What is a Shitcoin and how to profit from it. - Crypto Academy / S5W8 - Homework post for nane15

ofalamin (57)in SteemitCryptoAcademy • 3 years ago

Introduction

Seasons' greetings and welcome to my week 8 homework post for Professor @nane15 which he lectured about What is a Shitcoin and how to profit from it.

_{Image created on canva}

Questions

Explain your understanding of what a Shitcoin is.

Do you think it is possible to profit from investing in Shitcoins?

List advantages and disadvantages of investing in Shitcoins.

Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.

Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)

Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)

Based on your previous analysis, what do you think will be the evolution of the price of the cryptocurrency for this year? Be creative when explaining.

Conclusion.

1. Explain your understanding of what a Shitcoin is.

stc source

Blockchain technology has made it easy for anyone to develop a token or cryptocurrency. Due to this freedom, developers now filled the market with mostly irrelevant coins and the majority of them are scams. It is important to be able to tell the difference between a real coin and a shitcoin in other not to lose your assets.

Shitcoins have little or no value, it is a name given to useless kinds of cryptocurrencies that do not have any purpose. shitcoin developers create these types of coins to take advantage of people that have no idea of what a shitcoin is, these people invest so much money on a shitcoin and HODL it for the long term.

Investors that know how to ride the trend of shit coin pump so much money in shitcoin, then wait for a short period of time for the coin to increase in value before they now exchange their shitcoin asset for a valuable or stable currency which will now cause a dip in the market value of that shitcoin.

As a person who is considering investing in shitcoins, the first advice is not to invest more than you are able to risk. If you arrive at a profit on your shitcoin investment, withdraw your capital first.

2. Do you think it is possible to profit from investing in Shitcoins?

YES, of course, I think it is possible to profit from investing in shitcoins.

Last year, so many shitcoin investors profited from investing in shitcoins like DogeCoin (DOGE) and Shiba Inu (SHIB).

source
The key is to know the right shitcoin to invest in, and it is also important to buy shitcoins when they are still very low in value or the moment it is launched to get more profit. Buying shitcoins that are backed by influential people, take DOGE for example - the way it was backed by Tesla's CEO Elon Musk give it that rapid pump in price.

Never buy shitcoins due to FOMO (Fear of missing out), because when you do this you might lose funds or gain little profit. Above everything, invest what you are willing to risk.

3. List advantages and disadvantages of investing in Shitcoins.

Profitable as shitcoins appears to be sometimes with its advantageous properties, investing in them also has its downside. Below, I will be giving the advantages and disadvantages of buying and investing in shitcoins;

Advantages	Disadvantages
Shitcoins are known for their ability to have a rapid pump in price. This increase in value can be due to the sudden support it gets from a prominent person.	The same way shitcoin can have a massive increase in price over a short period of time, that is the same way it can have a massive dump in price in no time. This is why is recommended to take your profit as soon as there is a rapid jump in its value and never hold it for the long term.
For the fact that it is low in price, you can hold over a billion amount of one particular shitcoin for a little capital invested. But to make more profit, you need to invest in more funds.	Most major exchange platforms do not support shitcoins, so investing in a shitcoin will require you to go on a less secure exchange or swap platform to buy or sell that shitcoin.
You are able to invest in different types of shitcoins because they are not expensive to buy like major coins like Bitcoin or Ethereum. Having various types of shitcoin in your wallet increases your chances of making a profit. It makes your investment balanced, the shitcoins with profits overshadow the ones with loss.	Some shitcoins could be a scam. Investing in fraudulent shitcoins will lead to loss of funds, and when you connect your wallet to websites or dApps of these coins, they can hack into your wallet and wipe whatever funds you have left there.

To minimize risks and vulnerability to cyberattacks, it is necessary to verify the advantages and disadvantages of shitcoins. Getting rich quick through shitcoin is not as easy as it seems.

4. Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.

