Speculating in "memecoin" is a very dangerous form of investment that can bring huge profits in a short period of time, but can also quickly make you lose money. In the following article, I would like to provide some rules and tools to help you minimize the risks when speculating in "memecoin".
You may be interested in:
PEPE Coin (PEPE) - The first project of the 2023 "Meme Coin Season"
What is Turbo? Information about the "Memecoin Turbo" project
What is Bob? About "Meme Coin BOB" and "Explaining BOB"
Rules to note
When speculating in “Meme coins”, there are some guidelines that can help you minimize risks and ensure that you make the right decisions. Here are some important rules to pay attention to when speculating in “Meme coins”:
Do careful research before depositing any "Meme Coin": Before deciding to invest in any "Meme Coin", be sure to carefully understand the basic information of the "Meme Coin", especially the contract information, liquidity, taxes, etc.
Use funds you can afford to lose: Memecoin prices are extremely volatile and there is a risk of rapid depreciation. Therefore, it is recommended to use only small amounts and ensure that you can afford to lose if the price of Memecoin drops.
Allocate funds reasonably: Don't just speculate on one Meme coin, but buy many different types of Meme coins. This helps reduce risks and increase the chances of success.
Prioritize partial profit taking: This is a common method used to protect funds and profits and control "FOMO" (fear of missing out) when the price of Memecoin continues to rise. For example, if the price increases by 100%, you can take out part of the profit and continue to make a profit; when the price continues to rise by 50%, continue to lock in part of the profit.
Use a separate wallet for Meme coin transactions: There are many hacking risks in the Meme coin project, so it is recommended to separate the asset wallet from the Meme coin transaction wallet to avoid wallet hacking.
Some tools to support Memecoin speculation
Tools for finding projects
DEX Screener (Decentralized Exchange Screener): This is a platform that helps investors find potential projects. DEX Screener provides robot notifications about new tokens on various blockchains such as Ethereum, BNB Chain, Arbitrum, etc. At the same time, the tool also provides information on tokens that are experiencing strong trading volume or price increases.
DEXTools (Decentralized Exchange Tools): Similar to DEX Screener, DEXTools helps investors discover potential projects as early as possible. Most new memecoins are listed on DEX exchanges. These two platforms, DEX Screener and DEXTools, will help investors get in touch with memecoins more easily. In addition, the platform also provides a scoring function based on project information, liquidity, trading volume, and token holders to help investors find potential projects more easily.
Tools to support project information search
TweetScout: Since the community's "fear of missing out" mentality is so important to the growth nature of "memecoins", it is critical to check the community's interest in the project on social media platforms. TweetScout provides investors with an overview of the project's Twitter account, including the account creation date, number of followers, number of interactions, and a score for the Twitter account. The higher the score, the greater the interest in the project in the community.
CoinGecko/CoinMarketCap: These are two indispensable tools in cryptocurrency investment, providing investors with complete information about cryptocurrency projects, such as price, market capitalization, classification, official website, contracts, total supply, number of circulating tokens, etc.
Token Contract Checker：
Token Sniffer: This is a contract scoring tool based on factors such as liquidity, number of holders, trading volume, etc. Using Token Sniffer is very simple, you just need to visit the tool's homepage and paste the token contract address into the search box. The tool will automatically analyze and evaluate the token and then display the results on a table.
The higher the score, the more secure the token is. Even so, the score of a token on Token Sniffer can only indicate the relative level of security, it cannot completely eliminate the risk of participating in the project. Risks always exist, and there is no guarantee that these projects will increase in value rapidly in the future.
Bubblemaps: is a tool that helps analyze and detect groups of interconnected wallets. The tool helps users identify potential interoperability and synergistic wallet groups for token washing, market price manipulation or other fraudulent activities, such as developer wallets.
Summarize
Speculating on "memecoin" is a high-risk investment activity, but following the rules and knowing how to use supporting tools will help minimize the risk and increase the chances of success. Through the above, I hope to provide you with experience in memecoin speculation.
It is important to note that the essence of memecoin is FOMO (fear of missing out) in the community and has no value in terms of technology or creativity. Therefore, it carries a very high risk and I urge readers to be cautious before making an investment decision.