Shitcoins are cryptocurrencies that has little or no value, or a digital currency that has no immediate discernible purpose. These coins are relatively unpopular and does not have value.
What is a Shitcoin?
A shitcoin is a term given to cryptocurrency that is useless and does not have any value or worth. These crypto were created as copycats – currencies, that have bought nothing new to the crypto space.
Read also: What is Chia Cryptocurrency: Is it a Good Investment?
How to Identify a Shitcoin
• The developers are mysterious.
The people behind a project should be trustworthy, not a random group of people using fake names. You shouldn’t invest in stock from an unknown group. If the developers have identified themselves by video or by a post that shows their details. This information will make them much more trustworthy, also with their appearance known by the public, it’s much less likely to be a scam.
•The project has big promises, but has no defined functionalities.
Anyone can come up with attractive goals and promises. However, not just anyone can provide the roadmap as to how those objectives will be accomplished. If a project does not have a defining functionality, it’s not trustworthy.
• Aspects of the project seem copied or generic.
If a project’s website looks generic or uses a free domain, that should be a red flag. It signals that it lacks the authenticity of a well-developed project. Additionally, if the white paper is different from that of other popular projects, it’s likely a copy made to trick people into feeling secure. Alternatively, if it’s technically written with such jargon that it’s hard to understand, it’s likely a shitcoin.
• Check the number of holders.
Experts say any new coin worth investing in should have 200 to 300 holders, at a minimum. Any coin that doesn’t meet that minimum isn’t healthy and isn’t worth investing in. Similarly, any healthy new coin should have five to 10 transactions per minute.
• Consider the liquidity pool.
The liquidity pool is considered the catalyst of most decentralized exchanges. If the project you’re investing in doesn’t have at least $30,000, it’s likely a shitcoin. Low numbers should not be considered.
How to Buy a Shitcoin
- Download the Trust Wallet app.
- Sign up for a crypto platform that sells BNB (Binance coin)
- Purchase BNB
- Send BNB to Trust Wallet BNB address
- Swap BNB to Smart Chain
- Connecting Trust Wallet to PancakeSwap
- Open up DApps in your Trust Wallet
- Paste PancakeSwap website address (Home | PancakeSwap) on the DApps search bar, then hit enter.
- On top right corner of the PancakeSwap platform, change the icon to Smart Chain.
- Wallet should automatically connect, Then you click Trade
- Then use your BNB to purchase the Shitcoin of your choice.
The Best Time to Sell Your Shitcoin
Shitcoins usually have no value and if you must invest in it, you will need to be active and monitor the way the price move. Relatively, the best time to sell off your shitcoin is when the market is mooning (that is when the price goes up).
The Best Shitcoin to invest in 2023
Although subjective, here are some of the more well-known shitcoins within the cryptocurrency market:
- Dogecoin (DOGE). This is a meme-based cryptocurrency that was designed around a comical picture of a Shiba Inu dog called Doge. Much of the coin’s success has been the result of influencer encouragement and hype.
- BitTorrent (BTT). BTT was a token built around the file-sharing platform BitTorrent. The platform was already functioning and existed without a token, which has led many to place BTT in the “shitcoin” category. The token supply is 1 trillion.
- Dent (DENT). DENT is a cryptocurrency used to purchase mobile phone packages. However, many believe the application does not require blockchain technology and actually functions better without it. It is seen by many as a way to cash-in on cryptocurrency success.
- TRON (TRX). TRX was developed to power the Tron blockchain. However, some have questioned Tron’s legitimacy as the whitepaper appears to be plagiarised. It is seen as a shitcoin.
- Shibu Inu (SHIB). Working with Dogecoin’s success, SHIB was developed as a token simply named after the Shiba Inu dog breed. It serves no purpose and is not associated with any blockchain or decentralised application.
Shitcoins are risky investments that most cryptocurrency enthusiasts should steer clear of. For investors with large risk appetites, shitcoins may present an opportunity to make large profits. But always ensure you fully understand the short-term and long-term potential of the coins. Once comfortable with the risks, invest small amounts and take profits regularly to avoid making a loss.
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