Investing in Shiba Inu: An Analysis of Risk and Potential Rewards

Should You Buy Shiba Inu While It's Less Than a Penny?

Shiba Inu speculators can certainly have a dog in the race, but risk-averse investors are barking up the wrong tree. Is the Securities and Exchange Commission's approval of spot Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs) earlier this year reviving the cryptocurrency market's animal spirits? It certainly seems that way, as suddenly Shiba Inu (CRYPTO: SHIB) is catching a wave of attention and an influx of trading volume.

Community over utility

Bitcoin, as you might expect, is getting the lion's share of the attention as the crypto winter transitions into a scorching spring. However, if you're in the market for a token with the greatest potential for utility, Bitcoin might not be your first pick; Ethereum or Ripple would probably fit the bill better.

The never-ending roller coaster

• Ill-timed traders might have learned a harsh lesson in altcoin volatility if they got in at $0.000045 and panic-sold Shiba Inu at, say, $0.000027.
• There's no getting off the roller coaster until you fully liquidate your Shiba Inu tokens. The Shiba community might emphasize fun, but a strong stomach is required if you're going to HODL (crypto lingo for "hold") a nano-priced coin like Shiba Inu.

It's fine to buy and hold Shiba Inu while it's below a penny as long as you accept that it's going to be a sub-penny token for quite a while. This, along with proper position sizing to buffer the blow of dizzying declines, will enable you to HODL Shiba Inu with a due sense of community and confidence.