To some people, shitcoins just plain don't exist. These people tend to believe that there is value in all coins. This is only true to an extent. There are many coins out there that should be deemed a shitcoin and there are usually signs that are dislpayed for you to figure out if a coin is indeed a shitcoin.
First off, What is a shitcoin?
These are coins that are more or less a scam coin. You do not want to invest in these coins if you are looking to make money in the long run. These are coins that are backed by nothing and do not help the society while it pertains to innovation or really any end goal. There are a lot of these coins out there and you do not want to be suckered into purchasing these.
The developers of these coins are often only out to benefit themselves. A coin might be gaining good traction and these developers could do anything they wanted with their currency. If they want to create more coins for themselves, they generally can. They can sell out at any time once their coin gets successful. These sell outs can hurt the investors as their coin is no longer worth anything.
How to avoid a shitcoin
Ultimately, you never know. Your best bet is to read the whitepaper and pick a coin that seems like it has a good purpose. A coin with no purpose is a bad sign. A super poor website might be a bad sign. It really helps to look into how much of the coin is being allotted to specific areas. Sneaky fees and bad customer service are some other signs.
Are the developers keeping a large percentage of the coin for themselves? If so, don't even consider that coin unless you are alright with that.
What are some shitcoins that I should stay away from?
1. BitConnect - Ruled a ponzi scam by Texas
2. Doge Coin - Not a great concept here, this coin is not backed by anything. Seems like it is very susceptible to pump and dumps. I wouldn't put my money here and feel 100% secure.
Comment below with coins that you consider to be a shitcoin and perhaps why you think they are a shitcoin.
