/earnpark_old
ERIC485
·
2 years ago
Is investing in "shitcoins" worth it? Is it too risky, or can it be a good investment? by Caroline Sherman
The crypto market; is a place where people come with hopes of finding wealth beyond their dreams. There is no better example of this than the hype surrounding meme tokens. Everyone loves having a chance to become wealthy with little to no investment. That is why the lottery is so successful. In recent years we have seen countless meme coins go from being worth next to nothing to having a substantial market cap.
Projects such as Dogecoin, Shiba Inu, Floki, Baby Doge, and the list goes on. No matter how much we would like to deny it, the truth is that these were the top performers during the last cycle. The two factors that brought the most amount of attention to crypto from the mainstream were meme coins and NFTs.
As the last cycle entered a deep bear market, the hype surrounding meme coins also came to a halt. With a few exceptions, most of these projects went back to zero. Many thought that meme coins were just another fad in the crypto market comparable to ICOs, and would disappear into the horizon.
At least, that is what many of us were hoping for. Those of us who are in crypto for the long term, and take this market seriously view meme coins as the black eye of crypto. Something that actually severely hurts the image of the entire crypto market, and even discredits it. We have all heard the claims of how the cryptocurrency market is just a big casino, with Ponzi schemes, get-rich-quick projects, and rug pulls everywhere. We try to show these people the “real” projects in the space; such as Bitcoin and Ethereum. The projects that are legitimately attempting to change the world. The projects that have real merit. But for every Bitcoin and Ethereum, there are hundreds or thousands of meme coins. This is why the cryptocurrency market sometimes has a bad reputation.
With all of that said, one of the core principles in crypto is free markets and capitalism. People have the right to create their own coins if they wish to, but there is no guarantee that people will buy them. I have no issue with this.
One of the biggest stories in the crypto market in the last few weeks has been, PEPE. The latest meme coin project to take off in popularity. Already soaring up to a market cap of over $1 billion, while revitalizing the shitcoin market as well. People who were early in this project made millions, and in some cases got very rich overnight.
But should you buy meme coins?
If you are able to study the markets and get into these projects early, they could change your life forever. However, the unfortunate fact is that by the time most people begin to learn about a soaring project. That is when it has already nearly reached its price top. People begin rushing in buying the token, becoming exit liquidity for the early investors and losing their money. It is a story as old as time in the crypto market.
When we enter the crypto market, we all hope that we can be one of the “lucky” people who make a fortune by buying the right meme token, or using leverage and making the perfect trade. Unfortunately, the truth is that we won’t be those lucky people. 99 times out of 100 we would be much better off trying to build our wealth slowly, rather than get rich quick methods.
In the cryptocurrency market, investing in blue-chip assets such as Bitcoin and Ethereum is considered to be the “slow” method of building wealth. However, compared to other financial markets they are still extremely volatile, and not conservative at all. We have all heard the predictions of Bitocin someday reaching a price of over $1 million. Also the predictions of Ethereum reaching perhaps $50k. Many people will learn the hard way that they were wasting their time and money on meme coins when they should have been buying the crypto assets that will survive for the long term.
If you have a big portfolio and are satisfied with your BTC and ETH holdings, it’s completely fine to take a chance on meme tokens such as PEPE or Shiba Inu. But if you still want more Bitcoin and Ethereum, you’d be better off just focusing on accumulating those instead. There is no denying that meme coins bring a lot of attention to the crypto market from the mainstream. Hopefully, the longer that they are in the market they will learn which assets have real value, and begin shifting more toward BTC and ETH.
29 comments