How Do Dogecoin and Shiba Inu Compare? • Benzinga

Decided you want in on the action? You can get DOGE and Shiba Inu on eToro.

Ever since Elon Musk tweeted about Dogecoin going to the moon, dog-themed cryptocurrencies have exploded in value. Most of these cryptocurrencies don’t have innovative or unique underlying products, and Dogecoin has no competitive advantages over other more established cryptocurrencies like Bitcoin, Ethereum and Cardano.

But before dumping your life savings into a meme currency, be sure to know what you’re buying. Learn more about the difference between Dogecoin and Shiba Inu tokens now.

Dogecoin’s Technology

Dogecoin is essentially the same technology as Bitcoin. Both Dogecoin and Bitcoin use proof of work consensus to verify transactions on the network. However, Dogecoin is arguably a better option for every day payments, as its transactions can be processed faster and cheaper than Bitcoin transactions.

But Dogecoin isn’t an exact clone of Bitcoin. Dogecoin has a much higher circulating supply than Bitcoin, and there’s no maximum supply for the doggy-themed cryptocurrency. With over 129 billion DOGE in circulation, the supply is far more abundant than Bitcoin’s 21 million maximum supply.  What’s more, 10,000 Dogecoin are minted every minute in the form of block rewards.

Dogecoin is a proof-of-work cryptocurrency, so it uses computing power to secure its blockchain in a similar way to Bitcoin. DOGE is merge-mined with Litecoin, meaning that anyone who mines Litecoin or Dogecoin can choose to mine the other currency. This allows for it’s network power to be more stable than being mined alone.

Shiba Inu’s Technology

Shiba Inu is a token on Ethereum’s network. Fungible tokens like Shiba Inu are ERC-20 tokens, while non-fungible tokens (NFTs) use the ERC-721 token standard. Because the token is powered by Ethereum, Shiba Inu can leverage smart contracts to make decentralized financial products.

The DeFi industry has gained traction this year with tokens like Uniswap, yearn.finance and Aave skyrocketing in both price and adoption. These cryptocurrencies use smart contracts on Ethereum’s blockchain to create decentralized exchanges (DEXs), lending protocols and even interest-bearing accounts.

Shiba Inu has also entered the NFT space with Shiboshis, a collection of 10,000 NFTs themed after its Shiba Inu mascot. The decentralized program uses Ethereum’s network to let artists auction off NFTs, replacing the 3rd party needed for transactions with smart contracts.

ShibaSwap lets investors stake their Shiba Inu tokens for high returns in a variety of ways. However, this will cause inflation for the token which may cause the price to go down. The platform doesn’t have clear benefits over competitors in the space.

The Tokenomics of Dogecoin & Shiba Inu

Both Shiba Inu and Dogecoin have a far more abundant supply of tokens than other mainstream cryptocurrencies. Intuitively, this means that the tokens will have a lower price per coin. While Dogecoin is hovering around $0.30, its market capitalization exceeds $25 billion, making the coin more valuable than many public companies, such as Ford Motor Company.

Dogecoin rewards its miners with 10,000 Dogecoin every minute. This constantly increases the total supply of Dogecoin, which creates sell pressure for the currency. Shiba Inu has a maximum supply of 1 quadrillion tokens, which is far more than Dogecoin’s current supply. However, many of these tokens were burned, and half of the supply was sent to Ethereum founder Vitalik Buterin as “tribute”. Buterin has since donated these tokens to India’s Covid relief fund.

Shiba Inu’s platform will allow investors to earn Bone tokens through staking their tokens, essentially letting those who stake Shiba Inu earn interest on their investment.

Where to Buy Dogecoin

Since Dogecoin is such a volatile and speculative asset, most exchanges haven’t listed the asset to the public. The 2 best exchanges that support DOGE are Binance and Robinhood.

These exchanges allow you to buy Dogecoin as a limit or market order: market orders will buy DOGE instantly at market price. Limit orders only execute at a pre-specified price.

