Making money on shitcoins! Penny Stock is a profitable strategy for cryptocurrency traders and investors: features of tactics, nuances of use, relevant explanations
The cryptocurrency world now has more than 2,000 different digital coins with all sorts of features and potential. Even professional investors who are actively involved in the study of virtual money are well aware of the qualities and development nuances of only a couple of dozen out of so many coins. Many hundreds of altcoins located beyond the equator of the top rating are practically unknown crypto coins and are in demand by few people.
There are many unpopular cryptocurrencies today and it would be reasonable to ignore the attention of such representatives of digital money, since they have no practical utility. However, such a conclusion is too strict, because an ordinary investor is able to get a significant income from them. These unclaimed cryptocurrencies are called shitcoins and the strategy for investing in them provides for a special procedure.
Let’s analyze in detail the nuances of investing in little-demanded, unknown altcoins that exist today. Let’s consider a special penny-stock strategy that brings profit from such an investment.
What is a Penny Stock?
The penny-stock trading strategy was originally formed in the global stock markets, and after the start of the cryptocurrency boom, it rapidly spread to the field of virtual currencies. It is extremely relevant to the digital coin market.
The term “penny stock” initially denoted little-known, extremely inexpensive securities issued by small, unpopular companies. As a rule, securities of this type did not cost more than 4.5 – 5 dollars. This is very cheap for the stock market. Penny stock traders and investors use their capital to buy the maximum amount of cheap securities from various companies. The idea here is simple – it is assumed that some enterprises, whose shares have been acquired, will grow gradually, and their securities will rise in price. As a result, the subsequent sale of already valuable shares will significantly compensate for the previously made investments, plus it will bring a solid profit.
A similar principle is implemented in the digital money market. The only difference is in the actual interpretation of the term “penny stock”. Cryptocurrency investors use this term to denote cheap, young altcoins, practically unknown to users. Coins of this type are also called shitcoins.
The nuances of using the penny-stock strategy when trading shitcoins
In the cryptocurrency market, traders (investors) can effectively trade according to the penny-stock strategy, who make the most of the available capital to purchase the largest number of various shitcoins. By analogy with stock exchanges, the investing user will get a profit only in the case of a rapid rise in the price of one or more altcoins previously put into the portfolio.
Important! Even an increase in the cost of one shitcoin is able to fully compensate for the previous costs and bring a profit!
In the cryptocurrency market, the strategy under consideration is extremely relevant, since a solid profit can be obtained quickly. This is due to the presence in the Shitcoin category of many undervalued, young cryptocurrencies that have innovative solutions that are not currently in demand. There is a great likelihood of actualizing a promising idea tomorrow or the day after tomorrow, which will entail a significant rise in the price of a digital coin.
In addition, there is an opportunity for the price growth of cryptocoins without a unique technology or other prospects for popularization. This is due to the frequent use of shitcoins by investors to make money using the pump and dump system (pump & dump scheme). Due to the implementation of this technique, at the initial stages, specific cryptocurrencies begin to aggressively advertise and popularize. Accordingly, for some time they become more expensive and not cheap.
If the penny-stock tactic is applied in the stock market, then investors, as a rule, expect a return of 28-34% for several years. It is clear that the expansion and growth of the company is not a quick process, and therefore the investment pays off for a long time.
The cryptocurrency market gives interested investors more opportunities and faster earnings. The explanation here is simple – an increase in the price of an altcoin even by $ 1, with 10,000 coins purchased earlier, immediately brings $ 10,000. Such price jumps occur quite often. Huge profits are obtained with larger volumes of purchased tokens, and the average waiting time for the first income according to the penny-stock strategy is about 2-3 months in the modern crypto market.
Nuance! When shitcoins, unpopular simply because of the lack of proper advertising, turn out to be in the investment crypto portfolio, the possibility of receiving an annual profit of about 1000% increases dramatically!
Features of the penny stock cryptocurrency strategy
First of all, an important point is that the quotes of almost all altcoins included in the Shitcoin group can actually increase by 1000% if a large investor or any investment fund is interested in these virtual currencies. Given this, it is unacceptable to assume a huge, quick return on one cryptocurrency investment in a short time period. Because of this, it is advisable to increase successful chances by expanding the range of purchased Shitcoins. The chances of a large profit, even with 10 little-known altcoins, are too small, but the purchase of probably promising 400-500 different crypto-coins, albeit in small volumes, can significantly increase the possibility of total profit.