Following the instructions of this question, I am going to be listing some shitcoins that ended up becoming a scam project;

FEG Token (FEG):

source

FEG Token is a shit coin that came into existence in early 2021, it has a gorilla on its logo. While FEG is shorted for Feed Every Gorilla, it had lots of unknown investors influencing people to buy it.

FEG token launched on the 7th of February, 2021 with an initial price of $0.000000000048, then it hit an all-time high of $0.00000003793 on the 12th of May, 2021. After a few days, investors started withdrawing their funds from it. Today, 4th of January, 2022, FEG Token has a price of $0.000000004405 which is -0.88% of its initial price and a market rank of #3379.

_{FEG Token to USD Chart on coinmarketcap.com}

PumpETH (PETH):

source

This shitcoin, PETH for short was built on the Binance Smart Chain (BSC) network, it was stated to be a reward-based token but ended up becoming a scam project.

This token was launched on the 2nd of December, 2021 with a starting price of $0.00000001292, then it when further in a few days on the 8th of December, 2021 to touch an all-time high of $0.5207 following a drop that same day. Today, with a market rank of #3806 sits on a price of $0.00000000056. It was a market cap of $594,541.93.

_{PumpETH to USD Chart on coinmarketcap.com}

ZodiacDAO (ZD):

source

This is another shitcoin that was developed on the Binance Smart Chain (BSC) network, ZD was meant to be a DeFi (Decentralized Finance) 2.0+ running on a decentralized protocol that is based on reverse currency.

On the 24th of December, 2021 was when it first emerged in the market with an initial price of $67.73, still, on that same day it hit an all-time high of $89.44 which was 12 days ago from now. Drastically, it began to crumble in value as the days go by. Now it has a market rank of #4073, and a price of $0.03977.

_{ZodiacDAO to USD Chart on coinmarketcap.com}

Meta Speed Game (MTSG):

source

This shitcoin was said to have been a multiplayer racing game that is played online and is based on public chain technology.

With a market rank of #3126, It first touched the market on the 28th of December, 2021 starting with a price of $0.006084 shortly after it started to dip in the market. This particular coin did not go up in value above its launch price which makes that launch price an all-time high. Currently, it sits at a price of $0.00001618, also it's an all-time low.

_{Meta Speed Game to USD Chart on coinmarketcap.com}

5. Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)

Here I will be listing a few shitcoins that became successful and are currently keeping that momentum.

SAFEMOON:

source

With a market rank currently sitting on #212, SAFEMOON was created on the 8th of March, 2021 as a DeFi (Decentralized Finance) token. This shitcoin was built on Binance Smart Chain (BSC) network. "Safely to the moon" is the slogan it is mainly known for.

It has a market cap of $1,164,011,473.38, it was launched with an initial price of $0.000000000928 on the 10th of March, 2021. It touched an all-time high of $0.000012 a month after it was created which was 20th of April, 2021.

_{SAFEMOON to USD Chart on coinmarketcap.com}

Floki:

source

The shitcoin Floki Inu got its name from Elon Musk's Dog also called Floki. It is sitting on a market rank of #2860, with a price currently at $0.0001008. It is said that the supporters and influencers of Shiba Inu created the Floki shitcoin.

Floki is built on the Ethereum network and was launched in the market on the 7th of October, 2021. It reached an all-time high of $0.00033 on the 4th of November, 2021.

_{Floki to USD Chart on coinmarketcap.com}

Dogelon Mars:

source

Dogelon Mars (ELON) is the last shitcoin on my list, which was launched on the 23rd of April, 2021 and it runs on the Binance Smart Chain (BSC) network. This shitcoin is like a spin-off of Dogecoin, which also emerged as a joke and internet meme.

Having a present market rank of #108, ELON launched with a price of $0.00000008021. Months after on July 31st that same year it hit an all-time high of $0.00003263. Right now, it has a market cap of $848,128,236.30 and a price of $0.000001528.

_{Dogelon Mars to USD Chart on coinmarketcap.com}

6. Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)

In accordance with the instructions of the question, I will be performing a historical chart analysis of the prices of SAFEMOON using screenshots from coingecko.com.