Johnny Lyu, the CEO of the world’s third-largest crypto exchange KuCoin, recently explained why the Shiba Inu cryptocurrency is a good long-term investment.
Shiba Inu coin, a meme-based cryptocurrency, has been known to have short-term dips and rises, allowing investors to pump and dump their assets for potential earnings.
- This is why experts have often called the Shib coin market volatile and high risk — it moves fast and quick.
But Lyu said the Shiba Inu coin represents young investor interest in cryptocurrency, which is one reason why it makes for a good long-term investment.
- “Seeing bitcoin’s rise, some younger investors without a lot of money want to profit from crypto as well,” Lyu said, per MarketWatch. “But you’d need over $60,000 to buy one bitcoin. So they turn to Dogecoin and SHIB, where you buy tons using just $100.”
- “These investors are very passionate about such tokens and are determined to push the prices higher,” Lyu said, according to MarketWatch.
Still, Shiba Inu coin is a risky investment because of the fast-moving market. In fact, Douglas Boneparth, certified financial planner and president of Bone Fide Wealth, told CNBC that potential investors should research the coin before investing.
- “Before investing in any cryptocurrency, it’s important to understand what you’re investing in and the associated risks, not just hype around it,” Boneparth said.
Similarly, experts at InvestorPlace.com said hoping for Shiba Inu coin to rise in value isn’t a good strategy, either.
- “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 set the coin apart in terms of functionality. Ultimately, purchasing something with no inherent fundamental value is not a prudent financial decision.”
In general, the Financial Conduct Authority said cryptocurrencies can be risky for investment due to the volatile market. Caution is super important.
- “Investing in cryptoassets, or investments and lending linked to them generally involves taking very high risks with investors’ money,” FCA’s statement said. “If consumers invest in these types of product, they should be prepared to lose all their money.”