What is a Shitcoin and how to profit from it. - Crypto Academy / S5W8 - Homework post for nane15.
Introduction
Hello wonderful people, how are you today? I hope you're having a fantastic week. I'm ecstatic to be a part of this unforgettable lecture. In this article, I'll share my experience with What is a Shitcoin and how to profit from it
Explain your understanding of what a Shitcoin is?
Shitcoin is made up of two words: shit and coins. Shitcoins are coins that were made with no particular purpose in mind. It's a term used to describe cryptocurrencies that are worthless. To put it another way, shitcoins are cryptos that add nothing to the cryptocurrency industry. The phrases shit and coin are combined to give these coins their namesake, which translates to worthless coinage or coin. Shitcoins can be made by anybody because they have no intrinsic value. As a result, anybody who wishes to make it will find it quite simple and will not be held responsible for anything. Shitcoin was created with no specific purpose in mind. That is, they are developed with no genuine purpose or foundation for the endeavor.
In the field of cryptocurrency, there have been numerous debates over shitcoins. It was made just for the sake of amusement in the crypto sphere. These coins grow in value due to speculation, making it impossible for investors to predict their future value. Because of the high risk involved with shitcoin, it might be an extremely hazardous investment.
Shitcoins are sometimes known as penny cryptocurrencies. These cryptocurrencies have the lowest prices, and as a result, they are not well-liked. Finding a shitcoin might be difficult at times. To classify a coin as shitcoin, there are no attributes, traits, or regulations.
Do you think it is possible to profit from investing in Shitcoins?
Yes, It is feasible to earn from shitcoin investments. In the crypto market, there have been several shitcoins that have value and are often featured on well-known exchanges. Although it is rare to identify a shitcoin with a high potential for giving a good payout, it is feasible to find one or more that individuals may benefit from. To invest and earn in shitcoin, investors must conduct extensive study and analysis in order to learn about the project's creators and, more importantly, the project's likely direction.
Investment in shitcoin has bigger risks than traditional investments, but it also yields a higher return. The Dodge coin and Shiba Inu are two examples of shitcoins that have witnessed fast price increases. The idea is to invest in the correct shitcoin, and it's also vital to buy shitcoins when they're still extremely cheap or right when they're launched to maximize profits. The majority of shitcoin transactions are based on pure assumption. The market might swing in either direction, meaning you could lose all of your money or earn a tremendous profit.
List advantages and disadvantages of investing in Shitcoins?
Advantages of Shit Coins:
Investing in shitcoins might result in the long-term ownership of a huge token, particularly if investors invested further in the pre-sale of the coins.
Because they are of even less value, their prices are extremely low, and anybody may invest in them.
Another perk is that because these coins are not recognized, merchants may hold vast quantities of them, lowering their price.
Shitcoins are well-known for their potential to rapidly increase in value. This spike in value might be the result of unexpected endorsement from a significant figure.
It's a way of putting money in as a savings that you don't need right now. And, of course, by storing it, you will get the best possible return.
Disadvantages of Shit Coins:
There are no use cases for shitcoins. They are made just for the sake of amusement or as coinage.
The value might decrease considerably at any time, causing investors, particularly those who have put a substantial amount of money into it, to lose money.
Some shitcoins could well be linked to spam or other forms of fraud. Shitcoins might drop their effectiveness, and the support staff behind it may suffer losses.
Investing in shitcoins is problematic since most individuals are merely interested in making quick money. Due to the low market valuation and backing of most shitcoins, they can quickly transform your investment into a significant loss.
Even though most big exchanges platforms don't really recognize shitcoins, buying or selling a shitcoin will need you to use a less confidentiality and security or swap network.
List at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
The following are examples of shitcoins that have been a scam.
