What is Shitcoins?

What is Shitcoins?
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2021.11.13

What is Shitcoin? The term shitcoin is used in the world of cryptocurrencies. This word refers to cryptocurrencies that have very little value or even no value at all. Cryptocurrencies called shitcoins are basically worthless. It is for this reason that the word “shit” is used in shitcoins whose purpose is to devalue the currency.

Usually, shitcoins are aimed at cryptocurrencies or altcoins that were created after the Bitcoin boom. A cryptocurrency or coin can lose value because the project owner(s) fails to attract investors. This could be due to the fact that there is no confidence in the currency in the first place or because the price of the currency was based on speculation. For some of these reasons, this currency is considered a bad investment.
 

How Shitcoin Works

Bitcoin has seen an increase in popularity since it was first introduced in 2009. Bitcoin's success has even attracted the attention of businesses that are leveraging blockchain technology to create their own altcoins. Many other companies/project owners want to have altcoins as their digital assets, using the Bitcoin design as the main basis.

Developers usually announce how many tokens are available. Bitcoin supply is limited to only 21 million tokens per year. While Ethereum is capped at 18 million per year. due to limited supply, eventually, Bitcoin and Ethereum became scarce. Investors understand that Bitcoin and Ethereum will no longer be producing additional tokens. In theory, the more tokens the value decreases. The same principle applies to stocks.

Due to the constant supply of altcoins, their value also depends on demand. But because most cryptocurrencies have very limited real-world use, the value of cryptocurrencies is purely based on speculation. Buying and selling goods or services with cryptocurrencies hasn't happened much. That's why people use the term shitcoin just because of the existence of the coin that can't be used in the real world.

Shitcoins are easy to identify as they follow the same pattern. At the time the coin was launched there might be an increase in interested investors, but the price is relatively fixed, not increasing. Or it could be that the price increases because many investors are interested in the project and purchasing them rapidly. But then the price drops drastically as investors sell(withdraw) their coins to take advantage of short-term profits only.

In the near future, there might be a decline or almost zero to none in shitcoin development as the trend has shifted to Defi and Metaverse. This can be seen from the growing interest of cryptocurrency holders who are venturing into a more secure and trending arena such as the Defi and Metaverse arena.

 

How to identify Shitcoins?

At the moment, there are a lot of coins circulating in the cryptocurrency market. Most coins will be volatile due to their high level of volatility. Among the many currencies, there will be coins where their activities are not visible or trackable. This coin has no use case or purpose hence it doesn't move. These types of coins are called shitcoins.

Most of the shitcoins are small-cap altcoins. Shitcoin can be purchased on several large-scale cryptocurrency exchanges. Shitcoins are subjective, so it's a bit difficult to give specific advice on which platform is the right one to buy Shitcoins.

If you intend to look for shitcoins, you should use a platform that is designed for investors who like to invest from one currency to another. Examples of such large platforms are Cointiger, Bittrex, Bitmex, Bitmart, and other trusted official platforms. 
 

Why Buy Shitcoins?

Small-cap cryptocurrencies may be the highest-risk and highest-reward form of investment. There is a high chance that you will lose all your money by investing in shitcoins. Even so, sometimes you can be in 2 situations as follows:

  • The Shitcoin you own is involved in the Pump and Dump scheme
  • The Shitcoin that you have is not a shitcoin, but a cryptocurrency built around a certain use case that has a price, so you too will be an "early adapter" or the first person to own the currency.

If you get to be in these 2 situations, then this will be very profitable. Especially if you have a definite goal when is the right time to sell the coin. On certain occasions, a small investment can actually generate a large sum of profits. Always remember to set your goal and don't get too emotionally attached to the coin.

A good example of this phenomenon is the impressive increase in the SHIBA value. It is a coin that is considered a shitcoin by many. But in a very short time, the SHIBA currency skyrocketed in value which created many millionaires and even billionaires. This incident also made investors who believe in the value of SHIBA become rich in an instant. But of course, because the coin had no product and was overhyped, the price gradually decreased in terms of price.
 

Tips Before Buying Shitcoin

If you have more funds and want to try investing in shitcoins, you should do some research first on the short-term and long-term potential of the currency. Then pay attention to market conditions. Remember not to get too emotional or have an attachment when investing in cryptocurrencies especially shitcoins. It’s always good to read the whitepaper and understand the project before investing your hard-earned money.