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How To Buy Shiba Inu Coin - A Beginner’s Guide

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Having proclaimed itself as a potential ‘Dogecoin Killer’, the canine meme crypto coin Shiba Inu was launched in August 2020. It’s an ERC-20 token, based on the Ethereum blockchain, which like many more dog-themed cryptocurrencies was introduced to tap into investors that got left behind in Dogecoin’s impressive price rally in May 2021. 

If you’re interested in learning how to buy Shiba Inu coin in 2022, and which are the best platforms to purchase SHIB, we’ll provide you with all such details, and more, in this article.   

5 Steps to Buy Shiba Inu Token with eToro Now

Buying any cryptocurrency with eToro is easy, simply follow the steps below:

  1. 1
    Sign up for free with eToro, entering your details in the required fields.
  2. 2
    Fill out the questionnaire, this is both educational for you and eToro.
  3. 3
    Click 'Deposit', you'll then be asked how you want to fund your account.
  4. 4
    Choose your required payment method, follow the simple steps to link your payment.
  5. 5
    Enter the amount you want to deposit and you're good to go!
Trade Now

How to Buy Shiba Inu with a Broker

We’d like to state at the outset that if you wish to trade Shiba Inu through an online brokerage portal, you must carry out some research and work only with a service provider that’s well known in the industry, and is regulated by an established financial authority.  

Please also be aware that different brokers will have different fee structures and security features. By using a regulated platform, you’ll automatically ensure that you’re transacting through a safe and secure website.

1. Register with the Broker

A cryptocurrency broker would normally model its business around that of a conventional stockbroker, and a good one will go out of its way to make the registration process a breeze for you. Let’s explain this with an example of two well-known brokers in the crypto industry. 

eToro is an ASIC (Australian Investments and Securities Commission), FCA (Financial Conduct Authority, UK) and CYSEC (Cyprus Securities and Exchange Commission) regulated brokerage platform with a global user base exceeding 20 million people. You can create an account on eToro by simply clicking the ‘Create Account’ option and providing some basic details like your first name, last name, email ID, phone number, preferred username and password. They also allow you to expedite this process by signing in through an existing Facebook or Google account.

Then there is Plus500, another top-rated crypto broker that is actively used by a large number of traders. It keeps its minimum deposit requirements very low and offers a highly intuitive and easy to understand user interface. Signing up with this platform is very simple too, and can be done by entering a few personal details and a valid email address.

2. Verify your Identity (KYC Process)

As per the global CFT (Combating the Financing of Terrorism) and AML (Anti Money Laundering) laws, it is mandatory for all regulated crypto brokers to create a comprehensive KYC (Know Your Customer) verification process through which they can crosscheck every new user’s identity. This process usually involves asking for some documents and performing certain manual checks. 

The documents generally required are a government-issued photo identity card (like a passport or national ID), and a proof of address (bank statement or utility bill). The person may also be asked to upload a selfie with the documents and/or accept a video call from the broker’s team for this purpose. Please note, even though KYC may seem bothersome to many, it is necessary to create a safe trading environment for everyone involved.

3. Deposit Funds with your Preferred Payment Method

Once you have successfully registered with the broker and verified your identity, you may process the minimum deposit to commence trading. Most crypto brokers accept deposits in fiat currency, through various payment methods such as bank transfers, credit/debit cards and third-party payment facilitators such as Skrill, Neteller, and PayPal. 

Make sure that you study every payment method’s pros and cons and compare it with others on parameters such as security, speed, convenience and cost. Please also ensure that the system or mobile device being used to purchase Shiba Inu has an updated anti-malware and antivirus software.

4. Open a Position to Long/Short Shiba Inu

There are two approaches you can take to trade Shiba Inu via an online broker – open a long position or a short position on SHIB.

Let’s explain this using the example of eToro. When you take a long position on Shiba Inu using eToro’s platform, you can buy and own the actual SHIB coin, without the leverage option. Going long on SHIB this way means that you’re betting on its value to appreciate over the short term. And when its price does rise and reaches the desired level, you may liquidate your investment and take home the resulting profit. 

