The cryptocurrency market has been growing rapidly over the past few years, with many new coin projects being released each week. However, some of these projects are simply “shitcoins” that don’t offer anything significant or innovative.
Many people believe that the crypto industry is full of scams, but there are also legitimate coins out there that deserve investment consideration. Here is where we give you tips on spotting the next big Shitcoin.
What is a ShitCoin?
A shitcoin is an example of a worthless cryptocurrency project. They are usually issued by inexperienced developers who are more interested in selling their own idea than they are in creating something valuable and useful. As such, they lack any real value or features that make them attractive to investors.
In fact, most of the time, a shitcoin is nothing more than a clone of another coin with minor changes or improvements that have absolutely no effect on the overall price of the coin. It’s like a rip-off of another coin without the original developer’s permission.
Shitcoins are not only bad investments, but they can also be very risky if you buy one based solely on its current price. In other words, it’s impossible to know what the future holds for a shitcoin until after it’s already lost all of its value.
Can you make money investing in Shitcoins?
Yes, you can definitely make money investing in Shitcoins. But if you invest in them, then you should know what you’re getting into before you start. You need to do your research and find a reputable project that fits your risk tolerance level and financial goals.
You also need to understand the unique characteristics of this particular coin project because they may affect your decision making process when it comes to choosing whether or not to buy their tokens.
How do you tell if a crypto project is a scam?
There are several ways you can tell whether a crypto project is legit or just another scammer trying to take advantage of investors. These include looking at the team behind the project, how much it raised during ICOs, and how they have managed to retain funds from previous rounds of funding.
However, there are other factors that you should consider when deciding if you want to invest your money into a specific coin project. There are some key signs to watch out for, such as an overly ambitious goal combined with little evidence that this goal will ever be achieved. Here are 10 red flags that could mean trouble ahead…
- A lack of transparency
- A lack of community involvement
- Lack of an established track record
- A lack of active development
- An unrealistic target
- A lack of financial disclosure
- A lack of marketing effort
- A lack of social media presence
- A lack of communication within the team
- A lack of any real use cases
Why would you invest in bitcoin when you can invest in smaller projects?
There are a lot of reasons why you should consider investing in smaller crypto coins rather than Bitcoin itself.
You may be interested in a particular project, and not necessarily Bitcoin.
You want to diversify risk and reduce exposure to one asset type.
You want to take advantage of the latest crypto trends without having to commit all of your funds to one asset.
You just want to see what’s happening in the market right now.
You want to explore different options for trading cryptocurrencies.
Examples of scams in the crypto community.
There have been numerous examples of scamming, and scammers can make it tough to distinguish between real and fake coins. Some common scams include:
Phishing emails that try to get users to download malware via attachments, usually disguised as cryptocurrency-related content
Fake websites that claim to be cryptocurrency exchanges, promising high returns if users deposit their funds
Ponzi schemes that promise high returns using other investors’ money, while taking returns from new investors
ICO whitepaper scams that claim to show off amazing technology, but actually focus on little more than marketing hype
Crypto Ponzi schemes that take advantage of users who get excited about something new and invest too much money into it without doing proper research
Fraudulent ICOs that use stolen investor information to sell worthless tokens
Exchanges that charge high fees and slow down transactions, making them unusable for regular people
Fake crypto celebrities who pretend to be popular people in the crypto community, causing harm to those individuals’ reputations.
How to check a cryptocurrency for social media presence.
Social media platforms like Twitter, Facebook, and Instagram have become very popular among investors because they provide an easy way to understand which cryptocurrencies are worth considering and which ones aren’t. In this section, we’ll show you how to find any crypto project on social media.
When searching for information about a specific coin on Twitter, search using the name of the coin followed by the word “ICO” (initial coin offering). The term ICO stands for initial coin offering, which is when a company first sells its tokens to fund their business development in exchange for money.
In order to find more information about a particular coin, follow the official Twitter account of that coin. For example, if you want to learn more about Bitcoin Cash, you should follow BCH on Twitter to get up-to-date information.
Searching for a particular coin on Facebook can be difficult, because there are so many different accounts claiming to represent it. To simplify your search, filter the results by searching only for coins that include the word “Crypto.”
Once you have found a coin you are interested in, visit the group page of the community that represents it. You might find other interesting content related to the coin there as well.
Instagram is another great platform for finding information about crypto projects that you’re interested in. When looking for an ICO, start by searching for the word “ICO” at the top of the app.
Then, scroll down until you see a list of all the groups that use the “ICO” tag. After clicking on one of the links, you should be taken directly to the profile page of the group.
On the group page, you will see pictures and videos from the community members. If anyone in the group posts something interesting, click on the post to read it and then comment on it if you would like to share your opinion with others.
If you are not satisfied with the info you find on Instagram, try visiting similar communities instead.
If you want to invest in cryptocurrencies, here are some tips that will guarantee your security – We used to say if it looks too good to be true it probably is but if you apply the same motto to crypto you could lose a chance at riches. So as always we suggest DYOR (Do your own research) and use the information available to make a good decision.
Make sure to vote on your favorite crypto projects so that they have the chance to grow on our ranking page which displays the highest voted cryptocurrencies calculated daily. Press here to check which new and upcoming projects are the most popular today.