What is a Shitcoin and how to profit from it. - Crypto Academy / S5W8 - Homework post for nane15
INTRODUCTION
A good day and a happy new year to all my fellow steeminas around the world, this is the last week of the season five crypto academy on steemit and it has been a wonderful ride all season.
This week I will be taking professor @nane lecture on shitcoins and how to profit from it.
Q1 Explain your understanding of what a Shitcoin is.
In the present day, there are lots of ways one can invest his/her funds both legit and scam, it just depends on how patient an investor is. Investing in shit coins is one risky and unpredictable way of generating funds in the crypto financial market.
Before one can arrive at a definition of shitcoins, we must first define the two words "shit" & "Coin" separately. First of all according to anybody SHIT simply means something like thrash or dirty. But in this sense we are talking about an entity or commodity that has no reasonable use, you could say it is something that is useless and doesn't have a real reasonable value. Now coming to the meaning of Coin, we can simply define a Coin as money and this can be both physical or electronic.
From the two definitions above we can define the word Shitcoins, to me shitcoins are cryptocurrencies that have no real reasonable value, we can say that they are currencies without any real backing or initiative, these are currencies that do not have a large vision for the future, Hence they have low token holders in the crypto market. To some crypto investors, shitcoins are just basically coins set up by dubious people with the sole aim of extorting money from naive investors, they see shitcoins as scams.
Some individuals also define or refer to shitcoins as coins that are valueless, that means they do not have worth in the market, they are coins with very little worth or value. Some people also say that any coin apart from the kings, Bitcoin and Ethereum is a shitcoin because they have little or no value compared to these two.
Investing in these shitcoins requires an investor to pump a lot of capital in order to gain reasonable profit, and this is very risky as investing in any cryptocurrency is already much risk.
Most shitcoins are worth less than one United States dollar. Comparing this value to that of Bitcoin and Co it is just pennies. That's why they are sometimes referred to as penny cryptocurrencies, they have no reasonable worth or value.
Shitcoins are undervalued or under-appreciated crypto currencies that may smile or favor early investors or buyers. In the vast crypto verse there are hundreds of shitcoins, some with a reasonable vision while some have no reasonable platform of operation at all. Some of this coins include
- Doge coin
- Little rabbit
- Shiba inu
- Safe moon
- Hive
- Hope
All these mentioned above are examples of shitcoins and most of their values are below one United States dollar. Which means they are not regarded as reasonable currencies to invest one's funds in.
We could say that shitcoins are generally all coins that require a lot of courage, endurance, patience and luck to invest in.
Q2.Do you think it is possible to profit from investing in Shitcoins?
To me the answer to this question is yes, but I would justify my answers with some points.
While investing, one of the most critical points to take into consideration is the timing. Timing in the sense that you must know the right time to buy or invest in a particular coin. But at the same time this task of knowing when to invest is quite nearly impossible because of the instability of the crypto market, the worth or value of any crypto currency is never at a point, it is always going up or down and this leads to profit or losses.
Investing in any cryptocurrency is a very big risk even though one invests in coins with a level of stability like Bitcoin or Ethereum, anything can happen at any time. That is why knowing the right time to step into the market is very important, but still quite difficult.
Investing in Shitcoins can 100% be profitable, as a lot of investors around the world have profited from different shitcoin projects. But as always it is a very risky affair. The main issue is knowing the right time to invest and at the same time having a little luck in selecting good shitcoins to buy. According to the lecture presented to us by the professor, he explained that one potential way of earning from shitcoins is through "Speculation". Every good thing that has potential will always raise dust, people will talk about it and this helps in raising the price of these shitcoins.
The above statements simply means that whatever people say about a particular coin helps it out one way or another, when someone widely and popularly known in the crypto verse and market says a good thing about any coin there is always a very big chance that people will get interested and they start buying it.
An example of a shitcoin being profitable can be the case of the Shiba inu which was worthless from the start but within just about 2-4 months, it's price spiked making a lot of crypto investors around the world millionaires, this proves that making profit from shitcoins is very possible.
Q3 List advantages and disadvantages of investing in Shitcoins.
Investing in Shitcoins as I said earlier is a very risky and uncertain affair, but investing in these coins have both advantages and disadvantages. Let's look at them below.
As explained earlier, shit coins are coins that have very little or low value, that means they cause nearly nothing to acquire and this paves way for the first advantage because whenever something's price is low, anyone can invest or buy them.
These shitcoins produce profit within a short frame of time, that means early investors stand a chance in making a lot of profit within a short period of time.
The value of any shitcoin can pump massively at any time making a lot of investors rich within a very short period of time. This means that a shitcoins price can double or even triple within a very short period of time.
As I mentioned above, one way a coin's value can spike is through speculation. This aids an investor in making decisions on when to step into the market to buy a particular coin. Whenever good things about a coin are said by a prestigious or well known person then there is a good chance that the coin will become popular, hence its price increases.
It is a very risky affair investing in Shitcoins as they produce short term profits and sometimes one could be selfish and not take profit at the right time hoping for a further pump in its price then the coin's value goes down causing massive losses.
Investing in Shitcoins requires an investor to pump in a lot of capital in order to receive reasonable profits.
Some shitcoins are not backed by financially innovative platforms and projects, hence they have a smaller amount of capital , this makes it a very risky affair as they can crumble at any time.
