What is Shiba Inu (SHIB)? How to Buy, Price Predictions, and Everything Beginners Should Know

Shiba Inu: The Dogecoin Killer

Shiba Inu (SHIB) stands out as one of the most discussed cryptocurrencies in the digital asset industry. What began as a modest meme coin has rapidly transformed into a dynamic ecosystem with millions of holders across the globe. If you’re new to crypto and curious about Shiba Inu, this guide will break down everything you need to know in clear, straightforward language.

Whether you want to understand SHIB’s origins, how it functions, or how to purchase your first token, this beginner’s guide will walk you through the essentials of the so-called “Dogecoin Killer.”

Key Takeaways

• Origin & Purpose: Shiba Inu (SHIB) is a community-driven cryptocurrency launched in August 2020, operating as an ERC-20 token on Ethereum.
• Ecosystem Components: The SHIB ecosystem features more than just one token, including LEASH, BONE, ShibaSwap (a decentralized exchange), Shibarium (Layer 2 solution), and SHIB: The Metaverse.
• Token Utility: SHIB serves as the foundational currency; LEASH delivers exclusive, limited-supply rewards; BONE powers governance via the Doggy DAO.
• Investment Profile: SHIB is highly volatile—even by crypto standards—with a low unit price but a large market cap due to its enormous supply.
• Tokenomics: Following Vitalik Buterin’s burns and donations, SHIB’s circulating supply has decreased, and ongoing community burns continue to reduce supply further.
• Future Development: Key initiatives include advancing Shibarium’s functionality, developing the SHI stablecoin, expanding SHIB’s metaverse, and boosting real-world adoption.
• Risk Management: As with all cryptocurrencies, prospective investors should only risk funds they can afford to lose and treat SHIB as a component of a diversified portfolio.

What is Shiba Inu (SHIB)?

Shiba Inu (SHIB) is a decentralized, community-powered cryptocurrency. Launched in August 2020 by an anonymous developer known as “Ryoshi,” its name comes from the Japanese dog breed that inspired the Doge meme. Shiba Inu was designed as an Ethereum-based alternative to Dogecoin (DOGE).

Unlike traditional cryptocurrencies, Shiba Inu (SHIB) prioritizes community involvement and ecosystem development. While many crypto assets focus on technical breakthroughs, SHIB is all about community engagement and decentralized governance.

In contrast to Bitcoin or Ethereum, which were built with specific technical objectives, SHIB began as a community-driven decentralization experiment, exploring what can happen if a cryptocurrency is managed entirely by its community.

SHIB is an ERC-20 token, which means it operates on the Ethereum blockchain rather than its own chain. This Ethereum integration provides SHIB with robust security and seamless compatibility with Ethereum’s vast decentralized application ecosystem.

Since its inception, SHIB has cultivated a passionate base known as the “ShibArmy,” who have fueled its adoption and ongoing development. Though it started as a meme coin, Shiba Inu has grown into an extensive ecosystem encompassing multiple tokens, a decentralized exchange, and initiatives ranging from NFTs to the metaverse.

Shiba Inu History

The rise of Shiba Inu from an obscure token to a mainstream cryptocurrency is impressive:

August 2020: An anonymous developer known as “Ryoshi” created Shiba Inu, launching it with a total supply of one quadrillion tokens (1,000,000,000,000,000 SHIB). The project started with no initial capital and no formal team structure.

Early Development: The project’s founder locked 50% of the total SHIB supply in Uniswap (a decentralized exchange) for liquidity and sent the other 50% to Ethereum co-founder Vitalik Buterin’s wallet.

May 2021: In a landmark event for crypto philanthropy, Vitalik Buterin donated a large volume of SHIB to India’s COVID-19 relief fund, then burned 40% of SHIB’s total supply.

October 2021: SHIB experienced a dramatic price rally, briefly surpassing Dogecoin as the most valuable meme coin by market cap.

Since 2022: The Shiba Inu ecosystem has continued to expand, introducing ShibaSwap (a decentralized exchange), rolling out Shibarium (Layer 2 blockchain solution), and launching SHIB: The Metaverse.

How Does Shiba Inu Work?

Shiba Inu operates as an ERC-20 token on Ethereum, leveraging Ethereum’s infrastructure for security and transactions. Unlike Bitcoin’s proprietary blockchain and mining protocol, SHIB relies on Ethereum’s proof-of-stake consensus mechanism.

