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Why Bitcoin Closed Out Best in January Since 2013

How to Identify and Avoid Shitcoins.…..CONTINUE READING>>>>>>

Since the introduction of Bitcoin in 2009, interest in cryptocurrencies has skyrocketed. This has made many businesses interested in digital currencies. Many organizations have been taking advantage of this, and using blockchain technology to create their own coins. These other coins are referred to as altcoins, among which there are the Shitcoins.
What Is A Shitcoin?

According to Investopedia, a Shitcoin is a cryptocurrency with little to no value or a digital currency that has no immediate, discernible purpose. Simply put, a shitcoin is a cryptocurrency that has no actual use in the foreseeable future. Some of the well-known shitcoins within the crypto markets include BitTorrent, Dent, TRON, and Shiba Inu coin.

Shitcoin covers all the spin-offs of failing or already failed cryptocurrencies. They are usually devoid of any identifiable purpose, have no basis for existence, and lack the fundamentals to back them. Since their purpose is undefined, unlike Ether and Bitcoin, they are not associated with longevity.

Shitcoins derive value solely from existence. The speculation surrounding their creation results in an influx of investors who pump in money. This drives the price of these coins within this brief period and once these investors cash out to make short-term gains, the price of shit coin nosedives as quickly as it had risen, and the price of shitcoins remains at the same level without showing much movement. This trend often leaves novice investors with a load of worthless shitcoins. The diminished value of shitcoins is due to failed investor interest because its price was based on speculation. As such, they are considered to be bad investments.
Identifying Shitcoins

It’s one thing to know what Shitcoins are, but it is another thing to be able to identify them. We live in an age where there are new coins coming up all the time, so how can you identify which coins are good and which ones are bad? Fortunately, though shitcoins often hold a font that looks foolproof, there are still ways to identify them. They include:

Big Promises:

Shitcoin developers usually talk big. They want you to buy something that is practically useless, so they would often promise you a lot of things including Return on Investments(ROI) that are too good to be true. They also do not provide a roadmap to how this will be achieved.

Mysterious Developers:

A group of developers who only left their name is a big red flag when you want to buy coins. Anyone can use a fake name, anyone can pay for publicity. So if the developers of a coin are not known, it is likely to be a Shitcoin.

Overuse of Social media:

Shitcoins need the purchase of unsuspecting people, so they are likely to be well advertised on social media. They use a lot of social media influencers and other tactics.

The speedy increase in value:

New coins whose value skyrocketed within a very short time are most likely shitcoins. If you buy because the value just increased, you’ll be shocked when the value goes down again.

Low liquidity Pool:

The liquidity pool is the backbone of every coin. A good coin should have at least $30,000. Anything less is a red flag indicating a shitcoin.

Lack of Originality:

Some aspects of the white paper of Shitcoins often look plagiarized. They usually just want to throw something together to get people to invest so they usually lack originality and look like a lazy man’s job.
Avoiding Shitcoins

Now that you know how to identify Shitcoins, you need to be able to avoid them. You can do this by doing the following:

Find out who the developers are:

Just like in any other kind of investment, you need to know the developers of a coin before buying it. In the same way, you wouldn’t invest in a company whose owner you do not know, do not invest in a coin whose developers are not known. The developers of a good coin don’t have to be popular, but at least, they should make themselves known.

Be realistic:

When you are looking for coins to invest in, be realistic. Do not invest in coins that look too good to be true. If the increase in value of a new coin skyrockets within a short time, avoid it. If a coin offers a Return on Investment (ROI) that is too high, avoid it as well.

Be careful on social media:

Do not buy coins advertised on closed social media groups or even direct messages from people you don’t know.

Take a look at the website:

Avoid coins that use websites with plagiarized content, websites that have too many ads or even free websites. Also, when the white paper of a coin looks copied or contains a lot of technical terms you do not understand, avoid it.

Cryptocurrency, like every other type of investment, has its own risks, so just do proper research on the coin and its developers, do not invest more than you are willing to lose, and hope the gods of cryptocurrency are with you as you invest.…..CONTINUE READING>>>>>>

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