If you're familiar with the cryptocurrency universe, you've probably heard the word "shitcoin," but aren't sure what it implies or what it refers to. As a result, we'll clarify what a shitcoin is and how to spot one in this article.
Shitcoin is a word that is sometimes used to refer to certain cryptocurrencies in a derogatory manner. Specifically, strange cryptocurrencies that serve no function and were developed as a copy of another cryptocurrency with no specific purpose in mind.
They only help to enrich certain users by allowing them to speculate with this cryptocurrency and profit at the expense of others' ignorance.
In fact, there are thousands upon thousands of cryptocurrencies and tokens on the market right now, and the vast majority of them are shitcoins because they are either unrelated projects or clones of existing cryptocurrencies like Bitcoin.
However, we must not forget that there are a significant number of cryptocurrencies that were originally known as shitcoins but now have useful services that we can use.
How to know when a cryptocurrency is a shitcoin?
Many other cryptocurrencies arose as a result of the emergence of Bitcoin, but none of them had a specific goal. And, contrary to common opinion, shitcoins have a much longer history than you would expect.
When anything is popular, thousands upon thousands of copies appear, each one identical to the original with only minor differences. Unfortunately, this is not exclusive to the cryptocurrency environment.
There is no cryptocurrency that can render you a millionaire overnight. So, if you come across a cryptocurrency that promises major and substantial improvements that will allow you to become a millionaire, throw it away because it is almost definitely a shitcoin.
It is not necessary to publicize the best projects. Nowadays, advertisement is a requirement to be recognized, but if it is a great idea, it can eventually gain momentum. If you start getting sms or ads about new projects with great benefits, you should avoid them because they do not smell well.
It is important that you visit the website to learn more about this fantastic cryptocurrency that promises to make you wealthy (or so it appears). If you really don't know what features it has after doing this, don't risk it.
Do any research on the cryptocurrency's development team; if these individuals don't have first and last names or even interviews, you can avoid the cryptocurrency.
I always emphasize the importance of reading a project's whitepaper before investing significant sums of money, and this time is no exception. Check the whitepaper, and if it doesn't have one or turns out to be a clone of another well-known project, it stinks like shitcoin.
You should be particularly cautious with some shitcoins, as the developers can heavily promote their project before launching it. When they've made enough money, they leave the project, leaving it stagnant and without contributing anything, basically turning it into a shitcoin.