What are Shitcoins and How to Trade them with minimal loss?

Photo by Adam Nowakowski on Unsplash

A shitcoin is a cryptocurrency or digital currency having little to no value and no obvious, immediate use. The phrase is frequently used to refer to other cryptocurrencies or coins created after bitcoin gained popularity. In this article, we discuss what shitcoins are and how to trade them

What is a Shitcoin?

THE WHAT?

• A cryptocurrency with little to no value or a virtual currency with no obvious, immediate use is referred to as a “shitcoin”
• The phrase is a derogatory one that is frequently used to refer to alternative cryptocurrencies or altcoins that were created after bitcoins gained popularity
• A shitcoin’s decreased value is frequently the result of disappointed investors because it was not launched in good faith or because its price was dependent on speculative activity
• These currencies are therefore viewed as poor investments

How Shitcoins Work?

THE WHAT?

• Since an altcoin’s supply is fixed, demand should determine how much it is worth
• However, because the majority of cryptocurrencies have little to no real-world applications — it is still uncommon to purchase and sell real-world goods and services using cryptocurrencies — their valuations are purely speculative
• A shitcoin is therefore anything that people claim to be valuable just by virtue of its existence
• Shitcoins have a distinct pattern that makes them simple to recognize
• When a coin launches, there might be some interest in it, but the price generally stays the same
• But once investors start to get on board, the price rises dramatically over a short period of time
• After that, the market takes a plunge as investors sell their coins to make quick money

How to trade shitcoins?

THE WHAT?

• Shitcoins have taken over the cryptocurrency market and are quickly rising to the top of the most popular coin categories
• Traders start looking for the coin contract address as soon as a new shitcoin is generated and its token is announced on exchangers like pancakeswap or julswap so they can quickly investigate it, examine or analyze its candle stick before they buy these coins

The two main considerations when purchasing shitcoins are;

1. Shitcoins can vanish

2. They can grow to become stablecoins

• Since there are new shitcoins being introduced on a regular basis, it is difficult to anticipate which ones will develop into stablecoins
• While this is going on, stable currencies like BTT and WIN which were once considered shitcoins are now listed on reputable exchanges like Binance
• Take a shitcoin’s Contact Address to a website like BSCScan.com before purchasing it to examine its supply and liquidity
• To inspect and research the candle sticks, use the poocoin.app
• As it is in cryptocurrency, never purchase a trash coin during a pump; instead, wait for it to drop before doing so
• Don’t purchase shitcoins with the intention of hoarding them and returning in a few days, weeks, or months
• The coin might have disappeared before you got back, costing you your money. At most a few days, shitcoins are traded in minutes and hours (which is very rare)
• When purchasing shitcoins, you should always be vigilant and keep an eye on the growth or pump rate
• A coin that is worth $100 at 2:00 p.m. can pump to $1000 in 30 minutes and then dump to be worth less than $50 in the next 15 minutes
• Shitcoins should be handled carefully, withdraw the amount you used to purchase them during a pump and save the rest; this way, if there is a bigger pump, you might gain more, and if there is a drop or dump, you won’t lose anything

REFERENCES:

1. https://www.investopedia.com/terms/s/shitcoin.asp#:~:text=A%20shitcoin%20is%20a%20cryptocurrency,developed%20after%20bitcoins%20became%20popular.
2. https://leofinance.io/@nulesmallz10/best-way-to-trade-shitcoins

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