(Scroll down this article to see my step by step guide but you should certianly read the entire article to get a full grasp)
Sojust this week someone’s investment of $17 in the now popular Shiba Inu tokens (SHIB) purchased in October 2020 on Uniswap is now worth around $6.5 million (May 11, 2021). If you’re doing the mathematics correctly that’s a rise of over 1900%.
Such is the potential for profits the penny crypto market offers. For the newbies, don’t get confused. Penny crypto is different from the popular cryptocurrency market that you know consisting of all the popular coins: Bitcoin, Ethereum, Litecoin, Dogecoin.
Penny crypto also called shitcoins or poocoins (for the purposes of this article) refers to coins that are yet to go mainstream or listed on popular exchanges. They are cheap to buy with most of them being sold at well under $1 on decentralized exchange platforms such as pancakeswap and uniswap. Decentralized exchanges (Dex) are different from centralized exchanges (Cex) like Binance because it offers direct trading between buyers and sellers without any central control (authority) or intermediary. Basic registration and no need for any verification.
Many now mainstream cryptocurrencies started just like the Shibatoken example mentioned at the beginning of this article. Many shitcoins investors are looking for quick profits (called moon in crypto-speak). So basically it goes like this. The penny crypto investor will do his research and buy a shit load of shitcoins (different types) since shitcoins are dirt cheap. There are no rules. With only $100 (or much less) you can buy billions of more than 10–20 and above types of poocoins. In the end, only a few will moon (make profits) and the rest will go to waste or end up in scams. But the mooning ones make up for the others sometimes by more than 100 times.
In this review I’m going to show you how to invest in penny crypto, but first, a few things you have to bear in mind.
— → Investing in shitcoins is risky. So Do Your Own Research (DYOR). I have a list here where I name names of shitcoins I’m currently investing in for the month. Note that this is not investment research. Still DYOR and invest what you can afford to lose. Even with all the research, investing in poocoins remains a gamble. But it’s a gamble that can make you millions so we can all agree it’s worth it right?
— → Some penny crypto (shitcoins that you buy) will make 5X profits in weeks while others might have to wait for months or years before it moons. Resist the temptation to sell your shitcoins prematurely. A penny crypto that makes 5X in weeks could make you as much as 1000X if you’re willing to HODL (Crypto term that means to hold on to your coins without trying to sell) for several months. You can track the growth of the poocoins on bscscan website, poocoin website, and coinmarketcap website (if it’s listed there)
— → Always go for poocoins with a strong social media presence. Also, ensure it has a large community of shillers on the Telegram app (meaning promoters/fans in crypto lingo). The expertise of its developers/founders count too but not as much. Several meme and joke coins have been known to moon without a strong technical foundation. Many developers also choose to remain anonymous and this should not affect your decision on whether or not to invest in a particular shitcoin.
Now let’s get down to it
How to buy a shitcoin/poocoin/penny crypto.
As mentioned earlier, these coins are available on Decentralized Exchanges (DEX). If you know how to buy on one of them, you know how to buy on the rest. In this guide, I’ll highlight how to buy on Pancakeswap DEX easily.
Let’s get started.
Before the steps, here’s the summary so you get an overview of it.
To buy a poocoin, first, you’ll need to get a crypto wallet (preferably Trust wallet or MetaMask). You’ll need the trust wallet to interact with pancakeswap. Buying on pancakeswap involves swapping one of the mainstream currencies (typically ETH (Ethereum) or BNB (Binance Smart Chain) for the poocoin to be purchased. You’ll need to buy these mainstream cryptocurrencies from CEX crypto exchanges (I use Binance) and then send the funds to your Trust wallet which will be used to access pancakeswap. Next swap your purchased funds (BNB or ETH) for your poocoins.
(Click here to see my detailed review with pictures on how I bought a shitcoin on pancakeswap. The guide is so simple and you can use it to buy and shitcoin you want)
Now the detailed steps:
– Go to the Bscscan website and copy the contract address of the shitcoin
– Buy BNB (or ETH depending on the shitcoin) on the Binance website
– Download Trust Wallet on Google Play Store or App Store (Apple users) on your phone
– Send the purchased BNB to your Trust wallet
– Once received, clicks on Dapps on Trust wallet and select Pancakeswap
– Click connect at the top right corner to connect your pancakeswap to your Trust Wallet
– Scroll down to the bottom and ensure the interface is set to V2 (V1 is the old version)
– Set slippage (You could ask in the telegram community of the shitcoin but it’s usually between 5–12%)
– Ensure the ‘From’ section is in the currency of the funds you bought on Binance and input the amount you want to use for the swap or click Max to use all your funds
– In the ‘To’ section, select and add your poo coins by pasting the contract address of the poocoin in the box provided.
– If done right, the equivalent amount of poocoins to be bought will be displayed
– Next swap
– If it shows an error, it’s typically one of 2 things. It could be your slippage is too low (solution: increase it), or you need to reduce the amount you’re swapping (Solution: Delete the last digit on the right in the To section where it shows the equivalent amount of poocoins you’ll be sent. It’s okay to buy smaller quantities multiple times instead of buying them once)
– Swap and in a few minutes, the poocoins you’ve bought will appear in your Trust Wallet.
Want to see a real example of how to go through these steps with screenshots? Click here to see how I bought a penny crypto called Orcax. You can use this guideline to buy and penny crypto of your choice.