The term shitcoin is used in the cryptocurrency world to colloquially define all of the poor quality currencies or currencies that are not listed in the major cryptomoney trading platforms. Investors will often use the word shitcoin to refer to a currency that has little or no value, and is therefore considered a bad investment.
You need to know that there are absurd crypto-currencies, crypto-currencies that were created only for the purpose of scamming people, crypto-currencies that have no innovative uses or improvements,… Understanding this will help you not to lose your money.
How many Shitcoin
There are millions of crypto-currencies and tokens out there. How many of them are considered a shitcoin? Well, the truth is that the vast majority of them. As Bitcoin grew, developed and gained popularity, new crypto-currency projects and companies began to emerge.
Some sought to replicate the Bitcoin system and improve on the problems it presented, or they wanted to innovate a completely new and cutting-edge project, as in the case of Ethereum. But these projects also began to emerge without bringing any development, progress or value to the blockchain technology that had implemented Bitcoin. Projects that were simply an identical or almost identical copy of its white paper and that did not present clear goals or objectives. This was the birth of shitcoins.
How do you identify a shitcoin
Many people are of the opinion that every crypto-currency outside of Bitcoin is a shitcoin. Is this true? As we said, this is somewhat subjective.
In the crypto world, when a new project is built and launched, certain features or characteristics are added that give that project a certain degree of reliability and security. But when that project promises significant and revolutionary changes to the crypto industry, but lacks clear expectations and goals, defined features or its developers are somewhat mysterious, there is a 99.99% chance that it is a shitcoin. Yes, it sounds hard to say, but it’s the truth, most projects fall into this definition in a largely argumentative way.
New Crypto Currencies every Day
Almost always new crypto-currencies come into existence through an ICOof the English Initial Coin Offering, which translates to Initial Coin Offering. These offerings always seek to publicize and position the crypto-currency or altcoin they are launching, seeking to attract investors interested in injecting resources into their projects through the acquisition of coins. But ICOs are not always reliable or secure. In fact, the ICO boom in 2017 led to serious scam issues in the crypto community. Therefore, some recommendations for you to identify a crypto currency from a shitcoin are:
How do you spot a shitcoin?
There is no technique per se for spotting whether a corner is a shitcoin or not. Instead, it comes down to how involved you are in your investment. Do you invest money anywhere and everywhere? No, you do your homework before you make your decision and get started. The principle here is the same:
Go to the Coin Market Cap site and search for the crypto currency you are interested in. To get started, click on the Markets tab and check that your currency is present on several major exchange platforms. If you already have a Poloniex, CoinBase, Kraken and Bittrex account you can already invest in currencies present on these trusted platforms. Indeed, in case of a “delisting” on one of the markets, you can always sell quickly on another.
Then click on the Social tab. The idea here is to check if the developers of the cryptocurrency are still active. If it’s been several months since the last post went live, then you may want to avoid buying.
Next, type the query bitcointalk + name of the currency you are looking for into Google. The first result will take you to the topic/topic dedicated to your currency on the forum. Go to the last pages of this forum and see what the users’ opinions say about it. If they say it’s a scam, you’ll know not to buy. If you don’t speak French, there are also communities in the cryptocurrency in France like CryptoFR for example. But bitcointalk remains the reference, because the community is much more active and developers are used to make their announcements on this forum.
Finally, the last way to be serene before buying is to read regularly the news about the currency via Google or Twitter. You can also follow the CoinsOnExchanges channel on Telegram which will inform you live about the currencies that are blocked and unblocked by the major Exchanges.
Which crypto-currencies are shitcoin?
Many influential figures in the crypto ecosystem label all crypto-currencies, except Bitcoin, as shitcoins. But this view is really not very healthy for the community. There are crypto-currencies like Ethereum (ETH), EOS (EOS), Litecoin (LTC), Monero (XMR), Namecoin (NMC) and others, which have proven useful and contributed to the development and adoption of blockchain technology and new features.
Perhaps the clearest example of this is Ethereum, which introduced the ability to create int
