Shitcoins: What Are They, and Are They Worth Investing In?

What Is Shitcoin in Simple Terms?

A shitcoin is not a specific coin but a general name for insignificant or useless cryptocurrencies. If we compare this type of asset with Bitcoin, the latter is like real money, while a shitcoin is like a pretty candy wrapper that is worthless until someone famous finds it has collector's value.

Usually, such coins are issued for projects that have not yet been launched, do not have their own technology, team, or clear goal. Sometimes, they are simply fraudulent schemes created for quick profit.

Shitcoins are worth almost nothing because you can buy thousands of such tokens for a few dozen dollars. At the same time, their exchange rate is extremely unpredictable: today, no one needs the coin, but tomorrow, it may suddenly rise due to hype on social media or speculation. That is why shitcoins are considered the riskiest segment of the crypto market — you can make money on them quickly, but lose it even faster.

How Did Shitcoins Come About, and Where Did the Name Come from?

“Shit” translates from English as “garbage,” and in most cases, that’s exactly what it is. The term was first mentioned on the BitcoinTalk forum back in 2010. It is still unknown who exactly coined the word, but according to the participants’ recollections, it all started with a joke comment. One user wrote that if Bitcoin really became popular, dozens of fakes and fraudulent projects would follow — gitcoin, nitcoin, titcoin... and, of course, shitcoin. And, as it turned out, these words became prophetic.

Since then, the term “shitcoin” has become firmly established in the vocabulary of the crypto community and has become synonymous with useless coins created for the sake of hype and easy money.

The Main Signs of Shitcoin

Identifying shitcoin is not always easy, because everyone has their own “bar.” For Bitcoin maximalists, anything that is not BTC is already shitcoin. Some people classify all coins that are not in the TOP 100 as this type of asset, while others classify those that have sharply depreciated. However, there are several common signs that can help you suspect that you are dealing with a shitcoin:

• No clear goal. The project's website only contains grandiose words such as “the future of blockchain” and “financial freedom” and no clear explanation of why the coin is needed.

• Promises of mountains of gold. The creators guarantee a 1000% return in a couple of weeks.

• Anonymous developers. Promising crypto projects publicly reveal who created them. If the team hides behind pseudonyms or is completely unknown, this is a reason to be wary.

• Copying other people's ideas. If the code, design, and even the description of the coin are copies of another project, you are looking at a fake with no technology of its own.

• Zero activity. See if there are any discussions about the project on social media and if there is any news about it. If there is silence around the project, most likely no one needs it.

• Questionable platforms. Shitcoins are tokens that are usually traded on little-known exchanges, where it is easy to inflate volumes and manipulate prices.

• Penny value and low liquidity. Coins that cost less than a cent and are rarely traded are a typical sign of shitcoins.

• Constant rebranding. If a project regularly changes its name and mission, it is trying to “survive” by any means.

• Lack of transparency. When developers do not publish reports, avoid questions, and hide details, such a project cannot be trusted.

Why Do Investors Buy Shitcoins?

The main reason is the desire for easy profits. In the crypto market, everything can change overnight, and tokens can skyrocket a hundredfold after an artificial pump. For many, this is a chance to get rich quickly with minimal investment.

During the ICO boom (Initial Coin Offering) observed in 2017–2018, Shitcoin projects raised millions of dollars. Investors put money into untested coins because of FOMO — simply out of fear of missing out on the next Bitcoin. Many didn't even understand how cryptocurrency worked and followed the crowd.

Dogecoin creator Jackson Palmer, who came up with his coin as a joke, later called this behavior “madness” and admitted that people were literally “buying air.”

Investing $50 in a “miracle coin” is psychologically easier than investing $10,000 in stocks or a large project. People are willing to risk small amounts for the chance of a quick 100x profit. But more often than not, these bets end not in profit but in the loss of the deposit.

Risks and Downsides of Investing in Shitcoins

Shitcoins are like playing with fire because these coins don't have a stable foundation and can easily become a tool for scammers. Here are the main risks you should watch out for:

1. Volatility. The price of shitcoins changes unpredictably. Today, a coin may cost $1, tomorrow — $10, and the day after tomorrow — $0.

2. Low liquidity. It is difficult to buy or sell shitcoins quickly. If the price drops sharply, there is a risk that you will not have time to withdraw your money.

3. Insignificant capitalization. Due to the small trading volume, the value of a coin can be easily “inflated.” One major market movement can cause the price to crash or artificially inflate it.

4. Fraud. Many Shitcoins are created solely to deceive investors.

5. Vulnerability to hacking. Since such projects lack a serious team and adequate security, wallets and smart contracts often become easy targets for hackers.

