Investing in shitcoins is a thrilling experience, and it may be quite rewarding since these currencies can increase in value tenfold in only a few hours. However, if you make a mistake, it’s one of the quickest ways to become bankrupt.
Before you invest in shitcoins, you must first develop a plan. You must ensure that you are acting rationally and doing the proper things. This is difficult since emotions are heightened by the extreme volatility and the vast amount of frauds.
Although I believe that people should stay away from shitcoins entirely, I have prepared this tutorial for those of you who still wish to dabble in this strange market, despite the enormous dangers.
What are Shit Coins, exactly?
In cryptocurrency, shitcoins are thought to have no use other than speculation and as a store of value. Some altcoins and they’re worth are being questioned by analysts. Seasoned investors may be concerned about a potential price drop.
A handful of new currencies are frauds. It may be difficult for regular retail investors to distinguish between genuine and fraudulent investments. A recent scam with the Squid Game Token is a good illustration. It immediately rose in value, but when stories surfaced of individuals unable to sell their interests, the currency was swiftly exposed as being wholly illegitimate.
While Bitcoin has increased the popularity of cryptocurrencies in general, many other coins are gaining in popularity and value quicker. Nonetheless, Bitcoin is often the most reliable and stable cryptocurrency accessible. It still has the greatest amount of capitalization.
Meanwhile, a slew of other dependable currencies, like Ethereum, the creator of the phrase “crypto token,” are racing closely behind. In terms of total capitalization, there are realistic projections that Ethereum will eclipse Bitcoin in the next few years. The ‘flipping’ is the name given to this eagerly anticipated occurrence.
We take a deeper look at shitcoins in this post since some might be interesting speculative investments. However, before diving in, it’s critical to better understand them. Factors such as determining the difference between a scam and a real coin and information regarding the coin’s development might be the difference between significant profits and catastrophic losses.
How Can You Tell If It’s a Shit Coin?
The actual character of a token may be seen by looking at its deceptive promises, lack of utility or function, and purpose in a volatile market.
The usage and function of fake coins may be used to distinguish them from real coins.
Ethereum, which popularized the phrase “crypto token” in the cryptocurrency industry, is usually regarded as one of the best.
When Shiba Inu became an online phenomenon in 2013, it all began as a joke. It was created as a spoof of the growing interest in alternative currencies, and Dogecoin and Litecoin both employ the Scrypt algorithm.
Dogecoin became well-known in early 2020 when it unexpectedly broke out over 7 cents and soared to over 70 cents in value. It became the most talked-about currency on Twitter in a matter of months. It grew in prominence when Elon Musk endorsed it, stating that Bitcoin’s environmental issues made it unfit for consideration as the world’s alternative currency.
Although Elon was interested in taking Dogecoin from Tesla vehicle owners, the development process proved to be more complicated than anticipated. Dogecoin saw enormous sell-offs, leaving most retail investors who pursued its big surge with a loss.
Following the tremendous increase in the value of Dogecoin (which started in January/February), people began looking for the next big thing. Developers with well-known names have riffed on the concept, and Shiba is now the most well-known riff.
Although Shiba Inu’s dependability is questioned, its popularity has recently increased. Its volatile journey continues as it was supposed to be listed on the Kraken staking platform, but the listing was delayed, leading to a large amount of selling activity.
In a move to legitimize Shiba Inu, Ethereum creator Vitalik Buterin was notably given a substantial stake in the currency. Buterin gave almost all of his cryptocurrency to a charity in India earlier this year, sparking massive volatility.
Safemoon is a cryptocurrency designed to reward long-term investors while discouraging short-term trading. To cover your Safemoon share, you must give up 10% of your Safemoon assets, subsequently dispersed among the remaining owners.
It was ostensibly created to provide the ideal conditions for its holders to produce long-term wealth. Nonetheless, the altcoin’s massive rallies have all been followed by significant sell-offs, so it’s unclear how much the disincentive to cash out will help the currency develop a long-term growth pattern.
This coin was created in Vietnam and is now owned by an Australian corporation. RFOX will be made accessible for tournament-based video games, allowing for the purchase of virtual land through token exchanges other than fanjiburu. This is another example of the economy’s rising emphasis on digital assets.
A $1 billion RFOX project is in the works, with Vietnam as the favored destination owing to the region’s enormous economic potential (and advances before the crowd comes).
A new firm called Ecomi is making waves in the world of digital treasures. On the VeVe app, OMI tokens may be used to acquire these digital items (made by Econo).
Ecomi offers a secure wallet compatible with the GoChain blockchain wallet currently in use to keep your OMI tokens safe and private.
SUSHI has been my favorite meal this month for a multitude of reasons. Users may trade between any two ERC20 tokens using the SushiSwap decentralized exchange (DEX) on the Ethernet Liam blockchain. The SUSHI token may be used to vote on ideas and gain a share of the system’s income.
