Indeed investment into shitcoin poses great risk and there are many reasons why we shouldn't let ourselves into this form of investment because they are coins or projects that lacks real utility for that reason it would be wise not to enter into it or be careful when we are doing that, that's when we are venturing into this investment into shitcoin they are things we must first consider.
We need to know what kind of coin is this and how well it would do in the future and decide if it has any real value to warrant that it would survive the length of time and not suddenly disappear and most times that's what happen to shitcoins in this space as they come and go rather too quickly hence that's why is considered a risky venture.
I will be sharing some of the reasons why I believe that investment in shitcoin is very risk and why we should be careful not to invest in it unless we are prepared to handle the risk without complain when things goes south.
The reasons to not invest in shitcoin
Well like I mentioned this coins lack fundamental value and as such there is risk that they would stay for long as people won't want to invest and leave money in tge long term in a coin with no real value, when things are bad like in bear market no one would want to leave money in shitcoin, shitcoins has no real value, no utility means it can't attract or hold investors for long which means shitcoin investment is a trap.
Shitcoin often lack any technological innovation and they are highly speculative and rely majorly on hypes, the shitcoin market is one that hinges on hypes and speculation and driven by media and fomo which is hugely unsustainable for long term investment so for this reason I really advice against it.
Also apart from the fact that shitcoins has no real value there is also the case of it's extreme volatility, since they are moved majorly by hypes this makes it very volatile, volatile in that they are possibility of quick gains and quick loss almost like a ponzi, when people enter into the cryptocurrency market with the mindset of it being a ponzi is due to this kind of coins that gives off this ponzi vibes.
High volatility of shitcoin makes it really unwise doe one to enter into it, it's very risky, yes some would love to invest in it because there are possiblity of short term gains but the downside is great indeed and one might never recover from it as it could lead to great loss of funds or even to us losing all our invested coins, indeed shitcoin investment is a risky venture and we should take heed to avoid it.
Another great risk that comes from investing into shitcoin is the fact that often they have the lowest liquidity, liquidity is what enables easy buying and selling of an asset and in the case of shitcoin the low liquidity means an investor may buy but when it gets to time to sell there won't be any willing buyer to sell to, it has minimal liquidity which means you might buy and be left holding the bag as you can't sell.
What happens when there is no facility to enable the selling, indeed the liquidity issues associated with shitcoin is enough reason to make us flee from it, it's hugely unwise to invest in shitcoin if we care about stability and peace of mind.
Most times too when we hear of pump and dump schemes they are often the project used for it, infact shitcoins are the ponzi of cryptocurrency and often used for pump and dump schemes which involves inflating the value of a worthless asset to make others invest in it before selling off so that late investors would be left with an empty bag, this is really why we shouldn't invest in shitcoin, we don't want to be the one that is left with an empty bag.
Don't invest into shitcoin because if you do there is risk of being left with the worthless asset with no value when early investors sell off, a word is enough for the wise, too many people have been scammed by shitcoins due to ignorance while others are not ignorant but greed makes them make silly mistakes, we should learn from what happen to others and make wise investment choice as there are many opportunities in the market for that.
Also shitcoins lack proper regulations which makes it an investment risk, they are used for many things like fraud and scams and ofcourse have been associated often with causing people great pain and financial loss so no government in it's right mind would sign off on it which means that they are generally without regulations and infact they contribute to the bad name to cryptocurrency, it's lack of regulation means it's unstable and unsafe even for the average individual wanting to get by.
Shitcoins are so unsure infact some after the owners creates it they leave the project and it would be there floating as a coin in the crypto space then a naive individual would just rush in on a coin that is even being abandoned by it developers, what's the future of that project, downside and more downside. Proper research becomes important to navigate ones way here.
Shitcoin for all it's buzz and fun honestly has no long term potential for sustainable growth, they are not established, no usecase often lacking any plan for future development, no proper or lack of roadmap more like a coin headed to ruin, why risk you hard earned money in a risky venture in an investment that 90% of the time is guaranteed to lead to great loss just because of the 10%, I mean it isn't even 50/50 and doesn't qualify to be called gambling but instead a risky venture which have no pity for you when the time comes and no hope for long term growth.
Indeed investment into shitcoin is very risky and we should be warned and watch out.
Conclusion
Anyone making investment into shitcoin does it at there own risk, is either they have enough money to throw around and can handle the loss or they are just naive and don't know what is happening here or greed to get rich quicker, well we should be extremely careful here so we don't suffer emotional breakdown caused by wrong investment that would lead to loss of significant funds.
0.000 SRY