Top trending and the best Shitcoins examples are pumping the cryptocurrency market, and there’s a lot of money to be made if you invest wisely. here we purposfully try to present some significant information about how and where can you spot them.
What is a Shitcoin, meme coin, and altcoin?
The catch is that shitcoin currencies are frequently seen as poor investments, as their value are often based on speculation. Consider them to be cryptocurrency equivalents of penny stocks. They despise shitcoins as well, but not all new coins belong within that group.
These words are used to describe cryptocurrencies that have little to no value and provide no immediate or discernible purpose. They’re frequently used o characterize cryptocurrencies like Dogecoin and Shiba Inu coin, which were created after bitcoin became popular.
“Every coin has to start with 0 holders. Everyone has to start somewhere. And every solid project deserves a chance to grow.” So, according to Reddit, this is how you can separate the wheat from the chaff”.
What Is Shitcoin and How Does It Work?
A cryptocurrency with little to no value or a digital currency with no immediate, visible use is referred to as a. The term is sometimes used as a derogatory term to characterize altcoins or cryptocurrencies that emerged after bitcoin became prominent.
A shitcoin is a cryptocurrency or digital money with little to no value and no discernible function. The word is frequently used to describe altcoins or cryptocurrencies that arose in response to the popularity of bitcoin.
Short-term price spikes are characteristic of shitcoins, which are followed by nosedives induced by investors looking to profit from short-term profits.
What Are Shitcoins and How Do They Work?
Since the introduction of bitcoins in 2009, there has been a significant growth in interest in cryptocurrencies. Their popularity has attracted companies hoping to use blockchain technology to build their own Altcoins, which are digital assets that are based on the bitcoin design. The number of tokens eventually made available—the supply of bitcoin—is usually announced by developers.
Developers usually indicate how many tokens will be accessible in the end—the supply of bitcoin is limited to 21 million, while the supply of ether is limited to 18 million per year.
Setting a supply limit generates scarcity since investors know that after a certain point, no more tokens will be generated. More tokens would theoretically dilute the value of their holdings, much like a new stock issuance would.
Because an Altcoin’s supply is fixed, its value should be determined by demand. However, because most cryptocurrencies have limited practical applications—buying and selling real-world goods and services using cryptocurrencies is still uncommon—their valuations are mostly speculative. As a result, a Shitcoin is something that people claim to be valuable just because it exists.
Shitcoins are easy to spot since they have a consistent pattern. Although a coin may generate some curiosity when it first releases, its price remains quite stable. However, when more investors get on board, the price rises enormously in a short period of time. Following that, investors dump their coins in order to profit from short-term gains, causing the price to plummet.
Three golden rules to spot the best and newest shitcoins in 2021
There are three golden rules that must be followed. To begin, trade on the Binance Smart Chain, invest little more than $5 each coin for the first 1–2 months, and expect to lose between $150 and $200 on your journey.
Check how many holders a new trending coin has once you’ve discovered it using BscScan. “A healthy new coin should have at least 200 – 300 holders,” Hazelvelvet says. If it doesn’t, stop right away.”
Then, double-check the liquidity pool (which is the lifeblood of many decentralized exchanges) to make sure it’s at least $30,000. “Abort quickly if it only contains a few hundred dollars, or even $5k or $7k.”
According to Hazel velvet, a good amount of transactions for a new coin should be about 5–10 every minute. Don’t forget to double-check the coin’s legitimacy by looking for an official website and Twitter account. You should be fine as long as the coin’s emblem isn’t a stock photo and it has a catchy name that makes it more likely to take off.
Finally, seek for currencies that have a team that has been doxed. This is when team members use Instagram Live or YouTube videos to publicly identify themselves. Because their faces are publicly recognized, this greatly reduces investment risk. “They would virtually probably end up in prison” if they were conducting a scam.