Shield coins - what is it, how to recognize it, and why do they promise a high income?

Everyone who is at least superficially familiar with English understands approximately what a shield coin is already by name alone. Shit coin literally translates as a shit coin, that is, it has no expressed value, purpose of existence and is usually created for short-term speculation or fraudulent transactions.

As a rule, a certain group of users is actively promoting the shield coin (especially among beginners who do not yet have the proper experience and understanding of the crypto market), then the price is artificially inflated, at this maximum shield coins are sold to inexperienced traders, after which there is a sharp, irrevocable collapse of the value of the coin and it goes into the category of "dead". That is, there is a so-called Pump and Dump (Pumping and Dumping). As a result, newcomers' money flows to scammers, who cannot be held accountable due to the lack of the necessary legislative framework.

Now it becomes obvious why the creators of shield coins often promise investors cosmic profits - this is an elementary game of greed. The desire to get a large income from investing in a "promising" project often overshadows common sense, and many do not pay due or no attention at all to studying what they are investing in. This is a kind of roulette game for immature cryptocurrency minds, and the casino, as you know, always wins.

So how to recognize a shield coin at the very beginning, what should you pay attention to?

1. Inclusion of cryptocurrencies in the lists on the coinmarketcap or coingecko websites. In the absence of both resources, there is a high probability of its involvement in a financial pyramid;

2. Trustworthy developers and issuers. It is worth checking who exactly is issuing cryptocurrency - it should not be strangers under fictitious names, but specific people who have identified themselves at least through social networks or in any other way;

3. Goals and prospects of the project. Pay attention to this point, and it is important to rely not on loud, unconfirmed promises, but on concrete facts, figures and step-by-step plans for the implementation of the plan. Too much hype, noise and attempts to aggressively pressure potential investors on the contrary should alert.

4. High-quality website and social networks. It's no secret that the promotion of projects that are really created for the future, and not before the first collapse of the price, is mainly carried out via the Internet. Therefore, the site and social networks should not look empty, too standardized or made in a hurry.

5. The number of holders (holders) and transactions per minute. According to experts, the number of holders of really noteworthy coins should be at least 200-300 people, and transactions - 5-10 per minute. It is not difficult to find this data, for example, it can be done on CoinMarketCap.

So, shield coins are quite a modern and practically unprovable method of fraud, the risks of suffering from which are especially great at the beginning of acquaintance with the crypto market. Therefore, you should be especially careful and cautious when choosing coins for investment, and also take into account that no professional market participant can promise and even more so guarantee high profits, and most importantly, no professional market participant will.

The GRIN4 ecosystem

We have created a bot to make money on crypto exchanges. You set the settings, and he trades 24/7. Manage all assets from one service: with your own hands or with the help of algorithmic trading. Anonymously. Simply. Stress-free.