[What is a Shitcoin and how to profit from it. ]- Crypto Academy / S5W8 - Homework post for nane15
Hello everyone 🤗
I hope we are all in good health.
I welcome you all to the week 8 of crypto academy season5.
I have gone through the lesson by professor @nane15 and so today I will be working on the assignment.
Please enjoy.
designed in pixellab
sourceAfter the evolution and success of the first cryptocurrency which is Bitcoin,a lot of other digital currency begin to emerge into the cryptocurrency space,these coin are often refer to as Altcoin meaning other coins aside Bitcoin.
But some of these Altcoins that emerged into the Crypto space are regarded as SHITCOINS because they have little or no value.
"Not all Altcoins are shitcoins but all shitcoins are Altcoins".
don't get it twisted.
Shitcoins just like the name implies are perceived as coins with little or no value,they can be said to be coins that failed due to failed investor interest or due to the fact that their price are solely based on speculation.
It is save to say that shitcoins are bad investment and can not make you rich just like it is widely said.
The term "Shitcoins" is use to describe and qualify cryptocurrency project that are useless and has no value at all whether intrinsic or extrinsic value. They are created with no value,intent or specific purpose,they are just copycat coin that are there to add to the numbers of coins that are down already and also mocking bitcoins.
Some examples of Shitcoins are Dogecoin, BitTorrent Debt,Shiba Inu and the like.
This coins were created to achieve nothing, because clearly they added nothing to the cryptocurrency space unlike coins like Bitcoin and ethereum that emerge with a plan and a defined purpose of charging the monetary & financial system of the world.
These coin known as shitcoins can easily be Identified because practically all of these coins follow a similar and specific pattern.
They are known to imitate a well-known coin project or can be an entirely new project with no specific goal,aim or definition.
Now let's discuss how to identify Shitcoins.
Here are some ways to identify a shitcoin;
•Unidentified Developers:if the developers of a particular coin chooses to stay and remain anonymous,then there is something fishy about the project and so it can be considered a shitcoin.
Developers of real project always make themselves known to the public.
•No functionality & Undefined objective:just like I mentioned above in my writeup,These Shitcoins do not have a specific purpose for their creation,they have nothing new to add to the Crypto space.
•Number of holders:base on research and knowledge from expert,a new coin that is worth investing in should atlest have atlest a minimum of 200 or 300 holders,and so any coin that doesn't meet this cateria is a shitcoin.
•Liquidity: liquidity pool in cryptocurrency space is considered as a major player and backbone of practically every decentralized exchange or platform.
If a coin you want to Invest in doesn't have liquidity pool of atlest $30,0000 then there is higher chances of the project being a shitcoin.
Before wrapping up on this question,it it imperative and expedient that I clarify that not all shitcoins are bad investment or are bad entirely.
Some Shitcoins such as Ripple,Safemoon, Chiliz,Matic,Cardano and the likes are good investment and are good Shitcoins that one can invest in and make profit.
Some ways to identify some of these good Shitcoins are
•They are listed on major exchange platforms.
•Coin developers are not anonymous and are known to the public.
•Social media presence.
•Number of holders are many and above 200 and 300 which is the minimum requirement.
Absolutely YES!!
It is understandable that a lot of people stereotype and pigeonhole Shitcoins into a very narrow scope which is "scam and bad investment",but that is not all true.
Not all shitcoins are bad,we have Shitcoins like Safemoon, Chiliz, Matic Cardano and even ripple that are doing well in the market today and people are taking profit from them.
These coins I mentioned are listed on reputable exchange platform and are even doing well than most coins that are not considered Shitcoins..
I believe it is possible to make profit from these Shitcoins but it can only be possible with the right shitcoin though.
So,before you Invest in any shitcoin,make sure to have run a background check and research on the coin to avoid being scammed.
ADVANTAGES
•Price of coins may skyrocket sharply at anytime and Shitcoins return can be very high.
• Investors can be in possession of large volume of coins since the coins comes at a very cheap rate.
•Requires lesser fund to Invest in and make profit since it is very cheap.
•Newbie that are just getting started as far as investing in crypto asset is concerned can train and gain experience on trading using this coins.
DISADVANTAGES
•Most of these Shitcoins project are scam and an investor is likely to loss all their funds.
•Involves high risk
•price of Shitcoins doesn't flautuant that much and so there is high tendency of not making much profit over a long period of time since the change and increase in their price is always insignificant.
•Shitcoins can not be considered a good long term investment plan.
