Shiba Inu (SHIB) is a memecoin – a distinction it shares with Dogecoin (DOGE), which also has a Japanese dog breed as a mascot.
A memecoin is an ‘altcoin’ – a cryptocurrency other than Bitcoin – which is based on an internet meme. This in turn is a kind of online inside joke in the form of an image repeatedly altered and shared.
SHIB is one of the top 15 cryptocurrencies based on market capitalisation, making it a potentially attractive option, especially for those looking to diversify their crypto holdings.
While one SHIB is currently worth around $0.000015, that’s down by around 65% from its peak in October last year, when Tesla owner (and bidder for Twitter) Elon Musk tweeted about the memecoin.
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SHIB is a great example of the volatility of cryptocurrencies. If you’re considering investing in crypto, you should be prepared to lose everything you put in – that’s the warning from the UK’s financial watchdog, the Financial Conduct Authority (FCA).
But if you’re aware of the risks and still want to buy Shiba Inu, here’s how to do it.
How to buy Shiba Inu (SHIB) in 4 steps
1. Choose a crypto exchange
You’ll need a crypto exchange to buy Shiba Inu. An exchange is a place, either a website or an app, where buyers and sellers meet to exchange fiat currency (Sterling, in the UK) for cryptocurrencies, or one cryptocurrency for another.
There are hundreds of exchanges to choose from. They include big names such as eToro and Coinbase as well as smaller exchanges like Bitstamp. If you’re unsure which to choose, read our guide to the best crypto exchanges for 2022.
Some things to consider include:
- Payment methods – check that the exchange accepts your preferred payment method and what fees apply. Many exchanges don’t accept PayPal, for example, and many charge 3.99% in debit or credit card payments.
- Integrated wallet – check if the exchange offers an integrated wallet to securely hold your SHIB. If you’d prefer to hold it in a third-party wallet, check if withdrawals are allowed and whether any fees apply.
- Currencies traded – Check that the exchange you’re signing up to actually allows you to trade SHIB.
2. Choose a payment method
Bank transfers are the most widely accepted and cost-effective way to pay for cryptocurrency. Many exchanges accept debit and credit cards, but for a fee of around 3.99% – and any money spent on fees is money that could have been invested.
There are two good reasons not to use a credit card to pay for cryptocurrency. First, it’s generally a bad idea to take on debt to pay for an investment as volatile as crypto. Second, your card issuer will treat the payment as a cash advance rather than a regular purchase and charge a higher rate of interest from the point of the transaction.
Very few exchanges accept PayPal, and those that do charge fees.
3. Place an order
Once you’ve chosen an exchange and a way to pay, navigate to the Shiba Inu page on the website or app and enter the amount you’d like to invest.
4. Choose a storage method
Many exchanges have integrated wallets in which to store your SHIB, but you may prefer to store it in a third party wallet.
Assuming your exchange allows transfers out (for which they may charge a fee), you have the choice of a ‘hot’ or ‘cold’ wallet.
A cold wallet is a physical storage device like a hard drive or flash drive that isn’t connected to the internet. A hot wallet is a virtual wallet held online.
The former is more secure against hackers but only accessible by you. If you were to lose your own access keys, there would be nobody else with access to help you retrieve your crypto. The latter is less secure against hackers as it’s online, but the wallet provider may be able to offer assistance if you lose your access codes and can’t get into your wallet.
The choice between the two is a matter of weighing up ease of access against security.
Featured Partner Offer
Cryptocurrencies Available For Trade
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with eToro. Cryptoasset investing is unregulated in most EU countries and the UK. No consumer protection. Your capital is at risk.
