Shitcoin is a derogatory name coined for altcoins created after the emergence of bitcoin. These crypto tokens have come to stay with various new projects launched in the crypto space daily.
They are cryptocurrencies with no apparent value or purpose and include popular meme coins and scams. Ethereum, Dogecoin, Solano, and Monero have been categorized as shitcoins. However, it is not an ideal classification since Ethereum now supports more transactions than Bitcoin.
Recently, shitcoins are finding more relevance in the crypto world with applications in gaming. De-Fi and NFTs. This name is due to the rug pull scams experienced by users in some shitcoin projects.
There is no definite answer on the best shitcoin to buy. However, they are ideal for short-term gains. Many shitcoins also offer low transaction fees for the trade of digital assets.
Keep reading for more facts about shitcoins.
Understanding Shitcoin (STC) In Crypto
Shitcoins are cryptocurrencies with no discernable value. Although they have practical use, they are still considered inferior to Bitcoin. Shitcoins are altcoins that came after the creation of bitcoin for investors interested in cryptocurrencies.
They are notoriously volatile and account for most of the new cryptocurrencies in the market. The term shitcoin highlights this trait, as projects like Shiba Inu have famously pumped and crashed in the past.
This loss in valuation is due to pessimism among investors in the crypto ecosystem. The price of shitcoins is mainly based on speculation.
Most shitcoins exhibit similarities to bitcoin and execute transactions through smart contracts. There is a lengthy shitcoin list that increases daily as more projects get created.
According to Motley Fool, shitcoins now offer shit farming, which is their term for yield farming to earn profit.
Examples of popular shitcoins
Dogecoin: This meme coin was designed with a popular dog-themed meme used by social media users. Most hype surrounding the project was based on Elon Musk’s influence.
Dogecoin, at its inception, was overhyped, and many investors rushed into the project. However, over time interest waned, and the price crashed to fractions of a dollar. With Elon Musk’s recent acquisition of Twitter, investors observed a brief rally in the price.
TRON (TRX): TRX was created to power the Tron blockchain. The project seems to be on a steady decline, and questions have been asked about the legitimacy of its white paper.
The crypto circles believe that they had copied another project's whitepaper to create their project.
Shiba Inu (SHIB): Another popular dog-themed meme coin family member. It rode on the success of the doge project. However, it has no defined purpose and is yet to be linked to any viable blockchain or decentralized application.
It has a maximum supply of 1 quadrillion, which has made the token have very little value.
BitTorrent (BTT): This token was built for file-sharing by the platform – BitTorrent. It has a token supply of 1 trillion.
Dent (DENT): This token is explicitly used to purchase mobile phone packages. It can run without blockchain technology and is grouped under the shitcoin category.
What Makes Shitcoin Unique?
Shitcoins fulfills two main roles:
- Exchange of assets (As seen in liquidity pools that store crypto).
Shitcoins are tradable in highly volatile markets. Due to their sudden price fluctuations, they present ideal opportunities for short-term traders like scalpers to make profits.
Bitcoin is quite expensive for some traders to afford; they take advantage of these shitcoins to make a profit.
2. A virtual base for creating and selling non-fungible tokens (NFTs)
NFTs are now in vogue in different sectors of the crypto space. These digital works of art are unique and have gradually gained significant relevance.
Ethereum is the largest NFT support network, and shitcoins are jumping on the trend. In gaming, a unique NFT-based reward system applies to most new products.
Shitcoins are unique in the way they are traded, despite some projects' striking similarities. Shitcoins like baby shitcoin are a good example of these projects' uniqueness. They attract a 6% buying fee and a 9% selling fee.
These trading fees are used to increase market liquidity and reward coin holders.
For instance, Jacob Martin created the coin called shitcoin and released the project on December 20, 2021. While it is not considered a serious project in some quarters, it still serves as a digital currency. It was available on pancakeswap as a token after the presale.
Shitcoins are similar in their price movement. The price can suddenly spike overnight and fall back to below zero as investors rush in for short-term gains and dump the project mid-way.
How Shitcoin Works In The Crypto
Shitcoins are not the ideal stock recommendation, but they are sometimes viewed as passive income sources. The success of shitcoins has attracted investors that hope to benefit from blockchain technology. This technology, with new updates like the metaverse, has seen the rise of altcoins like Meta-shitcoin, monacoin, and doge.
Most of the projects try to mimic bitcoin, although projects like Solana and Ethereum are getting more creative. The shitcoin crypto coins are created with a supply limit to increase scarcity and drive up the shitcoin price.
However, some shitcoins have no limit and end up practically worthless and minted in large amounts. Bitcoin uses a halving mechanism to reduce its total circulating supply every four years. Some shitcoins also adopt this technology.
Shitcoins have different working mechanisms and protocols. The most popular ones are Proof-of-Work, Proof-of-Stake, and Proof-of-History.