Taking a short position on Shiba Inu will bring a financial derivative like CFD (Contract for Difference) into play, and will imply that you expect the meme coin’s price to fall in the near future. Using a CFD to short a Shiba Inu crypto like this way can prove to be an excellent vehicle for short-term traders to score profits even during bear markets.

Please bear in mind that you must always use a solid risk management strategy to counter the inherently volatile nature of the crypto market. A few of the ways in which you can do this are by specifying Stop Loss, Trailing Stop Loss and Take Profit price points during the trade setup. Defining these price levels will allow you to guard your profits and limit your losses.

5. Close your Position

Closing a short or long position implies finishing the trade. If you had gone long on Shiba Inu, closing the position would mean that you’re happy with the existing price of the coin and would like to conclude the trade by selling off the quantity you had purchased earlier. Doing so will allow you to actualise your profits and withdraw them using an available payment option.

Please note that there are two primary ways in which you can close your positions - automatically or manually. Manual closures are possible at any point in time, when you’re happy with the price of the cryptocurrency. Automatic closures on the other hand are executed using different order types such as Stop Loss, Trailing Stop Loss, and Take Profit.

How to Buy Shiba Inu with an Exchange

Cryptocurrency exchanges are often the first choice of people that have a longer investment horizon. They buy real Shiba Inu coins on such platforms, and then save their coins in a crypto wallet, in the expectation of SHIB’s price to rise over a longer time period. This is also referred to as the ‘Buy and Hold’ approach in trading and investment circles.

We cannot stress enough the importance of selecting a reputed crypto exchange for your purchase and sales of Shiba Inu coins. Apart from conducting research into the platform’s reputation, you should also cross-check other aspects like the accepted payment methods, customer service, offered cryptocurrencies, charges and regulation. While a large number of crypto buyers give a lot of weight to the fees charged by the platform, it shouldn’t be the only factor in your selection. You wouldn’t want your funds’ security to be compromised because you were unwilling to pay a few extra dollars in fees.

Furthermore, transacting through unregulated exchanges can be a highly risky affair and exposes your crypto holdings to thefts, bankruptcy, and hacks. In addition, you may have no legal rights if your funds are lost or stolen.

1. Set up a Shiba Inu Wallet

Cryptocurrency wallets are software apps or programs where digital assets like Shiba Inu and others can be stored for better security and/or easy accessibility. However, setting up a cryptocurrency wallet can be a very involved process for new investors. Crypto wallets are broadly of two kinds, as explained below:

Software wallets – These are software programs and mobile applications that are downloaded, installed and used on desktop/laptop computers and mobile devices respectively. As they remain online most of the time, these wallets are considered a type of hot wallet. Their frequent Internet connectivity also exposes them to the risks of thefts and hacks. The cloud-based web wallets normally built inside the exchange portals also belong to this category. 

Hardware wallets – Sold as tiny hardware devices that resemble small USB flash drives, hardware wallets, like Ledger and Trezor, maintain your crypto funds in an offline environment, and are hence also categorised as cold wallets. Their disconnectedness from the Internet makes them comparatively safer than software wallets. However, you can normally connect them anytime to the Internet, through a PC, laptop or mobile device, and easily move your funds.

2. Choose and Join an Exchange that sells Shiba Inu

Please know, the process of buying a Shiba Inu coin through an exchange platform will not change irrespective of the exact website you use. There are several established online exchanges, including Binance, that list Shiba Inu on their portals and allow you to buy and sell it with no hassles. Nonetheless, your final choice of the trading platform should be based on your specific requirements and how the different ones stack against each other on aspects like their regulation, fee structure, offered trading pairs, user interface and customer service.

