In traditional finance, there is a notion known as the “risk-return tradeoff,” which states that as risk increases, so does the likelihood of a positive return. Investing in shitcoins comes with a high risk/high reward profile. You can gain a lot of money in a short amount of time, or you can lose a lot of money in a short amount of time.
If you haven’t heard of it, invest in shitcoins. It’s a term that refers to the growing market of alt-coins that are used as a form of investment in cryptocurrency rather than as a means of using it. These tokens are called “shitcoins” because most people consider them to be worthless and sometimes even scams.
So, let’s pause on the name for a moment. The term “shitcoin” has caught on, but there is no agreed upon definition. When most people talk about it, they are referring to tokens that either have no clear utility or are the specific product of a scam.
Is Investing in Shitcoins a Good Idea?
There have been shitcoin projects such as Dogecoin and Shiba Inu that have generated over 12,000 percent returns in a short period of time, but there have also been projects that have become worthless just a week after their over-hyped introduction. Although the rewards can be huge, there is always the risk to consider.
All of the shitcoins in the ecosystem have one thing in common: they have basic flaws. As a result, the underlying technology or tokenomics is irrelevant. To determine buy and sell signals, you must rely on good technical analysis, which employs a variety of indicators. People frequently utilize bots, which can conduct a large number of trades in a matter of seconds, because the shitcoin market is so unpredictable.
You must examine one key metric in addition to a strong technical analysis: the community.
The underlying community fuels shitcoin enterprises that succeed in generating big rewards. Supporters, celebrities, and influencers who inflate the worth are included. It’s very difficult for new shitcoin ventures to establish a solid community. Older projects that have a history or a story to tell have an advantage in terms of community building. As a result, they might be worth a go.
Why Invest In Shitcoins?
But why should you care about buying tokens that aren’t actual cryptocurrencies? There are a number of reasons, including:
● The market for these coins has been growing, making them an attractive investment opportunity
● There is a rush when new tokens are released, so investing now might be your best chance at getting in early
● Even if the projects don’t succeed and the coins crash or become worthless, you can still sell them and turn a profit by buying them back at half the price you paid for them
● Some token sales have bonuses or incentives tied to the amount people invest, so the more money they receive, the more they can do with it
● If one of these token sales hits its hard cap and doesn’t reach its goal, there is no risk of losing your investment
Things To Note When Buying Shitcoins
When you want to invest in cryptocurrency, it can be hard to know where to start. There are so many options, some of which seem like amazing opportunities for growth… and others that seem like cheap knock-offs.
If you’re considering investing in one of these “meme tokens” or “shitcoins,” here are a few things to consider:
- They’re really not meant for long-term growth. They’re mostly being used as an outlet for humor and play in the cryptocurrency space, so don’t expect a big return on your investment.
- They tend not to have a lot of support from the community or other businesses in the industry, so there’s no guarantee they’ll last.
- There’s always a chance they’ll get delisted by the exchange where you bought them, in which case you might not be able to sell or trade them anymore (and thus lose money).
- DYOR (Do your own research) – Do not trust anyone who tells you something is good to invest in. Make sure to research every bit of information regarding the project.
- Be careful of fake social media accounts – Make sure the social media accounts are legit and do not contain fake followers, comments, and engagement in general.
- Check out their GitHub: This will allow you to see real updates by developers and what they are working on at that moment. If there is no GitHub link or it is empty, then it could be a scam
- Read their whitepaper: Make sure you read their whitepaper as well; it contains all the information regarding their roadmap, team members, partners, etc.
While there are lots of solid, high-quality cryptocurrencies out there, it is important to keep in mind that others are not as reliable. When thinking about how to invest in crypto, it’s worth considering how much it is possible to spend. In many cases, high SAT scores are associated with people who can afford higher education (itself where IQ test scores tend to be higher).
I don’t know the outcome of this experiment. It’s an industry that is almost perfectly designed if you’re a criminal (quickly exchangeable and untraceable assets), but I’m not saying that every project is a pump and dump scheme.
Be careful out there! Before making an investment, it is wise to do thorough research on the project you are interested in. In other words, don’t invest in a cryptocurrency if it seems too good to be true. If you think something looks fishy, then it probably is.
Feeling that you have been scammed, do not hesitate to report to us at our support contact detail here. We will investigate thoroughly into your allegations and determine if the website is indeed a scam. Furthermore, we are working closely with relevant authorities in order to shut them down for good. You can rest assured that we will not stop until every cent of all victims of this criminal enterprise has been returned.