What is Shiba Inu?
Shiba Inu (SHIB) is an ERC-20 token on the Ethereum blockchain that aspires to be the rival of Dogecoin (DOGE), the first meme coin beloved by Elon Musk. Despite starting off as a meme, Shiba Inu developed an impressive DeFi ecosystem consisting of Ethereum L2 Shibarium, algorithmic stablecoin SHI, and decentralized exchange ShibaSwap that features three native tokens, Shiba Inu (SHIB), Leash (LEASH), and Bone (BONE). The Shiba Inu ecosystem also supports an NFT incubator that helps artists display, sell, or auction their artwork through ShibaSwap.
Shiba Inu was created by an anonymous person or group known as “Ryoshi” and launched in August 2020 with the initial supply of one quadrillion tokens. Half of them were gifted to Ethereum co-founder Vitalik Buterin who sent them to the burn address. Another half was put on Uniswap at a starting price of around $0.000000000056.
Since then, Shiba Inu has been through many highs and lows. The coin reached its ATH of $0.000079 in October 2021, now being 86% down from its peak. Since retail investors always fancied meme tokens, Shiba Inu quickly gained their admiration. Now Shiba can boast of one of the most loyal and strong communities in the crypto industry, and its volatility makes it a perfect pick for day traders. To boost the market value of their favorite digital currency, many SHIB holders burn their tokens on the Shibburn platform, thus reducing the circulating supply.
You, too, can try short selling Shiba Inu, and believe me, it’s not rocket science. With Logium, you can seamlessly trade SHIB and other cryptocurrencies with a few clicks. Just follow our guide and see for yourself!
Step 1: Long or short SHIB with 5x leverage on Logium
To start trading crypto binary options, go to the Logium platform and click on “Launch dApp” in the top right corner. Congrats, you are almost done! Since Logium is a decentralized platform and all trades are p2p between users, it doesn’t require customers to register or go through KYC checks.
Step 2: Select your crypto of choice
At the press time, there are four digital currencies besides SHIB to place bets on, which are Hex Coin (HEX), ApeCoin (APE), Wrapped Ether (WETH) and Wrapped Bitcoin (WBTC). However, developers promise to add more coins soon, with the final goal to list all Uniswap cryptocurrencies.
Step 3: Take a bet or create your own
If you want to choose from available bets, click on the one you selected and specify the bet size, which is the amount of money you are willing to risk. You can pledge 100%, 75%, 50%, 25% or 10% of the option price. You can also filter available bets by put or call type, strike price, time span, bet size, and leverage.
To issue your option, click the “Create bet” button and decide whether the token will be above or below the strike price at the end of the selected timeframe. Then specify the strike price and a period in which the bet is active; it can be one hour, six hours, one day, seven days, or 30 days. The last step is to select a multiplier or leverage. On Logium, you can choose leverage as high as 5X, but remember that high potential returns bear higher risks.
Step 4: Connect your MetaMask wallet
The final step is to pledge the USDC collateral equal to your bet size. You should also hold some ETH to cover transaction fees. Connect your MetaMask account and confirm the transaction in the pop-up window to complete the process. If you take another investor’s bet, it will instantly appear on the “Active bets” tab.
If you choose to issue your own bet, it will land in “Available bets,” waiting for the second party to accept it. The bet will expire if no one takes it over the specified period. After that, your collateral will be unlocked and available again in your account balance in the “Portfolio” tab. In the same tab, your premium will appear if you win. Just click the “Withdraw” button to collect your money and enjoy your success!
You may also want to check our article on the best crypto trading strategies for beginners and pros.
Disclaimer: the majority of retail investors lose money trading derivatives. The content of this article is not an investment advice, always do your own research beforehand.