Should you invest in the Best ShitCoins or Penny Stocks? - YouTube

If you've seen the movie, the wolf of wall street,

you should already be familiar with the term pinksheet or penny stock,

but if you're not and you're going to invest in the crypto market,

this may be already too late! In the cryptocurrency market,

there are big and respectable names like Bitcoin and Ethereum, a lot of other

altcoins such as Litecoin and Monero that can be compared with the blue chips

and there are other shady coins that come and go really fast

and are known as the shitcoins. Something

similar to the pink sheets. Well, not all pink sheets are

scams and also not our altcoins are shitcoins,

but there are people arguing that no matter what they truly are,

they can work like an elevator. You just jump in,

wait for it to reach the moon and jump out at the right time, which is something

that is not going to always happen. If you're an investor

and relatively new to the cryptocurrency space,

I highly recommend you continue watching this video to invest more wisely

in this space.

So, let's review the terms first. What are pink sheets

or the penny stocks? Pink sheet listings are companies that are not listed on a

major exchange like the Newyork Stock Exchange or

Nasdaq and are often traded over the counter.

The name came as the stock quotes are circulated using pink colored sheets.

The majority of the stocks sold over the counter

are low priced penny stocks, meaning that they are traded

for less than five dollars per share, however

there are a large number of companies not considered penny stocks

that prefer to sell their shares through the over-the-counter network

to keep the share distribution activity inexpensive. The wolf of wall street movie is

about pink sheets and actually based on a book written by

the real Jordan Belfort, who is the main character of this movie.

If you are interested to learn more about the pink sheets, I strongly

recommend watching that movie. What is a Shitcoin?

The term shitcoin refers to a cryptocurrency altcoin

with little to no value or a digital currency

that has no immediate and discernible purpose.

The diminished value of a shitcoin is often due to a failed investor interest,

because it was not created in good faith or because

its price was based on speculation. As such, these cryptocurrencies are

considered to be bad investments. Many cryptocurrencies

are sort of pink sheet stocks, but you know

the pink sheets are not illegal either! So, like the pink sheet stocks, not all

penny cryptocurrencies are scams. There are good ones, but they need to be

hand-picked with enough knowledge, experience and risk management

strategies. Should you buy penny cryptocurrencies?

Well that depends.. Even picking one penny cryptocurrency

might change your financial life forever, in a good or bad way. At the time of

creating this video, based on the data from the coingecko

website, there are almost 6000 coins in the

market. So, it's not hard to find a bunch of

penny cryptocurrencies. As you can expect, most of these coins

will not be valuable in a few years and only a handful of

them will become successful projects. Some people may argue that even if

80 percent of your investment fail, the rest of them may get you rich, but

with the whopping and already growing list of crypto coins,

this strategy requires a shitload of money! Why people

are actively looking for these shitcoins? Well, you may be

surprised that some people even search for the term best shitcoins and

there are even some shitcoin clubs on the internet. I find

it very awkward to type the words best

and shit together! But, why exactly?! And I'm not talking about best-shit! I

mean why exactly people are looking for these shitcoins?

Well, for various reasons, but the main ones are greed

and lack of knowledge. There are other reasons for sure,

but these two factors can affect them too.

Greed.. Some people are actively looking for the next Bitcoin

or the rocket ship to the moon, because they feel that they have missed out on the crypto

boom. They see the BTC prices and how it went

from cents to thousands of dollars and feel that they have missed that train.

When they look further down the list, there are new coins in the market and

they resemble new opportunities. They are priced less

than a dollar and in some cases even less than a cent. With a hundred

bucks, they can buy shitload of these cheap coins. They just

imagine a future in which these coins become another

Bitcoin and they will become super rich and millionaires.

But with great reward, comes a great risk! You have to learn your lesson. If you're

lucky, you learn those lessons and wind up as a savvy trader who trades

well, whether the market is up or down. But the odds are against you, the human

nature is against you, emotions are against you, everything is

against you, and yet, there is hope!

Lack of knowledge.. The prize to becoming a good

trader is really, really high! In the world of investing,

nothing can beat the knowledge you gain about an asset from your personal

research and in fact it is much needed. Blockchain

is a complicated and technical matter. There are a lot of pieces involved and

you should at least have some basic knowledge, like the

meaning of the circulating supply, the market cap and how the prices of

these coins are engineered. You should know if they are mineable or

pre-mined. Can new coins be minted in the future?

When you want to invest in a new coin, check sites like

coingecko or coinmarketcap to see some stats and rankings. The maximum supply

of coin is something that the developers decide in the early days of the

development and prior to the release. The circulating

supply can be less than that and in most cases it is. Every precious

asset or metals like gold have a limited

supply and that's what that makes them valuable.

The same philosophy applies to the cryptocurrencies as well.

