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

Hello every one, here is my homework post for @nane15 on Shitcoins. You can check out his lecture from here. I hope you enjoy reading my post.

Shitcoin is a general term given to a currency that has no base, value, project or initiative that backs it thus the name 's-h-i-t and c-o-i-n' translates useless or baseless. Most shitcoins evolve through jokes and memes. Others came into existence by being forked from other prominent/good coins. Other shitcoins were created by anonymous people with unknown intents. However a coin being a shitcoin doesn't really matter no matter how degenerate they might seem at the start, they all have potential once it exists in the face of investors looking to manipulate these coins for their personal gains, people looking to get rich quick and ignorance of the lot.

Shitcoins can be profitable but dealing with it would need a lot more than just investing. Accepting the coin being dealt with might be a shitcoin and being careful will save you the stress.

On one hand, speculating and seeing potential in a shitcoin can yield good results that is, if thorough research has been done. For instance, you can trust a shitcoin if developers are publicly known. Usually, it is also safe to identify the influential team behind the coin just like how personalities like Elon Musk, the metaverse and certain series and trends have validated certain coins. Doing all these could guarantee gains when dealing with shitcoins. Shitcoins can be very profitable if handled strategically. Since shitcoins are known for their pump and dump phenomenon which usually take place within short periods of time it is imperative to take timing seriously this could earn you a significant amount of money. Generally, shitcoins could make you or break you, one can either earn a lot or lose a lot it is up to you to be vigilant and strategic about it.

Like anything, there are advantages and advantages to shitcoin however good things first so I'd like to dive into the advantages of shitcoin.

Advantages

• Firstly shitcoin had gained quite the feat in the crypto world because of the strategies taken to lure people to patronize them and from statistics shitcoins have seen quite the patronage in recent times due to these strategies.

• There is high liquidity when it comes to trading or investing in shitcoin because developers tune the system in a way where investors are able to convert it into easy cash. Prices are quite favourable and coins are more available. All these are done so that developers can generate profit. This goes a long way to make investing easy for investors. This is a get rich quick money scheme which when dealt with strategically will generate lots of gains.

Disadvantages

Some of the disadvantages are;

• Shitcoins do not offer utilities like other prominent coins do. There are a bunch of coins that provide benefits for its users. There is a list of utility coins like steem, Ethereum, bitcoin, loom provide.
  These are;
  Steem: STEEM is behind the platform Steem where content creators just like myself are able to showcase their work to audiences in exchange for rewards.
  Ethereum is known for powering NFTs: artwork, music and the likes so that creatives can gain from the buying and selling of these NFTs
  Loom is essentially a blockchain known in the field of coding just like a coding academy.
  And there are other coins that seek to improve privacy, security and anonymity. Shitcoins lack these because they have no real initiative or project.

• Earlier, I talked about how the market influencers inject liquidity into the market for more profit. However, these are done just for a short period of time and at their own advantage and if not careful this manipulation will lure you into buying a lot and end up losing everything.

FEG

Many people who invested into this token experienced the pump and dump schemes. FEG promised the redesign of decentralized finance. The token that bears the image of a gorilla gained waves over the internet with Reddit youtube and telegram influential teams promising people gains and boosts yet with no known developer people patronized and investors joined in which brought the token to its peak in August over a three day period. Then the unexpected happened, the token declined drastically leaving people with losses.

Squid token

The squid token came into being as a 'play and earn' token where it can be used in gaming to earn more just like the popular Korean series squid game.
There was a rug pull situation where developers prevented investors from selling their tokens and made away with about $3.38m.
The cryptocurrency peaked at $2,861 and plunged down to 0$ according to CoinMarketCapp.

Asscoin

The Australian Safe Sherperd is a token created by a lady known as "cryptoliv" which sought to promote sexuality and women empowerment. It started out as a meme and subsequently spiked up to a $110m market cap but fell down by millions of dollars in a few hours.

Dogelon mars

This is a shitcoin forked from the popular coin dogecoin. It imitates the success of the dogecoin. Just like doge, it has an image of a dog as its logo. It is said to be the third coin to thrive in the market after dogecoin and Shiba Inu.

Baby dogecoin

Just like the name insinuates, baby dogecoin just like Dogelon mars was forked from the popular coin dogecoin. It says on its website that baby dogecoin was designed specifically to be scarce over time. It is really holding its ground against all the other prominent coins and is surpassing the original meme coin because of its faster transaction speed.

Dogelon mars started with an all-time high peak of $0.00003263 on July 31, 2021, and plummeted below $0.000000949. It saw a rise again in December 2021. It rose from $0,000001054 to $0,000001877. Currently, the coin range has been within the $0.000001205 and $0.000001664 ranges.

This year has started with a bearish trend. We have BTC below $45,000.00. Although most of these shitcoins are not strictly influenced by the dominance of BTC we can see a slight correlation in price when we compare it with BTC. This current dip is going to cause a strong bull run which would affect all cryptocurrencies including ELON.

For this year, I think its price would rise and fall but would overall have a slightly lower average price. It doesn't have a roadmap or any support from Elon Musk yet still it has a rank of #112 on CoinMarketCap.

Some traders are attracted by the name of the coin and the massive increase within short periods. Some whales take advantage of the ignorance of other traders and manipulate them into stealing their funds.

I think the rise and fall of ELON will be because of this and it'll gradually gain lesser value.

Shitcoins are smart ways to make money. They are risky products and so I wouldn't advise investors with low-risk tolerance to get involved with them.

I would like to thank @nane15 for this lecture.