What is a Shitcoin and how to profit from it - Crypto Academy / S5W8 - Homework post for @nane15.
1. Explain your understanding of what Shitcoin is.
I try to answer this question with an explanation of what is shitcoin?. Shitcoin refers to cryptocurrencies that have little or no value, or digital currencies that do not have an immediately identifiable purpose.
So in simple terms we can say Shitcoin is a term used for coins that have no real purpose or value. These coins or tokens are clones created to gain momentum from more popular coins or tokens. Unlike Ethereum, Cardano and Bitcoin, Sitcoins have no real purpose. This is why many of these shitcoins have short lifespans and some have survived to this day.
Shitcoins are characterized by short-term price increases and subsequent sharp declines by investors who want to take advantage of short-term profits, sometimes investing in these meme tokens can get rich quick like some time ago where investors who owned Shiba inu and Dogecoin tokens made a profit. which is very large because of such a large price spike.
Are all shitcoins bad? Not necessarily, because some of them are supported by a strong community. Just take Dogecoin, for example, Dogecoin is a decentralized cryptocurrency with a very large community. It was originally a clone of Bitcoin and was not intended to serve any real-world utility. However, during the bull market from 2020 to 2021, a strong community of Twitter warriors and influencers like Elon Musk pushed it to new levels of ATH. On the other hand, shitcoins do have an immoral side.
2. In your opinion, is it possible to profit from investing in Shitcoin?
My answer is it is very possible to make a profit investing in shitcoins because shitcoins are getting little interest from new traders. While investors in the bitcoin market were volatile at very high prices, the volatile changes at that time had made many people anxious and restless, depressed, and on the verge of giving up and throwing the towel. Therefore they are looking for Shitcoin, so let's explore if there are any advantages of investing in Shitcoin, so I can define the advantages of investing in Shitcoin with several advantages including :
Gives traders a huge advantage : For low cap coins like Shitcoin, doubling, or even 10 times, 50 times can still happen in less time than other coins. have high capitalization.
Relatively low risk : If an investor can buy a potential coin at the right time, then the risk of a price increase is relatively low. The risk we are talking about here is not the risk of losing on entry but of loss of gain.
The capital to play Shitcoin is not high : There are many types of coins that are quite famous in the market, investors only need to spend around $50 - $100 to invest up or down 10% - 20%, then we will have a little money. profit and time consuming. On the other hand, if with the same capital, we invest in Shitcoin, it is very easy to get back $1000 or several thousand USD if we know how to take advantage of opportunities in Shitcoin.
3. State the advantages and disadvantages of investing in Shitcoin.
The Shitcoin concept has just been born, so very few people know about it. They have not realized the value, have not been listed on the exchange and have not been marketed, so they are not well known. Shitcoin is exactly the type of coin with a capitalization below the average, the trading volume is very low, small and unstable, so this Shitcoin has its advantages and disadvantages, below is a table about the advantages and disadvantages of Shitcoin.
| Advantages | Disadvantages |
|---|---|
| There is a high level of price volatility | Relatively low liquidity. |
| Bring high profit with low investment | Profit is very risky, don't rely too much on technical analysis, so a good trader is not necessarily successful. |
| Have good profitability if you know the right time to buy and sell | Coin prices may drop it may be profitable, but it is not safe, so our account may be lost. |
Samoyedcoin Price Today Samoyedcoin Price Price Change 24h 24h Low / 24h High Trading Volume 24h Volume / Market Cap Market Dominance Market Rank Samoyedcoin Market Cap Market Cap Fully Diluted Market Cap
4. From at least 3 examples of Shitcoins that have been scammed, also explain what is included in them.
For this question I chose three Shitcoins that are scams, namely :
- Warrior Floki.
- Metadex(MDEX).
- Queen Shiba (QSHIB).
Warrior Floki.
Shitcoin Warrior Floki is a decentralized financial payments network that rebuilds the traditional payment stack on the blockchain, algorithmically stabilized by its reserve currency WFL, to facilitate programmable payments and the development of an open financial infrastructure. we crypto coin traders must be careful in choosing to invest because this shitcoin has been scanned and a real fraud has occurred. And now it is implemented on binance with a total supply of 1,000,000,000,000WFL.
Metadex(MDEX).
This Shitcoin MetaDex is a decentralized financial payments network that rebuilds the traditional payment stack on the blockchain, algorithmically stabilized by its reserve currency MDEX, to facilitate programmable payments and development of an open financial infrastructure, so traders should not invest in this MetaDex coin. because this shitcoin has been scammed, it is now implemented on binance with a total supply of 5,000,000MDEX.
