Meme operation tutorial that beginners must learn.
Written by: Biteye core contributor Viee
Edited by: Biteye core contributor Crush
Recently, there has been a massive explosion of on-chain traffic, with trading mascot concept coins surging 60000%. The DeSci narrative has emerged, and Meme coins have become the biggest dark horse of this bull market!
On-chain operations are quite difficult; Biteye will teach beginners step by step in this tutorial to use GMGN to play with Meme coins!
There will be advanced articles later; stay tuned.
This article will focus on new coin launches, mainly teaching how to find, analyze, and trade newly launched Meme coins.
01 Quick introduction for beginners
1. What is GMGN?
A website that integrates Meme coin data dashboard + trading tools.
2. What is on-chain trading?
Activities and transactions conducted directly on the blockchain, not relying on centralized exchanges like Binance, OKX, etc.
3. What wallet to use?
Mainstream wallets such as Phantom and OKX can be searched for installation and usage tutorials on YouTube; I won't elaborate here.
4. What is the 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 those user wallet addresses that have gained high returns on-chain and observing the investment objects they choose. The following three links are lists of smart money on different chains, 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 and sound prompt (which can be turned on or off) will appear in the lower left corner.
GMGN also offers the feature of binding Telegram notifications, so once the wallet you follow performs any operation, you can receive notifications immediately.
Click 'Followed' to view real-time trading dynamics of smart money, including buying/selling/adding positions/increasing positions/building positions/clearing positions.
You can also click on any smart money address interface for more detailed information, including position analysis, profit and loss distribution, trading activities, etc.
Every day, hundreds of Meme coins go live on-chain, and there may be concentrated buying by smart money. When choosing whom to follow, it’s best to consider your trading habits to avoid excessive wallet following that leads to information noise. It is recommended to track wallets similar to your own style to ensure the efficiency of information flow.
Note that checking contract security cannot be overlooked, as many smart money also involve buying without considering contract safety.
2. Scan Twitter and scan chains
Scan Twitter: Follow a large number of Chinese and English KOL accounts related to Meme coins and join various discussion groups to obtain the latest information and dynamics.
Scan chains: Closely monitor tokens moving from internal markets (small markets) to external markets (large markets), and quickly evaluate whether these tokens are worth investing in.
On the GMGN platform, you can view the following three types of tokens:
First type: newly created internal market tokens (highest risk)
Second type: internal market tokens about to reach capacity
Third type: tokens that have entered external markets (lowest risk)
Explanation about internal/external markets:
When a new project successfully deploys using the auto-minting tool pump.fun, users can use SOL to purchase the project's tokens. When its market cap reaches $69,000, the project's liquidity will automatically be added from pump.fun to Raydium.
Before reaching $69,000, we refer to it as the internal market. At this point, the project is in a very early stage, with extremely high risks.
Upon reaching $69,000 and successfully adding liquidity on Raydium, we refer to it as the external market. At this point, the project has developed further, and risks are somewhat reduced.
It is recommended to mainly focus on tokens that have entered external markets. Although there is still high risk in external markets, the risk is significantly lower compared to internal markets, making it relatively friendly for beginners.
Also, most external markets achieving million-level market caps are few, and there is still significant potential for profits.
Note that entering the external market does not guarantee a 100% rise, as there are many cases where tokens quickly go to zero after entering external markets. Always remain cautious during the investment process!
By patiently monitoring and analyzing the performance of these tokens, we can assess their potential and investment value, ultimately achieving profitability. But how exactly to analyze? Let's look at the detailed explanation below.
03 Token analysis
Once you have learned how to use GMGN to find new coins on-chain, the next step is to analyze and select which Meme coins are worth buying from a pile of them.
Specific judgments on whether to buy should be based on trends, narratives, market caps, communities, and market dynamics. Different types of Meme coin strategies also vary.
1. Hot type
Many of these tokens are small-cap tokens that rapidly gain popularity due to specific events or trends, which may have high initial increases, with potential space reaching ten times or more, moving from million-level to ten-million-level market caps.
