Wondering what shitcoins are? and how they differ from other cryptocurrencies? We should investigate because of their uncertain history and highly debatable character, shitcoins have been receiving a lot of attention.
By exploring these digital assets’ distinct qualities and the attraction they have for particular investors, the current article seeks to clarify them. Anything you need to know will be covered, from analyzing the benefits and drawbacks of investing in trash coins to revealing the sites and ways to buy them, and what makes them unique in the cryptocurrency space? Let’s investigate:
What are Shitcoins?
Shitcoins are digital currencies that have the potential to carry high risks and great gains but are frequently viewed as having no real credibility, value, or purpose. These coins could be linked to questionable enterprises or motives, be quickly made, or lack a strong technological base.
Shitcoins, in contrast to well-known cryptocurrencies like Bitcoin and Ethereum, usually have extreme volatility, little trading volume, and a tiny market capitalization. They may draw in investors because of the possibility of dramatic price swings and the attraction of quick rewards.
Examples of Shitcoin
- Pepe Coin (PEPE): It made an outstanding debut in April 2023, shooting from $0.00000002764 to a record-breaking level of $0.000004345 in just two weeks. It gave early investors an amazing 563% return on their investment (ROI). However, the brief price spike was followed by a sharp decline that saw the price crash to 0.0000006232.
- BitConnect (BCC): A well-known example of a Ponzi scam that lured investors in with promises of incredible profits through a lending program is the BitConnect platform. It had a sharp decline in 2018, due to which investors to suffered massive financial losses.
- Dogecoin (DOGE): Originally designed as a joke in late 2013, dogecoin grabbed attraction and became the most well-known cryptocurrency for memes due to viral memes. But it’s just theoretical because it doesn’t have a clear, practical use.
- Useless Ethereum Token (UET): As the name suggests, UET was developed in 2017 to see if investors would be interested in a token with no intrinsic value. Some surprisingly did, revealing the very volatile character of the cryptocurrency industry.
- OneCoin: OneCoin Ltd. and OneLife Network Ltd. are the masterminds of this fraudulent financial scam, which has its roots in cryptocurrencies. Ruja Ignatova, a Bulgarian national who disappeared in 2017 after collecting an incredible $4 billion through the operation, founded these enterprises.
How Do They Work?
After they are formed, shitcoins adhere to a predetermined strategy that enables them to develop traction and ultimately generate millions of dollars in revenue for their owners.
- Creating Hype
During this phase, the currency is promoted via various social media channels. The tokens’ makers advertise them as having cutting-edge technology, massive returns, and unique characteristics that make them stand out from other tokens and could be advantageous to investors.
- Price Speculation
Because cryptocurrencies are based on speculation, the people behind shitcoin draw investors with the hope that its value will rise in the future.
- Exponential Growth
The sudden, exponential increase in the value of shitcoins is a result of artificially induced organized purchasing that drives up demand and artificially boosts the price due to a limited supply. When it hits a certain point, they’ll “pump and dump” the currency, causing decrease in its price.
- Decrease in Value
Following the fall, investors lose trust in the token as its lack of meaning and utility becomes increasingly obvious, and its initial excitement begins to decline. As a result, the coin completely loses value and is abandoned.
How to Buy Shitcoin (SHIT)?
As Shitcoin (SHIT) becomes more well-known and traction in the cryptocurrency market, greater numbers of individuals are asking how to buy shitcoin?
Step 1 – Look for Decentralized Exchanges (DEXs) where Shitcoin (SHIT) is Listed
New currencies, including Shitcoin (SHIT), will be scheduled for initial DEX offering (IDO) listings. Information about these listings may be gained from well-known cryptocurrency aggregators. To find the DEXs where Shitcoin (SHIT) is listed, all you need to do is type the cryptocurrency’s name into your aggregator’s search bar.
Step 2 – Create & Setup your DeFi Wallet
ShitCoin (SHIT) and other tokens may be purchased, exchanged, and stored using this well-known DeFi wallet. Find out how to carry out this in a few clicks.
Step 3 – Fund your DeFi Wallet
Credit cards may be used to purchase the native token of a chosen blockchain, such as ETH for the Ethereum Main Network. Make sure you have the appropriate tokens on the correct blockchain since native tokens vary from one blockchain to the next and are used to cover the required gas fees. Alternatively, you can go forward by taking ETH out of your Gate. IoT wallet: Your DeFi wallet address is all that is required.
Step 4 – Connect your DeFi Wallet to the DEX to Buy Shitcoin (SHIT)
After determining which DEX(s) Shitcoin (SHIT) is listed on, go to the DEX(s)’ official website and link your DeFi wallet by following the instructions. After that, you may buy Shitcoin (SHIT) on the applicable DEX (s).
Pros and Cons of Investing in Shitcoins
Before purchasing the most well-known shitcoins, investors should weigh the possible advantages and disadvantages, even if the promise of instant wealth may seduce some.
Advantages
High Volatility: Shitcoins are notorious for sharp price swings, but for investors who make their bets well, they may provide major returns quickly.
Low Entry Cost: Since cryptocurrencies usually have a cheap entry cost, even inexperienced investors on a tight budget can purchase them. It also enables investors to build up a sizable quantity, allowing the purchase of hundreds of thousands of these tokens at a significantly lower price than BTC.
Diversification: You may diversify your crypto assets by adding shitcoins to your portfolio. It might help you limit risk when the market fluctuates. That being said, this is most relevant to investors with tight budgets. An investor may add thousands of additional shitcoins to their portfolio for as little as $100. Among the most volatile cryptocurrencies, even a slight fluctuation in price can provide enormous profits.
Disadvantages
High Risk: The substantial risk associated with cryptocurrencies is well known. Many are not useful in the real world, which leaves them open to manipulation, rug pulls, and pump-and-dump scams.
Lack of Transparency: Due diligence on the part of investors is sometimes impeded by the secrecy surrounding shitcoin ventures. It isn’t easy to assess the coin’s authenticity and long-term viability without openness.
Security Risks: Shitcoins are susceptible to assaults and security lapses. Because most of these projects rely on unaudited programs and the anonymity of their developers, they are vulnerable.
Limited Liquidity: Due to their low trading volumes, many shitcoins make it difficult to acquire or sell large quantities without negatively impacting the price.
Recommendations when choosing cryptocurrencies
- One should consider a cryptocurrency’s value or benefit to the cryptographic system before selecting or investing in one. It is also necessary to consider if the mentioned token or cryptocurrency will be profitable.
- That is, whether your business is purely speculative or whether you have a value (rather than a price) that enables you to be profitable. It’s crucial to confirm whether reputable and reputable businesses have endorsed the coin or token.
- Indeed, there are a lot of unfounded enterprises that operate under the radar of well-known personalities. The project will be another crucial factor to consider.
- It’s likely a shitcoin if it’s an emerging coin that is already being promoted and requesting resources.
FAQs
Conclusion
But there are a lot of dangers associated with investing in shitcoins: you might lose all of your money since there is no liquidity, you could be a target for fraud in the markets, and you might even come under regulatory investigation. When thinking about investing in shitcoins, investors must be cautious and perform extensive research.