Most Shit coins lack white paper , so the owners of the coin are not publicly known. The whole system can easily be a scam.
Q4. Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
As always, dubious people will always want to take advantage of the crypto market. Many of these people do this by creating worthless tokens that have no value both presently and in the future. They gather people's money and they run away.
Some examples of this shitcoins that turned out to be a scam are listed as follows:
- Astro new year
- Salt token
- Deku inu
Let's talk about them one by one.
From the name this shitcoin was launched on the 1st of January 2022 at exactly 22:41 GMT.
The is a shitcoin that has been around for sometime, but it was recently listed as a scam and all exchange platforms pulled it out. This project initially was developed to be a stable coin that means its price will have a level of stability. It was developed on the binance smart chain, a decentralized financial payment method.
Total supply: 111,111,111,111,111
Circulating supply: 111,111,111,111,111
Contract address : 0x624a8731691c271bfa2f8e3136b98cf69ed08209
Decimals : 9
Holders : 10
This loan lending platform was developed in the year 2016, it's main aim was giving out crypto loans to worthy users, it worked on a dynamic system that involved users having to deposit their stable coins like Bitcoin and this is used as collateral in handing out other stable coins as loans.
Initially when this shitcoin was launched it had a value of about $8, within a short period of time its price spiked up to $16 but unfortunately holders of this coin were unable to make profit as the owners and developers of the project abandoned it and the price fell massively down to about 0.39 dollars which is worthless.
- Total supply : 120.00 M
- Circulating supply : 80.284 M
This shitcoin was developed from a Japanese Manga superhero, it is not quite popular but it operates on a decentralized system, with its main purpose to aid a user in programmable payments, one good advantage it had was that it returned 3% of whatever loss a holder accumulates and it was listed in the uniswap and paraswap Ethereum platform in the year 2021.
- Current price: $0
- Total supply: 1,000,000,000,000 DEKU
- Contract Address: 0x00e76361d45707507db7bdeb7dd2c0f5c1c3fa6d
Q5.Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
As always there are profits and massive losses in the crypto market and it is very risky to invest in. They are lots of shitcoins which have made a lot of investors millionaires. As I explained earlier it just takes a bit of luck, courage and timing to earn from these coins and there are a lot of shitcoins that have proven profitable, there prices still fluctuates up and down nonetheless but they are still profitable.
Let's discuss some of this successful shitcoin projects below:
- Floki inu
- Baby Cake token
This shitcoin was developed from the much successful Shiba inu coin but it has its own potential, as there is a lot of belief among the owners and developers. The name "Floki '' was derived from Elon musk's pet dog. It has projected aims which include:
This shit coin project has an aim to acquire an education center which will be named Floki inuversity.
It is projected to have a Non fungible token used in the gaming verse.
And lastly the platform has an aim to acquire a marketplace for the sale and buying of their Nft which will be called Floki places.
Currently the Floki inu coin has a total value of $0.00007122, it has total supply of 9.308 trillion and a rank of #2845
This shitcoin was launched to users on the 8th of March 2021, it is a unique and innovative token which is owned by "JOHN KARONY". I explained earlier that shit coins do not possess white paper but this particular one is exempted because it actually has a white paper.
This Defi token can be utilized by traders for reflection during trading, Lo acquisition and burn.
The current price of this shitcoin is $0.000002165, it has a total volume of $3,570,800.24, and a circulating supply of 585,536.37 according to values gotten from coin market cap.
Q6.Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
In this question I will be giving a historical analysis on the safe moon token. It was launched on the 8th of March in the year 2021, initially it started with a price of about $0.0000000010 with a total supply of about 777 trillion.
As said earlier some shitcoins spike in price due to speculations and the safe moon token is one good example. Traders and buyers started to bag the coin when they noticed it was migrating from the V1 to V2 level, it got to an all time high of about $0.003408 after this speculation. After it hit the V2 level knowledgeable investors tripled their profits and left the market smiling.
Currently it has a price of $0.00000207, the value has dropped massively compared to its initial price. This proves that early investors profited from this coin more.
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 of all crypto currencies, there must be a rise and fall of price, it is inevitable in the crypto verse. As we can see from the analysis above, the price of the safe moon got to an all time high and it started to crash again. This proves that nothing is stable or constant, price can change at any time. It is just like the theory or saying that "what goes up must surely come down", only that in this case it goes both ways. And whenever this happens that means the demand of the coin is reducing and the supply is increasing.
But as always investing in Shitcoins is a very risky affair, because most shitcoin projects do not possess white paper so their owners can easily abandon the project leaving holders of the coin at massive loss. But as we can observe from the details of safe moon, the coin made its all time high this year so it has a very big chance of doing that again, it just requires a twist in market movement and a certain amount been reinvested into it and we will see that the price will start to close m again.
CONCLUSION
Shit coins as I have explained above are coins with little or less value, apparently they are coins that are considered worthless to buyers, they don't have a reasonable value. But at the same time these worthless coins can be really profitable to investors who step into the market at the right time and with good capital.
These tokens lack one important characteristic which is proper backing and capitalization, hence they can crash anytime.As always investing in any crypto currency is very risky and should always be done with caution, that is why it is very important for one to analyze the market properly before pouring funds into it.
Lastly I want to say a big thank you to professor @nane for this wonderful lecture. I have learned a lot about shitcoins and I hope to apply my new knowledge when I step into the crypto market. I can't wait for the new season to start.
Thank you…