What is a shitcoin and how to profit from it - crypto academy/ s5w8 - Homework post for nane15
Hello Crypto friends,
It is my pleasure to welcome you to the end of the season 5 of the steemit crypto academy.
This week, we shall be learning from Prof @nane15 on the topic shitcoin and how to profit from it
Please follow along as we begin our exploration.
EXPLAIN YOUR UNDERSTANDING OF WHAT A SHITCOIN IS
EXPLAIN YOUR UNDERSTANDING OF WHAT A SHITCOIN IS
Shitcoin from my point of view refers to the term that is given to useless cryptocurrency with no unique value.
It is the term given to tokens that are created as a joke with no serious development.
The fact that the blockchain technology have given all users the opportunity to produce their own cryptocurrency has led many malicious individuals to create tokens with no value and development.
The Identification of a shitcoin is very easy, one of it's features is that it is created as a copy of a well known coin.
For example, doge coin was created as a mockery for Bitcoin.
Another identifying mark of shit coin is it's developers, the developers of a shitcoin are usually malicious individuals. But if the developers are well known on YouTube and Instagram, then there's a possibility that the coin might not be a scam project.
If a new coin does not have the minimum of 300 holders, it is not worth investing in, as it can be considered as a shitcoin or a scam project.
Also if a coin does not attain the minimum of 5transactions per minute, then it is not worth investing in and can thus be classified as a shitcoin or a scam project.
Another identifying mark of a scam shitcoin is one that doesn't possess a liquidity of at least $30,000.
A shitcoin may further be explained as a digital currency with no purpose.
The lack of genuine purpose of a shitcoin is what makes investors loose interest on the project, thus diminishing the price of such token.
Another striking identifying mark of most shit coin is it's pump and dump problem.
A shit coin experiences a sharp uptrend over a short period of them, then all of a sudden, without the knowledge of investors, it experiences a drastic fall in price, of which it will later be dumped by it's developers.
Shitcoin are very risky project to venture in, as an investor stands the chance to looses a lot from it's pump and dump.
DO YOU THINK IT IS POSSIBLE TO PROFIT FROM INVESTING IN SHIT COINS
DO YOU THINK IT IS POSSIBLE TO PROFIT FROM INVESTING IN SHIT COINS
Well, the truth is that, there's no cryptocurrency in existence that is not prone to risks and profit.
BTC also have it's risks and profits period when it comes to investment opportunities.
Although it is very risky to invest in shitcoin, it is also very possible to make profit from it.
Recall that I earlier mentioned pump and dump as a feature of shit coin.
An experience trader will take full advantage of the pump and dump of shitcoin and avoid it's risky aspect.
For example, let's imagine that a shitcoin was launched at a price of $0.000001, and I invested a total of $1000 from the start.
Then the token experience a sharp pump which increased it price to $0.001.
At this point, as an experience trader, I will exit a the market, having a total of $1,000,000, a profit of $900000.
From my explanation, it is seen that I have made a very huge profit from my investment in shitcoin.
But if I allow my emotions to control me by making me remain in the market, hoping the price will forge higher, I will then fall victim to it's dump and then it will be too late to exit the market, because I would have lost a lot of funds.
From my illustration, we see that it is very possible and easy to make profits from investment in shitcoin, the key criteria is the knowledge on the entry and exit point.
For a trader to make profit from shit coin, or any other coin, he needs to know the right point to buy and sell his commodities.
Another way an individual can make profit from shitcoin is to make extensive research on the project of such coin, check it purpose, it's holders, and then an individual can discern if he can invest in it.
So it is very possible to make profit from shitcoin investment.
LIST THE ADVANTAGES AND DISADVANTAGES OF INVESTING IN SHITCOIN
LIST THE ADVANTAGES AND DISADVANTAGES OF INVESTING IN SHITCOIN
ADVANTAGES OF INVESTING IN SHITCOIN
Although, there are lots of risk in investing in shitcoin, there are also advantages and they are;
Investing in shitcoin at an early stage can bring about a very huge profit when the coin is pumped.
The prices of shitcoin increases rapidly, it easily increases with a rate of 200% , which leads to the increase in price of the coin by 2x, and this is thus a good investment opportunity.
Investment opportunities of shitcoin is open to all individuals, whether young or old, as they are very cheap to purchase.
Another advantage of shitcoin is that it attracts more individuals to the cryptoworld. I can remember the period of safemoon pump, many newbies entered into the cryptoworld world, as they want to own million pieces of the coin.
When a shit coin has lots of investment and development, it can be upgraded into an alt coin, which will then make it more perfect for investment opportunities, e.g dogecoin.
DISADVANTAGES OF INVESTING IN SHITCOIN
Investment in shitcoin is always at the risk of pump and dump, and this leave investors in great pain and regrets.
The creation of shitcoin is often a method uses by malicious developers to scam innocent individuals
The investment in shitcoin coin turns out to be in favor of the whales most times.
It is very easy for shit coin to be rug-pulled since they have no white paper.
OF AT LEAST 3 EXAMPLES OF SHIT COIN THAT HAVE BEEN A SCAM, ALSO EXPLAIN WHAT THEY CONSISTED OF
Due to the fact that the blockchain technology has made it possible for individuals to create a token, malicious developers have taken this as an opportunity to do away with people's funds, simply by creating their token and listing them as a good project.
There are numerous examples of scam project that have taken place in the crypto space , they will be explained below;.
BABY DOGE BNB:
The baby doge bnb is a failed shit coin that was launched on the 23rd of October, 2021
The baby doge bnb was created in imitation to the success of doge coin, and this thus, brought a lot of people into it's investment.
