What is a Shitcoin and how to profit from it. - Crypto Academy / S5W8 - Homework post for nane15
Introduction
Greetings to you all my noble Steemians. I'm indeed grateful today to present to you my homework task that was given by professor @nane15, on the topic: "What is a shitcoin and how to profit from it." I this post, I have discussed a lot on shitcoin. Let's get started below.
Explain your understanding of what a Shitcoin is.
The term Shitcoin, is simply refer to cryptocurrency that is worthless with little or no value in it, or cryptocurrency that has no immediate decernible purpose that allow people to start trading it. In a nutshell, Shitcoin is the term that is given to digital currency that is useless and has no value in the market. Shitcoin cryptocurrencies were created as copycats cryptocurrencies that haven't increase crypto space. There are some popular Shitcoin that are more recognize, and some of these shitcoin are BitTorrent (BTT), Dogecoin (DOGE), TRON (TRX), Dent (DENT) and Shiba Inu (SHIB). Shitcoin is said to be different from Bitcoin and Ethereum, because it doesn't come with a defined purpose, unlike Ethereum and Bitcoin that come with a specific and we'll defined purposes and a well define goals. Due to the undefined purpose of Shitcoin, is what make the currencies to be considered as a bad investment opportunity that one should invest his/her funds on.
How Shitcoins Work
Ever since 2009, that Bitcoin was launched cryptocurrencies has become an assets that everyone is having interest on. With this people have started seeing Shitcoin as a currencies that is valuable since it exists just as other cryptocurrencies are exiting. Shitcoin are cryptocurrencies that are very easy to identify due to how they fellow some specific pattern.
Shitcoin can be a copy of another popular coins just as Bitcoin and Ethereum are today, although even without that Shitcoin can become a brand new project on blockchain that know one can probably tell. Nevertheless Shitcoins may become the interest of investors when it is launches, as the price of Shitcoin still remain low. Although the price can increase rapidly within a short period period of time when Investors start trading on Shitcoin. Now to this before you jump into investing in Shitcoin, please do well to know that the practical use of Shitcoin is limited and their values are depend mostly on speculation.
How To Identify A Shitcoin
Shitcoin cryptocurrencies can be Identified in several ways which I have details out below.
- By it Number of Holders
Any coin that doesn't have a minimum of 200 to 300 holders,is not worthy enough for someone to invest he/her money into such a coin. So whenever you heard about any Shitcoin try and check if the coin has a minimum of 200 to 300 holders. Secondly, coin that is worthy enough to invest in should have at least 5 to 10 transactions per minute. So if you notice that the transaction of a coin is below 5 to 10 transactions per minute know that such a coin is a shitcoin and is not healthy enough to invest your money on it.
- IF There Is No Functionality
Several coins are coming up with a wounderfu goal and promises that will benefit Investors even more than the company itself. Although most of this coins cannot provide a clear roadmap as to how they plan to accomplish they objective. Now whenever you see a project with such undefined roadmaps, just know that the functionality which the project claim to have is not trustworthy, which means you have to avoids it.
- Liquidity
Liquidity pool is regarded as the backbone on a decentralised exchanges,if the project of the Shitcoin that you are investing your funds on doesn't have $30,000 above, know that such a project is a shitcoin.
Do you think it is possible to profit from investing in Shitcoins?
The answer to this question is Yes it is possible to make profit from investing in Shitcoin. As I earlier said Shitcoin may become the interest of Investors when it is launches, as the price of the coin is extremely low. Although the price can increase rapidly within a short period of time, which many investors will then get they profit from investing in Shitcoin. The possibility of making profit from investing in Shitcoin is very high as some of Shitcoin have generated a profit that is times 2 of more than what investors used in investing in Shitcoin.
For example I myself am a living testimony to tell other investors how profitable it is to make profit from Investment in Shitcoin. As at last year which was around September 2021, I invested $50 dollars in Shiba Inu (SHIB), and within a short period of time the price of Shiba Inu (SHIB) then increase rapidly of about 3X the price that it was when I invested. As at then when I looked into my wallet I discovered that the $50 that I invested Shiba Inu (SHIB), has become $150 of which the profit that I make from investing in SHIB was $100.
Also,I make a profit of $45 dollars in BitTorrent (BTT), as I invested $100. Investing in Shitcoin is I have earlier said is possible for you to profit from it as you are buying the Shitcoin as a very low price meaning that with just $100 you can buy 1,000,000 Shiba Inu (SHIB) as the price is very low. Now you can imagine someone that use $100 an buy Shiba Inu (SHIB) when the price is just $0.000033 per SHIB and after some time the price increase to $0.07563321.
With this you have make a profit that is even 10× more than what you invested. With this we can see that it is possible to profit from investing in Shitcoin. Although, before you start investing in Shitcoin, you have to know that Shitcoin practical use is very limited and their are based mostly on speculation.
List advantages and disadvantages of investing in Shitcoins.
Disadvantages
Some of the Advantages of investing in Shitcoins are listed below.
The price may rise rapidly
Investors can buy a wide variety of Shitcoin using small fund
Since the price of Shitcoin is very low,it is possible to buy and hold huge volume
The risk of investing in Shitcoin coin is high and the rewards is high
It help beginner traders to invest and understand how cryptocurrencies Investment works with little to capital that is required to purchase large volume of coins.
Disadvantages
Some of the Disadvantages of investing in Shitcoins are listed below.
The price of Shitcoin may fall and lose its value
The platform that is handling Shitcoin exchange may be stop
The possibility of fraud is high
It is meant for short term Investment.
Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
Here I will be discussing about 3 examples of Shitcoin that have been a scam and run away with people money.