Shitcoins are getting more advanced in their operations, with some projects creating governance tokens for on-chain governance. One added benefit of shitcoins is faster transaction times and lower costs.
Decentralized finance is an area where these coins have been properly applied. Many individuals and corporations can now handle international transfers seamlessly without incurring additional taxes and costs.
Users trade and farm Shitcoins for profit and to produce yields. Many shitcoins also work seamlessly with other cryptocurrencies making crypto trade more versatile.
How To Buy Shitcoin
You can buy Shitcoins mainly on decentralized exchanges like pancake swap. Depending on your point of view, if you consider projects like Ethereum and Solana as shitcoins, you can purchase them from Margex.
The only reason to invest is if it will yield profit. Although some shitcoin prices nosedive, suddenly, projects like Ethereum are more reliable.
Sign up
Log in and click on WALLET.
Click on DEPOSIT
Select the crypto you wish to purchase directly with fiat currency
Congratulations, you have made your first purchase. Margex regularly updates cryptocurrencies on the website to help those with interest in cryptocurrencies.
To purchase many shitcoins, go to the liquidity pool on Pancakeswap. You will need a blockchain wallet to make a shitcoin purchase through a decentralized exchange like PancakeSwap.
Some Elements To Consider With Shitcoins
New projects start with an initial coin offering (ICO) in crypto. These offers help to create a buzz around the project to attract investors and increase the price even further.
Even if most ICOs look like an identical copy of the established project, the development team ramp up the promotion.
However, ICOs are only partially reliable as several scam projects have been launched, especially during the crypto boom in 2017. To know a shady shitcoin project, here are some red flags
- If the project's website has a poor design and is hosted on free domains.
- If the development team is made up of largely anonymous and secretive people who avoid public view. The only thing they seem to be after is investors’ money.
- If the whitepaper lacks originality and is a photocopy of a popular project. Also, if the project lacks a white paper, it is not credible and is a potential pump-and-dump scheme.
- If its offers are too good to be true without any detailed plan or roadmap on how to achieve them.
Tokens offered at very low prices will lead to the purchase of large amounts that will be worthless in the hands of investors. Investors must do proper research before buying into any cryptocurrency project.
These warning signs follow a lot of crypto scam projects that have fleeced investors of their earnings in the past. Like with any other cryptocurrency project, it is wise to research before investing in them.
FAQ – Answers To Your Questions About Shitcoins
The popular opinion is that all cryptocurrencies besides bitcoin are shitcoins. However, there are protests to that theory since projects like Ethereum have proved stable over the years.
In recent times altcoins now carry the torch of innovation in the crypto world. Most shitcoins have a large circulating supply and little or no market value. Find some answers to guide your decisions further.
Is Shitcoin suitable as an investment for 2022 and beyond?
Shitcoins are not your ideal investments. However, you may make short-term gains if you are ready for high-risk volatile trading. Investing only what you can afford to lose is always wise, as all cryptocurrencies are highly volatile.
What cryptocurrencies are shitcoin?
Cryptocurrencies like Dogecoin, Shiba Inu, and Monero are popular coins classified as shitcoins. These coins have a bountiful supply that affects their price and gives them little or no value. The classification of shitcoins is still a bit undefined, as some investors group all altcoins like Ethereum and Solana under this category.
Why is bitcoin not considered a shitcoin?
Bitcoin was the first cryptocurrency and is a largely stable and trusted project. Despite the anonymous nature of the founder, Satoshi Nakamoto, it has lived up to most of its promises. Over the years, bitcoin has proven its stability and has gained investors' trust and market dominance.
Is Ethereum a shitcoin?
Depending on your perception, Ethereum is an altcoin regarded by some traders as a shitcoin. Ethereum has a well-detailed direction and is even more efficient than bitcoin in energy consumption using the new Proof-of-Stake system since the Ethereum merge.
What are the benefits of shitcoins?
Apart from holding sentimental value for the owners, most shitcoins do not have significant benefits. However, some projects can suddenly spike overnight, creating great profit opportunities for investors.
Where can I buy shitcoins?
You can buy shitcoins from Pancakeswap and other decentralized exchanges. To purchase these coins, you need a blockchain wallet to receive them.
Conclusion
Shitcoins have generated mixed reactions in the crypto space. Much controversy surrounds the subject regarding the classification of altcoins since projects like Ethereum have proven storage value.
With the crypto market volatility, these coins could represent an opportunity for a fast profit. However, they are prone to crypto scams and must be carefully studied before investing.
They are not ideal for long-term investors and can suddenly crash without a fair warning. Some investors dabble in them only out of curiosity.
Margex platform offers users more stable tokens to invest in, like Bitcoin, Ethereum USDT, and USDC. Our advice to investors is always to do a proper market analysis. Also, invest only what you can afford to lose.
