OctaFX information and reviews
XM information and reviews
FXCC information and reviews
HFM information and reviews
FxPro information and reviews
FXCM information and reviews

Libertex adds a hot CFD pair as the crypto dog fight hots up

20 December 2021

They say every dog has its day. Well, there are currently not one but two puffed-up pooches in the digital spotlight, and neither one of them looks ready to step aside. Believe it or not, the entire crypto community has gone barking mad over these two tokens based on the same famously cute Japanese dog breed. Of course, we're talking about the prolific Dogecoin (DOGE) and Shiba Inu (SHIB), which have both seen spectacular growth in recent months. After much anticipation, Libertex has finally added CFD on this pair of pups to their list of tradable assets. All that's left for you to do now is decide which dog you want to back in this particular fight!

Many of you know that both Shiba Inu and Dogecoin started their lives with low expectations. One was launched as a deliberate joke and the other as a parody of that same joke. Now, their creators are still laughing…just all the way to the bank.

That's because these two canine capers have – against all odds – made it into the top 10 largest cryptocurrencies by market cap to join legacy contenders like Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP). If the long-term performance of meme stocks like GameStop is anything to go by, these two coins could be a smart addition to your crypto portfolio. But before you can make your choice, you'll naturally need to see how these pups stack up next to each other.

Dogecoin: a technical overview

In many ways, Dogecoin works just like Bitcoin. Both networks are blockchain-based and verify transactions using proof of work consensus. That said, Dogecoin has some advantages of BTC for everyday payments since its transactions have faster processing times and lower costs than Bitcoin ones.

Dogecoin also has a much higher circulating supply than Bitcoin. DOGE's supply is theoretically limitless. With over 129 billion already in circulation, the supply is far more abundant than Bitcoin's 21 million capped maximum. Then, there's the issue of block rewards: 10,000 Dogecoin are mined every minute in the form of miner compensation.

As mentioned already, DOGE is a proof-of-work cryptocurrency, which means it shares many parallels with Bitcoin regarding how it uses computing power to secure its blockchain. What's more, DOGE is merge-mined with Litecoin. The upshot of this is that any miner of Litecoin or Dogecoin can choose to mine the other currency, stabilising its network power compared to solo-mined coins.

What about Shiba Inu?

The differences between these two pups start with the very system they operate, with Shiba Inu serving as a token on the Ethereum network. SHIB is what is known as a fungible token, which is assigned the ERC-20 protocol. Amid their widespread fame of late, many of you have undoubtedly heard of non-fungible tokens (NFTs), but these use the ERC-721 token standard.

The biggest advantage of being Ethereum-powered for Shiba Inu is multiplying smart contracts to generate its own decentralised financial products. DeFi has gained traction this year with tokens like yearn.finance, Uniswap and Aave, exploding in terms of price and adoption. Cryptocurrencies use smart contracts on Ethereum's blockchain to create decentralised exchanges (DEXs), lending protocols and even interest-bearing accounts. This could be a huge growth vector for SHIB going forward and certainly gives it an extra point for utility.

Shiba Inu has even made a foray into the NFT space with Shiboshis, a limited supply of 10,000 NFTs based on its Shiba Inu mascot. The decentralised programme leverages Ethereum's network to allow artists to auction off NFTs, supplanting the third party needed for transactions with smart contracts.

All about supply

Before looking at each coin's market performance and prospects, it would be remiss not to cover how SHIB and DOGE are issued and managed. After all, crypto coins and tokens are effectively currencies like the dollar or pound, and their supply (including its growth potential) is a huge factor determining yields on capital investment.

Let's start with the older of the two, Dogecoin, launched initially with a limited supply of 100 billion coins. By 2015, every last Dogecoin was mined, so the supply limit was changed so that a further 5 billion coins could be mined every year. Now, there's no established limit to how many Doge can be produced, meaning that DOGE is inherently inflationary. That said, as long as mining parameters remain unchanged, the inflation rate will decrease as a function of the extra coins in circulation.