The below are some information of the baby doge bnb token;
| TOKEN | ANALYSIS |
|---|---|
| Name | Baby doge bnb |
| Contract | 0x0049A40F9455E06EEbBbc58e5C9F10D8b93Ae0f4 |
| Total supply | 100M |
| Decimals | 18 |
| Holders | 1 |
| Network | Bsc bep20 |
Another scam token that I choose to explore is the UNIX METAVERSE.
The unix metaverse otherwise known as x meta was launched on the 3rd of January 2022 on the binance smart chain.
The x meta token has a liquidity of $24,850, which is not up to the minimum requirements of $30000, which is one factor that confirms it as a scam project.
The x meta has a total supply of 100M Unix metaverse, and this has been reported due to its malicious activities.
The next token on my list is the shiba swap.
The Shiba swap is another scam token that was launched on the 2nd of January 2022, 20:59GMT under the BSC bep 20.
This token has a liquidity of $24850 which is not up the minimum required liquidity of a shit coin which is $30,000 and above.
It has a total supply of 1Billion and a circulating supply of 1Billlion and a total holder of one individual
EXPLAIN AT LEAST TWO EXAMPLES OF SHIT COIN THAT HAVE BEEN SUCCESSFUL AND ARE CURRENTLY KEEPING IT ( OTHER THAN DOGECOIN AMD SHIBA INU )
EXPLAIN AT LEAST TWO EXAMPLES OF SHIT COIN THAT HAVE BEEN SUCCESSFUL AND ARE CURRENTLY KEEPING IT ( OTHER THAN DOGECOIN AMD SHIBA INU )
Although there are many shitcoin that have turned out to be a scam, there are also many that have been successful and are still keeping it, for example;
Wakanda Inu is a meme token that was launched on the 8rh of November 2021. It was developed by a group of individuals to drive charity operations across the globe.
It is built on the Ethereum blockchain and it was coined from a meme that represents the face of an African dog.
Below are the statistics of wakanda Inu
| TOKEN | ANALYSIS |
|---|---|
| Name | Wakanda Inu |
| Price | $0.00000006372 |
| Market cap | $2,498,005 |
| Fully diluted market cap | $63,719,159 |
| Vol 24hr | $180,917 |
| Vol/market cap | 0.07216 |
| Circulating supply | 39,244.75B wkd |
| Max supply | 1 quadtrillion. |
The above Screenshot show the chart of the WKDUSDT, it is seen above that the wakanda Inu is really doing well in the crypto space.
Akita Inu is another successful shit coin, it was launched on February 2021. Akita Inu is built on the Ethereum blockchain and it runs with the use of ERC-20 protocol.
The development of Akita Inu was inspired by the success of it's fellow meme token (doge coin)
Akita Inu attained an all time high of $0.00002904 which was on the 11th of may 2021 and an all time low of 0.000000005107 on the 27th of February 2021.
The following are statistics of the Akita Inu token
| TOKEN | ANALYSIS |
|---|---|
| Name | Akita Inu |
| Rank | #2954 |
| Price | $0.000001271 |
| Vol 24h | $4,113,175 |
| Fully diluted market cap | $127,082,230 |
The above is the crypto chart of Akita Inu and USD.
From the screenshot above, we can see that Akita Inu is really progressing.
PERFORM A HISTORICAL ANALYSIS OF THE PRICES OF ANY OF THE CRYPTOCURRENCY THAT YOU CHOSE FOR THE PREVIOUS QUESTION [USE SCREENSHOT]
PERFORM A HISTORICAL ANALYSIS OF THE PRICES OF ANY OF THE CRYPTOCURRENCY THAT YOU CHOSE FOR THE PREVIOUS QUESTION [USE SCREENSHOT]
To answer this question, I will be making analysis of Akita Inu.
As earlier said, Akita Inu was launched on February, 2021.
The price of Akita Inu as at Feb 2, 2021 was within the range of $0 - $0.00000003 with a volume of $1,902,295.
It price continued within that range until on the 17th of April, where it experienced an increase in it's price, which took it's price to the range of $0.0000037 - $0.00000176, with a volume of $79,688,103
It price continues within that range, until it hits it all time high of the range $0.00001604 - $0.00002886 with a volume of $629,145,474 on the 11th of may 2021.
After it hits it's all time high, the Akita Inu started fluctuating and started reducing greatly in price, after some time, it started increasing, until today, with it's current price at $0.000001271, with a volume of $4,113,175.
BASED ON YOUR PREVIOUS ANALYSIS, WHAT DO TOU THINK WILL BE THE DEVELOPMENT PRICE OF THE CRYPTOCURRENCY FOR THIS YEAR?
BASED ON YOUR PREVIOUS ANALYSIS, WHAT DO TOU THINK WILL BE THE DEVELOPMENT PRICE OF THE CRYPTOCURRENCY FOR THIS YEAR?
From my analysis, the price of the Akita Inu, should at least, get to it's previous all time high and even increase further.
As it is presently seen, the chart of the Akita Inu still forms bullish candles which is an indication that there are still enough buyers in the market that will help the price of the token.
From my view, the token only needs a little boost and it will get back to it's previous all time high.
The chart above is that of Akita Inu, and on it is a wedge pattern analysis tool.
Once there's a break in the resistance level of the chart, we should expect the price of the coin to increase.
A little development on the coin will definitely force it to break the resistance line, therefore leading to an increase in price.
CONCLUSIONS
CONCLUSIONS
The development of shit coin is a very good initiative as it helps investors to make huge profit within a little period of time.
As experienced investors, we do well to analyze a shit coin before we invest in them.
I sincerely appreciate Prof @nane15 for his lecture, look forward to learning from you again in the next season.
Happy season break Prof.