The detailed information the platform requires from you, to comply with its KYC norms, is another important factor that must be paid heed to. While some portals may allow you to sign up with just your full name, residential address, email ID and phone number, apart from a few ID-related documents, others may require you to provide detailed information related to your income, as well as supporting documents. Please note that as long as you transact through an established and regulated exchange portal, you’ll be in safe hands.

3. Choose Your Payment Methods to Buy Shiba Inu

When you’re done registering with the chosen cryptocurrency exchange, it will be time to deposit funds for making the purchase through it. You may make this deposit either in an acceptable fiat currency or any of the cryptocurrency deposits allowed by the platform.

The exchange may offer you a wide range of payment methods like PayPal, credit/debit cards, Skrill, Neteller, bank transfer and more, to deposit fiat currency. That being said, the offered payment options may vary from platform to platform, and will depend mainly on your state/country of residence. Therefore, make sure that you check your preferred payment mode’s availability beforehand.

It’s also worth highlighting that payment methods differ from each other based on aspects like their level of convenience, security, cost and transaction speed. You must carefully weigh your priorities and only then opt for a specific option. 

To explain it with an example, whilst bank transfers are very cost-effective, they may take multiple business days to show up in your exchange account. On the other hand, debit/credit card deposits may reflect almost instantly in your account, but have a higher transaction fee associated with them.

4. Place an Order to Buy SHIB

The exchange you choose to buy Shiba Inu, will most likely offer you a SHIB-Fiat trading pair. For instance, Binance offers SHIB/EUR, SHIB/RUB, SHIB/TRY and SHIB/BRL fiat pairs, for people living in Europe (Euro), Russia (Ruble), Turkey (Lira) and Brazil (Real) respectively, to conveniently buy the meme coin in their local currency. US buyers on Binance can make use of SHIB pairs with stable coins like USDT and BUSD, pegged to USD, to make SHIB purchases.

If the exchange doesn’t have a SHIB/Fiat pair, you may have to take an alternate route to buy the crypto. Look for a trading pair involving another popular cryptocurrency like Bitcoin or Ethereum, which can be purchased with fiat, as the first step. You can then buy the required amount of BTC or ETH with your fiat deposit and then trade it with SHIB. 

To execute the trade, simply head to the platform’s dashboard, select the appropriate SHIB trading pair, enter the amount you would like to buy, followed by clicking the ‘Buy’ button.

5. Safely Storing Your Shiba Inu in a Wallet

Though you will find that almost all reputable online crypto exchanges provide their own integrated web wallets, as highlighted earlier, these aren’t the safest places to store your coins or any other cryptocurrency. It is highly recommended for SHIB buyers with a longer investment horizon to move their coins to an external crypto wallet of their choice. You can use any of the different wallet types discussed earlier in Step 1.

After you’ve selected and set up a crypto wallet of your liking, note down its public keys and access the exchange’s web wallet that would have your purchased Shiba Inu in it.  Select Shiba Inu and then the withdrawal option to move the required amount to your self-owned wallet. You’ll need to input your wallet address to conclude the transfer. Please be aware that sometimes the platform may even ask you to provide a Two Factor Authentication (2FA) code (if you had activated the security feature earlier) before executing the transfer.

Should you Buy or Trade Shiba Inu?

Buying the coin via an online exchange or trading the meme coin through a CFD on a brokerage portal are simply two different ways of potentially profiting from its price fluctuations. While the former will require a wallet set up to store the purchased SHIB coins, CFDs (being only a medium to bet on SHIB’s price changes) will have no such requirement.

The approach you take, whether buying SHIB on an exchange or trading it via a broker, will depend primarily on your level of crypto trading experience, and how comfortable you are with fundamental and technical analysis. Normally, it’s the active short-term traders who can constantly monitor cryptocurrencies’ price movements that choose speculative SHIB CFD trading through a brokerage platform.  In contrast, passive traders who prefer a long-term ‘Buy and Hold’ approach will typically buy the actual SHIB tokens via an exchange.

What’s the Difference Between a Shiba Inu Exchange and a Broker?

