Like Bitcoin and Ethereum, many other cryptocurrencies like Shiba Inu (CRYPTO: SHIB) rose by almost 1,000% last month. Shiba Inu is currently one of the most affordable cryptocurrencies at $0.00007352 per coin and becoming widely popular. But is it wise to invest in the Shiba Inu craze now?
Though you might have seen some people becoming millionaires overnight, these investments are extremely risky. Thus, it’s essential to bear in mind any investment’s long-term potential.
More than stocks and other investments, cryptocurrency is generally regarded as a high-risk investment. What will it be like after 10 years? Will it still be in use? Which cryptocurrency will be thriving? The answers to these questions are uncertain.
The future of cryptocurrency?
As new cryptocurrencies emerge every day, there is no guarantee that the investments you make today will give good returns in the future.
Moreover, Shiba Inu is a risky investment because it’s a parody of Dogecoin, which itself is a parody of Bitcoin. The current popularity is primarily because retail investors are looking to drive up its price synthetically, by buying the cryptocurrency in large quantities.
This will allow them to make quick profits. Shiba Inu also rose to eminence when investors wanted Robinhood Markets to make the token available to trade. The media coverage further increased its price. Here’s what you need to consider before you invest in Shiba Inu.
Factors to consider
Though many feel Shiba Inu will do well in the long run because of its fan following, it’s not the dominant investment right now. Thus, there are several factors to consider before you invest anywhere.
For cryptocurrency, check if it has real-world utility. Though all cryptocurrencies’ futures are uncertain at this point, the few with solid fundamentals will hopefully succeed in the long run. Otherwise, you can consider investing in stocks.
For stocks, study the company’s leadership team, financial situation, and prospects in the industry. Analyzing the above will show if the company will grow over time.
Think long term
Though Shiba Inu’s enormous gains might appear to get you quick profits, any investment with the potential of securing a great deal of money overnight is very risky. Risk-free assets will give you returns only in the long run, after several years, even after decades.
Investing is not the place for becoming a millionaire within days. Though some cryptocurrencies and stocks promise quick returns, they are highly risky and can whip your portfolio in an instant.