Understanding How Shitcoins Works

For so many times, we have heard a lot about Shitcoins and most of the time, for some of us, it is not really clear to us how it actually operates and works. In fact most of the time majority of us didn't actually know how it actually works and what it really entails. I know a lot of people also who have really been affected negatively because they invested in Shitcoins and it is not really their fault.

They just jump to the trend and then lose on a huge amount of money at the end of the day. That is the disadvantages a lot of people have to deal with at the end of the day. Today I will be taking us on a journey in which we will look deeply into the world of Shitcoins and try to answer some of your long awaiting questions in your heart concerning Shitcoins. So stay tune and read with me below.

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What is the first thing that came to your mind whenever you hear Shitcoins? Low worth value of a particular token. Well you might be wrong and you might be right depending on the case as Shitcoins is far much more than that actually. Shitcoins as it is foldy called is to refer to Cryptocurrency that have little or no value. They are majorly known with the factor that they lack projects backing them up and poor development. They are mostly used as pump and dump categories.

Most of the time, I have actually come to discover that many people did not really understand how Shitcoins works and so they end up making wrong investment opportunities. In fact a lot of people think Shitcoin investment is for the long term plan, that is not actually true. Most of the time what I have come to discover is a lot of people who invest in Shitcoins are not really making proper research of the coin.

They just invest based on emotions and based on the fact that they hear the hype probably on twitter. It does not work like that, also sometimes a lot of people even did not even know the structure of investment in Shitcoins to understand that it is not for long term goal but for short term goals. Yes the mechanism that controls Shitcoin is based on pump and dump which I will also be explaining in my post below.

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After looking at the introduction of Shitcoins and the definition, briefly we will be looking at some of the characteristics of Shitcoins that govern it actually. Some people in fact find it difficult to understand what Shitcoin is and even find it hard to actually identify one when one actually comes. Instead of just jumping into the boat blindly. Alright I will be sharing with you some of the characteristics of Shitcoins below;

• Low Market Capitalization

Due to the nature of the Shitcoin, they always have a low market capitalization which will in turn make them to have a small total value when you compared it to like bitcoin and Ethereum in view. This low value allows the pump and dump mechanism to happen and so that the Shitcoin can rapidly gain value and can rapidly lose value also at the same time.

• Lack of Use Case or Utility:

One of the major characteristics of Shitcoin is the fact that they have use cases and utilities. Since they don't really have a major project backing most of the Shitcoin up, they have low uses around in the blockchain thereby affecting their value also in the blockchain. Shitcoin will find it hard having a real world value or practical application at the end of the day.

• Limited Liquidity:

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Due to the fact that it has low utility value, it really has limited liquidity also at the same time limiting the usage in the real world and because it lacks the potential to actually attract investors, it lacks the liquidity and low trading volume which means that there are actually limited buyers and sellers that is actively trading the coin. This will make it difficult for investors to actually invest in it at the end of the day.

• High Risk of Fraud or Manipulation.

Due to the nature of the Shitcoins, they are known for high risk of fraud. In fact it has been claimed that a lot of people always come with the mindset just to rush make money and get out of the market thereby opening it to a huge effect of manipulation and fraud at the end of the day. The pump and dump schemes have make it to be targeted by scammers who can inflate the price at any time just for them to get what they want and get out of the market as soon as possible also.