Recently, on-chain traffic has exploded, with trading mascot concept coins soaring 60,000%, DeSci narratives rising, and meme coins becoming the biggest dark horse in this bull market!
On-chain operations are difficult. In this tutorial, Biteye will teach beginners step by step how to use GMGN to play meme coins!
There will be advanced chapters later, so please pay attention.
Source: Biteye
This article will focus on new coins, mainly teaching you how to find, analyze and trade newly launched meme coins.
01 Quick literacy for beginners
1. What is GMGN?
A website that combines meme currency data dashboard + trading tools.
2. What is an on-chain transaction?
Activities and transactions conducted directly on the blockchain do not rely on centralized exchanges such as Binance and OKX.
3. What wallet do you use?
Installation and usage tutorials for mainstream wallets such as Phantom and OKX can be found on Youtube and will not be expanded upon here.
4. What is the token address (CA)?
You can find this token by pasting a string of letters like "GJtJuWD9q*****wMBmtY1tpapV1sKfB2zUv9Q4aqpump" in the GMGN search box.
As shown below:
Source: Biteye
02 Discovery of new projects
1. Pay attention to smart money
Tracking smart money means tracking the wallet addresses of users who have gained higher returns on the chain and observing the investment objects they choose. The following three links are lists of smart money on different GMGN chains, as well as corresponding icon explanations:
Ethereum chain https://gmgn.ai/discover?chain=eth
Solana chain https://gmgn.ai/discover/?chain=sol
Blast chain https://gmgn.ai/discover?chain=blast
Source: Biteye
After following Smart Money, when there is new news, a red bubble and sound prompt will be displayed in the "Following" box in the lower left corner (can be turned off or on).
GMGN also provides the function of binding Telegram notifications, so that once the wallet you follow performs any operation, you can receive notifications immediately.
Click "Following" to view the real-time trading dynamics of smart money, including buying/selling/adding positions/adding positions/opening positions/clearing positions, etc.
Source: Biteye
You can also click on any smart money address interface to get more detailed information, including position analysis, profit and loss distribution, trading activities, etc.
Source: Biteye
Hundreds of meme coins are launched on the chain every day, and there may be concentrated buying by smart money. When choosing someone to follow, it is best to consider your own trading habits and avoid information noise caused by following too many wallets. It is recommended to choose a wallet with a similar style to your own to track to ensure the efficiency of information flow.
Note that checking the security of the contract cannot be ignored, because many smart money also buy at will regardless of the security of the contract.
2. Sweep and push the chain
Sweep and tweet: Follow a large number of Chinese and English KOL accounts related to meme coins on Twitter, and join various discussion groups to obtain the latest information and developments.
Scan the chain: Pay close attention to the tokens that enter the external market (large market) from the internal market (small market), and quickly evaluate whether these tokens are worth investing in.
On the GMGN platform, you can view the following three types of tokens:
Category 1: Newly created internal tokens (highest risk)
Category 2: Internal tokens that are about to be full
Category 3: Tokens that have entered the external market (lowest risk)
Explanation of internal disk / external disk:
When a new project is successfully deployed 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 will be automatically added from pump.fun to Raydium.
Until $69,000 is reached, we call it internal. At this point the project is in a very early stage and the risks are extremely high;
After reaching $69,000 and successfully adding liquidity on Raydium, we called it an outside market. At this time, the project has further developed and the risks have been reduced.
Source: Biteye
It is recommended to focus on tokens that have entered the external market. Although the external market still has higher risks, compared with the internal market, the risk has been reduced a lot and is relatively friendly to novices.
Moreover, most foreign investors are only a few in terms of market value reaching millions, and there is still a lot of room for profit.
Note that entering the external market does not mean that a token will 100% rise. There are also a large number of cases where tokens quickly return to zero after the external market opens. Please always remain cautious during the investment process!
By patiently monitoring and analyzing the performance of these tokens and judging their potential and investment value, we ultimately achieve profits. But how to analyze it specifically? See the detailed explanation below.
03 Token Analysis
After you have learned how to use GMGN to find new coins on the chain, the next step is to analyze and select the ones worth buying from a bunch of meme coins.
Specifically, you need to judge whether to buy based on hot spots, narratives, market value, community and market dynamics. The strategies for different types of meme coins are also different:
1. Hot spots
Many of these tokens are small market capitalization tokens that quickly become popular due to specific events or trends in a short period of time. They may have a very high growth rate in the early stage, and the potential space can reach more than 10 times, from a million-level market capitalization to a tens of millions-level market capitalization.
