Written by: Biteye core contributor Viee
Editor: Biteye core contributor Crush
Recently, there has been a massive surge in on-chain traffic, with trading mascots concept coins skyrocketing 60000%, the rise of DeSci narratives, and Meme coins have become the biggest dark horse in this bull market!
On-chain operations are quite challenging; Biteye will teach beginners step-by-step in this tutorial, using GMGN to play with Meme coins!
There will be an advanced article later, stay tuned.
This article will focus on new token launches, primarily teaching everyone how to find, analyze, and trade newly launched Meme coins.
01 Beginner's quick guide
1. What is GMGN?
A website that integrates Meme coin data dashboard + trading tools.
2. What is on-chain trading?
Activities and trades conducted directly on the blockchain, independent of centralized exchanges like Binance, OKX, etc.
3. What wallet to use?
Mainstream wallets like Phantom, OKX, etc., installation and usage tutorials can be searched on YouTube, so I won't elaborate here.
4. What is a token address (CA)?
A string of letters like 'GJtJuWD9q*****wMBmtY1tpapV1sKfB2zUv9Q4aqpump' can be pasted into the GMGN search box to find this token.
As shown in the picture below:
02 New project discovery
1. Follow smart money
Tracking smart money means tracking wallet addresses of users who have achieved high returns on-chain and observing their investment choices. The following three links are lists of smart money on different chains of GMGN, along with corresponding icon explanations:
ETH Chain https://gmgn.ai/discover?chain=eth
Solana Chain https://gmgn.ai/discover/?chain=sol
Blast Chain https://gmgn.ai/discover?chain=blast
After following smart money, when there are new updates, a red bubble will display in the lower left corner 'Followed' along with sound prompts (which can be turned off or on).
GMGN also provides a feature to bind Telegram notifications, so that once a followed wallet makes any operation, you can receive notifications immediately.
Click 'Followed' to view the real-time trading dynamics of smart money, including buying/selling/adding to positions/increasing positions/building positions/liquidating.
You can also click on any smart money address interface for more detailed information, including holding analysis, profit and loss distribution, trading activity, etc.
Every day, hundreds to thousands of Meme coins are launched on-chain, and smart money may concentrate on buying. When choosing what to focus on, it is best to consider your trading habits to avoid excessive wallet tracking, which leads to information noise. It is recommended to track wallets that are similar in style to your own to ensure the efficiency of information flow.
Note that checking contract security cannot be overlooked, as many smart funds also engage in reckless buying without regard to contract security.
2. Sweep Twitter and Chains
Sweep Twitter: Follow a large number of Chinese and English KOL accounts related to Meme coins on Twitter and join various discussion groups to get the latest information and updates.
Sweep chains: Closely monitor tokens that transition from the internal market (small market) to the external market (large market) and quickly assess whether these tokens are worth investing in.
On the GMGN platform, you can see the following three categories of tokens:
First category: newly created internal market tokens (highest risk)
Second category: internal market tokens nearing full capacity
Third category: tokens that have entered the external market (lowest risk)
Explanation of internal market / external market:
When a new project successfully deploys using the automatic token issuance tool pump.fun, users can use SOL to purchase the project's tokens. When its market value reaches $69,000, the project's liquidity is automatically added from pump.fun to Raydium.
Before reaching $69,000, we call it the internal market. At this time, the project is in a very early stage, and the risk is extremely high;
Upon reaching $69,000 and successfully adding liquidity on Raydium, we call it the external market. The project has developed further by this time, and the risk has decreased.
It is advisable to mainly focus on tokens that have already entered the external market. Although the external market still carries high risks, it is much lower than the internal market and is relatively friendly to newcomers.
Moreover, most tokens on the external market reach a market value of millions, which is still a minority, and there is considerable room for profit.
Note that entering the external market does not mean there is a 100% chance of rising; there are also many cases where tokens quickly go to zero after opening on the external market, so always remain cautious during the investment process!
By patiently monitoring and analyzing the performance of these tokens, we can judge their potential and investment value, ultimately achieving profits. But how to analyze specifically? Let's see the detailed explanation below.
03 Token analysis
Once you have learned how to use GMGN to find new on-chain tokens, the next step is to analyze and select worthy targets to buy from a bunch of Meme coins.