In the case of cryptos, the founders determined maximum supply

instead of the nature. Bitcoin has a maximum supply of 21

million coins. If there will be another coin as

successful as Bitcoin, but with 10 times more supply, the price

will be 10 times lower. In some cases the developers decide to

release only a limited amount of coins, but

you have to keep in mind that the most important factor will

always be the market cap. Coins with a limited supply have a wild price

fluctuation. The opposite is true for coins with a massive supply.

The prices move relatively slower than a coin that is having a similar

price and a less total supply limit. When you open the coin info page on the

coingecko website, you can see the price chart, which you

can zoom out to see how the coin has performed in the past.

You also have access to important links like the home page of the coin

and you can use it to read more about it. Bitcoin was created

to be a peer-to-peer electronic payment system that requires trusting no third

party. Ethereum platform was created on a

believe that blockchain can do much more than just

cryptocurrencies. That's why they introduced smart

contracts and bunch of other cool features.

So, what is the purpose of a particular cryptocurrency

that you're interested in? Does it solve a real word problem?

If not, forget about it and move to the next one. Note that the same problem

would have different solutions. Likewise, a number of penny cryptocurrencies

might be trying to solve the same problem in different ways.

You have to weigh which one is better. Unfortunately,

most of these shitcoins just copy another coin

and with open source codes on Github repositories, it's simpler than ever to

fork a coin, but a wise investor always checks the

Github repose to see how much development

is going on. You can see the contributors, the stars it received,

the open issues and much more. Let's talk about the pumps and dumps..

Artificially increasing the price of an asset and selling to make a profit

is known as pump and dump. Doing so is illegal in traditional stock markets

like NYSE and Nasdaq, but it was part of those exchanges in the early days.

As there is no proper regulation around penny cryptocurrencies

and they are growing like mushrooms day by day, a lot of pump and dump schemes

happen. Moreover, it is easy to manipulate

penny cryptocurrencies as their prices are very low.

Sometimes a crypto-whale, who is a trader with a huge asset and market influence,

takes part in the pump and dump schemes by moving a big chunk of his assets.

Hopefully, there are robots monitoring the publicly available Blockchain data

and you can read more about them in the crypto news website and also sub-reddits.

When the price of a penny cryptocurrency shoots up suddenly,

it is better to stay away, as it might signal a probable pump and dump scheme.

Also be aware of unsolicited offers about the information on pump and dump

opportunities. Chances are that you're about to pay the

price for someone else's profit. If you invest in a coin that has reached

the rock bottom after a massive surge in the price, chances are high that

it would never recover and investing in them would be a waste

of money. So, analyze carefully why a coin reached

the rock bottom. If you see several reasons that the coin

might rise again, then buying would be a good option. How

can you identify shitcoins? Shitcoins are the cryptocurrencies that is

there to make money for the people who launched it.

Simply put, shitcoins are there to make you miserable.

Here are some of the signs to help you identify them:

No proper official websites or the site looks very basic and fundamental.

A white-paper is not available or the one available is not professional.

The white-paper does not explain the project or can't convince you

what problem it is solving. The road-map for the project is too long to launch

the product. Even if the product is launched, by the

time, the crypto market would have got better solutions. The team

behind the project is not revealed and stays anonymous.

Unless the team is designing a privacy-based coin,

there is no reason to be in the shadows. Social media profiles for the company or

the project are not available. The project is not marketed well and far

fewer people know about the project. Search about the

project in Google, if you can't find them on the first page,

probably no one else will and a project might

never get enough traction. They are not audited by known third

parties. They are a fork of another coin and the

only difference is the name and the logo. As an example,

right now there is a madness going on with some of these food named coins

like Sushi, Kimchi, Yam and others.. They are forking other projects and also

each other and they are being misused for yield-

farming schemes. You know it's easy to create a new coin

and use it to pump and dump in the yield-farming

schemes. So, what is the conclusion? If you don't want to lose a lot of money

and most importantly your time, you have to become a good

trader and for that you have to invest your time

and money into learning new skills and gaining the required experience,

and don't let your greed fool you! You didn't miss the boat and it's not over.

A mere one percent of the people own crypto right now.

Crypto can solve dozens of previously interactable problems

like digital identity, supply chain integrity,

data breaches and many many more.. But it's going to take a while.

The crypto super highway is under construction. They are paving the roads

and pouring the cement. Some call the dotcom crash a bubble,

which it almost was, but look at the companies born right out

of that bubble, Google, Amazon, Apple.. The internet looked

like a joke to some people 20 years ago and here we are now..

Only believe the information from trust worthy sources.

If something is too good to be true, you have to keep your senses clear before

acting. Luring is a preferred strategy used by

many scammers. Emotionally being strong is going to really help you in the way.

You need to figure out when to sell and when to buy, also you

need to stay calm when the teams don't go your way. How can

you become a good crypto trader? That's a good topic for another debate. but there are

a lot of ways to gain insight of the market.

Fundamental analysis, technical analysis and also the new on-chain analysis.

But the most important ones are letting loose off your greed

and also relying on your knowledge and experience.

So, don't put your money that you can afford to lose

into penny cryptocurrencies! That's it for now,

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