Where to Buy Shiba Inu

Since Shiba Inu uses Ethereum’s network, you can use a decentralized exchange (DEX) to purchase Shiba Inu tokens. The most popular DEX on Ethereum is Uniswap.

To use Uniswap, you’ll need to download an Ethereum wallet. The best Ethereum wallet to use with Uniswap is Metamask, as it features a Google Chrome extension that makes it easy to interact with decentralized protocols.

Once you’ve downloaded Metamask, you’ll need to send Ethereum to your wallet from your cryptocurrency exchange of choice. If you don’t already have an account with a cryptocurrency brokerage, then Coinbase, eToro and Gemini are great options for beginners.

Uniswap plans to launch Optimism, a scaling solution for Ethereum, on its platform later this month. This will make transacting on Uniswap’s DEX much more affordable to retail investors, so make sure to follow Uniswap’s Twitter for updates.

Since Shiba Inu has received so much attention, many centralized exchanges have listed the token to trade on their platforms. Of these exchanges, Coinbase and eToro are the most reputable and secure places to buy Shiba Inu.

1 Minute Review

Crypto.com strives to make cryptocurrency a part of everyday life by offering a full suite of services for crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi swap, DeFi Wallet, DeFi Earn, Crypto.com Price, staking, crypto lending, and many other services. What really sets them apart, however, is the combination of super low fees and incredibly generous rewards programs for their users.

Best For

  • Traders who want access to a secure, low-cost cryptocurrency exchange
  • Passive investors who want to earn interest on their balance without frequent trading
  • Mobile investors who prefer to handle all their crypto needs via their phone or tablet
Pros

  • Low fees
  • High security
  • One-stop shop for all your crypto needs (wallet, trading, spending, and more)
  • Lots of ways to earn interest, rewards, and rebates
Cons

  • Low privacy
  • Customer service response time could be improved

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Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For

  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform
Pros

  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins
Cons

  • Higher fees than competitors

Kraken

Best For

Crypto futures traders

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Kraken is a cryptocurrency that offers access to more than 50 supported coins and tokens, staking capabilities, futures trading and more. Kraken offers a variable maker-taker fee schedule, which often results in lower fees compared to flat-rate brokerages.

In addition to a wide range of crypto choices, Kraken offers customizable ordering platforms and mobile apps that you can use to fully refine your trading experience. There’s plenty to love about trading on Kraken. It appeals to both seasoned professionals and new investors looking to learn more about the market.

Best For

  • Cryptocurrency investors looking for a wide selection of supported assets
  • Crypto futures traders
  • Beginner investors looking for maximum account security
Pros

  • Wide selection of supported tradable assets
  • Straightforward platform is easy for new users to master
  • 24/7 customer service available via live chat
Cons

  • Maker-taker fee schedule may confuse some users
  • No option for phone or email customer service

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Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader.

In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

Best For

  • New investors looking for a simple mobile and web app
  • Experienced investors who need a more advanced platform with more tools
  • Users looking for a 1-stop-shop to buy, sell and store all of their coins
Pros

  • Easy and quick signups — can get started in as little as a few minutes
  • Multitude of platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect your from theft and hacking attempts
Cons

  • Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app

How to Store your Cryptocurrency Safely

It’s not recommended for any cryptocurrency investor to store their funds on an exchange. Exchange’s hold custody of all their users’ crypto assets, making them large targets for online hackers. Several crypto exchanges have been hacked in the past, leaving investors coinless.

To mitigate the risk of being hacked, you should store your crypto in a software or hardware cryptocurrency wallet. Software wallets are free to use, and they encrypto your crypto assets in a computer program. Hardware wallets are the safest way to store cryptocurrency, as they store your crypto on a physical device, offline. This makes it impossible for anyone to access your cryptocurrencies through the internet.

Ledger Hardware Wallet