But if the hot spot is unsustainable, the price has no support, celebrities do not call for orders, the new narrative level has not been reached, an influential community has not been formed, and exciting small-probability events have not been experienced. It is likely that liquidity will gradually lose and prices will continue to fall.
Here are a few examples of so-called small-probability events:
The founder of $SLERF accidentally burned all the liquidity pool tokens (LP), airdrop reserved tokens, and mints, triggering high bullish sentiment on the chain and causing $SLERF to be quickly listed on the exchange.
and the recent $BITCAT. As emotions on the chain continued to ferment around the concept of "mascots", Bitcon's official Twitter suddenly posted a picture of a black cat. A wave of people believed that this hinted at the Bitcoin mascot. As the consensus continued to spread, related tokens $BITCAT quickly pulled up the market, experiencing a price surge from hundreds of thousands in market value to 100 million in 3 hours that night, and maintained at around 50 million in the second half of the night.
Source: Biteye
For this type of token, the recommendations are as follows:
Buy early, the market value of hundreds of thousands is the best. If you enter too late, don't wait until it is above 10m (market value in the tens of millions) before chasing higher, it is easy to get trapped;
If you are optimistic about the sustainability of the hot spot and wait for the price to drop by 80% before entering, you can reduce the risk.
2. Narrative
Such targets often do not rely on short-term hot spots to rise, but gradually rise from small market capitalization to large market capitalization around a certain narrative or community.
Unlike hot tokens that skyrocket in an instant, they may go through multiple stages of stable growth, usually with a market value between several million and tens of millions of dollars, and even exceed 100 million at the highest.
$RIF, for example, has a background in the use of antibiotics to treat tuberculosis and is currently a DeSci+ meme leader. The token’s pull is due to the increased attention on the DeSci (decentralized technology) narrative on the chain. As the first token of Pump Science, as the popularity of the narrative increases, its purchase orders continue to increase, and its status is gradually consolidated as the leader on the track. .
Source: Biteye
For this type of token, my suggestions are as follows:
Paying attention to new narratives is also a good narrative. For example, in DeSci, you can choose to build a position in steps at low market capitalization (hundreds of thousands to small millions);
Pay attention to the social media, community activity and capital inflows of these tokens in the medium and long term to judge their sustainability and potential.
04 How to trade
The following figure is an overview of the GMGN trading system:
Source: Biteye
1. Left column interface
Collection, position list
Quickly understand the price and profit changes of your collected tokens and held tokens, and you can quickly sell at any time while watching the market.
Popular, Pump, followed list
Filter out the popular tokens and pump tokens that best suit your trading strategy by checking the time, number of transactions, price, and price percentage. The following list makes it easy to follow the order and buy at any time when watching the market.
2. Middle main interface
Below the k line covers a large amount of information related to the token, including trading activities, traders, holders, blue chip holders, etc., and is organized by smart money, KOL/VC, whales, new wallets, snipers, and large currency holders , developers, followed, mouse warehouse to classify.
When researching this token, you also need to refer to this information to analyze the holding whales, smart money, etc. for example:
Mark the suspected rat position to determine whether the dealer wants to use a small wallet to disperse the tokens and try to smash the market and run away.
Mark the suspected phishing wallet, and a mark will be given if the transferred token is not purchased.
3. Trading interface on the right
View metrics
View indicators such as token turnover, buys, sells, net buys, liquidity, minting data, blacklists, and more. It is also important to check the ratio of burning pools and the probability of running away.
Set slip point and turn on anti-pinch mode (Anti-MEV)
Slippage refers to the deviation in the maximum acceptable number of tokens for a single transaction. Increase slippage and trade faster. Most of the time, a slippage of about 0.5% is recommended, and it can be increased to 10% if the market fluctuates violently.
(Note: MEV sandwich attack means that the MEV robot reads the incoming transaction information and executes the order first, thus pushing up the price of the token when you buy it. Turning on the anti-pinch mode can effectively prevent the sandwich attack.)
Source: Biteye
Select amount, buy/sell manually
I will write an advanced chapter later, covering operations such as automatic buying at limit prices, automatic buying at pending orders, etc. Welcome to pay attention.
05 Risk warning
Hundreds of meme coins appear on the chain every day, and most of them will return to zero. The chance of becoming a golden dog (market value above 10 million/100 million) is extremely low, let alone being listed on a large exchange.
All in all, the higher the returns, the higher the risks, so please be responsible for yourself!
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reprinted with permission from: (Foresight News)
Original author: Biteye core contributor Viee
"Make a hundred times as much money overnight!" GMGN meme currency tool novice tutorial, teach you step by step on-chain transactions" This article was first published in "Crypto City"
