“All Shitcoins are Altcoins, but an Altcoin doesn’t have to be a Shitcoin”
Currently, there are more than 20 thousand different types of markets and there are more than 5 thousand cryptocurrencies. Therefore, it is necessary to detect at all times which cryptocurrencies are valuable and which are not, since speculation is at the command of these markets where regularization is lacking.
From Money Investors, we support the training of Traders and investors, whether they want to start from scratch to learn about financial markets such as cryptocurrencies, or prefer to develop more advanced training.
At TDC we have basic and advanced stock market courses, and a blockchain and cryptocurrency course, for anyone who wants to gain freedom and be solvent when handling market information. Today we are going to talk to you about what a shitcoin is and how we can detect them.
Table of Contents
What are Shitcoins?
If you have been involved in cryptocurrency markets, or simply surround yourself with people who are in the world of cryptocurrencies, you have surely heard of shitcoins.
A shitcoin is an altcoin that lacks actual governance, wealth distribution, quality, and technology. For example, Dogecoin is listed as a shitcoin since, despite its large community and acts of solidarity, it does not offer any real value and was created by a meme.
Due to the lack of regulations in the crypto markets, there are scam currencies that do not have any real value and that use marketing strategies to attract new investors. Many projects appear as great innovators and end up losing their ambition.
Many people treat other non-Bitcoin cryptocurrencies like Shitcoin. However, there are large projects such as Ethereum, Ripple, Litecoin or Dash that should not be pigeonholed within a shitcoin project.
A shitcoin is an Altcoin, but not all Altcoins are Shitcoin. The difference is in the real value they provide.
When we talk about Altcoin, we mean all those currencies that are not Bitcoin
In summary, we can say that the term shitcoins refers to those digital assets that exist in the market but are of no use. And with the large number of cryptocurrencies and tokens that currently exist on the market, the vast majority can be integrated into the group of shitcoins.
Invest in Shitcoins
All new projects that come onto the market are usually accompanied by large marketing campaigns to attract investors. Therefore, there are many people who diversify and get involved in different projects. This is not bad, however, we must know how to detect which projects are really suitable.
If you are looking for cryptocurrency projects to invest in, you should review the projects well through different sources and not only on the developer website, since the information in those places will always be attractive.
Detect Shitcoins
To detect shitcoins, we must look at the pros of the project, and above all, review the cons:
It does not solve any real problem.
The most common technique shitcoin projects use to attract investors is to create problems that don’t really exist.
Most of the cryptocurrencies on the market claim to solve some big problem, but we must look for that problem and know if it exists before we believe their claim.
An increase in price does not mean quality
Many of the initiated investors consider that a rise in prices somehow means that the cryptocurrency is valuable. However, Bitconnect was up more than 5000%, and when the bubble burst, people who invested in this digital asset ended up being scammed and gave millions to owners who got away without problems.
When a coin increases in value, regardless of the magnitude, be it 100% or 10,000%, it does not mean that the cryptocurrency is of quality. Not to be ignored is the fact that the vast majority of investors do not have a solid financial education, and base their purchases on price increases.
Anonymous developer team
It is a great indicator of Shitcoin. When the project development team is anonymous, we must be alert because it is a worrying sign. There is no reason for a team to be private if you are doing a regular or good project, unless you want to hide something.
From scratch trading, we advise never to invest in projects where you cannot see the faces or credentials of the owners.
Moment of creation and market capitalization
These are two of the most interesting factors when reviewing a crypto project.
When you look at cryptocurrencies that are old enough, you can determine if they have kept promises made before. Normally, new currencies tend to have higher risk because it is not possible to correctly value how the company will behave.
Many people invest their life savings in new cryptocurrencies in the hope that it will come up with a good project, and they end up losing everything.
One of the tips is to invest in currencies with high liquidity and volume.
Big page shitcoins
Many important pages or profiles are dedicated to giving away or facilitating the purchase of shitcoins, or coins with a low market capitalization. This is used as a strategy to get rid of shitcoins, encouraging the purchase of these coins by new investors and followers.
Whenever a page or profile well positioned as a “trust” page invites you to obtain cryptocurrencies, you must first doubt and do your own research, the work done by yourself will always be more useful.
Shitcoins without data sheet or functional product
Despite the fact that a project is presented with a great revolution, revolutionary idea or innovation for the market, if it does not have a technical file or document, functional product or patent, it is most likely that it is not a good idea to invest in the project.
Conclusion
The world of cryptocurrencies has become popular and spread enormously, in such a way that many projects appear born solely to scam new investors, or with a lack of financial knowledge.
Projects are born every so often, and it is necessary that we know what they propose to us and everything that surrounds each one that seems to us an investment of interest. Many shitcoins were born for the simple fact of creating a community, but others seek to profit and then leave investors without savings.
Review these cons every time you want to invest, and take a good look at the project, the equipment, the documents, and all the information you can get from the cryptocurrency environment.
Probably wanna read:
- Altcoins: What are alternative cryptocurrencies and how do they work
- Dogecoin | DOGE: What is it and how does it work?
- Shiba Inu (SHIB): What is it and why is so popular
