It’s true that cryptocurrencies are similar to a game of hot potato. Recent events, along with some research and common sense illustrate why investing in Shiba Inu (CCC:SHIB-USD) can be so dangerous. The back-and-forth way the crypto is trading shows you the sharp contrast between fundamental strength and the price momentum of meme coins.
Even major cryptocurrencies such as Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) have been volatile in recent years. But the difference between these coins and Shiba Inu is that they still have solid reasons as to why they are growing.
You cannot say the same for Shiba Inu, which is surging because of celebrity hype and the broader crypto wave. Hence, if there is some negative press, this meme coin can also slide, as it has done in the past.
For example, Shiba Inu coins suffered due to panic selling after news emerged that the mysterious billionaire is suddenly moving billions worth of the coin to four different addresses. This development occurred earlier in November. However, Dogecoin (CCC:DOGE-USD) once again caught many speculators’ attention after Kraken, a major U.S cryptocurrency exchange confirmed it would add support for SHIB on its trading platforms today. So, if you want to invest in Shiba Inu you should only invest the amount of money you can afford to lose.
Lack of Use Cases Are Hurting Shiba Inu
Shiba Inu’s main strength is its use as a payment method. There are more than 1,900 companies and stores that now accept DOGE. The Shiba Inu token has appreciated by more than 3,300% in the last 14 months. Despite recent dips, experts still expect it will score an even higher all-time high once again because of its potential growth.
Investors, market observers, and crypto price prediction websites are optimistic that, moving into the future, the cryptocurrency will rebound and continue rising. While they do expect Shiba Inu to hit such exotic price levels as $1, most expect it to break above its October all-time high in the next year. Crypto investors are cautiously optimistic that the cryptocurrency will rebound and continue rising in value.
As deVere Group CEO Nigel Green (and many others) has said, altcoins like Shiba Inu have no real value. Their only purpose is to create hype through social media and cost-efficient marketing campaigns that can be purchased with Bitcoin or Ethereum. Moving forward, you should expect SHIB tokens’ price to continue going up because of the publicity being generated from both celebrities such as Elon Musk in addition those within cryptocurrency circles making good investments a worthwhile gamble.
New investors should know the risks associated with investing heavily into any type of crypto currency market before putting their money on blockchain stocks or tokens because even negative rumors can trigger selling panic throughout society at large as cryptocurrencies have become increasingly popular over recent years primarily due to increasing government regulations worldwide that make trading easier
It is inevitable that the legislation will force many crypto traders, including me and you if we so choose – or are forced by law to do so – to report all transactions done within this space. This means if it’s an investment like Bitcoin, then every time someone buys something with bitcoins there has be documentation submitted through your personal tax return; while for other coins/tokens it’s not quite as clear cut, but should still come into play during tax season.
Cryptos have been gaining traction as a new investment option. But how do you feel about tax-free profits? The IRS could potentially find multiple ways to make investing in crypto less pleasant for Americans, such as creating particularly difficult reporting rules and asking many questions about transactions that may stifle demand.
It’s a little-known fact that SHIB tokens have been accepted by 138 global merchants all over the world. This makes them an excellent way for people to spend their cryptocurrency.
It’s important to have a clear idea of what your goals are when it comes to investing in cryptocurrencies. If you want more than just quick profits, then Shiba Inu might not be the best cryptocurrency for investment. However, on paper they seem like an excellent choice because their growth potential is high while still being quite volatile compared other coins out there right now.
On the publication date, Faizan Farooque 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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence.