How to invest in a shinchcoin In simple words, shitcoins can be described as digital assets that have no purpose or use case. This term refers to cryptocurrencies or meme tokens that have no apparent function, but are just available in the crypto market.
This helps to put things in perspective. The creation of Bitcoin and Ethereum had certain goals and use cases. These are the reasons they have so much value. However, shitcoins can be described as the exact opposite. They were created either without any thought or copied from others. The most well-known shitcoins on the market are Dogecoin, Shiba Inu, SafeMoonApecoin, and other. Scam activities that are called pump and dump are also common with shitcoins. Pump and dump scheme is a misleading narrative that claims a token can be used to increase sales for a limited time. To drive traders, the developers or other influencers control the information. Most pump-and-dump schemes operate on the principle that developers hold large stakes and will sell when they have enough. Once this happens, the token prices go back to the ground which causes innocent investors to lose a significant portion of their investments.
How do you find shitcoins
The tokens follow the same pattern. These tokens can be easily picked out by traders as soon as they are able to float in the markets. Shitcoins are often mysterious or anonymously developed. Crypto projects that include utilities often have verifiable developers, or teams available to questions and inquiries. But shitcoins developers are anonymous or hide behind pseudonymous tags and names.
Another way to determine shitcoins are their inability or lack of utility. Shitcoins do not have any unique quality or intent to solve any ecosystem problem. Many shitcoin projects follow the blueprints of existing projects in the crypto market. Some go so far as to promise milestones they will not achieve in the near future.
What should you do if you want to invest in shitcoins
The excitement of investing in shitcoins can be overwhelming. These coins can reach 10x in just a few hours. This can make it extremely profitable. If it goes sideways, however, it can be one of most profitable and fastest ways to earn rekt. Last year saw a meteoric rise in popularity of shitcoins such as Shiba Inu and Dogecoin. FegtokenSafeMoon. Shiba Inu’s value increased tenfolds in October 2021, when the boom began. These tokens provided insane returns for early investors, but they are almost all gone now. According to data from CoinGecko, Shiba Inu is 70% down from its ATH, SafeMoon 94%, Feg token 96% from its ATH on May 13,2021 and Elon Musk’s influence can still not save Dogecoin from a free fall from its ATH of $0.74 on May 8, 2021–82% decline. Shitcoins are very risky. They can reach 10x in 5 hours and then crash with 90% within 5 minutes. Investors can only be lucky if they sell their assets before the price drops dramatically. For this reason, it is generally a bad idea to have a significant portion of one’s portfolio invested in them. It is best to trade and invest in cryptocurrencies that have real-life utility and purpose. However, shitcoins can be used to spice things up occasionally.
