Johnny lyu, the CEO of KuCoin, the world's third largest cryptocurrency exchange, recently explained why the Shiba Inu cryptocurrency is a good long-term investment.
Shiba Inu Coin, a meme-based cryptocurrency, is known to have short-term dips and spikes, allowing investors to pump and dump their assets for potential gains.
- This is why experts have often rated the Shib coin market as volatile and high risk - it moves fast and fast.
But Lyu said Shiba Inu coin represents the interest of young investors in cryptocurrencies, which is one of the reasons why it constitutes a good long-term investment.
- "Seeing the rise of bitcoin, some younger investors without a lot of money also want to profit from cryptocurrencies," Lyu said, according to Market watch. “But you would need more than $ 60,000 to buy a bitcoin. So they turn to Dogecoin and SHIB, where you buy tons with just $ 100. " One bitcoin can be divided into 100 million satoshi, its smallest unit.
- "These investors are very passionate about these tokens and are determined to drive prices up," Lyu said, according to Market watch.
Still, the Shiba Inu coin is a risky investment due to the rapid movement of the market. In fact, Douglas Boneparth, certified financial planner and president of Bone Fide Wealth, said CNBC that potential investors should research the coin before investing.
- "Before investing in any cryptocurrency, it is important to understand what you are investing in and the associated risks, not just overdo it." Boneparth said.
Similarly, experts from InvestorPlace.com He said that waiting for the Shiba Inu coin to increase in value is also not a good strategy.
- "While crypto millionaires are a real thing, the use cases and utility set each coin apart." InvestorPlace.com reported. “Although Shiba Inu has an excellent development team, they have not differentiated the coin in terms of functionality. Ultimately, buying something with no inherent fundamental value is not a prudent financial decision. "
In general, the Financial conduct authority He said that cryptocurrencies can be risky for investment due to market volatility. Caution is very important.
- "Investing in crypto assets or investments and loans linked to them generally involves taking very high risks with investors' money." The FCA statement read. "If consumers invest in these types of products, they must be prepared to lose all their money."
