How to Avoid Investing in Shitcoins

by Eric_Something

The past few weeks have not been that crazy if you’re in crypto long enough. Dogecoin and XRP pumps are like solid investments compared to the things that have happened in the crypto-sphere since 2017. Who can forget XBY, Dentacoin or Paccoin? I know I can’t. So I wrote some quick tips on how to avoid pump and dumps, or shitcoins in general.

1. Don’t be fooled by coins with low prices that people say are steals with high market caps. A coin with a 10 billion dollar market cap can be 10 cents and a coin with a 1 million market cap can be 10 dollars.
2. Memecoins are good to bet on IF a) you’re looking for short term gains, b) you’re an experienced trader who knows how to time the market and when to sell at the top of a pump and dump. If you’re not BOTH of the above, do not touch memecoins.
3. Be careful with team/investor shilling. A certain amount of hype can be a good thing, but too much hype can be bad. This can lead to the company being audited, investigated, and overvalued.
4. Don’t be fooled by a big team of advisors. Many advisors are simply there for the name and because they get paid a lot- look into the product and don’t blindly follow names.
5. The team isn’t on linkedin and little is known about them. There’s simply no reason not to be on linkedin or give info about the team unless there is something to hide.

6a) Big one: No whitepaper or working product. An idea may be great, it may be revolutionary, but with no whitepaper or working product or patent at the least it’s useless. The bigger the idea, the harder it is to accomplish.

6b) If a whitepaper does exist and there is a lot of competition in the market, make sure they mention it on their site/white paper. If a project is similar to another project in a similar position and they don’t compare their products on their whitepaper, it may not be a good product.

7) Ignore corrupt ICO’s: Many ICOs I see, have the team getting 30% or 40% and claim that they’re decentralized- that is usually false.

8) Generally, it isn’t good when a coin claims it is a disruptor. Unless the coin is a giant project, with a large team, a product, etc… being a disruptor isn’t necessarily a good thing. This buzz word implies that they are trying to replace huge company behind it, and it is foolish to think a coin with a team of a few people with no product can beat out a google or a yahoo. In general, it is a better investment if they are trying to work around technology or build on it.

Feel free to comment if I missed any.