Bitcoin is the present #1 cryptocurrency in the space, but it doesn’t make others less valuable. As the cryptocurrency craze increases with every passing day, so is the number of altcoins. At present, the crypto space has over 10,000 active cryptocurrencies, and Shiba Inu is one of them. While most are busy going behind Bitcoin, the Bitcoin price is keeping itself away from many investors’ reach.
If you’re a crypto investor looking to profit from a pool of diversified cryptocurrencies, you should consider adding Shiba Inu to your portfolio. That being said, one should not think Shiba Inu is free from any disadvantages. If you’re a serious crypto investor, you should consider investing in Shiba Inu only after knowing its pros and cons shared below.
Pros of Shiba Inu
- Shiba Inu is a Cost-Effective Coin
The current price of Shiba Inu is very cost-effective. It is one reason that is attracting many investors towards it. When people invest a little amount in acquiring any cryptocurrency, even a little gain can result in them earning huge profits. The same can be the case with Shiba Inu too.
- Shiba Inu is an ERC-20 Token
Many investors are confused between Dogecoin and Shiba Inu. A primary differentiator between the two is the former is a cryptocurrency based on the Bitcoin network, while the latter is based on Ethereum. Hence in terms of utility, Shiba Inu surpasses Dogecoin.
- Available on Major Platforms
Investors should always look for easily available cryptocurrencies for trading on major cryptocurrency exchange platforms. Luckily, Shiba Inu is a popular meme coin that has made its place in almost all top cryptocurrency exchange platforms. The more the number of exchanges supporting Shiba Inu, the easier it will be to convert SHIBA to INR.
- Many Celebrities, Including Elon Musk, Supports It
The positive impact of celebrities supporting a cryptocurrency cannot be overruled. If you follow the cryptocurrency news closely, you will find how a single tweet in favor of Dogecoin and Shiba Inu by Musk resulted in the phenomenal growth of both coins. Cryptocurrency prices are largely driven by market news, so the more the celebrities support a particular cryptocurrency the better.
- Strong Community of Supporters
Like Dogecoin, even Shiba Inu has a growing community of ardent supporters. The support base of Shiba Inu is so strong that its supporters made the Robinhood trading platform list this cryptocurrency for trading purposes. And as you know, the higher the supporter base, the better it is.
Cons of Shiba Inu
- Not a First-Move Meme Coin
Even though SHIB is making strides in the crypto space, it isn’t the first meme coin to do so. Dogecoin is still quite popular among investors, and it also enjoys the benefit of being an early entrant in the meme coin category.
- Lack of Real-World Utility
Unlike Ethereum, SHIB is virtually of no use to investors outside the crypto space. The world has millions of merchants evenly spread throughout the country, but only a handful merchant’s accept it as a payment method.
- Greater Risk with Lower Profit Potential
Demand and supply are prime factors behind the growth of any cryptocurrency. The vast profits it generated for its holders in the initial years made many want to own it. But if a majority portion of investors decided to sell their share, Shiba Inu’s price would dip drastically.
- Not an Independent Blockchain
Shiba Inu is a popular meme cryptocurrency based on Ethereum. Although it has some pros, it comes with certain disadvantages too. Shiba Inu lacks any real innovation, and its development team is not making any efforts to improve its infrastructure too. This can pose a negative impact on the long-term pricing of Shiba Inu.
- SHIB is Highly Volatile
The coin’s price rally has brought about extreme volatility that investors must be careful of. If you’re an investor willing to profit from the quick price rise, you should accept the fact that its price can abruptly fall at the same rate it grew. Invest in Shiba Inu only if you can handle the extreme volatility and wild price swings.
Make Profitable Investment Decisions
Now that you’re aware of both the cons and pros of investing in Shiba Inu, you will face fewer obstacles in deciding whether to add it to your portfolio or not. While evaluating Shiba Inu from an investor’s perspective, check whether the coin aligns with the investment goals or not.