Tokenomics: SHIB debuted with a supply of one quadrillion tokens. After Vitalik Buterin burned 40% of the supply, the circulating amount dropped sharply. This intentionally massive supply lets users hold billions or trillions of tokens at a low cost.

Token burning is central to SHIB’s economics. When tokens are “burned,” they’re permanently removed from circulation by being sent to a dead wallet. The community supports burning as it reduces supply, which could potentially drive up value.

Shiba Inu Ecosystem

Main Components: The Shiba Inu ecosystem currently features three primary tokens:

1. SHIB: The project’s base currency, used for transactions and value storage.
2. LEASH: A limited-supply token (only 107,647 exist) that delivers exclusive rewards within the ecosystem.
3. BONE: The governance token (250,000,000 supply), allowing holders to vote on proposals via the Doggy DAO.

ShibaSwap

Launched in July 2021, ShibaSwap is the ecosystem’s decentralized exchange, enabling users to trade tokens, provide liquidity, and stake their crypto assets.

• DIG (provide liquidity): Users supply token pairs to liquidity pools and earn rewards.
• BURY (staking): Users stake their tokens to earn passive income.
• FETCH (token swaps): Like other DEXs, users can swap tokens.
• WOOF (claim rewards): The process for collecting rewards from staking or providing liquidity.

SHIB: The Metaverse

Announced in 2022, SHIB: The Metaverse is a virtual reality project comprising 100,595 digital land plots. It aims to create an immersive world where users can explore, earn passive income, and accumulate in-game resources.

Shibarium

Shibarium is Shiba Inu’s Layer 2 blockchain solution on Ethereum, designed to solve scalability and high gas fees. Its goal is to boost transaction speeds and reduce costs while maintaining security.

Shiba Inu Incubator

Originally called the Artist Incubator, this initiative backs creative projects within the community, pushing beyond traditional art into innovation across disciplines and professions.

Community Governance

Through the Doggy DAO, the ecosystem empowers the community, giving BONE holders the right to vote on project matters.

How to Buy Shiba Inu Coin?

Buying Shiba Inu (SHIB) tokens is easier than ever on leading cryptocurrency exchanges. To purchase SHIB on a major trading platform, follow these steps:

Step 1: Create an Account on a Trading Platform

Before you can buy SHIB, you need to create an account on your chosen trading platform:

1. Go to the platform’s website or download its app from a trusted source.
2. Click “Register” and sign up with your email address or phone number.
3. Set a strong password and verify your account to complete registration.
4. Complete KYC (Know Your Customer) verification by submitting required documents to unlock full trading functionality.

Step 2: Fund Your Account

After your account is set up and verified, you’ll need to deposit funds before buying SHIB. Most trading platforms offer several ways to deposit:

1. Credit/Debit Card: The simplest option for new users; supports Visa and Mastercard payments.
2. P2P Trading: Buy stablecoins like USDT directly from other users via a P2P marketplace.
3. Bank Transfer: Deposit fiat through SEPA or other financial channels.
4. Third-Party Payment Services: Most platforms support multiple external payment providers.

Step 3: Buy SHIB

Once your account is funded, you can buy SHIB tokens. The most common approach is:

1. Go to the platform’s Spot Trading section.
2. Find the SHIB/USDT trading pair.
3. Choose your desired order type:
   • Limit Order: Set your preferred purchase price.
   • Market Order: Buy instantly at the current market price.
   • Stop-Limit Order: Set a trigger price to automatically place a limit order.
   • OCO: Place a limit order and a stop-limit order simultaneously.

For beginners, a market order is usually the easiest:

1. Select “Market” from the trading options.
2. Enter the amount of USDT you want to spend or the amount of SHIB you wish to purchase.
3. Review your order details.
4. Click “Buy SHIB” to execute the transaction.

Step 4: Manage Your SHIB Holdings

After your purchase, your SHIB tokens are stored in your platform wallet. You can:

1. Keep your SHIB in your platform account for future trades.
2. Earn passive income by staking SHIB through Savings or Staking products.
3. Track your SHIB investment by adding the SHIB/USDT pair to your favorites.
4. View your transaction history in your account menu.

Security Considerations

Keeping SHIB on your platform is convenient for active trading, but consider these safety measures:

1. Enable two-factor authentication (2FA) on your account.
2. Use a strong, unique password.
3. Monitor your account regularly for unusual activity.
4. For large, long-term holdings, transfer your SHIB to a personal wallet.

Shiba Inu Price and Market Performance

Shiba Inu has drawn widespread attention in recent years, with a history of extreme price volatility.