A crypto exchange can be described as an online platform that allows investors to engage in the easy buying and selling of actual crypto coins, either for long-term holding or simply for their transactional needs. 

Brokerage platforms, on the other hand, specialise in financial derivatives such as CFDs, Options, and Futures. While these are their main offerings, many also allow people to buy and sell actual crypto coins. Furthermore, whereas most online brokers accept only fiat deposits, exchanges are generally open to deposits made in both crypto and fiat currencies.

Shiba Inu: Long Vs Short Term Investment

Whether you choose the long or short term Shiba Inu investment approach will depend entirely upon your overall crypto trading and investment goals. You need to figure out if you’d like to be a ‘Buy and Hold’ investor or specialise in short-term crypto trades, something that’s already been covered earlier in this article. 

Depending upon the approach you take, you will need to select an appropriate trading platform for your needs. SHIB buyers with a long-term investment horizon usually opt for established crypto exchanges, while short-term SHIB traders choose brokerage portals to exploit the coin’s price changes over shorter time periods.

3 Tips to Buy Shiba Inu coin

Below we have detailed 3 important tips that can be used to make a secure and potentially profitable Shiba Inu purchase.

Choose the Right Time and Do Your Own Research on Shiba Inu

Deciding the right time to buy based on thorough research can be instrumental in maximising your profit potential from the entire activity. Therefore, you should do all required due diligence, including conducting detailed technical and fundamental analysis, to correctly gauge Shiba Inu’s possible price movements in the near future.

Comparing Costs to Buy Shiba Inu

Making a Shiba Inu purchase is not just about paying the market price for the crypto coin alone. You’ll need to account for other costs such as the transaction fees, deposit fees, withdrawal fees and other possible charges levied by the trading platform. These costs cannot be ignored in the overall scheme of things and can sum up to quite a lot if you’re a frequent trader who deals in significant volumes.

Safety and Security when Buying Shiba Inu

The safety and security aspect of the trading platform can be instrumental in deciding whether you profit from your Shiba Inu investment, or end up losing your entire crypto holdings. Hence, it’s crucial to double-check the security protocols in place at the platform used for making the SHIB purchase. Opting for a well-regulated platform can automatically take care of this aspect as these providers must mandatorily implement leading security technologies to retain their operating licenses.

What is the Best Payment Method for Buying Shiba Inu

Buy Shiba Inu with Cash: P2P exchanges may facilitate easy cash purchases

Buy Shiba Inu with Credit Card: Fast, convenient, and welcomed by many platforms

Buy Shiba Inu with Bank Transfer: Secure, cost-effective, but takes longer to process

Buy Shiba Inu with Bitcoin: Facilitated by a lot of popular cryptocurrency exchanges

Buy Shiba Inu with PayPal: Offers a good mix of cost and convenience, but may be unavailable on some platforms

Other Ways to Buy Shiba Inu coin

Although online crypto brokers and exchanges make it extremely easy to buy Shiba Inu without any problems, you could perhaps use another alternative to obtain the coin. You could use a well-known peer-to-peer (P2P) platform to connect with a SHIB seller and buy the required quantity directly from them. Reputed P2P platforms generally offer an escrow service too, that can be used to secure your funds before they’re handed over to the seller for the SHIB purchase.   

Frequently Asked Questions

  1. Shiba Inu launched its own decentralised cryptocurrency exchange called ShibaSwap on July 6, 2021. The platform will allow SHIB holders to stake their coins or provide liquidity, and earn rewards in return.
  2. Shiba Inu was founded by a person (or a group of persons) going by the name ‘Ryoshi’.
  3. The all-time low price of SHIB was $0.000000000056 on November 28, 2020, while its all-time high was $0.00003791, recorded on May 10, 2021.
  4. At the time of writing, Shiba Inu’s market cap was $2,579,157,111.
  5. There were 394,796,000,000,000 SHIB tokens in circulation at the time of writing. No details were available regarding its total maximum supply.

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