Certainly, investing has become a different kind of a fauna in the last couple of years. Cryptos, meme coins and NFTs have created the crypto universe pretty thrilling. These are giving rise to millionaires in just a matter of months. It is a fact that there have been a lot of casualties. However, it has never stopped others from trying their luck in crypto investment. There have been a couple of crypto token rises including Dogecoin (DOGE) and Shiba INU (SHIB). Most people advices to buy DOGE over SHIB.
What are the probable reasons? Buy DOGE or SHIBA? We will discuss the reasons in this article and let you know which one to buy. So keep on reading to know all the reasons to buy DOGE over SHIB.
Top 10 Reasons Favoring You To Buy DOGE Over SHIB
In the past couple of months, Dogecoin (DOGE) and Shiba Inu (SHIB) have been continuously hitting the headlines. They are in a strong crypto dog fight irrespective of the fact that both of them are slightly based on different technologies. People are always curious to know “is DOGE a good investment?”. Although neither of them is especially unique, people often considers to buy DOGE over SHIB.
Let us now explore the 10 reasons why investing in Dogecoin is better than Shiba Inu and check where Dogecoin stands as a profitable meme coin. Additionally, you can check how you can buy Dogecoin after you have decided to invest in it.
DOGE Is Ideal For Crypto Beginners
The enormous volatility of Dogecoin during the past year might make the investors cringe. However, it seeks for a strong mindset if you are trying to invest in something that can either nosedive or skyrocket in just a matter of minutes. DOGE is considered to be a good investment for the beginners owing to the fact that holding DOGE for an extended period can offer the investors a view into what cryptocurrency investment is all about. Profits and volatility are just a part of the course. However, the investors must be willing to face everything that comes their way.
Fundamentals of SHIB Never Aligns With Its Rapid Growth
Even if Shiba Inu has earned record-breaking returns, these have more to do with the hype of the cryptocurrency rather than the integrated fundamentals of the meme coin. Large fan base is considered to be the popularity of SHIB and its price rise. With this you need to understand that the more people investing in this coin will make the risk rise eventually. In the end all those investors will sell their held tokens for cashing out their earnings causing the price of the cryptocurrency to fall.
SHIB Is Better For Short-Term Investment
Shiba Inu is a meme coin best for short-term investment and it possesses the potential to make a lot of money in just a small span of time. But once it will crash, they usually crash hard. SHIB might be dangerous even if it seems to be an exciting new cryptocurrency. In this respect it can be stated that buying healthy investments and holding them for the long term is a much safer way.
DOGE Is Progressing In Speed
The Dogecoin possesses an incredible feature known as the Scrypt algorithm that is a major point of divergence from the SHA256 algorithm of Bitcoin (BTC). The Scrypt algorithm facilitates much faster block creation making it even faster than BTC. In the meantime, SHIB is an ERC-20 token that performs on the proof-of-work (PoW) mechanism of Ethereum. It is quite similar to that of DOGE, but in practical it reflects the operational timings of the parent network.
SHIB Is Now Owned By Elon Musk
Elon Musk is a very strong supporter and often seen advocating for DOGE. He has also gone far and stated himself to be the “Dogefather”. In the recent tweets by Musk, he has explained exactly why he has placed all his faith in cryptocurrency and that everyday people in Tesla and SpaceX have inspired him with the idea of the true people’s coin.
DOGE Has Huge Credible Store Value
Dogecoin was created way back in 2017 as a fork model of Litecoin (LTC). Litecoin itself is a fork model of Bitcoin. The mechanism of DOGE is rooted in its intended usage as a very highly accessible peer-to-peer exchange method and eventually to prevent the long-term holding diminishing the circulation and minimizing the transaction fees. The Shiba Inu developers have adopted a much different as well as less sophisticated method when it comes to the supply mechanism of the token.
Market Positioning Of DOGE Is Unique
The mining model of DOGE, the inflationary status and the ties to Litecoin are pretty unique. Also providing the concerns regarding the environmental impact of cryptocurrencies, the experts predict that Dogecoin will shift to a Proof-of-Stake (PoS) validation model where the coin holders can validate the transactions.
SHIB Is Deficient In Real-world Utility
Honestly, a vast majority of the cryptocurrencies do not possess any real-world utility. But particularly, the real-world involvement of SHIB is very low. Even though it is one of the top 15 cryptocurrencies depending on the global market cap, just 365 merchants globally are accepting this token as a form of the legal currency.
Social Media Has Influence On SHIB
A vast majority of the social media boards have discovered that the social media platforms such as Reddit and Twitter possess numerous posts that encourage a pump of the token. DOGE vs Shiba reddit is pretty popular. Although it is pretty doubtful of the fact that the investors planning long term investment will buy these posts. But the low number of posts mentioning “Shiba Inu” or “SHIB” and “Pump” has raised questions and uncertainty.
DOGE Is Widely Accepted
People often want to know why is DOGE so popular? Like the other cryptocurrencies, the Dogecoin gains its value from its broad acceptance as an exchange medium. While various small businesses are currently accepting Dogecoin as a form of payment, effectively their economic impact is zero.
Now you have taken a closer look at the various reasons to buy DOGE over SHIB. Ultimately both the meme coins Dogecoin and Shiba Inu are speculative plays. Thus, it is recommended that you devote a small portion of your portfolio to either and be ready for the volatility as well as the potential to lose everything. Right now Dogecoin seems to have more momentum and potentially more catalysts ahead. But Shiba Inu might be better for all those who think that Elon Musk can offer at least some stability and long term relevance. You can also compare Shiba Inu vs Dogecoin to have a clear idea.