Specific judgments on whether to buy should be based on hot spots, narratives, market value, community, and market dynamics; different types of Meme coin strategies also vary:
1. Hot type
Many of these tokens are small-cap tokens that have rapidly gained popularity due to specific events or trends in a short time, potentially having a high increase in the early stages, with potential growth reaching 10 times or more, from a market value of millions to tens of millions.
However, if the hot spot is not sustainable, the price has no support points, no celebrities have called, it has not reached a new narrative level, no influential community has formed, and it has not experienced exciting low-probability events, it is likely to gradually lose liquidity and the price will continue to fall.
So-called low-probability events, here are a few examples:
$SLERF's founder accidentally burned all liquidity pool tokens (LP), airdrop reserved tokens, and minted tokens, triggering a surge of bullish sentiment on-chain, causing $SLERF to rapidly list on exchanges.
There is also the recent $BITCAT. As the on-chain sentiment continuously fermented around the 'mascot' concept, the official Bitcoin Twitter suddenly posted a picture of a black cat, leading some to believe this hinted at Bitcoin's mascot. As the consensus spread, the related token $BITCAT rapidly surged, experiencing a price rise from hundreds of thousands to one hundred million market value within three hours, maintaining around fifty million market value in the latter half of the night.
For this type of token, the following suggestions are made:
Buy in early, hundreds of thousands in market value is best. If you enter too late, do not wait until over 10 million to chase high, as it is easy to get stuck;
If you are optimistic about the sustainability of the hot spot, wait for the price to fall 80% before entering, which can reduce risk.
2. Narrative types
This type of target often does not rely on short-term hot spots for price increases but gradually rises from small market value to large market value around certain narratives or communities.
Unlike hot tokens that spike instantly, they may experience stable growth over multiple phases, typically with market values ranging from several million to tens of millions of dollars, peaking at even over a hundred million.
For example, $RIF, the background is antibiotics used to treat tuberculosis, currently leading in DeSci + Meme. This token was driven up due to the increasing on-chain attention to DeSci (Decentralized Science) narratives. As the Pump science's first launch token, with the rising narrative popularity, its buy orders have continued to increase, gradually solidifying its status in the leading lane.
For this type of token, my suggestions are as follows:
Pay attention to new narratives that are also good narratives, such as DeSci, and choose to build positions step by step at low market values (hundreds of thousands - small millions);
Monitor the social media, community activity, and capital inflow situations of these tokens in the medium to long term to judge their sustainability and potential.
04 How to trade
The following is an overview of the GMGN trading system:
1. Left column interface
Favorites, holdings list
Quickly understand the prices and profit changes of your favorite tokens and holdings, and you can also sell quickly while monitoring.
Popular, Pump, Followed list
By selecting time, number of trades, price, and price percentage, you can filter out the popular tokens and Pump tokens that best fit your trading strategy. The watchlist allows you to quickly follow and buy in with one click.
2. Middle main interface
The K-line below contains a wealth of information about the token, including trading activity, traders, holders, blue-chip holders, etc., categorized by smart money, KOL/VC, whales, new wallets, snipers, large holders, developers, followed, and wash trading.
When researching this token, it is also necessary to refer to this information and analyze large holders and smart money. For example:
Mark suspected wash trading, determining whether the market maker is trying to disperse tokens with small wallets to crash and run.
Mark suspected phishing wallets; transfers of tokens that are not purchased will be marked.
3. Right-side trading interface
View indicators
View token trading volume, purchases, sales, net purchases, liquidity, minting data, blacklist, and other indicators. It is also important to check the burning pool ratio and exit probability.
Set slippage and turn on anti-sniping mode (Anti-MEV)
Slippage refers to the maximum acceptable deviation in the amount of tokens declared during a single transaction. Increasing slippage speeds up transactions. It is generally recommended to set slippage around 0.5%; in volatile markets, it can be increased to 10%.
Select amount, manual buy/sell
I will write an advanced article later, discussing limit automatic buying, order automatic buying, and other operations. Stay tuned.
05 Risk warning
Every day, hundreds to thousands of Meme coins appear on-chain, most will go to zero, and the probability of running out gold coins (with a market value of tens of millions to over one hundred million) is extremely low, not to mention listing on large exchanges.
In summary, the higher the returns, the higher the risks, so please take responsibility for yourself!
