What is a memecoin?
The Meme Coins sector includes cryptocurrencies, created by often unknown people, with the aim of representing a Meme, it is the sector with the greatest risks, as the cryptocurrencies belonging to this sector have no basis whatsoever.
So, basically memecoins are cryptocurrencies without any project behind. It's simpy a meme, a picture of a meme, and nothing more.
Memecoins Marketing
If you have already noticed, you see a lot of posts and videos/images of how people earned a lot, how they became a millionaire investing in memecoins. But you never see posts or videos of how the people lost hundreds, thousands and milliond of dollars. That's the point, they want to show that you will become rich and that you will earn a lot buying memecoins. They show you the graphics of memecoins which raised thousands of percents.
And here is the trap, you go and buy a cryptocurrency that already have more than 10 000% increase. You go and buy a cryptocurrency that already have a market cap more than 500Million dollars, 1 Billion dollars or even more. So, you basically are investing in a memecoin hoping that it will increase even more, yes it will increase, and probably fast. But remember, as thay grow fast, they fall fast too.
Now you fall into a psychological game in which you want to have more, more and more profit. And in just one night, while you are sleeping, the memecoin goes -60%, and you have not put any stop-loss orders. And now you are with nothing.
How analyse the memecoins so you have more proabability to earn more and have less risks
As we just saw, the memecoins are cryptocurrencies with no ideas and no projects behind, so, you need to understand that investing in such projects you are just throwing your money into a meme, and if you are hoping to become a milionaire buying Foge, Shiba and PEPE, you are going in the wronh way...
The chart
First of all when buying a memecoin you need to analyse the chart. If you look at the chart and you see that the memecoin had already a big increase with thousand of pesrcents, and that now it's near to the top, it's not a good time to buy tha coin. One similar chart is the PEPE wich had already a 17 000% pump and is now near to the top.
One more example is the BONK chart, which already had a 90 000% pump:
But why we shoul avoid this type of charts? There is a simpe answer, the history!
Let's take a look at some old memecoins charts like shiba and doge.
Lookinh this charts, we can see that after a big increase, in SHIBA it was 5 000% and in DOGE more than 13 000%, there was a long time decrease chart.
Now, if you buy Bonk or PEPE for example, you have a big risk of wake up onde day and see a big red candle in tha chart.
So, don't buy memecoins on the top, buy thep on the dip.
Buy memecoins when the chart looks like that:
Looking at this three charts, we cann see, that after a long accumulation zone, the memecoins just fly to the moon, showing more then thousands percents of increase. The accumulation zone is the best time to buy a memecoin, and not the top. Doing that, you have less risks and more profit.
The marketcap:
Do you know why the memecoins show that incredible and big pumps? It's because their market cap was so small that just putting some money made it fly. That's a fact, if you buy a memecoin with more than 20 Billion market cap, you will note have more than 3x, because to make 3x with a 20Billion marketcap, you need 40Billion dollars, so it will turn into 60Billion dollars market cap. First of all, this is a lot of money, and only a few coins made it in history. So it will be smarter to invest in coins with a small market cap, because a coin with a 1Million, 10Million or 100Million dollars market cap is easier to manipulate and pump to the moon, making a big increase.
So, basically, before buying a memecoin you need to look at the chart, dont' buy on the top, buy on the dip. After you also need to check the market cap of the coin,
the smaller it is, the greater the chance of obtaining greater gains.
I am not against the memecoins, but I just think that there are better coins with good projects, with lower risks to invest.
I want to give you an advice from me. If you really want to buy memecoins, I recommend you to invest only 10% of your all money in crypto market, it will lower the risks, and the rest of money invest in good projects. Some examples of good projects are: TIA, ALT, DYM, JUP, PYTH, DYDX, IMX, XAI, MANTA, ARB, OP, XRO, ZK, ZKJ CYBER, W, SEI, SUI, UNI, STRK, AEVO...
Thank you for your attention, I wish you big gains!!!🚀🚀🚀
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#mememcoinseason2024 #Memecoins🤑🤑 #meme_coin #doge⚡ #pepe⚡ $DOGE $PEPE $SHIB