Moving on to Shiba Inu, whose supply system is very different. Right from the outset, the total possible supply of SHIB was set at one quadrillion, after which 50% of the tokens were sent to crypto exchange Uniswap, with the other 50% given as a "gift/tribute" to Ethereum founder Vitalik Buterin. Interestingly enough, Vitalik opted to burn 90% of his SHIBA, donating the remaining tokens to the Indian Covid Relief Fund. SHIBA can't be mined to complicate matters further, and a portion of it is destroyed every time someone buys the token.

As such, SHIB differs from DOGE in being a deflationary currency, which should theoretically make it more likely to rise in value over time compared to its older rival. Remember that both of these coins have skyrocketed recently, and current valuations could thus be inflated.

What the charts say

As we've already touched upon, to say that these puppies have grown up incredibly quickly would be an understatement. SHIB, for instance, shot up by over 8,000% in the space of six months to reach $0.00008 in late October. Dogecoin, meanwhile, eclipsed even Shiba's impressive growth spurt, rising 12,000% from January to May 2021. Many astute investors would naturally expect a correction to ensue after such an incredible run. And that's what happened. Both coins are now down 50% and 65%, respectively, making them tempting buys just now. That's right, SHIB is currently hovering around $0.00004 per token, with DOGE available at a knockdown price of $0.38 at the time of writing. With both technical and fundamental factors suggesting a return to growth in the medium term, now could be a great time to add either one (or indeed both) to the portfolio.

Trading CFDs on SHIB and DOGE with Libertex

You guessed it, both these puppies are now available for trading on the award-winning Libertex trading platform, along with numerous other cryptocurrencies and digital assets. The only question that remains is which you think will prove the top dog? Truth be told, you shouldn't feel under pressure to pick a pup as both these assets could well have a place in a balanced and diversified investment portfolio. What's more, Libertex's new SHIB/DOGE CFD pair allows you to fight the competing dogs against each other. Choose your dog and Trade for More!


Share: Tweet this or Share on Facebook


RoboForex Wins Best Mobile Trading App Title for its R MobileTrader at Global Forex Awards
RoboForex Wins Best Mobile Trading App Title for its R MobileTrader at Global Forex Awards

RoboForex, a brokerage company, is delighted to announce its victory in the prestigious category of "Best Mobile Trading App" at the Global Forex Awards 2022 - B2B.

7 Jun 2023

XM Receives Award at Finance Magnates Africa Summit
XM Receives Award at Finance Magnates Africa Summit

From May 8th to the 10th our team in South Africa was at the first ever Finance Magnates Summit (FMAS:23). XM was there as Diamond Sponsor, and during the summit, we were honoured with the Best Customer Service in Africa award...

30 May 2023

Five Reasons for Copy Trading: Unlocking Your Financial Potential
Five Reasons for Copy Trading: Unlocking Your Financial Potential

With the social trading sector expected to grow and reach a market size of $3.77 billion by 2028, copy trading, a form of social trading, is fast becoming a popular way for traders to achieve their financial and trading goals...

29 May 2023

TRXUSD now available on OctaFX trading platform
TRXUSD now available on OctaFX trading platform

TRXUSD is a popular high-cap cryptocurrency used on the TRON blockchain platform. With the addition of TRXUSD to our platform, our clients can diversify their investments and take advantage of the potential of this cryptocurrency on the market...

24 May 2023

An Introduction to Copy Trading Platforms and How to Choose One
An Introduction to Copy Trading Platforms and How to Choose One

Investing in financial markets can be both daunting and time consuming, especially for those with limited experience in trading. However, copy trading platforms offer a simple and convenient way...

24 May 2023

Planned optimization of MetaTrader 4 platform
Planned optimization of MetaTrader 4 platform

We would like to inform you that on Saturday, May 20, 2023, from 00:30 to 22:00 EEST, the MetaTrader 4 platform will be temporarily unavailable due to the planned...

22 May 2023

Editors' Picks

MultiBank Group information and reviews
MultiBank Group
RoboForex information and reviews
Vantage information and reviews
FP Markets information and reviews
FP Markets
Just2Trade information and reviews
AMarkets information and reviews

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.