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Hello there Steemians👋👋👋👋👋.
It's @cosai99 with the next, or let me say, one of the last homework posts for the Steemit CryptoAcademy Season 5 Dynamic Beginners' Course. Today, we will share one of the phenomena which occur on the regular with trading crypto, the introduction to Shitcoins on the blockchain, their genesis, and how to profit from them amongst other areas. This is a very interesting topic and will open the eyes of many, adding a little spice to their trading life. It will help you know that you don't always have to look for the bigshot tokens on the market but you can look out for other tokens to trade short-term so you can gather capital to trade your desired token. This lecture was facilitated by Prof. @nane15. I would like to use this opportunity to wish all a Happy New Year and hope all resolutions will be achieved this year. With that said, let us get on with the task.

Overview of Shitcoin and How to Profit From it📱💰💩

After the creation of Bitcoin in 2009, the revolution in the commence world was brought upon us. With this, people found an interesting profitable way to conduct investments and this pushed the world into a new era. This also spiked a lot of people to be interested in the stock market, as a result, intensified our understanding of how the stock market operates. Following that incident, individuals started to create new cryptocurrencies as it was observed that people started to grow interested in the new world of crypto. Altcoins they called it. From there, new tokens get created daily and the success of those tokens solely depends on the sentiment of the investors. Some grow a lot in value, others just diminish and then finally fade out of the market. Most of these coins come about as a result of the thought that the tokens might succeed just like bitcoin did. With this, they usually start at low prices to attract people to invest and gradually increase in value, or at least that is the intended plan anyways. But some after a short escalation in price, they tend to diminish and finally settle at a low value. These tokens usually have no defined purpose other than to just try the sentiments of investors. Bitcoin's original goal was to introduce a system of handling currency that is not subjected to the condition of the state, say the economic state of the country, and also bring about a system where you are in charge of your money, which is at a secure place. But after that, the creation of some other Altcoins just follow the creation of Bitcoin without any real designed purpose like Bitcoin, but rather to become as successful as Bitcoin was and still is. This is where Shitcoin comes in. Some have been successful, others just diminish till no one is interested in trading them. This is used by some individuals to scam people into investing capital into them. Now at least we get the gist of how Shitcoin operates. Let us get in deep then.

Explain your understanding of what a Shitcoin is.

Shitcoin is a cryptocurrency that has relatively diminished value or no definitive designed purpose.
The word is a pejorative word used to describe Altcoins which were created after Bitcoin was. The diminishing value of such coins is based on diminishing satisfaction on the side of investors since it was not created on a definitive purpose or because the price trend was just based on speculation only. It would be a bad idea to invest long-term in Shitcoins. Usually, they are characterized by short-term rises and then followed by a nosedive and this is due to the short-term investments made by investors.
We observed how interest in cryptocurrency has increased substantially over the years and this has sparked a desire in businesses to take advantage of blockchain technology. Following the procedure to create crypto, the suppliers cap the supply of the crypto at a fixed number, leaving the price of the token to be determined by just demand only. This creates scarcity and hence dilutes the value of holdings of tokens. There are only a few practical uses of crypto; buying and selling of tokens, and it is yet to be adopted into actual commence. Hence, the value of crypto is based purely on speculation. So, Shitcoin, they say, exist is valuable just because it exists.
Shitcoins are characterized by their market trend. They pick up high value when they are introduced as it sparks the interests of investors since they speculate the appearance of a potential coin so there is usually a high rise in value during the first period it is introduced. Then investors pull out their investments which causes a nosedive of the value and hence diminished value of the coin. They only test the market of the coin by running a short-term investment to reduce the risk involved. There is no defined way to describe Shitcoin as the value of crypto generally is based on pure speculation and has no real value hence it is up to the individual opinions to classify which is Shitcoin or not.

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

Making a profit off Shitcoin is quite objective to which kind of investment you enter. Like we have described before, Shitcoin is characterized by a specific market trend; a rise which has its value increasing fivefold, tenfold or even more due to the spark of interest of investors to a newly created token. Then a nosedive as investors pulls out their capital from the market, leading to the diminishing value of the token.

So if you are entering a short-term investment, it is a great way to make a profit from the market since at the time, the value of the coin is very high relative to its initial value when it was introduced. Investors can pull out their capital when they notice it taking a nosedive, with the diminishing value of the coin. Here, you can make a lot of profit but investing a relatively small amount of capital.

But then it would not be a good idea to make it a long term plan. As we have said before, initially, the value of the coin skyrockets to very high numbers, bringing you profit. After some time, it takes a nosedive, with diminishing value and in time, the loss made over time would be greater than the profit incurred initially. There is a high chance of diminishing returns occurring after a short while with Shitcoins.

List advantages and disadvantages of investing in Shitcoins.