• probability of making desired profit or return is low.
•SQUID GAME TOKEN
The squid game token is probably one of the popular scam project of 2021,it emerged following the release of a popular Netflix original Korean series called "squid game" that was released late last year.
This token was a pay-to-play token,more like a game token that came into existence in 2021, October 20 precisely which promised investors high return and profit but eventually it was a scam and the developers abscond with people's funds.
•BABY DOGE
The baby doge was also a promising project that was perceived as a good investment because it was designed and developed by the DOGE community and it was said to the the baby of doge coin which was a success at that time. But eventually it was a scam and was not actually what investors thought it was. it isn't listed on major exchange platforms and buying it is more like a gamble as there is higher chances of loosing all your fund.
Also base on my little research,baby doge has a total supply of about 420 quadrillion tokens and the developers team destroyed or should I say burned more than 125 quadrillion of the tokens,this implies that the doge team has total and full control over the amount of token to be burn and when it should be burned or destroyed.
•BABY CAKE
Baby cake operates on the binance smart chain platform and is rank 5889 in the coin market.it is the first cake reflection token .But investing in this token is a capital NO!. It is widely considered as a scam coin by majority due to investors loosing their funds.
•Cardano [ADA]:ADA is one of the best and successful shitcoin in the market today which make use of he proof of stake ouroboros consensus mechanism.
sourceIt's major and primary function and assignment is to amplify a more decentralized finacial system whereby eliminating the need for a middleman.
It is no doubt a successful shit coin that is rank #7 in the coin market with a price standing at about $1.23 dollar in the market today
| Rank | 7 |
|---|---|
| marketcap | $41,264,191,951 |
| volume | $1,840,061,105 |
| volume/market cap | 0.04459 |
| circulating supply | 33.50B |
| Price | $1.23 |
•Polygon[MATIC]
polygon(MATIC] is a layer two ethereum base project token and protocol with a primary fuction of solving the problem of scalability on the the ethereum blockchain.
sourceIt emerged into the market in 2017 and is no doubt one of the successful shitcoin in the market today.
it is ranked 14 in the coin market with a price standing at above $2 dollars today.
it is also listed on several reputable exchange platforms.
| Rank | 14 |
|---|---|
| marketcap | $25,717,653,362 |
| volume/marketcap | 0.1612 |
| circulating supply | 716B |
| price | $2.19. |
When Matic first emerged as a cryptocurrency in the market and before it became successful and started experiencing a boom in price,it was at $0.000263 during it presale which started on April 25 2019 and ended that same day.
it was an IEO project on binance launchpad.
From there,it started to gain popularity and wide acceptance by the public and the price started to skyrocket and by the 9th of may 2020 it price hit the first highest peak of all time which is above $1 dollar.
screenshot from binance accountAnd the progress continue,it experienced highs and lows until it price hit a new high of all time again bring the price of the coin to above $2 dollars around the 3rd November 2021.
screenshot from binance accountAnd it has been maintaining that range since then,even now that the market is bleeding,the price of MATIC hasn't gone below two dollars.
| All time high | $2.92 |
|---|---|
| All time low | 0.003012 |
| price down by | 8.52%(currently) |
| Price | $2.175. |
screenshot from trading viewThere have been a lot of speculation from expert and individual that MATIC project is going to experience a Bullish take over this year and as u can see from the image above,Matic price keep making higher high than the previous.
There is no doubt that this is inevitable and imminent considering the fact that even though the market is bleeding right now,Matic still manage to maintain a stable price by not going down below the rang of $2 dollars while other mighty coins are experiencing dip.
This is a clear indication that this coin has come to stay and will skyrocket in price this year..
It might also Interest you to know that the number of active users that have embrace the network is nothing less than 660k ,with this there is going to be a substantial development in price of this asset.
The total market capitalization also stands at about $14 billion as we speak.
So I feel,there is going to be growth and development in price of MATIC.
Shitcoin is a term use to describe coin with little or no value at all,they are coin that has nothing to offer but to scam investors who fall part of their trap.
But it is imperative to note that not all shitcoins are scam,some are legit and investors can make profit from them,coins such as Safemoon,Chiliz,Matic,Cardano and Ripples are Shitcoins that are doing well in the market today and Investors are making it big from them.
To conclude all this aforesaid things,we need to understand that
"All shitcoin are Altcoins,but not all Altcoins are shitcoins"
Thanks for reading 🤗
I am @dibie