Shitcoins can make you 100x if you play them right. Here’s how you do that.
Shitcoins are a dumpster fire.
But you can make a lot of money off of them.
It comes down to:
- Hearing about the right coins FAST
- Proper risk management
- Being a degen ape
Let’s get into it.
The faster alpha comes in, the more money you can make.
#1 Twitter
There are a lot of things you can do to curate twitter to maximize alpha:
- Curate your following
- Use lists & Tweetdeck
- Follow the right accounts (chads, bots, tools)
Here’s a good thread on maximizing alpha on twitter:
#2 Discord
Discord is both a shithole & a treasure trove at the same time.
- Curate & organize your servers
- Create a discord evaluation checklist
- Pay special attention to the community
Discord reveals a lot about the legitimacy of the project & can lead to more opportunities. Learn to navigate through discord.
I dive into navigating discord over here:
#3 Etherscan
Etherscan is god send for finding good shitcoins.
Things to look for:
- Verified contract address
- Max supply
- Top holders & what they’re holding
- Is ownership renounced
Here’s a good explanation on using Etherscan for shitcoin analysis
https://twitter.com/shitc0in/status/1491711623060328448
#4 Whale/Wallet watching
Follow the pros & whales for alpha:
- Use Etherscan for finding interesting wallets •
- Use tools like DeBank & Apeboard to look at a breakdown of any wallet
- Follow good traders & shitcoin hunters. Turn on notifications
Here’s my guide on finding & tracking wallets:
https://twitter.com/Cov_duk/status/1515547170765631492
#5 Token sniffer
Token sniffer is a great tool to use to find coins and get a quick overview about them.
It provides you with an analysis about the token & looks over the key details
Use this to verify legitimacy & key info.
#6 Hype & Social Sentiment
Shitcoins live & die by hype. You need to find & measure this hype.
- Look at the number of tweets & hashtags on twitter
- Use tools like LunarCrush to gauge the social sentiment
I dive deeper into evaluating a community & hype over here:
#7 Allocation & Risk management.
Playing with shitcoins is literally playing with shit. You need to be careful.
With proper risk management you can maximize the chances of you making money.
Manage your risk to reward ratio. Set & stick to exits
Let’s say you decide to exit after a 10% gain and you decide on putting in 5% of your $ into it.
In the long run, may such situations will occur. With this risk to reward ratio, you only need to be right 1/3 of the time for you to break even.
Even if you lose way more than you win, you will fine.
You just need to win >33% to make money.
Adjust your exit price based on how much of your portfolio you’re putting in and what your risk level is.
I dive more into risk management over here:
#8 Cautions
LOTS of cautions.
- Buying into shitcoins involves a LOT of risk. Allocate a very small % of your portfolio to this
- Scams are everywhere, be hyper vigilant when you are investigating the legitimacy
- Practice good wallet safety. Have a phantom wallet to interact with these sites
- Survivor bias is real. Making money off of shitcoins is hard.
- You’re probably gonna get rekt a couple of times. Developing the shitcoin intuition takes time.
#9 Scams & Security.
Most shitcoins are scams & shit projects. We know this. Make sure you’re protected.
- Check the contract address, holdings & top holders •
- Use tools like https://honeypot.is/ethereum to check if it’s a honey pot trap
- Check the discords to get a sense of the team
- Use a phantom wallet & practice good wallet safety. • S
- Security tools like honeypot & token sniffer may miss out on scams. Take their verdict with a grain of salt.
- Don’t trust influencers
- DYOR and don’t get dumped on
And that’s it.
I hope this was insightful. More alpha & guides coming soon. Follow my medium to keep up.
Also, Follow my twitter @Cov_duk for daily insights & alpha.
