What is Shiba Inu (SHIB)? A complete Beginners Guide

Are you interested in learning more about Shiba Inu, the innovative cryptocurrency that is quickly gaining attention in the crypto world? In this article, we will explore what makes Shiba Inu (SHIB) different from other cryptocurrencies, how it works, and why it has become so popular. We will also answer any questions you may have about this unique and exciting cryptocurrency.

Author: Edith Reads   -   Last updated: 21/01/2023
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Cryptocurrencies have been gaining in popularity over the past few years, but there’s one digital token that has been making a lot of noise for a while now—Shiba Inu (SHIB). If you’re not familiar with SHIB, you’re not alone. To understand why SHIB is making such waves, let’s take a look at what this digital asset is all about – how it works, how it’s created, and more.

Ready? Let’s start with the basics…

What Is Shiba Inu (SHIB)? 

Shiba Inu (SHIB) is an Ethereum-based meme coin founded in 2020. The cryptocurrency is named after a Japanese dog breed called Shiba Inu. According to the Shiba Inu official website, SHIB tests how well a decentralized, spontaneous community may emerge from nothing. The team behind Shiba Inu intends to create an ecosystem comprising three tokens, including SHIB, LEASH, and Bone. As per the information available in the crypto’s whitepaper, each coin will have a different token supply. The maximum token supply of Shiba Inu is estimated to be one quadrillion. The Shiba Inu Token ecosystem supports projects like the NFT art incubator and has its decentralized crypto exchange known as Shibaswap.

How Does Shiba Inu Work?

SHIB is an Ethereum-based token and is compatible with the entire Ethereum ecosystem. Users can integrate it into ETH-based DeFi Apps, such as savings, lending products and NFT marketplaces. Its consensus mechanism is also the same as Ethereum, which currently employs Proof-of-Work (PoW). However, the network is in the process of shifting to the Proof-of-Stake consensus mechanism (PoS). Shiba Inu Logo

While the PoW technique offers rewards based on the nodes’ processing power, the PoS system-based mining incentives on staked coins.

Users can stake their tokens on ShibaSwap’s SHIB pool to earn interest. ShibaSwap employs unique terminologies, such as DIG, BURY, FETCH, and BONEFOLIO. Let us explain what each term means.

While digging enables you to earn BONE tokens (the governance token of the Shibswap crypto exchange), burying SHIB tokens in the Shiba Inu blockchain brings you more SHIB tokens as a reward. On the other hand, fetching allows you to swap SHIB tokens conveniently, whereas Bonefolio represents a stash portfolio.

How is Shiba Inu Created?

Shiba Inu is a cryptocurrency project created as an open-source and decentralized alternative. The project was inspired by the popular Doge meme which was used to promote Dogecoin. Unlike Dogecoin, which uses proof-of-work (POW) consensus, Shiba Inu uses a unique proof-of-stake (POS) consensus mechanism to secure the network. 

This POS consensus incentivizes holders of Shib tokens to contribute to the security of the network by staking their tokens in return for rewards in the form of Block Rewards and Transaction Fees. Mining also plays an important part in creating new Shiba Inus through mining pools and solo mining processes. Trading on exchanges also helps increase the circulation of Shiba Inu coins, as well as providing users with liquidity options when trading.

What is the Purpose of Shiba Inu?

Shiba Inu has a few primary objectives. Primarily, it was created to provide an alternative to Dogecoin with faster transactions and lower fees. It is also designed to promote decentralization and financial inclusion which will enable greater access to digital currencies for more people. 

The project also plans to use its surpluses to fund charitable causes and implement NFT technology so that users can create, trade and auction unique digital assets. Ultimately, the goal of Shiba Inu is to become a global currency used by everyone across all divides.

How to Mine Shiba Inu in 3 Steps

Step 1: Mining Hardware 

To mine SHIB, you will first need some basic hardware. You will need a computer with a central processing unit (CPU) or graphics processing unit (GPU). CPU and GPU are two of the most common types of processors used in computers today. CPUs are better suited for more general computing tasks while GPUs are better at handling graphic-heavy applications like gaming and video editing. Depending on your budget and desired performance level, you may want to invest in additional hardware such as a motherboard, memory, storage device, power supply, and cooling system. 

Step 2: Software Setup 

Once you have acquired the necessary hardware for mining SHIB, the next step is setting up your software. You will need a mining client that can connect your computer to the blockchain network so that it can start mining SHIB tokens. You will also need an address where mined tokens can be sent. Luckily, setting up an address on platforms like Coinbase or Binance is super easy; all you need to do is create an account and follow their instructions for generating an address. 

