The purpose of this article is to try to educate newbies on ‘shitcoins’ so you know what you’re going into.
The name shitcoin to begin with is already a red flag but why is everyone talking about them?
What are Shitcoins?
Shitcoin has been used to refer to any cryptocurrency with little to no value or a coin that has no Use-Case or purpose. Their prices are based on speculation. In other words, a shitcoin is a cryptocurrency that will someday be totally worthless.
While shitcoins are considered worthless, that doesn’t necessarily stop them from going ‘to the moon’.
If you’ve heard of MMM or Racksterli, then you’re not far from the definition of shitcoins. It’s basically a Ponzi scheme.
If 10 of us open a bank account without putting in any money, the account balance is Zero right? Then we all decide to put 10k each in it now the account is no longer worthless because we now have 100k. Now as a smart boy, while you people are sleeping I’ll remove 30k and 2 other persons will sharply wake up and remove 30k each too. Now 10k is left in the bank for 7 people, well I don’t know how you people will share it but may the best man win.
Now I’ve cashed out 30k from something worthless that doesn’t make it any less worthless.
How do you know a Shitcoin?
So yes an Investor, one rich man can decide to put $1million in a shitcoin so that the price will go up and you with ‘Ojukokoro’ will jump into it and take the price even higher. When it’s at a high that he’s satisfied with, he pulls everything out and everything comes crashing down on you especially the ones who joined late.
You can easily identify a Shitcoin because they follow a specific pattern. The price increases exponentially over a short period of time as investors begin to jump on board.
This is followed by a crash caused by investors who dump their coins to collect their short-term gains.
– Shitcoins are characterized by short-term price increases followed by nosedives caused by investors who want to capitalize on short-term gains.
– Shitcoins barely do private sale or IDO.
– They do no Airdrop or the airdrop is equally worthless.
– They usually have so many decimals because like I said they’re basically worthless.
The Pump comes from people like you and me putting in money.
Quick take: Shitcoins are for short term profit. They’re not for holding long term.
I do not advise any newbie to go into shitcoins but if you must, once your money has doubled, take out your Capital and a half and leave the remaining profits so you don’t lose out “WHEN” it crashes.