Shiba Inu (SHIB) is a memecoin, meaning that it’s associated with a particular theme, in this case a Japanese dog breed (as with Dogecoin).
A meme coin is an ‘altcoin’ – which means a cryptocurrency that is not Bitcoin – which is based on a meme. A meme refers to media content shared widely online, usually in a humorous form.
SHIB is one of the top 15 cryptocurrencies by market capitalisation, which may appeal to investors looking to diversify their crypto holdings.
One SHIB is currently worth around £0.00000885. However, it hit a high of £0.00005 in 2021 when Twitter owner Elon Musk cryptically tweeted that he was buying a Shiba Inu dog.
As with other cryptocurrencies, SHIB is a highly volatile asset. The UK’s financial watchdog, the Financial Conduct Authority (FCA), advises potential cryptocurrency investors that they should be prepared to lose all of their money.
However, if investors are aware of the risks and still considering buying Shiba Inu, the step-by-step process is set out below.
Remember: investment in any cryptocurrency is speculative and all your capital is at risk. You could lose some or all of your money.
Cryptocurrency trading in the UK is unregulated and you will have no recourse to compensation if something goes wrong.
How to buy Shiba Inu (SHIB)
1. Choose a crypto exchange
Investors will need to buy Shiba Inu using a crypto exchange where buyers and sellers meet to exchange currencies.
There is a wide choice of exchanges, from mainstream exchanges (such as eToro and Coinbase) to smaller exchanges (such as Bitstamp). We’ve produced a guide to our pick of the best crypto exchanges in the UK.
It is worth comparing the following features:
- Payment methods: whether the exchange accepts a preferred payment method and any associated fees. Many exchanges don’t accept PayPal, for example, and some charge 3.99% for debit or credit card payments.
- Integrated wallet: whether the exchange offers an integrated wallet to securely hold SHIB. If investors prefer a third-party wallet, they should check if withdrawals are allowed and whether any fees apply.
- Currencies traded: check SHIB can be traded on the exchange in question.
2. Choose a payment method
Bank transfers are the most widely-accepted and cost-effective way to pay for cryptocurrency. Although many exchanges accept debit and credit cards, they typically charge a high fee of around 3.99%. Very few exchanges accept PayPal, and fees are also charged for this form of payment.
Investors should avoid using credit cards to pay for cryptocurrency as it’s not advisable to take on debt to pay for a volatile investment such as crypto. In addition, card issuers will treat the payment as a cash advance (rather than a regular purchase) and charge a higher rate of interest on the transaction.
3. Place the order
The next step is to navigate to the Shiba Inu page on the website or app and enter the amount to be invested.
4. Choose a storage method
Many exchanges have integrated wallets in which to store SHIB, but investors may prefer to store it in a third party wallet. If the exchange allows transfers out (for which they may charge a fee), there is 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, whereas a hot wallet is a virtual wallet held online. There is a trade-off between ease of access and security for these wallets.
Cold wallets are more secure in terms of hacking but can only be accessed by the individual. This means that investors would be unable to access their crypto if the access key was lost or forgotten.
Hot wallets are less secure against hackers as they’re held online, but the wallet provider may be able to offer assistance if individuals lose the access codes to wallets.
