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Shiba For Beginners 7
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Lecture1.1
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Lecture1.2
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Lecture1.3
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Lecture1.4
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Lecture1.5
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Lecture1.6
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Lecture1.7
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Shiba Inu For Advanced 7
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Lecture2.1
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Lecture2.2
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Lecture2.3
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Lecture2.4
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Lecture2.5
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Lecture2.6
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Lecture2.7
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Shiba Inu Quiz 1
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Quiz3.1
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Investing Considerations
There are a couple of investing considerations that you should make before pouring your money into any cryptocurrency.
Investing in crypto is risky enough because of the huge volatility and lack of regulation but investing in meme coins poses an additional challenge because of the lack of differentiation and because their value is based on frantic investments from its community.
SHIB has a low price despite its recent gains as it costs a fraction of a cent so one can buy millions of it with a few hundred bucks. Let’s say for example that you invest $100, you will get over 1.5 million SHIB tokens. While the supporters point out that the Shiba Inu NFTs are available and that the ETH base is a smart move, Shiba Inu has a limited utility and doesn’t have a compelling use case just yet.
The market capitalization of SHIB is set at $35 billion which is larger than any S&P500 company that has been on the market for years and grew in sales and profits. The combined $79 billion value of DOGE and SHIB combined surpassed the market cap of 388 companies on the S&P500 list. SHIB even made an astronomical gain of 12,715,586% which means that one coin invested in August 2020, would have been worth $127,156.
The return of the coin on the market achieved the objective of creating something from nothing but these gains are likely driven by the social media sentiment and frenzy as crypto enthusiasts were looking for the next big thing. However, if the bubble bursts, retail investors that got in at the high could be left with nothing. Since we are in the middle of a pet coin frenzy, people are buying anything with DOGE, SHIB, or other coins, and with the success of these two particular coins, more people are treating the coins as a lottery ticket. Given how easy it is to create a coin and to spin a DOG story, more knock-offs are popping up every day.
It’s understandable that people want to invest in coins like these as there are stories of huge potential returns which are tempting indeed. For sure, some people made money but it doesn’t always mean that investing in these types of coins is a good investment. The trouble is that if you invest in crypto it doesn’t have fundamental utility and all you are going to have fundamental utility and all you are doing is hoping that someone buys it off for more. The prices could continue to rise but they can be a fall for no reason so if you buy at a high, you will lose money likely.
Instead of going for the short-term gains, look for more coins that could build long-term wealth so focus on coins that have a real purpose and management team that you trust so take time to learn what the crypto is all about and weigh the pros and cons before you start pouring your money into something.