We are at the point now where cryptocurrency has become so popular that there are coins created that are parody versions of other coins!
That is where Shiba Inu- or SHIB- coin comes in, acting as a joke version of the meme-based cryptocurrency that is DOGE coin (which is already a joke in itself!).
When discussing various cryptocurrencies, how to go about mining them is usually a prominent point.
With this in mind, we are going to have a look at how to mine SHIB coin, as well as look at the coin in general to get a firmer grasp on the dog-based cryptocurrency. Let’s get started.
What is Shiba Inu Coin?
Shiba Inu was a coin that was launched in the Ethereum network as an ERC-20 token. The token was created anonymously by a user known as “Ryoshi”, who confidently gave themselves the nickname of “Dogecoin Killer”.
According to the official Shiba Token website, the coin is a “decentralized meme token that evolved into a vibrant ecosystem.” SHIB has its roots in Internet culture, much like its inspiration, DOGE coin.
It was also created with the mindset of creating a community-driven token that could be completely decentralized, making it a coin that depends upon the growth of the community as a whole.
The SHIB developers created their own ecosystem surrounding SHIB, creating two other tokens too: Leash and Bone. The creators also made their very own decentralized exchange, adorably named ShibaSwap.
On ShibaSwap, users can stake, swap or deposit their tokens within a liquidity pool.
What is Cryptocurrency Mining?
Before we get into how we can go about mining SHIB coins, we first need to take a look at what mining in cryptocurrency is in general.
Cryptocurrency mining is a broad definition in the crypto sphere, relating to how new units of each currency are validated and created.
Although mining immediately brings to mind the image of pickaxes and blistered hands, crypto mining involves a more digital approach wherein computer processors solve complex computational and mathematical problems.
When it comes to SHIB, it does not have its own blockchain due to being an ERC-20 token, meaning that it was created and therefore hosted on the Ethereum blockchain.
Because of this, SHIB can’t be mined in the same way that Ethereum itself or certain other coins- such as Bitcoin- can be.
These coins are mined in a traditional, proof of work algorithm method, relating to a well-known algorithm within crypto mining that involves adding newly created transaction blocks on to the blockchain, which will then reward those doing the mining with their crypto tokens.
Due to ERC-20 tokens only being able to be minted, the process is different and can involve programming and smart contracts.
This is typically more suited for those looking to make a new token, but for purely increasing your SHIB holding, staking is likely to be your best bet.
Staking Your SHIB Tokens
Staking refers to the process of locking in the tokens that you own within smart contracts so that you can earn high yield returns. It is a similar process to mining, so let’s look at ways that you can go about it.
Staking on ShibaSwap
SHIBs can be staked on the aforementioned ShibaSwap decentralized exchange, but you can also do this via centralized cryptocurrency exchanges on platforms such as Crypto.com and Binance. If you want to do this via ShibaSwap, follow these steps:
- Once you have some SHIB tokens in your crypto wallet, connect them to ShibaSwap. You can do this by scanning the corresponding QR code. At the present, ShibaSwap supports a few different desktop wallets to do this, including:
- Wallet 3
- Infinity Wallet
- Ledger Live
- Encrypted Ink
- If you don’t have any SHIB tokens, all you have to do is swap the cryptocurrency that you already have and swap them for some Shiba Inu in the “Swap” section on ShibaSwap. Enter the number of tokens that you are planning to swap and approve your transaction to obtain some SHIB.
- To stake your coins, click on the “Bury SHIB” tab, which you can find on the DEX interface. You will then be given the option as to what amount you want to stake. You can type in your own amount or select from the following percentages in regard to what percentage of your coins you want to stake:
- All you need to do after this is click on “Approve”, which will confirm token locking (but only for a fixed period).
Staking on Centralized Exchanges
We are going to be looking at how you can stake Shiba Inu via Binance, as this is one of the largest crypto exchanges.
- Open up your Binance account or sign up if you haven’t got one.
- If you don’t have any SHIB, you can buy them directly from Binance.
- Navigate to the “Finance” menu and click on “Binance Earn”, then type in SHIB in the search bar.
- Select the amount of time that you want to lock the tokens for, and then click on “Stake”.
- Type in the number of tokens that you are planning to stake, but keep in mind that on Binance, this cannot be lower than one million SHIB coins. All you need to do then is confirm and your SHIBs should be staked, and you will begin to generate new coins!
Whilst Shiba Inu tokens cannot be mined in a more traditional manner of speaking when it comes to cryptocurrency, staking is a process that is relatively similar.
It is not the only way to mine SHIB coins, with other methods including utilizing liquidity pools- referring to a crowdsourced pool of tokens that are liquified in decentralized exchanges and locked within a smart contract- or mining pools, wherein miners combine resources to obtain tokens.
No matter how you choose to do it, you are sure to find a way that suits you best when it comes to mining SHIB!
- How Much Gold Should You Have In Your Portfolio? [An Investor’s Guide] - August 8, 2022
- How Much Can You Put In A Gold IRA? [An Investor’s Guide] - August 8, 2022
- What Is A Gold IRA? And How Does It Work? [Everything You Need To Know] - August 8, 2022