How Do We Identify Shitcoin......002

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Good day to my fellow tfc's members am very pleased to be writing this on this topic, last time I highlighted a few ways we can identify if a coin is of no value that is if a coin is shitcoin or worthless, I listed about 5 ways to identify this scam project.

Today I will like to complete this by listing 5 more ways we could actually identify shitcoin so we are properly educated on this and know to stay away from them completely.

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Helpful Tips To Identifying Shitcoins

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• Market Liquidity: shitcoin has one thing in common which is a way we can easily identify this scam project and that's their trading volumes which is always low as compared to a strong utility based project.

One way to identify if a coin is a shitcoin is when that coin has a very small market liquidity and when a coin liquidity is low users often have problems selling the coin or even to buy it and that right their should be a warning for potential investors to avoid such project if they value their funds.

• Partnerships and Collaborations: This is another way we can know if a project is legitimate and not a scam that's we need to find out who this project are collaborated with or in partnership with.

If a project is legit then it's likely to have reputable entities as it's partners so when researching about the legitimacy of a project we should always check who this project are in collaboration with if any and also if they are in partnership with any project we should ensure that they are partnered with credible established entities.

Tokenomics: Tokenomics which actually refer to trying to understand the demand and supply of a coin as well as how it's distributed it's one way to determine the legitimacy of a crypto coin.

We should take time aside to really look into the distributions of the coin we wish to invest in and how they are actually allocated as if there is suspicious token distribution or something that's strange out of the ordinary that can't quite be explained or doesn't make sense about a token distribution then it's probably a scam.

• Security Measures: Any project should have a certain security measures put in place to ensure that its users and investors assets are secured so this is one thing that should be properly evaluated before making investment decision.

So we ought to properly scrutinize the project security measures before venturing into it as any project which isn't properly secured could actually be subject to attacks from malicious users and this exposes and put investors money at risk so any coin that has security issues we should run from them.

• Past Performance: It's true that past performance doesn't guarantee future success but going blindly to invest in a coin without checking it past is also a mistake as there is alot that could be learned from a coin pass price action as this is often the basis for technical analysis.

So before investing in any coin we should do proper research on the past performance of that coin, the historical fluctuations and what caused this spikes in price and also if they coin has ever been able to maintain stability in price ifnot then we should take proper steps to run away from such project.

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Conclusion

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It's important that we always do proper research before investing in any coin as this will help us reduce risks associated with trading and investment and as long as we are in the cryptocurrencies market research becomes really necessary if we are to have sustainable longevity.