What is a Shitcoin and how to take advantage of it. - Crypto Academy / S5W8 - Assignment posting for nane15
Greetings dear steemians. Here is my homework post for professor @nane15.
What is a Shitcoin and how to profit from it by @rosita-nkefor
When we look at the word ”shitcoin”we can see that it is made up of two words namely ”shit” and ”coin”.
The word ”shit”can refer to something that has no real use or much worth ( that is useless ). While the word ”coin” in the world of crypto will refer to digital assets built on blockchains, that have monetary value and can be exchanged.
So then what is a shitcoin? It can simply be defined as a useless coin. Or in other words, as a digital asset that has been created on blockchain, which does not have any real use and is not worth very much.
Now how can you identify which coin in the market is actually a shitcoin? This identification is based on individuals. Some of the different identifications for a shitcoin are:
- Coins that have a small market capitalisation.
- Coins that don't have a specific use.
- Coins that are not in the top hundred.
- Coins whose bullish run depends solely on speculations.
- Coins that are part of scam activities.
So it greatly depends on the trader. But one thing that is clear about these coins is that it is very easy to lose your investment if proper care is not taken.
I believe it is possible to make profits from investing in any coin. So this means that one can also make a profit from shitcoins. In order to make a profit, here are some tips.
- When there is speculation about the coin and it is in a bullish move, that should be your entry to invest.
- The watching window should be smaller. That is watch the price movements within a short term rather than a long term because the coin might instead completely collapse.
- Try to keep your market movements in sync with the whales of the market. They are the ones that will determine how the coin will move. When several whales become interested, they will pump in money and the coin will start moving upwards. Right about when you feel like the whales want to pull out their investments, pull yours out first so as to maximise profits.
So you see that you can actually make profits from shitcoins. You just have to be very aware of the market sentiments and also be very timely because timing is everything.
Like everything in life, investing in shitcoins has it's advantages and disadvantages.
- These coins are usually very cheap so anybody can buy and invest in them. Thus, they are affordable.
- If you enter the market early, you can make a lot of profit from them as the coins usually boost up and multiply it's value times big values like 30, 20 or 10. The early entry maximizes profits earned.
- You can easily know when to enter the market since increases in value of these coins depend on speculations.
- It can give profits in very short time intervals when entry is property timed.
- When an entry is not properly timed, you can lose all your investment as the coin can plummet and refuse to rise again.
- Many of these coins are related to scam or fraudulent activities and you can lose everything.
- A lot of these coins are not found on any legit exchange thus, making it useless to hold the coin.
- Some whales invest a lot in such coins making their value increase. This is called booming. Then when it attracts more buyers and reaches a high value, they pull out and sell their investment making the coin’s value to drop. If you are a retail investor that was not wise enough to pull out before the whales do, you will incur losses.
As we said above, many shitcojns have actually been scams and investments were lost. Three of such coins include the following.
1. AstroNewYear
AstroNewYear is a BEP-20 token build on the Binance Smart Chain. It was built with intentions of it to be a stable coin.
It was to be a payment method. But then news came about it being a scam as many exchanges delisted or removed it from their sites.
2. Squid Game Token
After the popular South Korean movie Squid Game was released and enjoyed wildly around the world, some developers created play to earn game with the game token called the Squid Game Token. This token was built on the Ethereum blockchain.
The game was made to be similar to the movie. One had to buy the Squid token to use in the game and while playing the game, earn more Squid tokens. The token even reached a all time high of $2,861.80two months ago as more and more investors bought the coin.
Everything was going well until it was hacked and all the coins were stolen. This led to so many investors losing their investment. Now the coin has a price of $0.0501 according to CoinMarketCap. You see that it is a huge loss to the investors.
3. Queen Shiba
This deflationary token was built on the Binance Smart Chain. It as supposed to give a promising return in BNB. These return were to be distributed using a wallet.
You can see that the developers likened the name to Shiba Inu, a popular shitcoin so as to attract the attention of investors. This makes the investors think at first class that they are related to Shiba Inu whereas they have nothing to do with each other.
1. Samoyedcoin
Samoyedcoin ($SAMO) is a meme token created on the Solana blockchain. Thus, is known as the official Solana meme coin. The developers drew inspiration from the Dogecoin meme coin as Samoyed is a type or breed of dog.
According to CoinMarketCap, it is now worth $0.03114 with a market capitalization of $99,696,232.07. It is ranked #417 in the market and has a trading volume of $2,793,239.18.
2. Safemoon Inu
Safemoon Inu is a BEP-20 token that was created on the Biance Smart Chain in March 2021.
This token was created so as to encourage long term investments. It does this by charging a 10% fee on tokens being sold and distributing the fee to those still holding the token.
According to the CoinMarketCap, Safemoon has a current value of $0.00001309 and market rank of #958. It has a market capitalization of $13,047,730.20 and a trainving volume of $105,977.5.
It's all time high was $0.0002603 two months ago and it has had a decrease of 94.99%.
Historical Analysis of Price of Safemoon
The value of the token was initially at $0.0000063 after launching. It then dropped a bit and throughout the months, the price did not really change. It was relatively constant. Although there was a small rise towards the initial price in ending July.
Around October, there was a small increase in the price and the new prices fluctuated about a new higher equilibrium price. This went on till about mid October.
From then, the token started experiencing steep increases to $0.000020, $0.000030 and $0.000075 till it hit an all time high of $0.000263 in November.
There was a steep decrease to about $0.00007, then it went down till about $0.000022. There was a small increase till about $0.000045 and then the price decreased gradually will it reached it's current price $0.00001309.
The all time high was more than a 94% increase. This indicated strong interest in the token by investors. And it also means many people believed in the token.
We can see that if we compare the initial price to the current price, any investor who bought Safemoon Inu when it was released will still make a profit.
What this tells us is that there are many investors who still believe in the token meaning that there is room to grow more in this next year.
But we should be careful because at the end of the day, Safemoon Inu is still a Shitcoin and one cannot completely depend on it.
So in as much as investors still have a chance to make a profit, those who can not afford such risk should get out while they can.
Conclusion
Shitcoins can be very highly profitable to investors who can make their entry early and who have very keen eyesight on the market.
And in order to invest in shitcoins, we should always be prepared to lose our investment as with at other investment.
It was a very informational lecture. Thank you professor for ending the season with such a post.
Thank you all for reading.