What Is Shitcoin And How Can We Benefit From It: If At All It's Possible #005

Another wonderful day to be posting on this interesting topic about shitcoin, ofcourse shitcoin investment has divided many in crypto space as many shun it and see's it as a scam while others venture for it's speculative volatility.

Last time I talked about what shitcoin is and not just that but highlighted the reason why we shouldn't venture into this Investment.

I also discussed what we we should consider before we choose or venture into any Investment at all as this is very crucial, we shouldn't just jump into any project without proper research.

We have also seen how one can benefit from shitcoin investment if at all possible as well as the advantage and disadvantages of shitcoin investment, any who wish to know could go back to my previous blog on this.

Now despite the danger of investment into shitcoin a project that has no utility some still venture into, we may begin to wonder why is that so he case.

Well today I will like to talk about why some choose to damble into shitcoin investment despite the risk.

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What Attracts Investors To Shitcoin

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Well even if shitcoin investment poses great risk some still choose to enter into it we may begin to wonder what attracts this people to it, what's really behind or rather the driving force behind Investing in shitcoin well we can see it beautifully illustrated below:

1) Speculative Opportunities: One of the thing is that attracts individuals into shitcoin investment is it's high volatile nature and the potential it offers that is the fact it could offer short term rapid gains unlike some well established crypto asset.

Now this opportunity for short term quick gain is attracting to some investors, so attractive that they choose to ignore any potential risk in this speculative project, for the opportunity of the quick gains they could generate over a short term some enter into shitcoin investment.

It may work out for some in few instances while for most they incur immeasurable loss.

2) Hype and FOMO (Fear of Missing Out): Hype is another reason that leads to unsuspecting mind to enter shitcoin investment.

Just like was seen in the last bull run many social media influencers go as far doing every thing possible to promote a coin even if they know it's possibly a scam now their followers who know little or nothing about crypto would take them for their word and jump in.

Because of the way this shitcoins are often being paraded by their online communities and influencers it often leads to FOMO. People enter hoping to make quick and others enter because they have seen others perform greatly in the past and wouldn't want to miss out.

Now the bad thing is that most who enter through fomo are often those who are inexperienced and they most often than not are besieged with enormous loss.

3) Low Entry Barriers: This is another thing that drives investment into shitcoin some feel they are too late on other good project like bitcoin, ethereum,BNB etc and feel they don't have enough money to own one so they venture into cheaper one.

Their is this psychological thing or feeling of knowing you own atleast one of something not just half or 0.05 or something like that hence some would rather buy the cheapest asset even if it's a scam and expect it to do wonders.

I mean some of this shitcoins with just $10 you could own billions of them, some just prefer that than having $10 worth of bitcoin or ethereum which would be very minute.

So because of the entry barrier is so low it drives people into this speculative volatile market.

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Conclusion

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It's always wise for people to carry out their own research before investing in to anything if to us we choose not to invest in shitcoin and another person chooses to we should respect the person's decision as it's his money as we must ensure we do not advise anyone to invest in anything he otherwise wouldn't want to or is doing because we say so.

Each one should do their due diligence, to each their own.