- Baby Doge BNB
- Raca Dao
- Squid2 (SQUiD)
Baby Doge BNB
It is one of the Shitcoins that has been identified as a fraud. It is a cryptocurrency that has been deployed on the Binance smart chain (BSC BEP-20). The contract will be activated on October 23, 2021, at 05:08 GMT. This shitcoin has a total quantity of 100,000,000 BabyDogeBNB, a circulating supply of 100,000,000
Raca Dao
This is another Shitcoin that has been alleged to be a fraud. Raca Dao is a cryptocurrency that was launched on the Binance smart chain (BSC BEP-20) on January 4, 2022, at 01:47 GMT. This shitcoin has a total supply of 500,000,000,000 RACADAO and a circulation quantity of 500,000,000,000. Its decimal place is 8 and it has only one holding. It has been claimed that the token is a hoax and has been exploited.
Squid2 (SQUiD)
Squid2 is yet another shitcoin that has been claimed to be a scam (SQUiD). Squid2 (SQUiD) is a crypto that will be launched on the Binance smart chain (BSC BEP-20) on December 28, 2021, at 04:05 GMT. It has a supply of 996,841,175,330,935 SQUiD and a circulation supply of 996,841,175,330,935 SQUiD. Its numeric place is 0 and it has 4 holdings. It has been claimed that the coin is a hoax and has been exploited.
Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
There are more Shitcoins that have been established and are still in use, but for the purposes of this discussion, we will focus on just 2 of them: Safemoon and the Baby Cake.
SafeMoon
The safe moon is a solid shitcoin that was introduced on the Binance smart chain in March 2021. When a payment is performed out with the safe moon token, a 10% fee is always deducted from the operation. This is taken to minimize the rate of transactions carried out with the coin. In other terms, the token wants to be held for a long period, and the 10% fee was introduced to incentivize this long-term ownership.
As at the time of writing this assignment task, the information about the safemoon are seen as follows; Price: $0.000002409, MarketCap: $1,410,643,433, Circulating Supply: 585,536.37B SAFEMOON, Rank: #208, Volume: $32,562,915, Volume/MarketCap: 0.02318
Baby Cake
The Baby Cake is a famous shitcoin that was introduced on the Binance smart chain in July 2021. Shareholders of this coin are always motivated to hold more of the token through reward offering. However, incentives are not provided to all token holders; rather, rewards are offered to those who own 200,000 or more tokens.
As at the time of writing this assignment task, the information about the Baby Cake is seen as follows; Price: $0.00001824, Rank: #5859, Volume: $$13,795
Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
In this subject, we will investigate the Safemoon historical assessment graph using the original Coingecko website I'll be examining the commodity throughout a one-year period. According to the chart below, space label I have a price range of $0.00175000, space label II has a price range of $0.00150000, and space label III has a price range of $0.0030000. According to the research, the market dropped at level II and rose at level III.
According to the image shown, the safe moon coin launched with a price range of less than $0.00175000 as of 24 December and declined to a price range of $0.00150000 as of 27 December. The price has risen to a range of $0.0030000 as of 5 January 2021.
According to the picture shown, the safe moon token reached this is all-time high (ATH) on January 5th, 2022. (1 hour). Likewise, the safe moon token's All Time Low (ATL) was observed on December 23, 2021. (14 days).
Based on your previous analysis, what do you think will be the development of the price of the cryptocurrency for this year? Be creative when explaining.
Based on the results of the study performed on the aforementioned coin, you will see that the year has already begun on a high note. This year has seen the asset reach its all-time high, and a check at the chart shows that it is continuing to rise. Because the year began on a high note, the price of the asset is expected to rise steadily.
The graph's tendency has really been adjusted in the area labeled III. This implies that the tendency will now be free to travel higher, meaning that the price of the safe moon token will rise greatly this year.
Conclusion
Shitcoins, since we have learned, are coins that were manufactured with no clear objective. Most of the time, these coins are made with the aim of making jokes. We've also witnessed the various benefits and drawbacks of shitcoins, which may help dealers and consumers generate a lot of interest. Similarly, we have explained that there is a risk of loss because the price may fall dramatically.