What is a Shitcoin and how to profit from it. - Crypto Academy / S5W8 - Homework post for nane15
Q1 : Explain your understanding of what a Shitcoin is.
Ever since the mother of all crypto currency was born in 2009, (Bitcoin) over the years has gained so much attention and has lead to the creations of other cryptocurrencies that want to emulate the success of Bitcoin. Some of these assets have done great and have gained the attention of the public whiles others having not been so great.
This brings me to the topic at hand Shit coin. This term is made of two words we are all familiar with we sometimes refer something to shit when it has no use to us or rather when it has no value. And coin in the crypto space is a digital assets that we can use for the payment of goods and services.
So to put this two words together, shitcoin is simply the crypto currency that have smaller value or no value at all. Some people sometimes don’t refer to them as shitcoins but rather Altcoins which simply means coins that were created after the development of Bitcoin. When Bitcoin was created it was a shitcoin at first because it had no value it was valued at $0. Before it gained attention from the market making it a big hit.
So this should tell you that all cryptocurrencies start from shit. Before they gain the attention needed the coins who do not gain the attention remain to be shitcoins and hence are referred now as shitcoins.
A lot of traders try to make the best out of shit coins by investing in them when they have no value. Because a lot of people missed out on the chance to buy BTC for free in 2009. If you had bought 5BTC then currently you would have had $232,788.63 because of this traders invest a lot in shitcoins. As a result people create a lot of scam shitcoins in other to steal peoples money
So before you invest into any shitcoin make sure you do your investigations very well. And the are other shitcoins that usually give investors up to 100X the amount invested.
Properties of shitcoins
1 - Shitcoins usually have their value less than $1 so if you see any coin who’s value is above $1 I don’t think it’s a shit coin and coins below $1 are shitcoins.
2 - Shitcoins have low liquidity value and hence are not listed in many exchanges or are not listed in the popular exchanges we know like Binance and Houbi
3 - They usually do not have any market rank or rank lower in the market Bitcoin ranks higher in makers with a market rank of #1.
4 - Market dominance of shitcoins are 0.00% meaning they have no much attention in the market again BTC dorminates all currencies with 39.52% the only coin to rival BTC is ETH it has a dominance of 20.15% so you can see that the two coins dominate 59.67% of the market
Q2 : Do you think it is possible to make a profit from investing in Shitcoins?
Of course Yes!!, the is a lot of profit to be made by investing in shitcoins. I am convinced that’s what a lot of these whales and other traders do they buy the shitcoins like SHIBA in large quantities so when it the price of the asset spikes, they get a lot of profit.
Technically what happens is that the prices of these shitcoins or let me take SHIBA for instance is $0.000032 equivalent to $0 so with as little as $5 I can buy millions of the coin and when the coin’s price increases I will get profit from it depending on how it’s increases I might get 50% to 100% of my invested capital
In my above explanation of shitcoins I provided an example saying if people had bought 5BTC when it was a shitcoin would have had an mount of $232,788.63 this clear proof that investing in the right shitcoins will give you a lot of profits.
Again, as much as the fact that you can make lots of profit from investing in shitcoins, you can also make lots of loss if you don’t do three things rightly. The first is choosing the right shitcoins to invest in there are a lot of fake shitcoins that when you invest in you loss all your investment capital
Secondly, know the right time to invest in a shitcoin when investing you shouldn’t let your emotions get in the way. Let’s say you did your predictions on an asset and bought it on the low and according to your prediction it was supposed to rise and it falls rather a lot of traders will Fear of missing out (FOMO) and remove their capital which will result to loss.
Thirdly I think investment is a game of chance you are not 100% guaranteed to make profits so it’s advised you invest what you can afford to loss not all your assets.
I believe that it’s very possible to make profits from shitcoins but you need to follow certain things like I stated above in other to make the most out of them.
Q3 : List advantages and disadvantages of investing in Shitcoins.
Investing in shitcoins is very very good but it comes with certain advantages and disadvantages and I will be talking about the good things involved investing in shitcoins and the bad things that are associated with investing in shitcoins.
Advantages of shitcoin
1 - Since the price of the asset is low, you can buy as many as you want. Currently for me I hold up to 10 million SHIBA coins but if the price was high I won’t be able to hold that amount of coins
2 - The prices of shitcoins can rise very fast and as a result give you lots of profit in returns. If you are lucky you might get 50% to 100% profit of the amount you invested
3 - You can also buy different types of shitcoins since they are not costly. For me I think buying different types of shit coins is the best for example you can use $50 to buy shitcoins like $10 SHIBA, $10 Safe moon, $10 Fluoki INU and more.
