Shitcoins – what is it in cryptocurrencies?

If in the early days of cryptocurrencies they could be counted on one's fingers, then the count reached the hundreds, and now it's hard to say exactly how many there are – thousands, and perhaps even tens of thousands. However, most investors are only aware of a few dozen, and the most advanced ones know a few hundred. All other altcoins are known within a very narrow circle, rarely traded on major exchanges, and have low liquidity – they are often referred to as "shitcoins."

They can be divided into several categories:

All of them occupy distant positions in the rankings and are of little interest to most people. At first glance, it may not be obvious why one should pay attention to such coins when there are others with significant fundamental value and community popularity. However, an experienced speculator can generate significant profits from certain shitcoins precisely because of their low liquidity. Even transactions with relatively small amounts can greatly affect the price of these coins. But this requires considerable expertise since almost everyone who still holds shitcoins dreams of getting rid of them – which means that buying shitcoins is usually easier than selling them.

In the traditional stock market, there is a strategy called penny stocks – the acquisition of unpopular and inexpensive stocks in the hope that if even a small portion eventually takes off, the profits will outweigh the losses from the rest. There are people who use this strategy in the cryptocurrency market as well – they buy a large number of various shitcoins. There is a chance that at least one of them will take off: they may have potential that the market will eventually recognize, or someone simply decided to pump one of the chosen coins to make a profit. Given the volatility of cryptocurrencies, even the takeoff of one coin can cover the expenses of purchasing hundreds and bring profits.