Shitcoins – what is it?

As part of the crypto world, new words and expressions are constantly being introduced. Some of these terms can be quite confusing to some, especially if you have never heard them before, and one of these is the term shitcoin.

Is shitcoin the name of a cryptocurrency that is so new that no one has heard of it yet, or what is the point of this term? In this article we will get a little better acquainted with shitcoins!

Shitcoin – a negatively charged word

This probably speaks for itself, but shitcoin is obviously a negatively charged word. A very negatively charged word, to be exact.

When someone hears this expression, the probability is very small that they think it seems like a cool concept that you want to try out. On the contrary!

Shitcoin, which directly translated into english becomes “shit coin”, is probably not something people want to experiment with – if you only have the concept itself as a starting point. With that said, Shitcoin is something completely different in practice.

Shitcoin in practice

Have you heard the term ” altcoin “? If you have it, then you know that this is a general term that refers to a group of cryptocurrencies that are meant to be an alternative to bitcoin (which has been and is the most popular cryptocurrency).

So there is no cryptocurrency called “altcoin”. Nor is it when it comes to the term “shitcoin”. Like “altcoin”, “shitcoin” refers to a group of cryptocurrencies.

What makes “shitcoin” something unique is that the cryptocurrencies that are placed in this category were not developed because the developers thought that this would be the next bitcoin. On the contrary – they probably developed it just for fun, and then it took off a bit.

There are several examples of such “shitcoins”, and one of them is the cryptocurrency Dogecoin. This is more or less a copy of bitcoin, and was developed as a joke. But after a few years, the interest became very large, and nowadays this is among the top 10 cryptocurrencies in the world !

Here you get to know how the shitcoin of all time started:

So what is a shitcoin?

As we saw above, the developers behind the cryptocurrencies that fall into the “shitcoins” category do not have a specific business plan with their invention. Hence the category name which can also appear a bit junky and misleading.

“Shitcoins” are really proof that you never know what will come out of an invention. Even if you do not have much faith in it yourself, something good can actually come out of it. The developers of Dogecoin have in recent years made good money on their invention!

So how do you define what a shitcoin is? It is not so good to know what is true or not, as there are many rumors related to cryptocurrency. A classic example is the origin of bitcoin. Do we really know who invented it? It is said that the person’s name is only an alias.

But it’s not the only time that a cryptocurrency that started as a kind of joke , and then taken a bit off. And this has led to the emergence of some clear framework for what a shitcoin is:

• The cryptocurrency does not meet the expectations you get for it through what you read about it.
• It is somewhat uncertain what the purpose of the cryptocurrency is, as well as how high its functionality is.
• The identity of the developers is not widely known.
• The cryptocurrency is more or less just a copy of another cryptocurrency.
• There are very few who have invested in the project, and therefore the cryptocurrency has very low liquidity on the crypto exchanges.

How is the volatility of shitcoins?

As most people know, very many cryptocurrencies are characterized by being tied up with high volatility . In practice, this means that the value increases and decreases at an enormous pace.

It is the high volatility that makes the risk very high when operating a cryptocurrency. There are also some exceptions if you want to invest in cryptocurrency without the risk being as high. Then you can invest in what is called “stablecoins”.

But what about the volatility of “shitcoins”? The name does not exactly give a very good indication that this is a smart investment project. It is not to be underestimated that a “shitcoin” is characterized by high volatility in the same way as bitcoin and others.

But there is one thing that is important to keep in mind. Although high volatility leads to high risk, it means one more thing, and that is that high volatility can also provide high returns. That is, you earn on the investment. But you have to be prepared for both, because you can also lose and it is important to keep that in mind.

Why is crypto so volatile? – see more in this video:

Shitcoins do not have to be something negative

There is no doubt that the terms “bitcoin” and “shitcoin” create different associations. But “shitcoins” does not have to be something negative. It can be as good – or bad – as bitcoin, even though they have different names.

If you hear someone make some remarks about the relevant cryptocurrencies based on the term “shitcoins”, and it seems rather short-sighted, then you may no doubt want to take what is said with a pinch of salt.

How to get shitcoins

Has this article made you curious about shitcoins? So curious that you want to find a “shitcoin” to invest in? Of course, there is nothing stopping you from doing that.

Investing in a “shitcoin” is done in exactly the same way as investing in bitcoin , “altcoin” or another cryptocurrency. It does so via a crypto exchange or a trading network.

For brits who want to invest in one or more shitcoins, Binance can be a good place to start. But there are also other crypto exchanges that offer these cryptocurrencies, such as Bittrex. Although the term itself may give you chills on your back, it is not something you need to be afraid of. Shitcoins are not shit!