You can do whatever you want with your money. But if you want my opinion — and bear in mind, this is just that, an opinion — I don’t think pouring big bucks into Shiba Inu (CCC:SHIB-USD) is a good idea.
Yes, I understand it’s a cheap cryptocurrency and thanks to the law of (excruciatingly) small numbers, you could generate huge profits from a possible upswing.
In fact, I talked about this very scenario in my last write-up about Shiba Inu. A month ago, I opined that for the price of a cup of coffee, you too could be a Shiba “millionaire.” But of course, I was being facetious. The lesson in that argument was that millionaire is a relative term. Yeah, I could make some BS crypto coin and be a trillionaire against it. But honestly, what does that really mean?
To be fair, over the past year or so, we’ve heard many stories published on mainstream sources about random people becoming legitimate millionaires due to their wild cryptocurrency bets. I know this story very well because, folks, I bought out my house free and clear. So yeah, fairy tales in cryptos do come true, but is Shiba Inu one to spark it?
I’m going to be painfully honest with you in the hopes that if you decide to trade cryptos, you will at least do so with a sober mind. Following my buying out my house, many people came up to me saying how impressed they were with me in accomplishing such a lofty goal.
But here’s the thing — I didn’t accomplish jack squat. I was simply lucky.
That’s not something people want to hear because they want to believe that hard work and due diligence will lead to investment success. That only applies to trustworthy markets — and even then, by no means is success a guarantee.
Shiba Inu Is a Weekend Warrior
If you’re still insistent that you’ve got a reliable system to profit off speculative cryptocurrencies — even after my glaring admission that there’s no meritocracy involved in the blockchain markets — then go ahead and gamble on Shiba Inu. It’s your money and you’re responsible for it.
However, being that I try to be a classy guy, I’m not going to wave you off without giving you some tactical insights. If you’re absolutely hellbent on investing in Shiba Inu and nothing anybody says will back you down, then at least hear this: buy SHIB coins on Friday and sell by Monday.
According to pricing data I compiled from Yahoo Finance — props to the fine team there for providing downloadable Excel files — the data below represents the daily percentage gain/loss averages by day of the week for Shiba Inu:
- Monday: 0.19%
- Tuesday: -2.99%
- Wednesday: 5.22%
- Thursday: -2.45%
- Friday: -4.53%
- Saturday: 3.27%
- Sunday: 2.90%
For whatever reason, Friday is the worst-performing day of the week for Shiba Inu, averaging a loss of 4.5% against Thursday’s session. But that makes it an ideal time to buy because Saturday and Sunday provide an average gain of nearly 3.1%. With Monday being relatively stable compared to the prior weekend, it’s a good time to sell your holdings.
While this is absolutely not financial nor tax advice, if I were you (which I’m not because I’m not buying Shiba Inu because it’s too risky), you might want to convert your SHIB holdings into stable coins as opposed to U.S. dollars if you intend to trade frequently.
What’s most fascinating, though, is that Shiba Inu performs well over the weekend on an average basis. This contrasts with observations that CNBC made this year, that cryptocurrencies tend to crash on weekends.
Here, too, the SHIB dynamic presents opportunities and risks.
A Blue-Collar Crypto?
I have a theory about this contrasting trading sentiment and it’s that Shiba Inu is a “blue-collar crypto.” You know how people have been talking about the institutional money moving into major virtual currencies? Well, institutional folks tend to do their trading during the most high-volume days, which is basically the workweek.
On the other hand, blue-collar workers can’t trade cryptos or other assets during the workweek because, you know, they’re actually working and being useful to society. Further, several white-collar workers who have been recalled to the physical cubicles can’t comfortably trade either.
What’s their remedy? Trade low-priced cryptos (which trade 24/7/365) on the weekends, when they can relax from the stress of their primary occupation.
In fairness, you might see a massive wave higher in Shiba Inu if the “regulars” decide to drive up the price. But on the other hand, when circumstances get gnarly, you might see a mad dash to the exits since on a per-capita basis, your typical SHIB stakeholder can’t afford red-ink sessions like the institutional players can.
I’ll let you make the call. But you have been warned.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.