On the market, most shitcoins cost tens of cents or less, so the penny-stock strategy can be successfully applied with a capital of $ 540-1020. It turns out that almost any investor can earn money steadily on cryptocurrency, or rather on little-known, cheap altcoins.
The size of the potential profit here is directly determined by the initial purchase price of crypto coins, as well as the final mark that the quotes will be able to reach before the sale of digital money. Of course, this implies an increase in the cost of purchased Shitcoins.
Attention! Experts and analysts recommend working with cheap cryptocurrencies, since the quotes of expensive coins grow more slowly than the price of cheap, little-known altcoins. This is explained by their greater attractiveness for large investors!
How to choose the right shitcoin
It is necessary to realize the practical impossibility of determining the exact prospects of the selected cryptocoins at the time of their acquisition. However, a number of specific regularities have been noticed that make it possible to optimize the literacy of the choice made as much as possible. When using the penny-stock strategy when choosing a shitcoin, it is recommended to adhere to the following guidelines:
✅ It is advisable not to purchase virtual currencies that have an inflated current value. The price of such coins should not significantly exceed their initial quotes. In the opposite situation, the share of the probability of a fall in the value of coins is high.
✅ It is extremely risky to work with cryptocurrencies that have provocative or comic names. This testifies to the initially frivolous attitude of the developers towards the altcoin being created. Here income is definitely not expected due to the uselessness and unpromising of the coin.
✅ Experts do not advise buying too expensive shitcoins. The upper limit is $ 1, and the best option is less than 40-50 cents per crypto coin. The logic here is that you will be able to purchase more cheaper shitcoins, which will expand the range in the cryptocurrency portfolio. Simply, the chances of getting a good profit will increase, since there will be more opportunities to “run into” a very promising shitcoin.
✅ Of course, you cannot get involved with ICOs, tokens and digital coins created by scammers. You can immediately lose your investment or contact cryptoassets that will be hopeless. Negatively characterized coins or blockchain projects do not even attract pampers.
Considering the previously indicated caveats, it is reasonable to ask the question – What kind of shitcoins to buy to earn money using the penny-stock strategy? Professionals here recommend the following decentralized tokens to be preferred:
- Cryptocurrencies issued by stable companies or rating organizations.
- Forks of expensive, well-known virtual currencies. These used to be: ethereum classic, bitcoin cash, bitcoin gold, litecoin, stellar, etc. Now these are very expensive, popular cryptocurrencies.
- Digital currencies, the names of which are consonant with well-known, popular coins. Here are actual examples – monero classic (XMC) and monero (XMR), lightning bitcoin (LBTC) and bitcoin (BTC) – there are a lot of such similarities in names now.
- New cryptocurrencies containing an original idea. Even if such an idea has not yet been claimed by anyone.
- Young altcoins with catchy, original names, for example, platincoin, coffeecoin, etc.
- Decentralized coins, information about which is still extremely scarce.
To make the selection of a shitcoin easier, it is advisable to imagine yourself as a pump and analyze the expediency of using a specific altcoin for the tactics of earning pump & dump. Where can I buy Shitcoin? For this task, a cryptocurrency exchange is suitable. Not all marketplaces include low liquid coins. Most suitable for these purposes: Binance (Binance) – only the most selected altcoins with a normal team and prospects. Getting to this exchange is the goal and dream of any crypto project. You can also note the sites: Cryptopia (Criptopia) – more than 500 coins and Yobit or Yubit, Yobit – it is called differently. Other resources can be found in the rating of popular cryptocurrency exchanges.
The penny-stock strategy is very good for earning inexperienced, novice investors in the cryptocurrency market, since practical and specific skills are not required here. A beginner, having a relatively small capital, will quickly be able to form his own crypto portfolio of shitcoins. There are many young and promising cryptocurrencies today.
After some time, having mastered the crypto market and having worked out trading strategies, such investors will be able to start serious activities on cryptocurrency exchanges, having the capital received from investing a penny stock. Perhaps some shitcoins will remain in the portfolio, increasing their potential, demand and popularity. From the investor, the penny-stock strategy requires patience, some prudence, as well as the ability to correctly select cheap cryptoassets. As a result, this tactic will yield colossal returns!