Cryptocurrencies such as Tezos are underrated by investors and many individuals. Coins that have a less important purpose or fewer demands presently are called shitcoin. But they can still be worth investing in 2022, as it can give its early adopters an advantage and help make millions of dollars when they explode.
Shitcoins are getting replaced with a popular cryptocurrency, Godex, to drive profit
What Is a Shitcoin?
Every altcoin can be called a shitcoin, especially when its price sharply drops. According to Urban Dictionary, a shitcoin is often a copycat cryptocurrency with very little or no value. This term is derogatory and warns to keep away from investments — and every cryptocurrency can be deemed as a shitcoin. For Bitcoin enthusiasts, any coin that is not BTC is a shitcoin. Others do not trust coins that aren’t in the top 100. The term is also applied to coins that have lost value over time. Several factors define shitcoins:
- very low liquidity and trading volumes
- considerable value drop over time
- no technological and practical value
- an extremely low cost of less than $0.01
Also, shitcoins are often not listed on reputable exchange platforms. The list isn’t comprehensive by all means — you always need to independently analyze the assets selected for investment.
Where to Buy Shitcoins?
As these coins are characterized by a low market cap, you will not find them on popular crypto exchanges. Such platforms require an official listing of each cryptocurrency. To be approved for exchange, the issuer needs to go through several stages. The exchange will study the usefulness and functionality of the new coin, its safety, as well as profitability and liquidity of the asset. Based on the results of the analysis, the exchange decides whether to add the cryptocurrency to the list. Shitcoins can rarely pass this test. But at the same time, decentralized exchanges (DEX) have no strict rules to coin listing, and lots of low-value cryptocurrencies can be acquired via these platforms.
Why do People Buy Shitcoins?
Low-value, small-capped coins can bring you a reward — but they rarely do. Often, behind them are pump and dump schemes to get your money. So why is there a market for shitcoins?
Young, undervalued coins often fall into the shitcoin category. They are sometimes based on innovative solutions that are not yet in demand. But a promising idea may become relevant tomorrow, which will entail an instant growth of the currency behind it — and, starting as an investor in shitcoins you’re suddenly becoming an early adopter or a pioneer. That’s what happened with Ethereum, that’s what happening with Tezos, and it’ll probably happen with lots of other coins.
Also, a promising idea everyone’s investing in can go flat because of more capable and purposeful competitors or fall after a bull run and never recover again — and all of them are shitcoins in the aftermath. Risks are an inevitable part of investing. Hindsight is 20/20.
How to Avoid Shitcoins While Trading Crypto?
It is almost impossible to avoid purchasing a shitcoin as you can hardly predict the future of the project behind a particular cryptocurrency — new altcoins can and will lose value.
To reduce the chances of buying it, research and analyze the project you’ve selected. Before investing in cryptocurrencies or tokens, investigate if there have been recent code changes and updates. If not, most likely, the project has been shut down or frozen. It is also worth tracking the coin on Reddit, Twitter, and blogs, checking up on all sorts of announcements, updates, and various activities that prove that the project is still alive.
Are Shitcoins Offered at Godex?
Online exchange services are the fastest and most convenient solution to buy or exchange cryptocurrencies of any value, from Bitcoin to less popular currencies. Godex is one of the most popular and fast resources for exchange — currently, it offers 301 coins to trade and, despite the fact it focuses on reliable cryptocurrencies that are listed on famous exchanges, of course, it’s got shitcoins. Investing in new and unknown coins and investing in coins after a bull ride is often a part of investment strategies, so shitcoins are often in demand — there are lots of reviews on the platform showing that people want to invest in them and find them on Godex.
Advantages of the Godex Resource
Godex is one of the most reliable platforms for crypto exchange, and it offers a bunch of benefits:
- Full anonymity. No registration is required for transactions. No need to share your personal info.
- You can work with more than 300 coins on this site.
- There are no restrictions on the number of transactions or their amount.
- The exchange offers the best rate on the market, and it’s fixed for the moment of the transaction.
- The built-in calculator immediately shows the potential result of the exchange.
- Fast processing of all exchange operations.
- Round-the-clock customer service.
- Affiliate program for business and personal use with generous commissions.
It is crucial to understand that it is impossible to completely avoid the risks when buying a cryptocurrency. You can lose your money even working with the most stable coins. Crypto investments require a deep study of the market, analysis of expert opinions of experts, and knowledge of the crypto industry. Only in this case will you be able to make an informed decision.