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The number of cryptocurrencies is already approaching 2 million items. But hardly a dozen or two top coins are constantly heard of; only a few can name more than fifty assets. Not everyone even knows how USDT-TRC20 differs from BEP20. And all other cryptocurrencies outside the TOP 100 are exhaustively characterized by the expressive slang word shitcoins.
What are "Shit Coins"?
A Shitcoin is not a specific cryptocurrency, but a low-liquidity coin. If we draw an analogy with real money, they can be compared at best to the sovereign currencies of Burundi and Zimbabwe, and at worst to souvenir bills that have no exchange value at all.
Shitcoins include coins for projects that have not yet been launched, projects that are obviously fraudulent or unpromising, and that do not have their own blockchain and roadmap. The cost of such coins is usually so low that for a few hundred dollars it is quite possible to buy out most of the entire issue.
At the same time, it is impossible to predict the future fate of such a coin. If for some reason investors become interested in it, it could easily rise in price thousands of times. A classic example is the legendary Dogecoin and his brother Shiba Inu. Most recently, Pepe was added to the list of best shitcoins in 2023, and a new potential star is on the way - WSM.
Where do shitcoins come from?
Some of them were originally created as a joke, like the already mentioned Dogecoin and Shiba Inu, or as social experiments (Idiot Coin). But among shitcoins there are many forks that broke away from the original blockchain, launched as an alternative product, but could not gain a place in the sun. So, on the outskirts of the crypto market, ETHW ekes out an existence, which launched the field of ETHERINE transition to Proof of Stake.
It is quite obvious that outright scams and clone coins automatically fall into this category. However, really good projects that lack the resources to implement can also fall into the social bottom of the market.
Shitcoins flourish during market pump periods. As interest in crypto increases, a lot of people start tokenizing just about anything. Typically, such projects quickly fail, since their quality was initially low, and there might not have been a clear goal at all.
In general, the world of shitcoins is very diverse. For example, on the market, there is PotCoin for paying for goods with cannabis, Sexcoin for paying for goods from sex shops, Dirty Coin, with which you can pay for escort services, and the completely harmless MilkCoin for purchasing dairy products.
Shitcoins as an investment tool
Such assets are cheap and often very, very cheap. Buying several thousand coins for $0.001 and selling them for at least $0.5 is a very real prospect. There are even more impressive profits, and it is in the hope of luck that investors buy them. Yes, this will not necessarily happen with every coin, but even single successful investments cover losses on unsuccessful ones and bring profit.
Such investments are attractive because they can bring profits of thousands of percent in a matter of months, and sometimes even days. For this to happen, it is enough for major players, at least one or two people, to become interested in the asset. Their activity will provoke a sharp jump in price, and then a chain reaction will begin involving more and more smaller players. To be among the lucky ones, you “just” need to choose the right coin.
The financial market is always a risk and no one can guarantee you a profit. However, it is still possible to increase your chances of success even if you invest in shitcoins.
- Give preference to forks of well-known cryptocurrencies, coins of specifically described projects, and large companies.
- It is better to avoid assets with humorous, provocative, and obviously political names.
- The same applies to coins that have risen sharply in price. Most likely, this is a short-term speculative pump and the fate of the expensive shitcoin has already been determined by the crypto whale who bought it.
- Avoid compromised and fraudulent coins. Large players are not interested in them and cannot count on a pump.
Be that as it may, experienced investors do not recommend getting too carried away with such coins.