Key Things To Know Before Investing In These Cryptocurrencies
Shiba Inu and Dogecoin, both meme-currencies, continue to grab headlines amid a sharp spike in interest in cryptocurrencies. While Dogecoin was created in 2013, Shiba Inu is fairly new and came into being only in 2020.
Let’s understand the fundamentals of these meme coins in detail:
Dogecoin has been developed using the same technology as Bitcoin. While Shiba Inu tokens are powered by Ethereum. Fungible tokens like Shiba Inu are ERC-20 tokens and non-fungible tokens (NFTs) use the ERC-721 token standard of the Ethereum platform.
The use case
According to Sathvik Vishwanath, CEO and Co-Founder of Unocoin, Dogecoin started as a meme coin and established itself to some extent as a viable means to do payments online even for the smallest of transactions which the well-known coins like bitcoin and ether failed miserably due to their high transaction fees that got increased due to its own popularity.
On the other side, Vishwanath said, the world still needs an experimental meme coin and we have Shiba INU filling that gap.
“Shiba INU appears to be working up in price more due to rumors than utility while Doge appears to just have found an on the ground use case,” he added.
The risk factor
Shiba Inu and Dogecoin both are meme coins so they can be extremely volatile at times.
Where can one buy them?
Besides, users can also mine a Dogecoin. Those who have a powerful computer setup can process other dogecoin transactions and get these coins as payments.
What should investors do?
According to Ashish Singhal, CEO and Co-founder at CoinSwitch Kuber, an investor must do thorough research on the coin’s fundamentals and take a deep dive into the use case they are solving.
“Factors like risk management must also be taken into account. That said, one should only put in the amount they are fine losing in these coins,” Singhal suggested.
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(Edited by : Ajay Vaishnav)
First Published: IST