Ever came across this term on social media conversations or crypto-related forums? Since Shitcoin is such a small cryptocurrency, there aren't many places to get it. The only options are to trade for it on the PancakeSwap exchange or by using the trade function on Shitcoin's website. There's no good reason to buy Shitcoin, and, if you do, you're most likely going to lose money. It's clearly never going to be an investment, so the best-case scenario is that people think it's so hilarious they just have to buy it.

It is seen by many as a way to "cash in" on cryptocurrency success. This is a meme-based cryptocurrency that was designed around a comical picture of a Shiba Inu dog called Doge. Much of the coin's success has been the result of influencer encouragement and hype. Alternatively, lower market cap coins may be acquired through a decentralized exchange , where there are no restrictions on what coins can be listed. Even if tokens are not sold directly after an ICO, offering a cryptocurrency at a very low price can result in a large proportion of tokens sitting in the hands of a few people.

We're also a community of traders that support each other on our daily trading journey. Although subjective, some of the well-known shitcoins within the crypto markets include Dogecoin, BitTorrent, Dent, TRON, and Shiba Inu coin. Today, the word shitcoin is tossed around referring to cryptocurrencies like boats in an ocean. There’s just something about it, as Eric Lombrozo explains, the word just has that viral ring to it which allows it to dominate. Apecoin is a platform comprised of 10,000 unique collectible Bored Ape non-fungible tokens . This marketplace provides some of the top NFTs for sale; all built on the Ethereum blockchain.

If the development team is made up of largely anonymous and secretive people who avoid public view. Users trade and farm Shitcoins for profit and to produce yields. Many shitcoins also work seamlessly with other cryptocurrencies making crypto trade more versatile. Due to their sudden price fluctuations, they present ideal opportunities for short-term traders like scalpers to make profits.

Shitcoin realcyberdoctor offers "Shit Farming," which is its term for yield farming, through its STC-BNB liquidity pool on PancakeSwap. To participate, you need to deposit an equal amount of STC and BNB tokens into the pool. You'll then earn a share proportional to your stake of the transaction fees earned by that pool.

Other marketing techniques used for shitcoins are giveaways, airdrops and token burns. Through a combination of these, shitcoins try to create a sense of scarcity while driving up the demand for the coin. However, since most of these tokens have a freakishly high token supply, in the trillions or even quadrillions, the only purpose of these techniques is to create a sense of FOMO. A shitcoin is generally launched in a bull market when the investor sentiment is at its highest. At the peak of a bull market, investors care less about utility and fundamental value and more about short-term gains and leveraging their capital.

Other cryptocurrencies aim to build a utility for DeFi purposes. Yet, shitcoins defy all of these value pitches and implicitly, or explicitly, offer no utility whatsoever. A shitcoin is a cryptocurrency with zero or close to zero value and no utility. The term shitcoin is used in a pejorative way to refer to altcoins that try to gain benefit from the success of other cryptocurrencies without offering value on their own. So as you journey through the cryptocurrency space, be sure to apply the term shitcoins to only those coins that are scams and deserve it. Otherwise you might end up biased against alternative cryptocurrencies that might in fact become useful one day.

They are notoriously volatile and account for most of the new cryptocurrencies in the market. The term shitcoin highlights this trait, as projects like Shiba Inu have famously pumped and crashed in the past. Elon Musk’s tweets have been known to disrupt cryptocurrency markets, creating both rallies and huge sell-offs, after he lends public support for or lays criticism against, various projects. Musk also shares his thoughts on Bitcoin regularly using Twitter, like announcing in 2021 that Tesla bought USD $1.5 billion worth of Bitcoin. Shiba Inu is an ERC-20 token built on Ethereum that’s reported to be 100% run by its community. For every cryptocurrency, there will be a debate over whether or not it’s a shitcoin.

It is seen by many as a way to "cash in" on cryptocurrency success. This is a meme-based cryptocurrency that was designed around a comical picture of a Shiba Inu dog called Doge. Much of the coin's success has been the result of influencer encouragement and hype. Alternatively, lower market cap coins may be acquired through a decentralized exchange , where there are no restrictions on what coins can be listed. Even if tokens are not sold directly after an ICO, offering a cryptocurrency at a very low price can result in a large proportion of tokens sitting in the hands of a few people.

Decryptionary raises the white flag and just defines a shitcoin as “any cryptocurrency that is disliked by the person talking about it.” And even that has some merit. The D2T token was co-created by the Learn2Trade professionals passionate about making the whole market research available to traders, so they can adopt them into strategies that work. This has made the D2T one of the best investments of the season and will be prominent in the future. Shitcoins are easier to identify since their price chart follows a specific pattern. Shitcoin prices exponentially increase over a short period of time, eventually gaining investors’ attention.

Moreover, when searching for the project’s future roadmap or goals, and you cannot find this information, then the project should be approached with caution. Lastly, if there lacks data about the tokenomics, supply, token allocation, holdings, etc, then the token has a higher likelihood of being a shitcoin. There is no particular reason for the creation of this acronym. As conversations in forums and in social media tend to keep wordings relatively short, it would potentially take a long time to write that a coin “is a bad investment”. For that reason, crypto-investors gradually formed the term by connecting the words “shit” and “coin”.

This action is followed by a nosedive caused by scalpers, panic sellers, and initial investors. According to an individual’s subjective opinion, a shitcoin is a cryptocurrency that is supposed to be a bad investment. Shitcoins are also considered to be coins that do not serve a particular purpose in this ever-evolving crypto-world.

There are exciting possibilities out there when investing in cryptocurrency, but this isn't one of them. Stick to serious projects that are aiming to solve real problems. With joke tokens, it's only a matter of when -- not if -- they'll collapse. It's one of those cryptocurrencies where the name is pretty much the only reason it exists. There's nothing it does differently from thousands of other crypto tokens, so the only reason to purchase it is the fact that it's called Shitcoin.

However, most shitcoins are implicit or explicit pump-and-dump schemes. Their only purpose is speculation, and they aim to increase their token price as much as possible to yield more profit. In the worst-case scenario, the projects behind them turn out to be rug pulls specifically designed to crypto enrich their founders. A shitcoin is often created with no intention to have utility besides speculation on a rising token price. Many shitcoins do not hide the fact that they have no intrinsic value and even try to play on the notion of being a bad investment. As such, they are considered extremely risky investments since they can yield outsized gains but have no fundamental value and can lose all of their value in a bear market.