Why are some Cryptocurrencies called Shitcoins?, Building Design Tips, Online Advice
Some Cryptocurrencies are called Shitcoins
19 Jun 2021
What are Shitcoins?
In the subjective opinion of the investor, a shitcoin is a lousy investment. It can also refer to coins that have no specific purpose.
The question then is: why are some cryptocurrencies called shitcoins?
Well, there are no definite or particular reasons why this acronym was created. Forums and various social media users have found sense in keeping wording short. And that’s why they’ve decided it is unnecessary (or perhaps, a waste of time) to write that a coin ‘is a bad investment.’ This is why crypto-investors (particularly beginners) slowly coined the term by combining the words “shit” and “coin.”
How to recognize shitcoins?
In time, the market tends to be turbulent, and all coins go through cycles, but if you look at undelivered promises, a lack of usability, and the purpose a coin is trying to serve, you can discover the truth about the coin.
Where can you buy shitcoins?
Several big cryptocurrency exchanges let you purchase shitcoins, which are primarily small-cap altcoins.
As stated above, shitcoins are primarily subjective, and there is no precise way to tell what platform would be best to use to obtain them (if that’s your goal).
The general rule is to look for platforms that are specifically designed for swing traders. Binance, Bittrex, and other legit exchanges fall into this category. And you may check The News Spy app to find more options.
If you receive coins from an exchange, be sure to transfer them out as soon as you receive them.
Why buy shitcoins?
It’s possible to potentially make the most “high-risk, high-reward” investment with small-cap altcoins. You may lose all that you’ve saved for months. But in some instances, you’re likely to find yourself in either of these two situations:
- The shitcoin you own becomes the target of a pump and dump scheme.
- What you think is a “shitcoin” is not a shitcoin; you became an “early adopter.”
If you have clear goals for what you wish to sell now, both of these scenarios can be very profitable. Often, a minor investment will yield the best results. Don’t allow emotions to interfere with your logical decisions. Clear your mind and stay focused on your goals.
XVG, a privacy coin many people consider a shitcoin, is an excellent example of this phenomenon. As a result of the cryptocurrency’s rapid rise in value (*1-2 months), a small number of believers became extremely wealthy within a short amount of time.
In the end, the coin’s price quickly returned to its initial value simply because it had no product and was overhyped.
Buying shitcoins: best practices
Before buying something relatively unknown or disliked by the community, please do some research better to understand its potential for short and long-term gains. You should then invest a small amount of money after feeling confident that a particular coin will appreciate.
Keep an eye on the market to know whether your initial speculation was accurate. If it’s not, you may have to decide between selling your coins and taking a loss or keeping them and waiting for an increase in their value.
If the price increases, taking profits, or even just your initial amount and continuing to ride the uptrend is the best option. However, if you are familiar with the risks, you can also invest a more significant amount when you receive a clear signal that suggests a good time to buy.
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