by Hodler Ash 
What Does The Term Shitcoin Mean In Crypto ?
The Cryptocurrency market is a hub of a lot of different kinds of coins. When the variety is huge, there are also huge chances that some of these coins will be really good while some of them would be really bad. So, the basic definition of shitcoin is any cryptocurrency coin that is not really liked by any person and they apparently don’t even want to talk about it.
In brief, it can be basically any coin which does not have a good and advanced technology as per the growing market. It is very difficult to handle certain tokens if the technology is not right and a lot of problems after investing may show up. Traders don’t literally call any coin shitcoin but only calls the ones which deserves. Maximum times, this word is associated to any other token or coin only after a bad experience the trader had with anything regarding the coin.
There is a larger aspect to shitcoins as well. There are a lot of coins that are valued based on speculations only. The coins might not be so worthy at the end of the day just because they were not created in good faith anyway.
More About Shitcoin
Investors have been showing a lot of interest in cryptocurrencies and it completely makes sense why after the hike of bitcoin few years ago. The problem with cryptocurrency however is that the price can fluctuate very much in very little time. The digital assets are very unpredictable and that is what makes a cryptocurrency what it is. Again, just because the cryptocurrencies have created a new market does not mean that all the investors do not struggle anymore to draw historical parallels. The underlying technology that is used to manage blockchains may not be well understood by a lot of investors which opens up a number of doors for abuse. The wrong identification of whether a cryptocurrency is viable or it was just created to bilk investors are difficult to understand.
Shitcoins basically depend on these factors. Mostly, they follow the same kind of pattern. The coin or token is initially launched with much interest but the price remains relatively level. Just because of the hype and the interest, investors pour in a lot of money increases the price exponentially and other investors think that investing in this coin would be very profitable. Just want to capitalise on the short-term gains. Determining the price for these kind of coins actually requires a different approach. In fact, every other price range requires a different approach to be dealt with that is what maximum of the investors ignore.
Altcoins are not at all back by the government which is the reason why none of the investors can actually look at the GDP growth or inflation in order to determine if the price of the coin is undervalued or overvalued. The prices are hence driven primarily by speculations. A cryptocurrency with no unique features or utility at the end of the day is termed as shitcoin. In easier words, a cryptocurrency which will be valued at 0 after a certain point of time is what they are. Nobody would actually invest in them for a long term because one never knows when it will be worthless out of absolutely nowhere.
How To Know If You Own A Shitcoin ?
You never know whether you own a shitcoin or not mainly because the unpredictability factor is huge in the crypto market. However, after analysing every factor a lot, a financial advisor can actually let you know if you own a shitcoin or not. If he/she says yes, you should immediately leave the coins.
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