Queen Shiba (QSHIB).
Shitcoin Queen Shiba is a decentralized financial payments network that rebuilds the traditional payment stack on the blockchain, algorithmically stabilized by its reserve currency QSHIB, to facilitate programmable payments and development of an open financial infrastructure, it is best for traders not to trade on this Queen Shiba coin because this shitcoin has been a scam and a real fraud has occurred, it is now implemented on binance with a total supply of 1,000,000,000,000QSHIB.
5. Describe at least two examples of Shitcoins that have been successful and are currently maintaining them. (Other than Dogecoin or Shibainu.)
To complete this task I will use Shitcoin which still survives until now the crypto coin I chose is :
- Samoyedcoin(SAMO).
- Banano(BAN).
Samoyedcoin(SAMO).
One of the surviving Shitcoins today is Samoyedcoin, Samoyedcoin is a solana memecoin whose main goal is to make belonging to this community a fun one, and to help grow the Solana ecosystem by being interesting beyond its core, consisting mostly of high-tech coins in the crypto community.
For now the community is strong with SAMO being only a few months old, and growing bigger by attracting people who weren't interested in cryptocurrency at first. This is what causes all the advantages of the Solana blockchain high scalability, high speed, low fees while being a fun cryptocurrency to trade on the crypto market for now.
For more details about trading this Samoyedcoin let's take a look at the image from CoinMarketCap below :
| Samoyedcoin Price | $0.03094 |
|---|---|
| Price Change 24h | $-0.003675 |
| 24h Low / 24h High | $0.03093 / $0.03458 |
| Trading Volume 24h | $4,986,047.03 |
| Volume / Market Cap | 0.05032 |
| Market Dominance | No Data |
| Market Rank | #420 |
| Market Cap | $99,080,914.23 |
| Fully Diluted Market Cap | $285,785,837.70 |
Banano(BAN).
Banano (BAN) is a flavorless cryptocurrency powered by directional acyclic graph technology, founded in 2018 and represented by banana avatars dancing on the coin's website and filled with banana and monkey memes. With part of the project created by the community, this crypto Banano Coon focuses on their community and anyone who joins this community can participate in airdrops and more.
For more details on this banano coin trade let's take a look at the image from CoinMarketCap below :
| Banamo price | $0.01784 |
|---|---|
| Price Change 24h | $0.0003205 |
| 24h Low / 24h High | $0.01764/ $0.0192 |
| Trading Volume 24h | $166.798.44 |
| Volume / Market Cap | $0.007162 |
| Market Dominance | No data |
| Market Rank | #780 |
| Market Cap | $23.290.049.54 |
| Fully Diluted Market Cap | $34.036.918.94 |
6. Do a historical analysis of the price of one of the cryptocurrencies you selected for the previous question. (Use screenshots.)
For price history analysis I chose Samoyedcoin as I described above.
As shown in the screenshot above, the price of Samoyedcoin started with a fairly expensive price of $0.020 on 12-05-2021 then the price began to fall and its Bearish peak was on 23-05-2021 which was $0.001562 then the price was fairly stable ranging from $0.002541 up to $0.002652 that price from June to early October, then in October, namely on 29-10-2021 it became a Bullish peak with a price of $0.2146, the last one according to my analysis was at the end of December at a price of $0.03852.
7. Based on your previous analysis, what do you think the evolution of cryptocurrency prices will be for this year? Be creative when explaining.
To answer this question I will give my opinion on the development of cryptocurrency prices for next year, based on the results of my previous analysis of Samoyedcoin which opened at $0.020 and closed at the end of December at $0.03852, it is very likely that cryptocurrency prices will soar in the middle of the year this.
However, there is also a concern that prices will not rise too much in 2022 due to concerns about competing with cryptocurrencies that are increasing, therefore we must also be careful in choosing the type of cryptocurrency to trade so as not to swallow such large losses and lose our account.
Conclusion
- Junk coins are coins that are created with an unclear purpose, have no value and have a price that increases rapidly and then decreases gradually.
- Investing in junk coins is like buying a winning lottery ticket. , the possibility of winning is also there, but the less the more you lose.
- Junk coins are only suitable for those who have time and experience in coin trading.
- Don't invest in junk coins if you don't understand them and shouldn't invest big capital.
- There's no potential as junk coins, but just a game of chance.
Finally, thank you very much to Professor @nane15 for his extraordinary lecture, hopefully it will be useful for all of us.