What is shitcoin?

Since Bitcoin’s inception, many idioms and phrases, such as “shitcoin,” have appeared in the cryptocurrency community. This is a typical way of disparaging digital currencies other than the first one Bitcoin. But what does “shitcoin” imply, and why has it become so popular? Here is a throughout description of such cryptocurrencies known as “shitcoin”.

You should be aware that there are ridiculous cryptocurrencies that were developed after the invention of bitcoin. Many of those cryptocurrencies are created purely to defraud others that don’t add anything new to the table. The word “shitcoin” refers to all those worthless cryptocurrencies currently available. Cryptocurrencies established without a clear goal are sold at inflated prices due to market speculation or are useless because they are merely a rip-off of existing enterprises. Having this knowledge will assist you in avoiding financial loss.

How can a coin can be considered as shitcoin?

Cryptocurrencies and Tokens number at-least in the hundreds of thousands, if not millions. However, in reality, most of them of them are not really useful. As Bitcoin expanded, matured, and acquired traction, new cryptocurrency initiatives and startups emerged. In the case of Ethereum, its creators set out to create a system similar to Bitcoin’s while fixing its flaws, while others intended to create something wholly novel and experimental.

However, a set of enterprises emerged that did little to advance or add value to the blockchain technology that Bitcoin pioneered. These projects lacked specific aims and objectives and were essentially carbon copies of his whitepaper. That moment marked the beginning of shitcoins.

Advice on Choosing Digital Currencies

• Any consideration of a cryptocurrency’s suitability for use or investment should begin with evaluating its value to the overall cryptographic infrastructure.

• Also important is thinking ahead to see if this particular token or cryptocurrency will be profitable. For example, whether your worth (not price) allows for high profits or is founded purely on guesswork.

• You should also check whether reputable organizations have endorsed the coin or token. Many projects use a well-known persona to mask their lack of substance.

• Grade El Progress: The nature of the project must also be considered. One actively seeking promotion and funding, although its immaturity is likely a shitcoin.

• A right platform can also help. When a crypto is available in a reputed platform and traded by many if could be a reliable one to invest in. Just like you can trust bitcoin and some other cryptos that are traded on Bitcoin Money Making Tool a reputed one.

Factors you need to consider while buying cryptocurrency

The process of launching a cryptocurrency happens through a process called ICO. It refers to Initial Coin Offering in the full form. To attract investors interested in investing capital into their projects by purchasing coins, these offerings always priorities to spread the cryptos they are launching to the world. However, not all ICOs can be trusted with your money. True, 2017’s ICO frenzy was accompanied by widespread fraud concerns.

To help you identify a shitcoin, here are a few pointers:

• If you see that the whitepaper of a crypto is actually a carbon duplicate of another project you can surely say that the crypto is a shitcoin.

• The writing on the whitepaper may also not possible to understand by anyone.

• Just a handful of strangers are working on it, and they all use emojis and fake identities to communicate. Nothing is more likely to cause doubt than a faceless organization asking for money to realize an idea that started as a puff of smoke.

• The website showcasing the project is poorly designed or uses domains that are completely free.

• It claims to have countless advantages, but it doesn’t detail or explain how they’ll be realized.

• It fails to provide a detailed plan of action with well-defined objectives to ensure future project growth.

• Or they tweak an existing cryptocurrency (often Bitcoin) and release it as their own “fork.” It is entirely unoriginal.

• When it is the time to release the new project of a cryptocurrency or facilitating investors to invest in it, these groups give up on furthering the endeavor. After leaving, they don’t come back to work on the coding; thus, it becomes a “shitcoin” that accomplishes nothing to improve the system.

Conclusion

When a new cryptographic project is developed and released, it comes with quirks and traits that contribute to its overall trustworthiness and security. There is a 99.99% chance of being a new project a shitcoin project when it claims to revolutionize the cryptocurrency sector but at the same time it actually fails to give any clear expectations and objectives, defined functionalities or has relatively mysterious developers. It’s a bold statement to make, yet the fact remains: the vast majority of projects fit this definition, however loosely.