Uniswap (UNI) is well-known among cryptocurrency traders, whereas SUSHI is less well-known. Since its launch at the end of August 2020, SushiSwap has grown into a unique business. There are two major differences between SushiSwap and Uniswap.
In DeFi right now, algorithmic stablecoins are the most popular. The aim is to maintain the pack’s price at $1 by adjusting the supply. If demand outweighs supply, the price will rise over $1. The protocol’s goal is to lower the cost of products by increasing supply, and the BAC is increased by one basis point.
When the BAC (Basic Cash) price surpasses $1, the “Three Token Scheme’s” passive revenue, the BAS stacker receives a boost in BAC supply. When a BAB (Basis Bond) value is less than $1, it may be exchanged for BAC (Active Revenue). When this BAB is exchanged for additional BAC, the user may get more than he originally invested.
Step-by-step instructions on how to purchase shitcoins
A Binance Smart Chain-enabled wallet is required for the majority of these currencies. This is the greatest and most popular wallet choice available right now.
Both Android and iOS users may utilize this.
To purchase BNB, you’ll need to register with a crypto exchange, such as Binance Coin.
To buy Smart Chain, you’ll need Binance Smart Chain’s official currency, BNB. Smart Chain is a cryptocurrency that can purchase shitcoins and other cryptocurrencies.
Here are a handful of the BNB-enabled platforms in your area:
In the third step, you may now buy KuCoin BNB.
You may use your money to purchase any quantity of BNB once you’ve placed it into your account.
The recipient will send an email with information on how to complete Step 4.
Follow these steps to find your Trust Wallet BNB address:
It is possible to open the Trust Wallet App.
From the wallet’s home page, choose BNB.
There is a “copy” option available.
In Step 5, swap BNB with Smart Chain.
To summarize, Smart Chain will handle all of your purchases.
Switch from BNB to Smart Chain in your Trust Wallet.
Why has the value of Dogecoin increased by 12,000%?
Since January 1, 2021, the value of Dogecoin has increased by more than 12,000 percent.
Since January 1, when it briefly reached USD 0.69, the meme-based cryptocurrency’s value has increased by more than 12,000 percent. If you had invested USD 1,000 on that day, your account would currently be worth $121,052. During this period, the value of Bitcoin and Ethereum has increased by 95 percent and 369 percent, respectively.
However, the memecoin is now trading at roughly 20 cents. Elon Musk’s hosting of Saturday Night Live has a short-term detrimental impact on the coin’s growth. Even though it popularized, regular investors’ gains are decided by the trading decisions made by whales and institutional investors.
Nonetheless, Dogecoin is useful money that is accepted by a variety of merchants. It remains to be seen if the’shitcoin’ will become a standard cryptocurrency or whether its detractors will be proven correct.
Why would you want to invest in shitcoins?
Small-cap cryptocurrencies might be one of the most “high-risk, high-reward” investments you can make. There’s a good possibility you’ll lose all of your money. However, you may find yourself in one of two scenarios on rare occasions:
A pump and dump operation victimizes the shitcoin you own.
You’ve become an “early adopter” since the shitcoin you’re holding isn’t truly a shitcoin.
Both of these scenarios may be quite lucrative, provided you have well-defined objectives for when you want to sell. In certain cases, the smallest amount of money might provide the best results. Just ensure you’ve properly defined your objectives and that you’re not emotionally invested in the currency.
The amazing surge in the value of XVG, a privacy currency many people dismiss as a shitcoin, is a nice illustration of this phenomenon. The cryptocurrency surged in value by about 8000 percent in a short period (1-2 months), making a tiny number of believers very wealthy.
Naturally, since the currency had no product and was overhyped, its price immediately returned to its original level.
Buying shitcoins: best practices
Conduct an in-depth study before purchasing cryptocurrencies that are relatively unknown or disliked by the community. This will help you better grasp their immediate and long-term potential. Then, after you’re certain that a particular coin will appreciate, start with a little investment.
Keep an eye on the market to see whether your first guess was true. If you don’t, you’ll be forced to make a difficult decision:
- Sell your coins.
- Accept a tiny loss.
- Hold them and wait for a possible price increase.
If the price begins to rise, it’s advisable to make gains, or at the very least your original investment, and ride the upswing. When a clear signal signals a purchasing opportunity, you might invest more if you are completely aware of the hazards.
Finally, as previously said, always remember to keep your emotions under control. Because of their low price, small-capped coins are sometimes seen as opportunities. As a result, many individuals have excessive expectations and lose much more than they spend.
That’s all there is to it! We hope you found what you were searching for, and we welcome your feedback. Please let us know if you have any other information so that we can keep the article up to date as required.