AeroCoin
AeroCoin is one of the example of Shitcoin that have been a scam. In the year 2013 AeroCoin was apparently discovered as a pure IPO scam cryptocurrency project. What the scammer of the project was accepting BTC from investors in payment for AeroCoin and suddenly before people will discovered AeroCoin disappeared with the BTC it has received from investors/traders.
Bee Token
Bee Tokens is another Shitcoin that have been a scam. Bee Token was to be launched in 2018, as a cryptocurrency with an (ICO) initial coin offering in 2017.
Although, it was unfortunately, for all those that invested in the cryptocurrency, as the project suddenly got disappeared with people funds in 2029. Ever since the disappeared of Bee Token nobody has heard anything from the developers of the project as the website of the project stop functioning.
Baby Doge BNB
Baby Doge BNB is also on the list of Shitcoin that have been a scam. Baby Doge BNB toked it name after Baby Doge was Introduced, it was suddenly listed as a scam, Baby Doge carry the influence of Dogecoin in order to confuse people that are not too familiar with cryptocurrencies symbols.
Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
Magic Internet Money (MIM)
Magic Internet Money (MIM) is a US Dollar pegged Stablecoin that is minted by Abracadabra. momey decentralized protocol. In a very short understanding, Magic Internet Money is known as a decentralised platform backed by the bearing of interest tokens (ibTKNS), Interest bearing token is what is used by Abracadabra as a collateral for the minting of MIM. ibTKNs are been selected because of the interest their accumulate and base on the price that they keep on increasing.
Currently, according to the information gotten from Coinmarketcap the price of Magic Internet Money is $1, with a 24hr trading volume that is $338,342,664 US.Dollars, as at the time of writing this post the price of Magic Internet Money decrease to 0.06% with a Market capitalization of $1.931 billion dollars with a ranking of #2811 on Coinmarketcap.
SAFEMOON
SafeMoon protocol is known as a community focused,fair launched Decentralized Finance (DeFi) token. According to the information gotten the website of SafeMoon, SafeMoon is comprise of three three function that take place in every trade which are: Burn, Reflection and LP Acquisition. SafeMoon is the combination of RFI tokenomics and also an auto-liquidity generating protocol.
According to the information that is gotten from Coinmarketcap as at the time of writing this homework task, SafeMoon price was at $0.00000227 USD, with a trading volume of $1,923,579 USD and a market capitalization of $1,329,051,504 USD. SafeMoon is ranking #210 on Coinmarketcap ranking.
Floki Inu (FLOKI)
Floki Inu (FLOKI) is known as a dog themed meme token, but calling itself as not a meme token but a movement. Floki Inu (FLOKI) is a cryptocurrency that derived from the Shiba Inu (SHIB) community. Floki Inu (FLOKI) is named after Elon Musk's Shiba inu. Floki Inu (FLOKI) is currently working on three 3 flagship utility projects which are; NFT gaming Metaverse known as Valhalla, An NFT and merchandise marketplace known as FlokiPlaces and Education & Content Platform that is also known as Floki Inuversity.
According to the information gotten from Coinmarketcap Floki Inu price was at $0.0001023 USD with a 24 hr trading volume of $12,913,405 USD. Floki Inu is currently ranking #2865 in Coinmarketcap, with an unavailable market capitalization as at the time of writing this homework task.
Performm a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
As today been 5 January 2022, Magic Internet Money was open at $1 with a high of $1 and low of $0.998902 with a trading volume of $389,364,722 USD in the last 24hour. Magic Internet Money went down to 0.11%. In Coinmarketcap Magic Internet Money is ranking #2809 with a market capitalization of $1.931 billion.
From the above chart it show that as at 1/4/2022 Magic token price is $1.0019.
Historical Data For Magic Internet Money
The screenshot above is the historical data for Magic Internet Money (MIM). From the screenshot we can see that from 1 January,2022 Magic Internet Money was open at $1 USD,with a high of $1 USD and a low of $0.9984 USD. 2nd January 2022, Magic Internet Money was open at $1 USD with a high of $1 and a low of $0.9986 USD, January 03 2022, it open was $1 USD High $1 USD and low $0.9977, as at January 04 2022 Magic Internet Money was open at $1 USD with a High of $1 USD and a low of $0.9978 and close at $1 USD.
Magic Internet Money has been rising and falling with a lower percentage of 0.11% which has make the token to always be at the range of $1 USD.
Magic Internet Money Market
Investors and traders has been trading on Magic Internet Money using different exchange with different pairs likes MIM/USD, BTC/MIM, MIM/USDT etc.
Based on your previous analysis, what do you think will be the development of the price of the cryptocurrency for this year? Be creative when explaining.
Magic Internet Money (MIM) which is a Stablecoin that pegged to USD will always move along with the price of US.dolllar. If the price of 1 USD is $2 tommorow equally that what Magic Internet Money price will be also. And equally, if the price of 1 USD drop down to $0.9989 Magic Internet Money price will also drop down to $0.9989 since is a Stablecoin that is pegged to USD.
From the historical data that is given above we can see that Magic Internet Money has been moving grastically with USD which has already been develope to work in that manner.
Conclusion.
By investing in Shitcoins can either generate huge profit to you, or generate a huge losses to you. Meaning that the higher the risk, that is also the higher your profit will be, it is best recommended for beginners traders that want to make a huge profit with low capital Investment. Before you start investing in Shitcoins please make sure you have carried out your research on the coin and be convince that the coin is good enough before you can the invest in it.
All thanks to professor @nane15, for his wonderful lesson which is the backbone of this homework task. Much thanks to you my noble professor and to you my lovely reader.
That k you for your time here and have a blessed and lovely day.
Best Regards
Cc:-
@nane15