Shina Inu is one of the cryptocurrencies that will act as the best hedge on your investment portfolio. Before you invest in this digital coin, you need to understand its prospect in the cryptocurrency market. Without any prior knowledge regarding the potential of Shina Inu, investing in it will increase your chance to face huge losses within a short time. Here are some of the pros and cons of Shiba Inu before you consider investing in it.

Pros

Cost-effective:

  • The trading price of Shiba Inu is cost-effective now.
  • Thus it is attracting many cryptocurrency investors.
  • This price is very essential because it plays a vital role to assist the trader make use of the percentage change for tracking the profits based on the number of purchased coins.
  • According to experts at this price, investors will be seeing a 100 % gain from this digital currency in the future.
  • It will be much easier for it to become triple or quadruple within the short or long term compared to big ones such as Ethereum or Bitcoin.

ERC-20 crypto token:

  • Many investors are wondering whether they should select this digital currency against Shiba Inu’s rival coin Dogecoin.
  • But the status of Shiba Inu as an ERC-20 crypto token differentiates it from this rival coin.
  • It indicates that Shiba Inu runs on the blockchain of Ethereum.
  • So the proposal of Ether to move to the protocol of proof-of-stake may too prove advantageous in this respect.

ShibaSwap:

  • Developers of Shiba Inu created a decentralized exchange named ShibaSwap for the community of SHIB to build the crypto’s brand.
  • These are peer-to-peer exchanges that let users trade crypto without depending on intermediaries.
  • Users will be able to stake their cryptocurrencies for generating better returns similar to interests that are paid on any savings account.

Potential Robinhood trading:

  • Its passionate community of crypto investors pressurized the well-known trading app named Robinhood to enter this cryptocurrency to its tradable crypto’s shortlist.
  • They initiated petitions and called on the platform to add support to Shiba Inu.
  • There is no comment from the platform on such an initiative.
  • However, revenue of US dollar 30 million from Dogecoin trading in 2021’s first quarter has been reported after adding this to its list.

Elon Musk is its fan:

  • Celebrities have a big impact on the trading of cryptocurrency.
  • Shiba Inu had a great boost in its prices after a tweet from Elon Musk.
  • The tweet includes pictures of Floki his dog.
  • Such a surge continued from then and pushed the digital token to its all-time high prices.
  • His support for Shiba Inu is enough for any speculator to have an understanding of its value.

Cons

Absence of real-world use:

  • Unlike Ether and Bitcoin, Shiba Inu has virtually no such use for investors outside the market of cryptocurrency.
  • As per surveys, it is accepted as a payment by 100 vendors worldwide.
  • Nothing distinct regarding the transaction fees, structure, or speed of Shiba Inu is available.
  • Thus it cannot be more useful compared to other cryptocurrencies.

High volatility:

  • The currency price rally of Shiba Inu brings along high volatility.
  • Investors who are interested to invest in it because they are excited must be accepting the fact that it has a high potential of falling as high as it rose.
  • Thus if any market speculators or momentum investors move out from the market, this cryptocurrency may crash hard.

No independent blockchain:

  • As Shiba Inu is based on the blockchain of Ethereum, it has its pros but also cons.
  • This cryptocurrency lacks innovation.
  • Its team is never trying to change the infrastructure soon.
  • So Shiba Inu will be staying as only ERC-20 token now.

Not the first meme coin:

  • It is creating waves in the market of cryptocurrency.
  • However Dogecoin is another one that created more hype.
  • Shiba Inu was able to beat Dogecoin but it was for a short time.
  • However, the community of investors supports it to regain its lost position.

High risk and low prospect for returns:

  • The popularity of Shiba Inu is mainly because of its supply and demand.
  • But its great performance made those get attracted to it who rushed huge profits and lock some profits.
  • If sufficient coins are there for sale, then due to increased supply will be causing dive of Shiba Inu.

Conclusion

Shiba Inu is not by any means a safe or sure investment. However, it proved that it will surprise all its investors with great returns. Also, if you want to use your Bitcoin for acquiring Shiba Inu there are best way to sell your Bitcoin.