How to Distinguish Shitcoin from a Promising Token?

It is not that difficult to figure out whether a coin is worth your attention. The main thing is to look not only at the price and hype, but also at the project's idea, team, technology, and goal. Shitcoins usually have none of these features.

It is impossible to completely protect yourself from buying an “empty” asset, because no one knows how the project will behave in the future, but it is quite possible to reduce the risk. To do this, it is important to perform project analysis yourself, and the deeper it is, the less likely you are to invest in a token with no future.

Popular Examples of Shitcoins

Despite the risks, there are liquid and world-famous shitcoins. The list of such projects includes:

Dogecoin

The coin appeared in 2013 as a joke based on a meme with a Shiba Inu dog. Doge quickly became popular thanks to its active community and virality. Later, Elon Musk “pumped” the coin several times, after which it grew even stronger. Despite the lack of real utility, Dogecoin remains in the TOP 10 by capitalization precisely because of its community.

Shiba Inu

The cryptocurrency appeared in 2020 as a competitor to Dogecoin. The project focused on the community and meme culture, and also created its own ecosystem: a website, the ShibaSwap DEХ exchange, and staking mechanics. At the start, the coin grew rapidly, largely due to hype on social media and major listings. Later, Ethereum creator Vitalik Buterin donated a huge portion of the tokens to charity, which caused the price to plummet but did not kill interest. SHIB is now in the top 30 cryptocurrencies by capitalization. 

TRON

The project was introduced in 2017 as a token for the Tron ecosystem. In its first months, it faced accusations of copying technical documentation and overly aggressive marketing. This undermined trust, and many still consider TRX to be an overvalued and questionable token. In 2025, it is among the top ten most popular cryptocurrencies.

Is It Possible to Make Money on Shitcoins?

It is possible to make money on shitcoins, but the process is risky. You should invest only a small portion of your portfolio in them, and it should be money you can afford to lose. Most shitcoins do not generate income, but one successful deal can cover the losses on all the others.

How does it work? When at least one or two major players show interest in a coin, its price goes up. Other traders pick up on the movement and start pumping it. To make money, you need to recognize a promising coin in advance, which is extremely difficult in reality. However, there are a few rules that can help reduce the risk:

• Choose forks of well-known cryptocurrencies or projects from large companies.

• Avoid coins with provocative names and obviously joke tokens.

• Do not invest in Shitcoins that have already risen sharply.

Shitcoins should not account for more than 20% of your portfolio.

How to Buy and Sell Shitcoins?

To safely buy shitcoins, follow this algorithm:

1. Do your research and choose a coin.

2. Prepare a wallet or choose an exchange platform.

3. Set an investment limit for yourself.

4. Think in advance about the conditions under which you will sell (for example, growth of x% or a signal of project deterioration).

5. Buy the coin, then carefully monitor the chart and investor behavior. It is important not to miss signs of loss of activity and price dumps.

To sell Shitcoins profitably:

1. If the token grows rapidly, consider exiting to lock in your profits.

2. Be prepared for the coin to be difficult to sell.

3. After making a profit, you can transfer some of your funds to more stable assets.

Regulation and Attitude toward Shitcoins in the Cryptocurrency Market

Shitcoins are not controlled by the state or financial authorities. If you are deceived or the coin disappears, you will not be able to get your money back. Regulators in the US, EU, and other countries have repeatedly warned about this.

Within the crypto community, attitudes are mixed: some consider shitcoins a dangerous phenomenon, while others see them as part of a speculative culture. Most experts agree that shitcoins are only suitable for high-risk, short-term trades and are not reliable long-term investments.

The Outlook for Shitcoins in 2026

By 2026, shitcoins, especially meme tokens, will still be part of the crypto market, but attitudes towards them will become more pragmatic. Analysts note that demand for such coins continues to rise against the backdrop of bullish market phases and Bitcoin growth, as investors are more likely to invest in risky assets during such periods.

At the same time, the trend is shifting from “pure hype” to projects that demonstrate at least minimal utility. Tokens with elements of AI, gaming, DeFi, their own ecosystems, or infrastructure for traders are attracting more attention than simple copies of Dogecoin or Shiba Inu. 

At the same time, institutional interest is also growing: there is a possibility of thematic ETFs for memecoins appearing in 2026, and Dogecoin has already received its own exchange-traded fund, which increases the legitimacy of the sector but does not reduce its volatility.

Overall, experts agree that by 2026, Shitcoins will remain speculative in nature. Some of them may show short-term price spikes, but their long-term prospects are highly dependent on market sentiment.

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