Crypto Academy Season 5 Week 8 - What is a Shitcoin and how to profit from it - Homework Post for @nane15
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Hey Everyone!
From the latest lecture provided by @nane15, we have learned about shitcoins and I have understood everything like advantage, disadvantage, scams, and much more that was taught by the professor. I will talk more about this interesting topic in my homework post which I hope you will enjoy till the end of the task.
Explain your understanding of what a Shitcoin is.
Explain your understanding of what a Shitcoin is.
Let me start with Bitcoin which is the world’s first and leading digital coin and every coin except BTC is known as an altcoin. There are several altcoins that are widely referred to as shitcoin and there’s a reason that such tokens are given this name. You can observe from the name that it is made up of 2 words that are shit and coin. Just like human waste which is completely useless, these tokens are also purposeless and don’t play any role in the contribution of the crypto ecosystem.
The majority of altcoins play a great role and that’s the key reason for their sustainability and success. That’s not the case with shitcoins as they are randomly created by developers with no actual aim and you can say that they are pretty much useless. However, they have been very famous lately as it can help a trader to make a huge sum of profit with less investment but not every time as a lot of scams has occurred. It can sometimes provide an amazing return but there are chances of loss also.
Not every shitcoin is useless. Take the example of Dogecoin, Shiba Inu, and Safemoon which have made amazing progress since it has launched. Further, they have some real-world use also which increases their value and makes them better than usual shitcoin.
Do you think it is possible to profit from investing in Shitcoins?
Do you think it is possible to profit from investing in Shitcoins?
I do believe that it is possible and countless traders are engaged in making a great sum of profits through shitcoins. You can simply open Coinmarketcap.com and visit the top gainer's sections, the list will simply consist of the majority of shitcoins making 100x and more in a day but no one will be talking about it in a day or two. So, it is a very good option to make an exceptional profit but in the short-term. It is not recommended to hold shitcoins for the long term as the price falls.
You cannot simply get profit by purchasing the great number of shitcoins as not every project will be pumping as expected. Additionally, those shitcoins that are pumped are not going to last for a long time so the profit has to be booked right away. So, a trader has to be really careful while investing because it is possible to get huge profit but if one doesn’t play smart then it can opt for the wrong turn.
List advantages and disadvantages of investing in Shitcoins.
List advantages and disadvantages of investing in Shitcoins.
By studying shitcoins, I have deduced that it has some amazing advantages but there’s nothing in the world that is full of benefits but doesn’t come with any flaw. We can say that’s exactly the same for the shitcoins because there are some serious disadvantages that traders face. Let’s talk about some of them:
Advantages of Investing in Shitcoins
Advantages of Investing in Shitcoins
The best advantage of investing in shitcoin is the huge profit for which it is widely known among crypto traders. These coins have been famous for providing unimaginable profit which is also the core reason for their popularity. Another advantage is that shitcoins are very cheap like a person can purchase millions and billions of coins at a very little amount. In addition to that, shitcoin is a quick profit scheme that is a unique advantage as compared to other types of altcoins.
Disadvantages of Investing in Shitcoins
Disadvantages of Investing in Shitcoins
Now it’s time to discuss the disadvantages of investing in shitcoins. Previously, I have stated that it can provide amazing profit but not every shitcoin is guaranteed to that as the scam is very common. That takes us to the second disadvantage that it is not suitable for hodlers as the price falls quickly. In addition, that, the fundamentals of shitcoins are not strong so they cannot survive for a long time.
Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
In this question, I will be discussing some of the shitcoin that was a scam and we will dive more into their details. So, let’s see which coins have blasted the investment of traders:
Squid Game
Squid Game
This token was one of the biggest crypto scams of 2021 which is termed as “Rug Pull”. This shitcoin has a total supply of 800,000,000 which is available now on various exchanges like PancakeSwap, Gate.io, Poloniex, and many others. This token was able to gain unmatched fame because of a Netflix series called Squid Games. The token was trading at the price of as low as $0.0007926 but it was able to touch the high of $2,861. Those who invested their money in this shitcoin were not able to book the profit as the developers ran away with the money.
Dogelon Mars
Dogelon Mars
This token is inspired by Elon musk and dogecoin which can be comprehended through its name. As you know that sending the price of a token to mars is a very famous term in crypto and that’s what this shitcoin actually manipulates its holders about. The price has been bearish since its launch and the worst thing is that developers are not known. This shitcoin doesn’t have any use as it just showcases a series of comics on its website and nothing more. It has a total supply of 1 quadrillion which shows that it is impossible to reach 0.01 which people expect.
Omicron
Omicron
Omicron token is inspired by the variant of coronavirus which was identified in late 2021. This shitcoin was launched at the price of $15 while the team is completely anonymous. The website of this token indicates that it is a decentralized reserve currency that is backed by several assets so that the value can remain idle. But it was completely different as the token reached $711 when the omicron variant was discovered and then fall back again to $15.
Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
Not every shitcoin has been a scam and destroyed the investment of traders. The best example is dogecoin and Shiba Inu which everyone knows as they have pumped at an incredibly fast pace than one can think of. There are many other shitcoins also that are successful and still providing profit to investors. Let talk more about them in the following section:
Baby Doge Coin
Baby Doge Coin
Baby Doge Coin is a famous token built on the BNB blockchain. It is made by the doge meme community to impress its so-called meme father, Doge. This shitcoin has actual uses like pet charity, NFT creation, GameFi, and much more. It is available on the top exchange and it is making its way to more exchange as this shitcoin has been successful till now.
Safemoon
Safemoon
Safemoon is a well-famed shitcoin that has amazing uses. The team is making amazing efforts in improving their project and the latest initiative is the Safemoon exchange which is about bringing tokenomics on its platform. It takes 4 actions every time a transaction is taken and that are reflections, LP acquisition, token burn, and growth fund which improves its functionality and price.
Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
I have provided details about 2 shitcoins and as for performing a historical analysis, I have chosen Baby Doge Coin to show you that this shitcoin has the ability to become one of the leading altcoins in the future. So, let start the technical analysis.
The aforementioned 1-day chart pattern of Baby Doge Analysis shows that I have marked important zone through weekly support and resistance. The price was in a strong uptrend but it is currently retracing. The most important part is that the opening price of this shitcoin was $0.000000001968 and the current price is $0.000000003907. The traders who would have invested in this shitcoin would have been currently in a profit of 96.6%.
It is also good for investment because of its strong projects and uses. The price also makes a good pump after every retracement which can be seen in the chart as well.
Based on your previous analysis, what do you think will be the evolution of the price of the cryptocurrency for this year? Be creative when explaining.
Based on your previous analysis, what do you think will be the evolution of the price of the cryptocurrency for this year? Be creative when explaining.
As per my technical analysis of Baby Doge Coin, I’m of the point that it will make a retracement for a bit which will be actually healthy for this shitcoin. But after that, it can make a strong uptrend move as the past data also represent the same thing that it pumped after every retracement.
I would also like to add that its team is also working on several projects and once they are launched, there’s a great chance of it touching a new high. Further, a year has not passed since its launch so this shitcoin will probably rise in value as time passes. So, it is an amazing investment opportunity right now for traders.
Conclusion
Conclusion
In this homework, I explained my understanding of shitcoins that it is good for short-term investment as they can provide amazing profit in a short span of time. The advantages and disadvantages were explained in detail including 3 shitcoins that were scams. Next to that, I talked about 2 shitcoins that are successful and made a technical analysis on one of them to predict it in the coming year.
Thanks For Visiting My Post
Cc: @nane15
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