It’s Shitcoin Day in the Cryptocurrency Universe | by Stephen Dalton | Nov, 2022 – DataDrivenInvestor
The first time we heard about shitcoins was in 2010 when Gavin Andresen “coined the term” to describe altcoins or any cryptocurrency that wasn’t Bitcoin (BTC). (Guy the Coin Bureau guy said “coined the term” in his video.)
The term shitcoin refers to a cryptocurrency with little to no value or a digital currency that has no immediate, discernible purpose. The word is a pejorative term often used to describe altcoins or cryptocurrencies that were developed after bitcoins became popular. — Investopedia.
However, despite the moniker, not all shitcoins started out that way, and some became intrinsically more valuable because of what they are.
This guy, “Inspector Mindblow,” has some good theories, but there’s no guarantee that any will work. Do your own research (DYOR).
HINT: This is from August, so don’t buy any of these coins; it’s likely they’ve already pumped.
Everyone thinks meme coins are shitcoins, but that’s not exactly true.
Take DOGE and Shiba Inu (SHIB), for instance. These coins were created as jokes or meme coins. The creators put a cute little Japanese dog breed on a coin and distributed or “circulated” hundreds of billions or trillions of these coins.
Then along comes a billionaire and calls one “the people’s crypto,” and voila, it suddenly has value.
Then, other dog-themed meme coins were created and distributed and given value by collectors or investors based on the popularity of the other. Be careful. There are thousands of dog-themed meme coins that are actual shitcoins.
But, both DOGE and SHIB created “crypto millionaires.”
But what really makes DOGE valuable is that you can use it to buy products at nearly a dozen places, including the Dallas Mavericks.
Yes, you can buy a ticket to a Mavs game (owner Mark Cuban is a big crypto enthusiast) with DOGE and get your own little doggie some food with it at Petco.
BTC, which created crypto’s first billionaires, the Winklevoss brothers (Tyler and Cameron). They parlayed a portion ($11 million) of their payoff or “settlement” from Mark Zuckerburg for “stealing their Facebook idea and codes” from them (so much for the Harvard Honor System) into billions after buying BTC.
It was hardly more than a shitcoin then. Some say they paid $10 per BTC for some.
It is rumored they received somewhere around $65 million in cash and stocks for what turned out to be nearly a trillion-dollar global conglomerate.
Depending on the day, they own about $6 billion (somewhere around 70,000 BTC), at least part of Gemini, and some 20 cryptos or crypto-based investments.
The brothers admittedly were somewhat skeptical about cryptocurrency at first. One of them supposedly said, “… its either the next big thing or total bulls — t.”
Society as a whole has not decided which it is yet, but they found out it’s “…the next big thing…” — Because they are now billionaires.
You can “…read all about it” in the book Bitcoin Billionaires: A True Story of Genius, Betrayal, and Redemption by Ben Mezrich.
Other coins are shitcoins because they never had any value but groups, such as some subreddits, pump the coin by buying and holding it until it reaches a pre-specified value, and then everyone in the group sells.
This causes the price to plummet. Typically, the coin’s price drops to nothing. Hence the term shitcoin.
Then, there are shitcoins created as “rug pulls.” Investors buy them based on the hype of certain groups. You can buy as many as you want, but you can’t sell any because the “creators” took or kept everything for themselves.
“The scam, which gets its name from the expression “pulling the rug out,” involves a developer attracting investors to a new cryptocurrency project, then pulling out before the project is built, leaving investors with a worthless currency. It’s part of a long history of investment schemes.” — Nerd Wallet.
This is not unique to cryptocurrency. It’s an issue of greed.
With most crypto, you need to know when to get out. You must have an “exit strategy.”
A crypto exit strategy is simply a plan for when and how much of your cryptocurrency to sell. Depending on your goals, the “when” can include a wide list of price targets and market scenarios or be as specific as a single personal objective, and the “how much” can be as varied or detailed as well. — Swissborg Academy.
For more details, read their article, “When to Sell: Figuring Out Your Crypto Exit Strategy.” Having a static exit strategy takes the emotion out of trading.
Crypto Hunter’s mantra is “Holding a bag = Risk.” That’s pretty simple, right? Well, it is not as simple as it seems. However, if you develop an exit strategy and stick to it, more often than not, you’ll make some profit.
However, if you sell and it keeps going up, then seller’s remorse sets in and you repurchase it, chances are you will lose. Trust me on this; I know from experience.
Shitcoin or not, once you sell, let it go! Be happy with the profit or even a slight loss. You can make it up on another crypto project or write it off on your taxes. However, always consult a tax advisor.
Not everyone agrees with trading shitcoins.
#Crypto #guide #Altcoins
DOGE is hardly a shitcoin anymore, with a market capitalization of nearly $16.5 billion and ranked number eight on Coin Market Cap. Although it has been on quite a ride in the days (it doubled in OCT) before and since the Musk Twitter purchase.
Yes, the “Dogefather” bought Twitter for a reported $44 billion. There are rumors that payments for membership on “big blue” will cost anywhere from $8 to $20 to be paid with DOGE or SHIB.
“The live Dogecoin price today is $0.124358 USD with a 24-hour trading volume of $1,884,894,835 USD. We update our DOGE to USD price in real-time. Dogecoin is down 0.65% in the last 24 hours. The current CoinMarketCap ranking is #8, with a live market cap of $16,498,695,954 USD. It has a circulating supply of 132,670,764,300 DOGE coins and the max. supply is not available.” — Coin Market Cap.
Shitcoins are not buy-and-hold investments. If you choose to risk your hard-earned cash on these altcoins, have an exit strategy. Sell and don’t look back. It’s crucial.
Further, never use money you can’t afford to lose on shitcoins.
My wife actually has a shitcoin wallet. She buys two or three, sometimes $5 worth, and then just holds them. “Who knows,” she says, “Maybe someday one will take off.”
It has happened. DOGE and SHIB created some crypto millionaires. But the odds are not very good.
So, have a happy Shitcoin day and happy investing.
#bitcoin #ethereum #shitcoin #blockchain #crypto #cryptocurrency #coinbase #binance #cryptonews #trading #defi
DISCLAIMER: This article is for entertainment and informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. I am not a financial adviser, and you should consider anything I write as informational and friendly banter to show you what is possible if you invest your money in these vehicles. However, there are no guarantees. Consult a financial professional before making any significant financial decisions.
Note: This post contains affiliate links. Read my disclosure statement for additional information.
Stephen Dalton is a retired US Army First Sergeant with a degree in journalism from the University of Maryland and a Certified US English Chicago Manual of Style Editor. Also, a Top Writer in Nutrition, Investing, Travel, Fiction, Transportation, VR, NFL, Design, Creativity, and Short Story.
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