Advantages	Disadvantages
The first is that there is a potential to make a profit off the introduction of a shitcoin. That is to say when you are going short-term investment. Like we described, it is a good time to make a profit during the initial stages of the market of the Shitcoin since the value skyrockets to desirable values. Hence it makes it A GOOD TIME TO ENTER A SHORT-TERM INVESTMENT.	As we have already said, despite this advantage, it is a BAD IDEA TO ENTER A LONG-TERM INVESTMENT. This is because, after some time, investors start to pull out their investments and the value of the coin starts to diminish at a very fast rate. After all, the value of crypto is based purely on speculation and has no real value since it has not been adopted into real commence.
Since the price is usually low at the start, you can hold HIGH VOLUME. It is very cheap to purchase and hence can allow you to purchase a lot at once hence with little capital. Hence when it increases and you get profits, you will be able to hold a lot of the coins.	There is a HIGH RISK OF SCAM involved. Due to its low initial value, it tends to attract a lot of investors firsthand. Individuals use this opportunity to rip off a lot of people since it does not have a company backing it or any official website stating any information of the company making the crypto.
There is the possibility of HOLDING A VARIETY OD CRYPTOCURRENCIES. This allows you to maximize your chances of earning a lot from different places and also the profits you gain from them.	This can CAUSE THE ABOLISHMENT OF HANDLING EXCHANGES. This is due to the possibility of scams happening which can cause the exchange's reputation to go down and lose users. Also, there is the possibility of low demand for the Shitcoin and hence as a result diminishing value. This will make it difficult for users to trade there and hence leading to the breakdown of the exchange.

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

We are aware of the disadvantage of the possibility of a Shitcoin being a scam. Below are a few examples.

FuckCoin
This cryptocurrency was circulating on social media like Twitter in 2015, as a newly created crypto. This was created as a joke in the Ethereum Blockchain, token being FUCK.

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At the time, it was only 10 FUCKs that were created and that was the market supply. There were only two transactions recorded on 27th October 2017, with the amount of the market supply. After that, there was no record of Fuckcoin ever being traded.


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The value of Fuckcoin has depreciated to $0.00 today.

Sexcoin
This Shitcoin was created in 2013 as a token to be earned through mining, confirming the transaction through PoW and also watching adult content. It was capped at 128,405,894.933 SXC with none in circulation.

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The last known price of SXC was 0.00223307 USD.

Putincoin
This cryptocurrency was created in 2017 as a token to celebrate Russian President Vladimir Putin. This was made to support the economy of Russia. Though this seems like a good purpose for the creation of the token, it is rather a purpose following the increased popularity of the emergence of cryptocurrency.

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It has followed a constant reduction of value in the recent years.

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Started out at 0.450000 USD and diminished to a value of 0.00008627 USD with a market volume of 0.09 USD.

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

Examples of Shitcoins that are making it are:

LATOKEN
This is one of the Shitcoins that is making it in successfully and currently keeping at it. In October 2017, it was priced at $0.2088 and a Market supply of $44620.00. It is currently at $ 0.1302, market supply $513,729.58, a 24.35% increament, after an all-time low of $ 0.02205 in 27th June 2020 with a market supply of $8209.65. It must be known that it started as an IEO on the exchange.

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All Time Trend in Market of LATOKEN

SafeCoin
This is another Shitcoin which has thrived on the market after its introduction in 20th March, 2019, marking a price of $0.04585 and a Market cap of $2489.99. The token has seen better days over the years and right now has grown to be one of the most successful Shitcoin marking a price of $ 0.5789 as of 6:58PM GMT and a market volume of $2262.86 today. It follows a PoS consensus mechanism to mine blocks on the Solana blockchain network.

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All Time Market Trend od SafeCoin
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Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)

We will consider Safecoin and its progression over the years.

As it was introduced it was slated at a price of $0.04585 and had a market cap of $2489.99, which was 20th March, 2019.

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As of 8th September, 2019, it soared to a new value of $0.1108 and market volume of $2622.31, significant increase in value in that year.

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As of 11th of June, 2021, we experience another high value of $0.4296, tenfold its initial value but with no circulation of the token. This must be caused by investors liquidating their investments and pulling back their investments from the blockchain.

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On 22nd of June, 2021, the price depreciated to $0.1894 but earned a market volume of $5919.47, meaning investors started trading with the token.

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By 3rd of November, 2021, there was an all time high recorded, a price of $1.141 and a high market volume of $47375.05. This showed improvement in the market of the token.

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As of 4th January, 2022, it recorded a new value of $0.5766 and a market volume of $2839.10. This price is 5 times the price it started with.

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The past trend of the market has shown the coin is doing well on the market, especially at the end of 2020 throughout 2021( April 2021 to be exact). This may be a sign for a promising future for Safecoin.

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.

Looking at the market trend of the coin from mid 2021 to date, it has shown significant strength by demonstrating an upward trend. Either the price increases at the cost of market volume or vice versa, this illustrates an equilibrium in the market and growing market demand. This also means the coin has been doing well in the market for that time period, just short pull-backs. Per this observation, the coin shows a promising future, for a shitcoin I must say. Still I would not bet my all into this since this is just a speculation based on past market trend, and not any real basis. But this year I do think it will grow more in comparison to the recent years. If dips should occur, it will not go way below the starting price. Investors can start putting in small amount of money, of course at their own risk, but I do see a promising market trend in the upside this year.

Conclusion

Today we have learnt about Shitcoins, their genesis, advantages and disadvantages of trading Shitcoins and seen some examples of some which were scam and those which succeeded. It is highly recommended that investors do thorough research before investing in them to reduce the risk of scam. Also, we must realize for optimizing risk, this is for short-term as the growth of these cryptocurrencies depends greatly on the sentiments of investors.

Thank you for reading @nane15🙏🙏🙏🙏🙏