillion coins, far more than other cryptocurrencies in general. However, 50% of the coin is locked in an account belonging to Vitalik Buterin, the founder of Ethereum. Some of these coins have also been burned, with the aim of controlling the coin's scarcity and increasing its resale value.
This mechanism works in reverse with crypto networks in general. Typically, crypto tokens are mined and released in stages, increasing in quantity over time, until they eventually stop being mined at some point after reaching an optimal quantity.
SHIB, BONE, LEASH and TREAT tokens
Apart from the SHIB token, the Shiba Inu ecosystem also launched two other types of tokens which are smaller in quantity, namely BONE and LEASH tokens. This blockchain network also launched the ShibaSwap system which is expected to facilitate trading between cryptocurrencies. Not long ago, the Shiba Inu developer also announced plans to release another new cryptocurrency, namely TREAT. So, what is the difference between these three tokens and SHIB?
SHIB coin is the native alias main token in the Shiba Inu ecosystem which is used for buying and selling. BONE is a token used by community members to vote whenever an important decision needs to be taken. SHIBArmy members who do not have BONE tokens do not have the right to vote. Meanwhile, the LEASH token is a rebase token. Because the price movement is very speculative, this token is rarely in demand. Meanwhile, the TREAT token which will be released later is planned to gradually replace the role of the BONE token.
Advantages of SHIB Token as Crypto Currency
It is not without reason that this token, which was originally just a joke, has developed rapidly into a popular digital asset. Evidently, the Shiba Inu network offers several unique features and advantages that make it superior in international crypto exchanges. Some of them are as follows:
The Power of Community
Most of the cryptocurrency ecosystem is still largely controlled by the development company, but this does not apply to Shiba Inu. The SHIB ecosystem is completely controlled by its community of users, who call themselves ShibArmy. This makes the Shiba Inu network more decentralized.
Interoperability and High Functionality
As an Ethereum-based token, Shiba Inu inherits the Smart Contracts capabilities of the Ethereum network. So, SHIB tokens can automatically also be used in various other crypto networks that are also based on the Ethereum network. Not just a transfer token, SHIB can also be used in token swaps and other digital payment instruments.
Excellent Security
The Shiba Inu network's status as an ERC-20 network also gives it Ethereum's level of security, which is beyond doubt. In this way, it is not difficult for the public to entrust their transactions using the SHIB token, so it is not difficult for Shiba Inu to increase market capitalization. Any developments in the Ethereum security protocol will also automatically apply to the Shiba Inu network.
Increased Rarity and Value
With the deflation mechanism in the form of burning coins, the scarcity of SHIB will certainly increase, so that the price of the token can also increase. For investors, this burning period could be the right timing to sell their SHIB assets at a high price.
Social Values
Around 10% of the SHIB coins owned by Vitalik Buterin were donated to handle the COVID-19 pandemic in India in 2021. The SHIBArmy community is also raising funds using SHIB to donate to a foundation to rescue Shiba Inu dogs in Japan. In history, the Shiba Inu community is the only crypto community that has an active role in the social field.
News and Market Developments Related to Shiba Inu
Investing in the Shiba Inu network means that you also have to be diligent in following news developments so you know how far the technology of this network has progressed. Sometimes, existing news can influence price movements in the market, as well as its value as a long-term digital asset.
One of the interesting news is on mid-March 2024 This is where Shibarium reaches a new milestone that ShibArmy members have been waiting for. Shibarium itself is a Layer 2 solution launched by Shiba Inu in August 2023.
In early March 2024, SHIB was also reported to hold the 4th ranking for the most frequently traded cryptocurrency. With market capitalization successfully reaching this strong level, ShibArmy is optimistic about the potential of this ecosystem in the future.
Still in early March 2024, Shiba Inu also announced their plans to launch a new token entitled TREAT, which in the future will replace BONE's role as a token for voting.
Another interesting news for SHIBArmy is that Shiba Inu became one of the first crypto projects to test the DN404 standard, which is a hybrid standard for combining the advantages of fungible and non-fungible tokens (NFT). This news was revealed on end of February 2024. If this is successful, then the Shibarium platform could begin to enter a new, more modern and useful era.
SHIB Price Strategy and Analysis in the Crypto Market
The price and market capitalization of SHIB coins are very fluctuating, so you have to be careful in analyzing and developing an investment strategy. This is important to do regularly, especially before making a transaction. Let's look at some examples of analysis from experienced traders.
Let's start with a long-term analysis. The following graph shows SHIB price changes over time from its initial launch until January 2024.
If analyzed using the Elliot Wave and Fibonacci indicators, it can be seen that the price has fallen in the second wave in January. If the prediction is correct, the price will soar in the third wave in the following weeks. Then, the graph below shows what happens until mid-March 2024.
