Today I am going to extend my knowledge to recognize shitcoins by giving decent pointers.
What are shitcoins?
Shitcoins are Cryptocurrency which are coins of low value and add nothing to the Cryptocommunity. Most of them are trials made by people interested in Cryptocurrency and tried their hand at programming blockchain.
Others, especially after the inception and first “boom” of Bitcoin, have been developed as painful cash grabs.
On Twitter I made a dedicated post analyzing a coin called “Bitzeny” as an example.
The original thread can be found here.
In case that it should be taken down, I copy-pasted it here.
We are talking about Bitzeny. A coin with origins in Japan and started to be developed in 2014. After release, the original developer bailed out after a very short while and a community of voluntaries took over promotion. Probably investors wanting their money back.
Now, it is easy to trash talk but I want to give signs and pointers of what can be considered a “Shitcoin”. The developer bailing out after release is 1 tell tale sign. For the next sign, and most convincing one, you need to look at the market capitalization.
For this, I use the source CoinmarketCap. This website gathers all available data of currently existing Cryptocurrencies and keeps track of their evolution. For Bitzeny it can be found here.
We take a look at the chart quoted as image down below. What do we see?
– small initial bump (launch and hype)
– Long period of inactivity
– A boom in price and activity… coinciding with #BTC rise in popularity
– Quick depreciation
This type of graph is common among shitcoins. The small success, unrelated to the project, gave it limelight but made people lose money. A good graph must look like these.
What all good charts have in common are “peaks” followed by a steady upward rise in value.
Any coins which flatlines after a single peak… is a shit coin.
This is a general rule.
Now, I would like to extend to another bad coin:
#Tether
If your market capitalization and value is all over the place…
Consider it a shitcoin.
#Tether is a good example for this.
For reference, always look at the yellow line. In the case of #Tether it shows the signs of a shitcoin.
Peak and flatline.
This was the lesson for today.
Want to learn more?
Check out my guide to Cryptocurrency wherein I lay down all basics:
– Getting Crypto
– Earning Crypto
– Investing
– Technical lessons
– Sources
– Analysis
Bit-Block.org 
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