WHAT IS A SHITCOIN?
Shitcoin literally means “shit coin”. It is
therefore a rather pejorative qualifier used to designate projects which have
no value, or which are content to copy an already existing project. This term
nevertheless shows that all cryptocurrencies do not have only one value speculative. When the general
public says that they have only a speculative value, it is because, without
knowing the expression, they consider that they are all shitcoins, whereas this
is not the case for all.
You have surely heard of many success stories
in the cryptocurrency community. It is therefore likely that you want to train
yourself, in order to avoid the most common mistakes, to know when to buy and
when to sell, how to protect your cryptocurrencies against hacking, etc. On
Cryptonaute, in addition to all that, in addition to being kept up to date with
the news crypto!
At the moment, there is one shitcoin in
particular that crystallizes the attention of tens of millions of digital
currency investors: it is Dogecoin. Dogecoin is a cryptocurrency that was
originally created as a joke. A few months ago, however, interest around the
latter increased, especially on Reddit. If you had invested 1,000 euros in
Dogecoin on January 1, 2021, you would now be at… 100,000 euros! To make it
even more recent, we can talk about Shibacoin.
This cryptocurrency is very similar to
Dogecoin: it has no concrete use, and has a dog as its symbol. Indeed, on April
5, we could observe a Shibacoin at $0.000000042, against a peak at $0.000032
during the day of May 10, i.e. a multiplication of around 800! These gains are
certainly very attractive, but always keep in mind that it is impossible to
know for sure what will go up or not: you could as well lose everything, it's
up to you to see if the game seems worth it to you. candle.
WHY DO SOMEONE MAKE MONEY?
Now that you know what a shitcoin is, you
might be tempted to argue that this definition makes no sense: you know or have
heard of people who have made money investing in it. This comes from the
confusion between the value intrinsic and speculative
value.
Indeed, if a cryptocurrency does not bring
anything technically, investing in it can pay off if more and more people, who
know it or not, decide to invest in it. In short, it's like for any
cryptocurrency. However, having no real product or service provided, they are
even more susceptible to large downward variations.
So be extra vigilant if you choose to invest.
To hear about it before some explode, you will have to think outside the box:
as a general rule, if you wait for the info to come to you, it is already too
late. When a cryptocurrency is on TV, the biggest wins have almost always been
made, although sometimes it is still possible to make some.
Whether you invest in a shitcoin, in a
cryptocurrency that provides a high-value service, or even choose to invest in
another sector, always do your research before taking action. Investing
involves and always will involve risk. The higher the risk of loss, the more
you will be rewarded if a project ever takes off.