Price History

SHIB started trading at a minuscule value due to its enormous supply. From its August 2020 launch until early 2021, its value was only a fraction of a cent. In May 2021, SHIB surged after being listed on major exchanges and fueled by a growing community. By October 2021, SHIB reached its all-time high.

Market Capitalization

Despite a low price per token, SHIB’s huge supply means it frequently ranks high by market capitalization. At its peak, SHIB’s market cap reached significant levels.

Trading Volume

SHIB often ranks among the most traded digital assets, regularly seeing trading volumes in the hundreds of millions or even billions of dollars.

Price Volatility

Like most cryptocurrencies, SHIB is highly volatile. Its price can swing sharply in a single day, affected by factors such as:

• Overall cryptocurrency market trends
• Community announcements and ecosystem developments
• Social media influence, especially from prominent figures
• Exchange listings or delistings
• Macro factors impacting risk assets

Market Position

SHIB has secured its status as a top meme coin and typically ranks among the leading cryptocurrencies by market cap.

Advantages and Risks of Investing in SHIB

Potential Benefits

1. Community Strength: SHIB’s passionate ShibArmy community is one of its greatest strengths.
2. Ecosystem Growth: SHIB has evolved from a simple ERC-20 token into a complex, multi-token ecosystem.
3. Accessibility: The low price per token allows investors to purchase large quantities.
4. Expanding Utility: Ongoing development of Shibarium, ShibaSwap, and other ecosystem elements enhances use cases.
5. Merchant Adoption: Increasing acceptance of SHIB by merchants and service providers.

Risks and Considerations

1. High Volatility: SHIB is subject to extreme price swings, typical of digital assets.
2. Market Sentiment Dependence: Its price is heavily influenced by market sentiment and social media trends.
3. Competition: The crypto market constantly sees new tokens launched.
4. Regulatory Uncertainty: Cryptocurrencies face a rapidly evolving regulatory landscape.
5. Long-Term Viability Concerns: Skeptics question whether meme coins like SHIB can sustain long-term value.
6. Concentration Risk: A significant share of SHIB tokens is held by a small number of wallets.

Responsible Investment Approach

If you are considering an investment in SHIB, keep the following in mind:

1. Conduct Thorough Research: Know exactly what you’re investing in.
2. Start Small: Only invest what you can afford to lose.
3. Diversify: Treat SHIB as just one part of a diversified portfolio.
4. Set Clear Goals: Decide in advance the conditions that would prompt you to sell.
5. Stay Informed: Follow official Shiba Inu channels for the latest updates.

The Future of Shiba Inu Coin

Shiba Inu’s future hinges on sustained development and broader cryptocurrency market trends.

Expanding Shibarium

Shibarium, Shiba Inu’s Layer 2 blockchain solution built on Ethereum, is a major technical milestone. Expansion efforts focus on increasing transaction speed and reducing gas fees.

Developing the SHI Stablecoin

The Shiba Inu ecosystem is planning the SHI stablecoin, aiming to make SHI a core tool for value exchange within the community.

Integrating the Metaverse

SHIB: The Metaverse is focused on building a vibrant virtual world with income opportunities and strong community interaction.

Enhancing Community Governance

Through Doggy DAO, the ecosystem is working to give the community greater influence over project direction.

Broader Adoption Initiatives

The Shiba Inu team continues to push for expanded real-world use cases and greater mainstream acceptance for SHIB.

FAQ

Does Shiba Coin have a chance to reach 1 baht?

Shiba Inu could potentially reach 1 baht (about $0.03 USD) if there is massive adoption and robust ecosystem growth. However, this would require significant market cap growth and substantial increases in trading volume to achieve that price long-term.

What is Shiba Inu Coin?

Shiba Inu is a meme cryptocurrency token built on the Ethereum blockchain. Inspired by Dogecoin, SHIB delivers a decentralized, community-focused ecosystem. It has an exceptionally large supply and is used for transactions and staking on the platform.

What is ShibaSwap in the SHIB Ecosystem?

ShibaSwap is the official decentralized exchange (DEX) platform in the Shiba Inu ecosystem. It enables users to swap tokens, provide liquidity, and participate in farming to earn BONE and SHIB rewards. ShibaSwap is a cornerstone for both SHIB community building and token utility.

Where can I buy Shiba Inu Coin?

You can purchase SHIB on leading crypto trading platforms that offer SHIB/USD and SHIB/USDT pairs. Choose platforms with high liquidity, competitive fees, and strong security. Be sure to complete account verification before making a purchase.