There is already a market explosion in the cryptocurrency world, but the sad reality is that some persons are leveraging on the large-scale ignorance of crypto newbies through these shitcoins. Any coin without a real cost on the cryptocurrency network is termed “shitcoin”. An example of this includes Shiba Inu (SHIB), Husky Inu (Hdog), Dogecoin (DOGE), etc which are among the shitcoins 2022 list.
What Is A Shitcoin?
Shitcoin is a derogatory term used to describe cryptocurrencies that lack discernable purposes. Often than not, the word “shitcoin” is relatively based on individual opinion. Without a distinct definition, they can be an imitation of some other popular coin.
How Do Shitcoins Work?
Interest in cryptocurrency has been more tickled following the launch of Bitcoin in 2009. On the heels of the breakthrough for Bitcoin, the study of crypto blockchain has emerged, thereby leading to the creation of other virtual currencies. These currencies are broadly called Altcoins, which duplicate the simple ideas of Bitcoin.
Following a restrictive measure placed on the availability figure of digital tokens, the need to launch other coins arises. For instance, Bitcoin’s whitepaper infers that the maximum availability of Bitcoin will be at 21 million BTC. Also, a white paper from Ethereum stipulates that Ether’s availability can not exceed 18 million.
Due to this fact, supply limits have the propensity for scarcity creation. An understanding of this is what raised huge concerns for crypto investors. In the case of shitcoins, the demand for the token does not appear to be original. This is because the token’s price is just speculative.
How To Identify A Shitcoin
Many crypto enthusiasts have opined that discovering a shitcoin is easier. Evident of this is when shitcoin was first launched, many investors jumped at it, with time the rate started dropping. This anomaly has been in a continuum such that investors habitually take advantage of inflation to make profits and which consequently leads to a fall in price. This pump and dump attitude towards shitcoin has led to hesitation in investing in it.
Furthermore, shitcoin has a relatively low market cap, making it possible for few buyers to control its price. Contrary to the identity of notable digital currencies like Bitcoin, Ethereum, and Binance Coin that are built for intended purposes, shitcoins lack the well-defined aim and mission of trading on the crypto space.
Is Shitcoins A Good Investment?
Shitcoins are bad investments. They are characterized by big risks with low rewards. The true dynamics of the coin are understood by a few. However, most shitcoin investors are left with useless cryptocurrencies as there is no real price since its operation is largely dependent on pumps and dumps. Therefore, investing in a shitcoin can be grave as its investors stand the risk of losing all their initial investments.
Shitcoins List 2022
Although the list can be subjective, some of the popular shitcoins on the cryptocurrency space are:
1. Dogecoin: this is a meme-based cryptocurrency. Big influencers have largely influenced the success of the coin.
2. Shiba Inu: this digital token emerged after Dogecoin’s success to answer the true representation of the Shiba Inu dog breed. Although the maximum delivery of the token is set at one quadrillion, the coin does serve any purpose.
3. Dent: this crypto is used to buy smartphones. Lacking blockchain generation, it falls on the shitcoin list.
4. Husky Inu: this coin was launched in November 2021, and it is already gaining ground. Existing in its early phase, many people still believe the coin to be a scam or a joke coin like Doge.
Cryptocurrencies are characterized by speculation, complication, and risks. So its performance can not be predicted as there is no assurance for certainty. It is important to put your occasions into consideration, explore your recommendation and pitch your facts. before relying on these facts.