4 - You don’t need $500 or $1000 to start investing in shitcoins because it’s doesn’t require that much investment capital as low as $5 or $10. Can start.
Disadvantages of shitcoins
1 - As I said earlier the are a lot of scam shitcoins if you are unlucky and you invest in a scam shit coin you will loss all your money.
2 - The prices of shit coins can also loss the value very fast. Which might lead to loss of your invested capital.
3 - They sometimes are very hard to trade with since they are listed in small exchanges
4 - Some shitcoins are influenced by whales meaning they will only influence the price of the asset to favor them.
Q4 : Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
In this section I will be talking about failed shitcoins or scam coins and also what it’s consists of. The are many scam shitcoins out there some of them are Tronclassic, Minereum BSC (MNEB) and Baby panda let’s start with the first one.
1 - TronClassic(TRXC)
This shitcoin was a ERC - 20 token which was developed to serve as a social digital currency that can be sent and received by its users it started in 2018. And ended a year after that is 2019. I believe the main reason it failed was it had 0 liquidity and no volume. The founder of the TronClassic is not known (Anonymous). This should definitely tell you that it’s a scam token. And also the website of the TronClassic is currently not working. It’s has been shutdown
Screenshot source
2 -Minereum BSC (MNEB)
Fro this scam crypto currency I am sure a lot of people have heard or it if not that it’s a scam but you must have heard of this coin. This coin was lunched on the Binance smart chain on the June 2021, after the launch of this asset, they decided to give a fake air drop of 150,000 MNEB all you had to do was just search the asset on the trust wallet and you will recur buy buy however the token couldn’t be withdrawn. Before you are able to withdraw they will tell you need to pay about 0.9 bnb in other to unlock your funds.
Screenshot source
3 - Baby Panda
Baby panda is the next scam currency I want to talk about, this scam token was developed in 2011 by an unknown person and was built on the Binance smart chain, it’s current price is at $0 trading volume of 0 because the website of the currency is not working currently. And currently not listed in any popular exchange we know. All most all the scam shit coins are not listed on popular exchanges due to their low volume in circulation.
Screenshot source
Q5 : Explain at least two successful and currently preserved Shitcoin examples. (other than Dogecoin or Shibainu.)
In this section I will be talking about two of my favorites shitcoins Dent and Floki INU. So let’s get started.
1 - Dent
This is a project that was spearheaded by Tero Katajainen he is the founder of the Dentcoin in short for Dent this project was brought into existance in the year 2017. And I must say I am loving the progress they are making. The main reason why Mr Tero developed Dent is to provide solutions to the communication sector by provide electronic SIM cards, mobile services like mobile data, call minutes and many more.
Dent is gradually gaining the attention in the market currently Dent 35 million mobile users all this users are from over 150 different countries. And has made a lot of partners some of them include Samsung, Alliance and Telecom Infra.
There are still some sort of the world that are not able to access data and mobile services because of how high they pay as mobile fees that’s when the Dent comes into play by removing all roaming fees and making mobile and data services easily accessed by everyone no matter where you are.
All purchases are made with the Dent tokens and due to it being decentralized, when you make a purchase of any data or mobile services the transactions is recorded in the blockchain and can be easily accessed but not altered.
Currently according to the Coinmarket cap , Dent is currently valued at $0.004018 , market cap of 0.1365 and ranks at #161. On January 8th 2018 Dent recorded an ATH of $0.1114 It is also listed among popular exchanges like Binance, Bittrex, FTX, KuCoin, Upbit this shows how important and relevant this shitcoin is.
DENT Price Statistics
| Dent token | Statistics |
|---|---|
| Dent | $0.004018 |
| Price Change 24h | $0.0000254 |
| 24h Low / 24h High | $0.00391 /$0.004168 |
| Volume / Market Cap | 0.1365 |
| Market Dominance | 0.02% |
| Market Rank | #161 |
| Market Cap | $404,998,251.04 |
| Fully Diluted Market Cap | $409,056,950.08 |
2 - Floki INU
I believe that Floki INU is the rival of SHIBA INU just like how ETH rivals BTC in the crypto space. Floki is a meme token that was developed by Jackie Xu but he received help from a group of people namely of B, PetaByte Capital, Sabre and MrBrown Whale the name Floki was gotten from the dog of Elon musk. Because of the name a lot of rumors started to pop out saying that Elon musk owns that company buy he came out publicly to deny those rumors.
