How to spot a Shitcoin?
Many projects emerged in 2021, reflecting a high potential because of the hype and low prices. Undeniably Millions of people have contributed thousands of dollars to these specious coins and projects in the greed to earn more.
“Shitcoin” is a term used to resemble coins that have no value and do not serve any purpose to the crypto land rather than just being lemons.
How can you spot a shitcoin and discard it from your investment list?
Less Investors, more provokers
You will find coins that might trend on your social media, building strong emotions in you to invest. But, before taking the call, check out the number of investors and the amount of interest people hold in the coin. If the coin is new in the market, the ideal number of investors should be 200-500; if it is old, the number should be big.
Analyse the price pattern and liquidity
Shitcoins generally follow a specific price pattern. Buying a coin where you spot sudden price fluctuations at too high and lows is not a good option because investors use the pump and dump techniques to capitalize on short-term gains. Also, check the number of transactions occurring on an exchange and the buyers and sellers available for the coin.
No new or copied concept
Multiple coins are available whose idea is drawn from the existing underlying technology. Such projects lack authenticity and development. Moreover, it does not aim to solve any issue.
Avoid coins that offer common ideas and concepts.
Check for exchange listing
Opt for reliable and known exchanges, as most exchanges like Flitpay do good R and D before listing coins; this will reduce the risk of identifying the shitcoins. However, you should always DYOR before blindly trusting anything.
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