The world has been fawning over cryptocurrency for the last several years, but can they smell what’s stewing in the market? With over 4,000 cryptocurrencies in the world, there’s no way they are all worth something. In fact, they have a name for a crypto that is useless and has no value: shitcoins.
Even the “best” shitcoins are questionable.
It can be hard to differentiate between good crypto and shitcoins. But the problem with shitcoins and some cryptos, in general, is that they won’t last. You could hear a group online buzzing about the latest altcoin to the point where you toss in a bunch of money. Next thing you know, you are left holding the bag. Before fully committing your savings account to any investment, it’s essential to do your research. You never know when it could take a nosedive.
Should I invest all of my money in crypto?
Blockchain technology has brought us many advances related to cryptocurrency, so we know there’s money to be had in the market. However, that doesn’t mean you should be parking all of your money in digital coins. Even the most mainstream crypto suffers from major swings. Bitcoin, Ethereum, Litecoin and the other big names are not stable and regularly crash after reaching astronomical prices. Traditional investments such as stocks or real estate provide you with way more stability and fewer major swings.
What is the dot com bust?
Crypto mania isn’t the first time we’ve seen people sprint to the market for the newest, hottest investment and get burned. In the late 1990s, we saw the dot com bust. People were furiously buying up tech stocks with hopes that they’d go “to the moon,” and many ended up losing money. But a few lucky ones caught lightning in a bottle with companies such as Amazon, Microsoft and Apple.
So, can you make money on shitcoins? Possibly. Still, it’s important to remember most people end up losing money in frenzies like these: This is coming from someone who lost $200 on GameStop. So remember, today’s great crypto investment might be tomorrow’s shitcoin.
To learn about crypto regulation, check this out.