What makes Floki INU unique or distinguishes it self from the other meme token is Floki INU incorporates memes and utilities. The utility programs are sub divided into three parts namely
The drift utility is a gaming Metaverse called Valhalla. I don’t know if you have watched Vikings, if you do you will understand this term very well.
The second utility is a platform specifically designed to educate users this platform is called Floki INUversity and the third utility a marketplace for trading called the Flokiplaces
Currently according to the Coinmarket cap , floki INU is currently valued at $0.0001003 , ranks at #2856. On November 4th 2021 Floki INU recorded an ATH of $0.0003437 It is also listed among popular exchanges like Binance, Bittrex, FTX, KuCoin, Upbit this shows how important and relevant this shitcoin is.
Floki INU Price Statistics
| Floki INU token | Statistics |
|---|---|
| Floki INU | $0.0001003 |
| Price Change 24h | $0.0000254 |
| 24h Low / 24h High | $0.00009782 /$0.0001085 |
| Market Rank | #2856 |
Q6 : Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
In this section I will base my analysis on Dent. As I said earlier on Dent was established in 2017, when it was first introduced into the market, it had an initial price of Dent was relatively $0. Starting my analysis from 2017 will make it very boring but I am going to do an analysis form 2021 January to date. So that we will see how the asset is really doing.
On the 1st of January 2021, and open price of $0.0001889 was recorded on the beginning of the day before the day ended the price of the asset closed at $0.0001942 the price of dent at that time kept on rising slowly. As investors were buying and selling so the precise moment of the trend wasn’t that sharp as in February the price closed at $0.001226 which is a great improvement when you compare with the price in January.
The price broke out in March and an uptrend and a close price of $0.003319 was recorded the uptrend continued as it gained a lot of attention from investors. Pushing the price to $0.01144 somewhere 27th April. So now investors who bought the asset in January would have made a lot of profit a lot of them sold the coin causing a sharp decline which was witnessed in May as the price drop to $0.003045. The decline continued a little into June.
Until July we witnessed a flat market no visible trend could be spotted because those buying at that time were balancing those selling. Until August the price broke out again but this time failed to reach the breakout that happen in April. After the breakout traders wanting to take the little profit made sold the asset causing another decline buy this time not a sharp one. In 20th September the price of Dent closed at $0.003936
From October to November investors battled as some where selling the coin others were buying creating a ranging market. On December 25, the price of dent closed at $0.003774 as at now it currently stands at $0.004018
Q7 : 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.
Based on the analysis I have done I strongly believe that the price of dent will break the all time high that was recorded in April in other pre determine the direction of the trend in this month I applied the SuperTrend indicator which sole purpose is to predict the direction of an assets. What this indicator does is to graphically depict the direction by indicating a red for a downtrend and a green for an uptrend.
From the screenshot above you can clearly see the colors red and green and they stand for downtrend and uptrend respectively.
Again I strongly believe that the main factor that will drive the price of Dent in 2022 is that fact that they were able to partner with big companies like GSMA, Enterprise Ethereum Alliance, Samsung Blockchain, Telecom Infra Project (TIP) and bunq. With the help of these companies the goals of Dent wi be accomplished which will help it gain more attention form the market thereby causing the price of it to spike in 2022.
Also, listing Dent in the most popular exchange is also another development that will help push the price of the asset I will be shocked is an investor says he doesn’t know either Binance or Houbi or Bittrex so the coin being listed there is going to make it very easy for investors to just make a purchase when they want to.
Conclusion
Yes truly shitcoins can easily make you rich but you need to take certain things into consideration before investing in any shitcoin. Because the are a lot of scam shitcoins I have highlighted some of them. In this lecture I have learnt that shitcoins are coins that have little or no value at all and in as much as you can make profit, you can also make losses if you don’t invest right.
And remember to invest what you can afford to loss. Dent I believe is bringing mobile data and services to everybody no matter your location and also eliminating roaming fees making it very easy and affordable.
Thank you professor for this wonderful lecture have a nice day and happy new year
Please note all unsourced images are screenshots from TradingView and Coinmarket cap
Upvoted! Thank you for supporting witness @jswit.
