How to Spot “Shitcoins” and Prevent Buying Them

Find out how to distinguish between cryptocurrency “Shitcoins” and one with high-profit potential. Numerous accounts of people who joined the cryptocurrency revolution became wealthy swiftly and are currently enjoying billionaire lifestyles. Because these people are regular people, putting yourself in their situations is simple, making the stories all the more compelling.

What are “shitcoins”?

The word “shitcoin” refers to worthless and useless cryptocurrencies. These digital currencies are imitations that haven’t added anything new to the crypto world. They need definite objectives. Shitcoins don’t have any functionalities, unlike Bitcoin or Ethereum, which were developed with clear, well-defined objectives and unique ambitions. They lack the lifespan of other coins as a result.

Risk Of Shitcoins

There are many cryptocurrencies available. All of them cannot compete with Bitcoin, Binance, or Tether. There are profitable and unprofitable investing options on the stock market, which is true of cryptocurrencies. To profit from people that join the cryptocurrency bandwagon without doing their research first, many shitcoins are developed. They have little another basis for worth beyond conjecture.

Shitcoins have caused many to lose money, ranging from hundreds to thousands of dollars. Considering buying cheap, less well-known crypto after hearing tales like that of Contessoto can be very tempting. Investing in cryptocurrencies carries dangers comparable to those of stock market investing. Never invest more than you can afford to lose, and always conduct research before making any decisions.

How do you think you could spot a shitcoins?

1. The creators are enigmatic:

A project should be supported by reliable individuals, not a collection of random strangers who go by fictitious identities. You wouldn’t buy stock from a group that isn’t identified, would you? This also holds. For instance, the coders are seen as doxxed and are significantly more reliable if they have publicly identified themselves in a video on YouTube or Instagram. It’s considerably less likely to be a fraud when people’s perceptions about them are understood.

2. The project makes a lot of bold claims but has yet to establish functionalities.

Anyone may create lofty objectives and declarations of intent. However, the road map for achieving those goals cannot be given by just anyone. A project is only reliable if the functionalities are defined.

3. The project has elements that seem generic or replicated.

A warning sign should be raised if a project’s website appears generic or uses a free domain. It indicates that it could be a more simple, well-developed project. Additionally, if the white paper is identical to other well-known initiatives, it was probably copied to make consumers feel secure. Alternatively, if it is written in a technical language that is difficult to grasp, it is probably a shitcoin.

4. The number of holders.

According to experts, any new coin worth investing in should have at least 200 to 300 holders. Any currency that falls short of that standard is unhealthy and unworthy of investment. The same is true for any healthy new coin, which should have five to ten transactions per minute.

5. The liquidity pool is an example

. Most decentralized exchanges are thought to be supported by their liquidity pools. The project you are investing in is probably a shitcoin if it doesn’t have at least $30,000. Low numbers, such as a few hundred or thousands, should be a warning.