What is a Shitcoin? | Definition and Examples


A cryptocurrency with no inherent worth or purpose is referred to as a shitcoin. Shitcoins can even be harmful to prospective investors since they will imitate successful ventures even though they lack the underlying principles to support them. They may have simply been made to defraud individuals of their funds and deceive naive traders with pump-and-dump operations.

Shitcoin in a nutshell

  • Shitcoins lack inherent value and can deceive investors with pump-and-dump schemes.
  • Examples: Bitconnect (BCC), Dogecoin (DOGE), and Shiba Inu (SHIB).
  • Shitcoins exhibit recognizable patterns, such as sudden price surges followed by crashes.
  • Some brokers allow trading of shitcoins like Dogecoin through binary options.

Understanding Shitcoins

Trying to define what a shitcoin is often highly subjective. A Bitcoin realist would assure you that each and every alternative currency can be categorized as a shitcoin if you ask him about the term. On the flip side, supporters of Ethereum will label Bitcoin (BTC) as “shitcoin” due to the limited number of applications for the basic coin. Even certain top-tier cryptocurrencies, like Ripple, have been labeled as shitcoins due to the network’s significant extent of centralization.

It is frequently used to refer to other cryptocurrencies or tokens that emerged due to Bitcoin’s popularity. Shitcoins frequently lose worth owing to declining investor enthusiasm, since they were either not launched in good conscience or because their pricing was based on speculative activity. These coins are therefore viewed as risky investments.

Since they display a recognizable pattern, shitcoins are simple to identify. Although a coin can create considerable interest when it is initially introduced, its price generally stays quite constant. But when additional traders join the bandwagon, the price quickly and dramatically increases. After that, investors sell their coins to realize short-term profits, which causes the value to crash.

How Shitcoins start to emerge?

Meme currencies like Dogecoin are excellent instances of shitcoins. The DOGE cryptocurrency was issued by its developers as a joke. They intended to make fun of the bitcoin market’s extremely sober profit-making capitalist ideas. So, they released a low-value cryptocurrency with an unrestricted supply. However, things went horribly wrong, and DOGE quickly gained enormous popularity as a means of generating money.

Due to the engagement of social media influencers like Elon Musk, Dogecoin has evolved into the prototypical shitcoin that is all froth and has no purpose. The value of DOGE had surged mostly as a result of the surrounding buzz, despite having poor fundamentals.

What’s even worse, hundreds, if not thousands, of copy meme coins, like Shiba Inu, Floki Inu, as well as other puppy-based coins, were created as a result of this craze. Since there are quadrillions of these coins in circulation and a totally controlled supply, the majority of them are significantly lesser in value than Doge.

However, you must be aware that shitcoins are more than simply meme coins. They sadly cover a broad range of the cryptocurrency industry and aren’t usually so transparent.

Examples of Shitcoins

Bitconnect (BCC)

Bitconnect was one of those coins that seemed too good to be true. It promised big returns, but in reality, it was a scam. By 2018, it crashed hard, leaving many people with almost nothing. People lost a lot of money because of it.

Dogecoin (DOGE)

Dogecoin started as a joke based on a funny dog meme. Surprisingly, it became popular. Even though some people still think it’s a joke, it’s actually used by a lot of people in the crypto world. It’s not a scam like Bitconnect, but some still call it a “shitcoin.”

Dogecoin has gained attention and support from prominent figures in the tech and business world, including Elon Musk. Musk has been known to tweet about Dogecoin, which has often led to fluctuations in its price and increased its visibility among the general public.

Shiba Inu (SHIB)

Shiba Inu is another coin named after a dog, like Dogecoin. It tried to compete with Dogecoin, but it hasn’t been as successful. Some people thought it could beat Dogecoin, but it’s had a bumpy ride. It’s not clear if it will ever be as big as Dogecoin, or if it’s just another “shitcoin.”

Can you trade Shitcoins with Binary Options?

Yes, you can trade “shitcoins” with binary options. For instance, brokers like Pocket Option offer the opportunity to trade cryptocurrencies such as Dogecoin through binary options. This means you can speculate on the price movements of these “shitcoins” without owning them.

Conclusion

Shitcoins cover a significant portion of the cryptocurrency industry. These currencies are spreading like unwanted weeds due to the allure of producing enormous profits with a relatively low investment. However, they continue to be very risky assets, so the fewer shitcoins you have in your portfolio, the safer. Even though certain NFTs present some ethical concerns, shitcoins don’t since they are inherently unethical.

About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

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