2 cryptocurrency stocks I would buy on Shiba Inu
If you’ve been following the wild world of cryptocurrencies and crypto stocks recently, you may have heard of the incredible rise of the Shiba Inu coin. The currency continued to recover and now has a market cap of US $ 11 billion, making it the 19th most valuable cryptocurrency in the world.
So if you’ve heard of Shiba Inu but aren’t sure what’s behind all the hype, here’s what is most important to know. Unlike many other major cryptocurrencies, including speculative ones like Dogecoin, Shiba Inu is relatively new, only created in August 2020.
Shiba Inu is a type of dog and, in fact, it is the dog that is depicted on the Dogecoin symbol. And just like Dogecoin, the cryptocurrency has seen a big rally due to a ton of investor speculation in the market. This is one of the reasons it has been dubbed the Dogecoin killer. The coin behaves a lot like Dogecoin and has attracted a lot of the same investors. Even over the weekend, it skyrocketed following a tweet from Elon Musk.
All of this shows that Shiba Inu can be a highly speculative asset, and investors should expect a ton of volatility from the cryptocurrency. But that doesn’t necessarily mean that Shiba Inu isn’t worth a long-term investment.
If you are looking to buy cryptocurrency as an investment, the most important factor to consider is the use cases for this coin. Bitcoin, for example, is valuable because you can spend it in thousands of places all over the world. So while its technology has drawbacks and there are still millions of places you can’t spend it, it has one of the highest use cases of all cryptocurrency.
Ether is another cryptocurrency that you can buy with confidence. It’s critical to powering the Ethereum blockchain, which has millions of full-fledged use cases.
The Shiba Inu play, however, is of very little use. You can hardly spend it anywhere, and its underlying technology is far from an improvement over existing cryptocurrency technology. It reminds me exactly of Dogecoin, which could only be spent in a few places and never had any long-term potential to rally.
While he may still win in the short term, it certainly looks like a bubble. Therefore, rather than speculating and potentially learning an expensive lesson, as many investors did in May with Dogecoin, I would stick to high quality crypto stocks that actually have long term potential.
Two main crypto stocks to buy today
Not only could an investment in Shiba Inu cause you to lose most or all of your money if the bubble burst, but you are also forgoing the opportunity cost of buying high quality crypto stocks today. And with the industry rallying tremendously lately, with Bitcoin quickly approaching its all-time high, you don’t want to miss this.
That’s why instead of buying Shiba Inu and hoping for a rally, I would much rather buy a company that has bitcoin exposure, which you can be comfortable owning for the long term, like Hut 8 Mining (TSX: HUT) (NASDAQ: HUT).
Hut 8 is one of the best Bitcoin miners in the world and a great crypto stock to buy and hold for the long term. The company is primarily exposed to Bitcoin and, due to its operations, is optimized for price, making it a stock with high growth potential – perfect for investors interested in Shiba Inu.
So every time the price of Bitcoin moves, Hut 8 should move in the same direction but with even more volatility. Additionally, Hut 8 is also the world’s largest self-mined Bitcoin holder. The company strongly believes that the price of Bitcoin will be worth more in the future and continues to hold as much Bitcoin as possible to maximize its profits.
Galaxy digital backgrounds is another high quality crypto stock to consider. The company is a financial services firm that operates in the crypto industry.
It offers several segments, such as investment banking, trading, and asset management, all of which should benefit in the long run as the crypto industry continues to gain popularity.
So, if you are looking for an investment in cryptocurrencies that you can be comfortable owning for years to come, forget about Shiba Inu and consider one of these top two crypto stocks.