While the majority of the attention has been focused on the most well-known cryptocurrency names, such as Bitcoin and Ethereum, a wide range of new coins have emerged in recent years.
Meme coins may have started off as a joke in the cryptocurrency industry, but investors are starting to take note. Elon Musk, for example, has abruptly abandoned Bitcoin in favor of Dogecoin. Tesla's CEO has gone on record as saying that he hasn't sold any of his Dogecoins and has no plans to do so in the future. This has led many people to meme coins, and many others are learning how to invest in Shiba Inu coins.
And why would he do that? From a fraction of a cent to $0.97 at its high on May 7, 2021, the clown prince of cryptocurrencies has only surged in value. Is it, then, still worthwhile to invest in meme coins? Or are they just a bunch of gimmicks? Why are meme coins good investment options and great for portfolio diversification, despite the negativity surrounding them?
Despite the fact that 'meme coins' are sometimes dismissed as a joke, some investors feel they should be regarded seriously. Cryptocurrencies like Dogecoin and Shiba Inu have created a lot of buzz in the crypto world, and some people have made a lot of money off of them, while others are learning how to invest in Shiba Inu coins.
Meme coins are cryptocurrencies that have garnered rapid popularity as a consequence of influencers and retail investors supporting them online.
Dogecoin is the original meme coin, having been developed in 2013 as a joke based on a meme. It gained popularity once Elon Musk began tweeting about it, and regular investors began buying in droves.
Because anyone can establish a new cryptocurrency, a number of meme coins have sprung up in the wake of Dogecoin. Many of these coins are Dogecoin spinoffs, for example, Shiba Inu, but there are hundreds more meme coins out there. Indeed, as of this writing, there are more than 5,000 meme currencies listed on the website CoinMarketCap.
Meme coins are a type of cryptocurrency, but there is a key distinction between cryptocurrencies like Dogecoin and Shiba Inu and cryptocurrencies like Bitcoin and Ethereum, and it has to do with utility.
Bitcoin and Ethereum, two of the most popular cryptocurrencies, were created to answer real-world problems. The goal is to get merchant acceptance and create a new kind of decentralized currency that will revolutionize a range of industries.
Meme coins, on the other hand, currently serve no real-world use, and most of them were developed for the sole aim of making quick cash. You can join the fast-moving Shiba Inu train by learning how to invest in Shiba Inu coins to get started.
Some of these coins have garnered prominence as a result of celebrity endorsements, and retail investors have inflated their prices by extensively advertising them online. This is why, despite their fragile fundamentals, many coins have experienced tremendous growth.
Many investors sell quickly once their prices rise in order to earn a rapid profit. Because meme coins currently have no real value, it's improbable that they'll be around in a few years or decades. Meme coins' prices are expected to drop as investors move on to a new stock or cryptocurrency, however, they are still a viable investment option at the moment and for the foreseeable future.
While it is possible to profit with meme coins, investing in meme coins must be done with care. You might be able to make money if you buy and sell at the right times. With this, you are unlikely to record any significant loss.
Nobody knows how cryptocurrency will fare over time because it is currently highly speculative. If you do decide to invest in cryptocurrency, make sure you choose meme coins with strong fundamentals that will outlast others.
Investing in meme coins is the same as that of any other cryptocurrency, and is a great option for anyone looking to diversify their investment portfolio. If you want to learn how to invest in Shiba Inu coins, you'll need a bitcoin exchange account. Shiba Inu coins must, however, be available on the exchange's platform.
If you intend to keep your meme coins for a longer period of time, you should also consider getting a cold wallet. Having one helps you to keep your coins safely and securely offline, preventing hackers from gaining access to your bitcoin.
Regardless of all the negativities, meme coins still represent great investment options and portfolio diversification options for investors.
