What is a Shitcoin and how to profit from it. - Crypto Academy / S5W8 - Homework post for nane15

So hello everyone welcome to the homework post of fifth season and the last week of homework season so here I will be answering the questions asked by a professor so before answering I would like to thank the professor to explain such great information to us with the help of his post and give us the important knowledge and hope we all get benefited with his post.

1)Explain your understanding of what a Shitcoin is.

So when we hear the word shitcoin we can divided into two words that is shit and coin so basically shit means of no use and a coin can be called a digital currency according to this post.

So a shit coin is a type of cryptocurrency which does not have any backup to back it up like for example it does not have any good projects with which it can get benefited.

We can say with it can be of good value this are created by anyone for any fun like we have seen in the case of dogecoin it can also be referred to as a Meme coin such types of coins are cheaper to buy so any individual can buy huge number of coins in short amount of money.

Hence they have high liquidity due to its lower prices shitcoin can be used as a scam for or other people's.

For example it can be performed by buying huge quantities altogether which results in to pump in of its value but as we know that it does not have any backup projects hence it gets over valued and can be dumped to other investors who buys at higher rate.

2)Do you think it is possible to profit from investing in Shitcoins?

We have seen many coins also the shit coins which have gained more than expectations from our side for example dogecoin and Shiba.

They both have gained so much profit to the investors in such short period of time so the question that will we be able to to get profit from investing in shitcoin depends upon which coin or for the liquidity and the news the coin is related to.

For example in case of dogecoin Elon Musk tweet from Twitter results into pump off of that coin so we can call it a luck factor because they don't have any project to get their value pump.

So they depend upon such news, tweets,etc to get pumped up if any shitcoin tries to value it up by burning their coins and limiting their quantities also by getting some good projects.

For that ones we can invest in such type of coins but other shit coins which does not have any backup or is not trying to to grow up search type of coins.

We should neglect also while investing we should invest some low amounts which we will not regret having in loss as in such type of coins any upward or downward movement can be possible so low quantities and low amount should be invested at right time of coins so such factors can contribute to get profit in shit coins also.

As we all know that initially the price of Bitcoin was very low and with time it has given so much value hence to not get regretted investment in such coins or any other coins.

We should invest in low amount so that if any of them gets pumped or Grows we should go with profit also with no greediness we should sell it as we get profit from it.

Az I personally have seen many friends of mine investing in Shiba inu and getting many profit from it I have also seen many friends who have taken such shit coins at high rates and when it gets downwords regretting then at last I think there are so many shit coins but investing in the valuable ones after proper analysis and study it can turn out to be in profit for an individual.

3)List advantages and disadvantages of investing in Shitcoins.

Of course there are advantages and disadvantages also of investing shitcoins first of all I would like to list some advantages investing in shit coins they are as follows:

• as shit coins are of low values it can be buyed in used quantities in low amount of money.

• due to its low prices the volatility is also increased which is beneficial for the coin as more the volatility more the flexibility of the coin will be.

• also small investors who do not have much investment they can also invest in such types of coin for short profit as they can yield good amount of profit in short period of time.

• the prices of shit coins grows quickly so short term gain can be made by an investor.

now as we have discussed it also has some disadvantages and now I would like to list some disadvantages according to me for shitcoin they are as follows:

• As have discussed earlier about the pump and dump scam shit coins are very easily scammed to small investors for such pump and dump due to its volatility.

• also the rate at which the price increases the price decrease can also happen at the same rate or more than the the increased rate also which can result in to loss of an investor in short period of time.

• As we know that shit coins are in cheap prices it poses some great risk also for investor as it does not have any backup projects so any downward or up movement can be possible so it was great great risk for an individual.

• they are also not listed on each and every platform.

• hence due to all these factors we cannot hold it for a long time this is great disadvantage for a long term investor.