However, if the hot trend is not sustainable, the price lacks support, no celebrities are promoting it, it hasn't reached the narrative level, hasn’t formed a significantly influential community, or hasn't experienced uplifting low-probability events, it is likely to gradually lose liquidity and continuously drop in price.
The so-called low-probability events; here are a few examples:
$SLERF founder accidentally burned liquidity pool tokens (LP), airdrop reserved tokens, and all minted coins, triggering a surge of bullish sentiment on-chain, leading to $SLERF quickly listing on exchanges.
Also recently, $BITCAT. As on-chain sentiment was fermenting around the concept of 'mascots', Bitcoin's official Twitter suddenly posted a picture of a black cat, leading some to believe this hinted at a Bitcoin mascot. As consensus spread, the related token $BITCAT quickly surged, experiencing a price spike from a market cap of hundreds of thousands to one hundred million within three hours that night, stabilizing around fifty million later.
For these types of tokens, the following suggestions are made:
Buy early, ideally when the market cap is in the hundreds of thousands. If you enter too late, do not wait for over 10 million (ten million market cap) to chase high prices, as it is easy to get trapped.
If you believe in the sustainability of the hot trend, wait until the price falls back 80% before entering, which can reduce risk.
2. Narrative type
Such targets often do not rely on short-term hot trends but gradually rise from small market caps to large market caps around a certain narrative or community.
Unlike tokens that surge instantly, they may experience multiple phases of stable growth, typically with market caps in the millions to tens of millions of dollars, and even surpassing one hundred million at their peak.
For example, $RIF, which is backgrounded by antibiotics used for tuberculosis, currently leads in DeSci + Meme. The token surged due to rising on-chain attention to the DeSci (decentralized science) narrative. As the narrative heated up, buy orders continuously increased, and its status gradually solidified as a leader in the track.
For these types of tokens, my suggestions are as follows:
While following new narratives, good narratives, such as DeSci, can choose to build positions in low market caps (hundreds of thousands to small millions);
Pay attention to the social media, community activity, and capital inflow of these tokens in the medium to long term to assess their sustainability and potential.
04 How to trade
The following is an overview of the GMGN trading system:
1. Left column interface
Favorites, portfolio list
Quickly understand the price and profit changes of the tokens you hold and can quickly sell when monitoring the market.
Popular, Pump, followed list
By selecting filters for time, transaction numbers, prices, and price percentages, you can find the popular tokens and Pump tokens that best suit your trading strategy. The followed list makes it convenient to monitor and buy in with one click.
2. Central main interface
The K-line below contains a wealth of information related to this token, including trading activities, traders, holders, blue-chip holders, etc., and is categorized by smart money, KOL/VC, whales, new wallets, snipers, major holders, developers, followed, and wash trading.
When researching this token, it is also necessary to refer to this information and analyze large whale holdings, smart money, etc. For example:
Mark suspected wash trading, judging whether the market maker wants to use a small wallet to disperse tokens to try to dump and run.
Mark suspected phishing wallets; transfers of tokens not purchased will be flagged.
3. Right-side trading interface
View indicators
Check token transaction volume, buying, selling, net purchases, liquidity, minting data, blacklist, and other indicators. It is also important to check the burn pool ratio and the probability of rug pulls.
Set slippage, turn on anti-sniping mode (Anti-MEV)
Slippage refers to the maximum acceptable deviation in token quantity declared for a single trade. The higher the slippage, the faster the trade. It is generally recommended to keep slippage around 0.5%, and can increase to 10% during volatile market conditions.
(Note: MEV sandwich attacks refer to MEV bots reading incoming transaction information and preemptively executing orders, thus driving up the token price when you buy. Turning on anti-sniping mode can effectively prevent sandwich attacks.)
Select amount, manually buy/sell
There will be an advanced article later discussing limit price auto-buy, order placement auto-buy, and other operations. Stay tuned.
05 Risk warning
Every day, hundreds of Meme coins appear on-chain, most of which will go to zero, and the probability of hitting the gold dog (ten million / one hundred million market cap) is extremely low, not to mention listing on large exchanges.
In summary, the higher the return, the higher the risk, so please be responsible for yourself!
