Shiba Inu (SHIB) coin is one of the high-flying cryptocurrencies in 2021. This coin was created out of a joke and its sudden rise has gotten several investors dealing with it.
If you miss out on the chance to hold the Shiba Inu coin in 2021, you can still make use of the opportunity via mining to get this token.
In this article, we’ll focus on how to mine the self-dubbed ‘Dogecoin killer’.
What is Shiba Inu Coin?
Shiba Inu (SHIB) is a decentralized meme coin, built on the Ethereum blockchain in 2020 by anonymous founder “Ryoshi.” The ERC-20 standard token features a Shiba Inu dog as its symbol.
Shiba Inu (SHIB) is an ERC-20 standard token that does not have a native blockchain. It is created and hosted on the Ethereum blockchain.
How To Mine Shiba Inu Coin
SHIB cannot be mined in the same way as Bitcoin (BTC) or Ethereum (ETH) by using a traditional proof-of-work (PoW) algorithm that adds newly created transaction blocks into the blockchain and rewards miners with cryptocurrency.
ERC-20 tokens can only be ”minted”. Typically, the process involves smart contracts, programming, and all the development stuff. But it’s a way to go for those who plan to create a brand new token.
There are two ways of minting SHIB, they are through staking or via liquidity pools.
The Two Ways of Minting SHIB
Staking means locking your tokens on smart contracts in order to earn high-yield returns. This can be done on its own decentralized exchange, Shibaswap, or do this via centralized crypto exchanges like Binance or Crypto.com,
Staking to mint SHIB can also be done via liquidity pools. Here, token holders, called liquidity miners, deposit their assets in shared liquidity pools. They create liquidity for a certain DEX that allows other traders to trade against the pool.
It’s important because on DEXs, traders do not trade against each other, but against the decentralized liquidity pool. Liquidity providers get rewarded for depositing their tokens into the pool. Typically, they earn returns on trades proportional to their share of the pool.
Asides mining, you can get hold of the SHIB by buying via crypto exchanges.
You should also check out the following:
Is Shiba Inu Coin A Dogecoin Killer?
What You Need To Know About Shiba Inu Coin
Top 5 Reasons Why You Should Buy Dogecoin Over Shiba Inu in 2022