Right now it is very hard to make returns on some of the bigger cryptocurrencies. But that doesn’t mean you should completely ignore investment opportunities in alternative cryptocurrency markets. That’s because there are plenty of other options out there. Some of them may even be more stable than Bitcoin and Ethereum. If you’re looking for an alternative crypto-currency that isn’t too volatile, then maybe you should consider a smaller project.
It might seem like the Ethereum and Bitcoin market is not very volatile anymore and the chances to make money are lowering everyday – But that doesn’t mean you should completely ignore investment opportunities in alternative cryptocurrency markets. That’s because there are plenty of other options out there. Some of them may even be more stable than Bitcoin and Ethereum. If you’re looking for an alternative crypto-currency that isn’t too volatile, then maybe you should consider a smaller project.
In this article we’ll look at five examples of people who invested in these smaller projects. So if you want to know what kind of returns you can expect from investing in ShitCoins and the risks involved please read on:
- Why the bitcoin ship has sailed – is it too late to invest in bitcoin?
There was a time when investing in Bitcoin seemed like a good idea. Back then, in 2012, its price was around $0.20. It rose by over 1,000 percent in less than two years, hitting a peak value of around $19,000 at the end of 2013. This caused a lot of hype. People were excited about Bitcoin as a new way of doing business. A lot of businesses started accepting payment in Bitcoin so people could purchase things online without having to worry about exchanging their cash into bitcoins. It was also popular with drug dealers. People bought weed using it.
But now, more than seven years after the beginning of Bitcoin, its price has declined back down to around $27,000. That’s a drop of over 60 percent since its peak.
So is it too late to invest in Bitcoin? Perhaps not. You just need to understand how cryptocurrency works and how much risk you are prepared to take.
The thing about Bitcoin is that its value depends entirely on the market. If people stop buying it, then its value will fall. As this happens, the value of everything else in relation to it will increase. The reverse happens if people start buying Bitcoin again.
This means that if you are going to invest in something, it’s best to do so only when you believe it’s likely to go up. And if it goes up, then the value of anything else increases. So you get a higher return on your investment.
However, there are no guarantees in life, and so the risk level is always going to be there.
- The case of DodgeCoin
We’ve already looked at one example of someone who made millions investing in ShitCoins. Now let’s look at another example.
DodgeCoin was launched in 2017, but did extremely well. At its height, its value reached $0.7 per coin the total value of all coins in circulation was around $15 billion.
It all sounds very impressive, but here’s something to bear in mind…
- Is the risk of investing in shitcoins worth the return?
Let’s move away from DodgeCoin for a moment and look at something more realistic.
For instance, suppose you wanted to find out how much you would make investing in Bitconnect. You wouldn’t necessarily have to buy any actual Bitconnect coins. However, you would probably want to use their exchange platform so you can trade your own.
Bitconnect is a Ponzi scheme. That’s because the amount of money being paid out to users (the “dividends”) is strictly dependent on the number of new users joining the system. As soon as people see that the system is failing they start leaving.
Now, if you decide to join the system and start trading with others, then you won’t get any dividends. Your money will remain locked up forever. This means that the rate of return that you would receive would be zero.
So the question remains – is it worth the risk of investing in cryptocurrency? Let me put it this way. Would you rather risk losing everything because you thought it would be fun to try out bitconnect, or would you prefer to lose everything because you weren’t careful enough?
Of course, the latter outcome isn’t quite as attractive as the former. However, you can avoid most of the risks associated with investing in ShitCoins by simply staying clear of them altogether.
- Examples of people getting rich from smaller cryptocurrencies?
Let’s look at one final example of people making fortunes from ShitCoins. This time we’ll use Steemit as our example.
Steemit is a social media site which allows people to post articles and comments about whatever they want. The site uses blockchain technology to ensure that posts are verifiable and cannot be altered once published.
The site is currently valued at $5 billion! And yet, it wasn’t built to generate money for anyone. It was built to create an environment where people could express themselves freely. Many of the posts on the site are written by celebrities. These include famous writers and actors. Other posts come from regular people who have something interesting to say.
They use Steemit as a way to share their work, connect with fans and promote their books. Others use it to promote their music.
But many people use it to earn some extra income. So instead of posting content on their own website they publish it on Steemit. Then they charge a small fee to readers.
What’s really amazing is that Steemit does not require any effort on behalf of the writer. Once the author publishes a piece of content, it appears to be immediately available for reading to everyone.
Now, here’s the key point. Because Steemit is a blockchain, the transactions are public. Everyone can see exactly how much money the authors have made. And everyone can easily calculate how much money they have lost.
So, for every reader, the profit/loss ratio is 100%. This means that the author gets to keep whatever is left over. For the average person, that means earning anywhere between $10 and $30 per month.
- Smaller cryptocurrencies have a better community.
Finally, let’s look at the question of whether smaller projects have a better community. After all, many people have made fortunes by investing in larger projects. Couldn’t you do the same thing with smaller ones?
Well, yes you could. But remember that if you are thinking of using ShitCoins to make money, you should focus on projects with big communities.
These tend to attract a lot of interest from potential investors. Which means that you stand a greater chance of finding support if things go wrong. There is also a greater chance that you will find people willing to help you if you are stuck somewhere along the way.
Plus, there are fewer people trying to steal your stuff. So you don’t have to deal with a bunch of scammers trying to rip you off. The community is generally friendly and helpful.
- Celebrities investing in shitcoins
One area where you will definitely see big returns is celebrity endorsements. Many people love to invest in something just because their favourite celebs endorse it.
For instance, Shiba Inu is an adorable little dog who loves nothing more than sitting around eating food. So, naturally, his owners decided to name him after himself. They named him Shiba Inu. Unfortunately he was born in 1993 – fortunately he had a large following on Twitter.
When his owners realized that he was going to die within a year or two, they decided to turn him into a cryptocurrency and sell his image rights. People loved the idea and began bidding on the dog. By the time the auction ended, Shiba Inu had raised $2.2 million. His owners took a large cut and donated part of the proceeds to animal charities.
Other celebrities have used their fame to raise money for causes such as cancer research.
But perhaps the biggest example is Elon Musk. He is the founder of Tesla Motors and SpaceX. Both companies are hugely successful. They have changed the way cars are built and sent rockets into space.
Musk has become one of the richest men in the world. And he has done it through investments in both Tesla and SpaceX. He’s certainly one of the most influential figures in the cryptocurrency space.
In fact, he is arguably one of the most influential people in modern history. His influence extends beyond cryptocurrency though. He is now heavily involved in artificial intelligence. He recently created OpenAI, a nonprofit organization dedicated to advancing AI. Elon Musks Endorsement of Shiba INU was detrimental to it’s growth and without it we could argue that the market cap of SHIB would be a fraction of what it is today.