Did you know that more than 99 percent of species that ever lived have gone extinct?
It seems there is a similar ratio among cryptocurrencies, and we’ve seen hundreds if not thousands come and go since Bitcoin began back in 2008. There’s one simple word you can use to describe these dead coins and tokens:
It’s a word that’s thrown around a lot in crypto circles, yet nobody really knows what it means. I think that’s because it’s a mistake to think of a cryptocurrency as being a shitcoin or not. Every coin and token falls on a spectrum.
As you can imagine, there are a lot of them, and most cryptocurrencies will have at least one of the characteristics of a shitcoin. This does not mean if they meet one of the characteristics that they are a shitcoin. Just that if your coin meets all of these, you may want to reassess your holding.
The “Shitcoin Check List” is exactly what I look at today. It’s quite an extensive list but here are a few of them…
– Market Cap: Having a low market cap can be a bad sign, because a low market cap means not much money has flowed into that cryptocurrency. There are some exceptions to this of course, but as I discuss in the video, these exceptions are rare for one very important reason.
– Community Size: How big is the community relative to the Market Cap? Most cryptocurrencies with market caps in the hundreds of millions will have tens of thousands of followers, and those with market caps in the billions must have hundreds of thousands of followers.
– Exchange support: Not every cryptocurrency exchange is reputable, and not every exchange has listing standards. It helps to know that the trading volume they have is probably real, and their standards are higher than DEXes like Uniswap (which have no standards).
– Tokens vs. coins: It’s pretty damn easy to create a cryptocurrency token on a smart contract compatible blockchain such as Ethereum or Solana. By contrast, creating a cryptocurrency coin takes a lot of money and manpower, and this kind of investment increases the likelihood that the cryptocurrency in question won’t be a shitcoin.
These are just some of the many factors I talk about in the vid. I would consider following along and seeing how many boxes are checked by the cryptocurrencies you hold or are planning to hold.
For some of you, this video could make or break your cryptocurrency portfolio, so it’s probably a good idea to stick around!
⛓️ 🔗 Useful Links 🔗 ⛓️
► CoinMarketCap: https://coinmarketcap.com/
► CoinGecko: https://www.coingecko.com/en
► Cryptocurrency Whitepapers: https://whitepaper.io/
► Smart Contract Cryptocurrencies: https://defillama.com/
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.