It turns out, the price movement was not far from what had been predicted. SHIB value soared high in a short time in the crypto market. Even though it has not yet reached its maximum point, this significant increase in value shows the strength of Shiba Inu.
If we look at a shorter period, here is the price movement of the SHIB token from mid-February to mid-March 2024.
After being sharply bullish from mid-February to early March 2024, it appears that prices are experiencing a consolidation phase. If we draw a line, we can see that there is a resistance triangle where the price position is increasingly cornered. It is not surprising that prices will experience a breakout and soar high soon.
Even so, we can also see that the trading volume in this phase is still not high enough. Even though Shiba Inu has a strong market capitalization, the volume is still not strong enough to soar. Therefore, it is best to install the stop loss feature as a precaution.
If we use the ascending triangle approach and the Fibonacci indicator, the analysis results are not much different. You can place a stop loss not far from the bottom of the trendline as a safety net. The potential take profit looks much higher than the current price. With the Bollinger Band indicator, you can also see the position of the band getting narrower, then slightly widening. Although this indicates the possibility of a breakout in the near future, the potential for prices to continue sideways or fall slightly also remains.
Shiba Inu Investment Tips
Just relying on the popularity and performance of a coin is not enough to guarantee a profitable investment. You also need to avoid risks and maximize your profit potential. The following tips can help you with that:
Fundamental Research and Analysis
Learning the ins and outs of a crypto network is the first step that must be taken before starting to buy assets for investment. Of course, this rule also applies if you are interested in trading Shiba Inu. Apart from ensuring its positive potential, the information you get will also be useful for measuring how much you can trust it as an investment asset, as well as what kind of strategy is appropriate to use.
Monitor News and Price Movements
Shiba Inu has a price value that tends to change significantly in a short time. In order not to miss the right timing for selling or buying, you need to diligently monitor movements. News and developments related to this project also often have a significant impact on price movements.
Avoid Impulsiveness and Panic
Sometimes surprising price volatility can cause panic. If you cannot control your emotions, investors may sell or buy assets impulsively. In fact, it is not uncommon for price changes to only be temporary. For crypto investors or traders, a calm attitude is a must in situations like this. Focus only on technical analysis, fundamentals and your investment strategy.
Start gradually and place a stop loss
Beginner traders should not immediately use large capital for SHIB. Start with small numbers, then do averaging gradually over time while you adjust to the fluctuations in SHIB prices which go up and down all the time. Don't forget to always set an automatic stop loss so you don't lose big when prices fall suddenly.
Choice of Crypto Exchange for Shiba Inu Transactions
Binance
Beginning traders may be attracted by Binance's relatively low transaction fees and high liquidity. However, this crypto exchange also has many services and features that are very useful for your investment activities. In addition to various trading tools, Binance also provides the Binance Smart Chain platform for decentralized application development.
Bybit
One of Bybit's services that traders like the most is trading crypto derivatives, including futures contracts. Here, traders also get flexibility in risk management, a fast buying and selling process, and free deposit fees. The systematic interface also makes it easier for users to explore the application. Some of the interesting services that Bybit offers include futures contracts and perpetual contracts.
Kucoin
The cryptocurrencies available on Kucoin are very diverse. Not infrequently you will also find various new coin listings that are quite prospective. Low transaction fees and various loyalty incentives also make this platform increasingly attractive, especially among novice traders. Of course, Kucoin also provides various trading and staking features to increase the profits you can get.
MEXC
Traders generally like MEXC because of its complete features and sophisticated charts, making it easier for them to get more accurate analysis. In fact, even novice traders can take advantage of various simple features that can make it easier for them to carry out analysis and transactions. This platform is also known for having very reliable security protocols to rely on.
HUOBI
This crypto exchange is very popular in the Asian region, so many Indonesian traders also use it to invest in SHIB tokens. The platform offers spot trading services, staking, and various decentralized financial products. This platform also often presents innovative crypto projects that are interesting for you to check out too.
BingX
On the BingX platform, traders have more flexibility to customize their own trading interface. Coupled with various types of technical indicators and various types of orders, traders can be more free and comfortable in carrying out their own analysis and transactions. The encryption technique in the BingX application can be said to be quite superior in its class, so your investment here tends to remain safe.
Etoro
The unique point of the eToro platform is the concept of social trading. Apart from being able to participate in the crypto investor community, you can also learn a lot directly from various experienced traders. One of the interesting features here allows you to copy trading strategies from other investors to apply to your personal trading system. Not only is it suitable for SHIB tokens, you can also access various other blockchain-based digital assets here.
Who would have thought that a meme coin that was originally just a fad would experience such enormous growth that it would become a digital asset that dominates the market? After reading the description above, will you start looking at SHIB tokens to include in your crypto portfolio this year? Or, are you actually interested in BONE and LEASH which also come from the Shiba Inu ecosystem?
