Exist To ‘Shitcoins’ And How To Recognize Them? - Kakiforex.com - Financial Market Media No. 1 in the World Exist To ‘Shitcoins’ And How To Recognize Them? Exist To ‘Shitcoins’ And How To Recognize Them?

June 23, 2021

Exist To ‘Shitcoins’ And How To Recognize Them?

 It is estimated that there are over 4,000 cryptocurrencies in the market and it can be said that these days there are only newly launched cryptocurrencies. Indirectly, the crypto community is also beginning to be overshadowed by the fear of mistakenly investing in ‘shitcoins’.

The question is, exist to shitcoins and how to recognize them?

The term ‘shitcoins’ can actually be said to be subjective. But, basically shitcoins refer to cryptocurrencies that have little or no value, no clear establishment purpose and no guaranteed project. In short: useless.

It could also be that these shitcoins refer to any coin/token that is not liked by someone, such as Dogecoin (DOGE) which is not liked by many because there is no solid foundation and the price has increased due to Elon Musk. But at the same time have a very large community and already have a project plan!

Shitcoins are also synonymously considered a tool for quick profit because their prices are driven by mere speculative. So it is not surprising if there are a handful of investors who can afford to get rich and lose overnight after pump and dump tactics.

Even if you are involved with shitcoins, there are two situations that are likely to occur:

You are a victim of pump and dump.

You are actually an ‘early adopter’ because the price of a cryptocurrency takes time to rise, driven by new projects.

The way to recognize shitcoins is very easy if you are diligent in doing your own research #DYOR.

Its founder or builder is a mystery. While the founder of Bitcoin (BTC) is still a mystery, this king of crypto is still strong as it has a line of crypto experts who continue to maintain the sustainability of its network with projects such as Taproot, Segwit, Schnorr signatures and Lightning Network.

A crypto that promises a lucrative project but has no obvious functionality. Like sowing promises but none of them are fulfilled. Because of that, investors who are really serious in this investment will take note of the crypto roadmap/whitepaper.

Aspects of the project that look like copy or plain. If the web crypto project is too general or uses a free domain, just forget the intention to invest because only from there can identify the crypto background that does not guarantee.

Number of hodlers. Not sure how valid it is, experts say make sure any new coin/token has 200-300 hodlers (minimum). Similarly a potential new coin should already have 5-10 transactions per minute.

Check the liquidity pool. As the backbone of most decentralized exchanges, the liquidity pool is very important. If the project you’re targeting doesn’t have at least $ 30,000, it could be it’s just shitcoin.

For those who are still wondering, "Which one is shitcoins?" or "Coin A is shitcoin?", maybe the answer is already there. The rest, do your research and evaluate for yourself because investing without research is just pointless.