4).Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.

as I have written earlier that I have seen many my friends getting good profits in shit coins also I have seen many other my friends getting losses in shit coins so such type of coins which I am going to share right now are seen by me itself getting loss bye my friends they are:

1)baby doge BNB

after the success of dogecoin baby dose bnb shit coin came into existence with the hope that it will also grow and give profit same as each coin has given it Garib initially e but it wing shitcoin it was unable to give investors high returns as compared to othersit was created on 1 June 2021 on binance platform.

2) SALT:

Initially it was great as it performed great with a high of $16 so many though it to be of good value and invested in it but it says also when luck hits you it hits you harder from the high it started to fall continously to a level that is almost flat.

3)golden shiba inu:

with the hope of getting returns same as Shivay new the investors which were unable to catch the momentum of Shivay new they bind Golden Shiva and you in the hope of getting high returns as same as she buy a new but being shit coin.

5)Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)

1)Mini ADA:

Mini ADA is the newest BABY coin following the footsteps of coins like Baby BNB and offcourse Baby ETH. mini Cardano rewards holders, claiming to send each BNB and enzyme rewards to the wallets of holders each hr.

If these claims square measure true, shopping for MADA may well be a simple thanks to become the beneficiary of a gradual stream of passive financial gain, denominated in 2 of the foremost valuable coins on the market.

2) PI

Many people over are gaining interest to this upcoming crypto called Pi Network, This crypto was started in 2019 and reached 21 million subs and going. The growth is so high because its developers were PhD from Stanford University.

6)Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)

Pic source screenshot from -
www.coinmarketcap.com

Pi Network is a digital currency project that aims to stay cryptocurrency mining accessible because the centralisation of 1st generation currencies like bitcoin has place them on the far side the reach of everyday users.

The Pi Network, developed by a team of Stanford graduates, permits users to mine coins exploitation its transportable app, validatory transactions on a distributed record.

This is the current price and chart of 7 days duration in which we can clearly see that it has jumped up toso much value and has given the high of more than 0.012 dollars in just duration of seven days also its lowest value it reached was 0.006955 and now its value is $0.009641 now let us see more the monthly price data of Pi

Data from - www.investing.com

7)Based on your previous analysis, what do you think will be the evolution of the price of the cryptocurrency for this year? Be creative when explaining.

Yes,the fact that crypto market has much more to gain and grow same it gives many alt coins the apportunity to grow .

Such grow of crypto market will give immense boast to the coins which has good projects.
the Pi network's goal is to become a digital micro-payment system where thousands of store will accept Pi Coin as payment to products and services after its successful launch this coming December 2021 so mine before it's too late. In future, it is said that Pi Coin (π) will be like Bitcoin.

Cryptocurrency experts predicts the value of Pi coin to be 1$ to 10$ after , 2021. It could reach 100$ till 2024 still one should always do there own research before investing in any coin regardless of any one.

Conclusion

Bassed on the professors lecture and understanding my conclusion will be that shit coins may be or may not be profitable for an individual and whole depends upon the fundamental analysis and the study or research made by an individual some shit coins are of Great Value and many are which are not guided and supported by any strong projects the whole and sole result.

That depends how it much grows is on its fundamental and analysis value shit coins fluctuates at higher rate than normal coins there are many people who have been profited by shit coins and many others who are in loss due to shitcoins.

So according to me we should invest very short amount of money in such type of coins so when it it goes down and our portfolio shows in red we should not get worried and hold it it for long term if if the selected coin does good due to any reason or guided by any news it may get boost up eventually,no doubt due to lesser value we can buy much more quantities of such coins but we should not neglect the fact that there are many other altcoins which are having good projects and good values which have the capacity to give us more returns and valuable Returns as compared to shit ones the whole and sole depends upon your patience as it's said that Patience is the key to success hence we should not get greedy and should not search for a shortcut for moneygain.

at last I wanted to thank the professor for giving me chance to participate in this contest and for sharing his knowledgeable information about shitcoins to US and increase our knowledge we hope for more search good content from our professor which will definitely benefit us in one or the other way.