Step 3: Mining Rewards 

The amount of SHIB tokens that can be mined depends on several factors including hash rate—the speed at which your computer processes data—and difficulty level—how difficult it is to mine new blocks. Generally speaking, miners with higher hash rates tend to get bigger rewards than those with slower machines. However, this isn’t always the case as there are other variables at play such as network difficulty levels. It’s important to remember that mining rewards are not guaranteed and can fluctuate based on these factors.

How to Buy Shiba Inu

Buying Shiba Inu (SHIB) is relatively straightforward, provided you have the right information and know the proper steps to take. To get started, you’ll need to find an online cryptocurrency exchange that offers SHIB and has a good reputation. Once you’ve selected one, begin by setting up your account with them and downloading the respective software. 

Then verify your identity by uploading documents or providing additional information before funding your account with fiat currency or another cryptocurrency. When setting up your order, be sure to factor in all applicable fees before finalizing it. After completing your purchase, transfer the coins to a secure wallet for storage until you are ready to use them!

How Is Shiba Inu Used?

1. Yield Farming

Yield farming is a type of activity where people use their SHIB tokens to receive rewards for participating in various protocols. By staking their SHIB tokens and engaging with DeFi platforms, users can earn rewards in various forms such as additional SHIB tokens or other cryptocurrencies depending on the platform they are using. This allows users to benefit from SHIB’s appreciation while also earning additional tokens which could be sold at a later date for further profits. 

2. Buying Goods & Services

Nowadays, an increasing number of merchants accept cryptocurrency payments, including those who accept SHIB token payments. This means that if you want to purchase goods or services with your SHIB holdings, you can easily do so at many online stores around the world. 

3. Trading

Of course, one of the most popular uses of SHIB is trading it against other cryptocurrencies on exchanges. With its high liquidity and low fees, it makes trading easy and convenient for those looking to make a profit off the price movements of this digital asset class. Whether it’s short-term speculation or long-term investments, trading is definitely one way people use their SHIB holdings to maximize returns on their investment choices. 

4. Borrowing Money

A relatively new but highly effective way to make use of your cryptocurrency holdings is by borrowing money against them on certain platforms such as Celsius Network or Nexo Finance. By pledging collateral such as your SHIB tokens, you can obtain low-interest loans without having to go through any extensive credit checks or paperwork like traditional loans require. This makes borrowing money much easier than ever before! 

5. Donating To Charities

If you want to give back and help others in need, there are now many charities accepting donations in cryptocurrency form. They often accept major coins like Bitcoin or Ethereum but some may also accept smaller altcoins such as Shiba Inu (SHIB). Donating has never been easier!

Shiba Inu (SHIB) Community

The Shiba Inu coin community is an enthusiastic group of people who are passionate about the Shiba Inu coin project. The Shiba Inu coin is a decentralized cryptocurrency that has been gaining popularity over the past few years. The community is comprised of members from all over the world who discuss the project, share ideas and insights, and help each other out. The community regularly hosts events such as online meetups, hackathons, and airdrops. They are also active on social media, providing news and updates about the project, as well as engaging with the community on a daily basis. The community is a great place for newcomers to learn about the project and get involved in its development.

Conclusion

As more people become interested in cryptocurrency investing, there are bound to be new coins popping up all over the place. One such coin is Shiba Inu (SHIB), an Ethereum-based token that offers investors a low-cost way into crypto trading while also offering some unique features like a limited total supply amount and potentially high returns if held over time. With its current market performance standing out among the pack of new altcoins entering the scene, only time will tell if this latest craze can hold onto its gains or if it will fizzle out like so many others before it has done. For now, though, it looks like it’s here to stay!

Frequently Asked Questions (FAQs)

Shiba Inu (SHIB) Token Price is 0.000014 USD6 (Price updates hourly)!

Shiba Inu coin is used by anyone who wants to take advantage of its fast transaction times and low transaction fees. It is especially popular among cryptocurrency traders as a more affordable alternative to Dogecoin. It can also be used for online purchases, trading with other cryptocurrencies, and investing for the long term. The project also actively promotes financial inclusion through its charitable initiatives and the use of NFTs that allow users to create or trade unique digital assets.

While the Shiba Inu token does not belong to any particular country, it has gained popularity in several countries, including Japan, the United States, South Korea, and China.

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