In the world of cryptocurrencies, meme coins have emerged as a fascinating phenomenon. Often driven by virality and community enthusiasm, these tokens have proven to have enormous growth potential. In this article, we will explore advanced strategies to take advantage of the opportunities provided by Solana meme coins and maximize your profits.
Researching and Filtering Promising Meme Coins
The first crucial step is to conduct extensive research into the meme coin market. We will use tools like DexScreener to find the most promising tokens. We will start by applying specific filters, such as looking for new pairs that are one hour old, have minimum liquidity of $100, and have a market cap of less than $100,000. This will allow us to identify the newest and most high-risk meme coins, but also the most exciting ones.
Next, we will apply filters to find mid-aged meme coins, with liquidity above $10,000, a market cap between $1,000 and $1 million, and at least 15 buys and 10 sells in the last 24 hours. These will be more established meme coins, but still with great growth potential.
Finally, we will explore the hottest and most active pairs, with liquidity above $10,000, a market cap between $100,000 and $5 million, and at least 15 buys and 10 sells in the last 24 hours. Here we will find the most popular and oldest tokens.
Entry Strategies: Scenario A and Scenario B
Once we have identified the most promising meme coins, it is time to look at the entry scenarios. We have classified two main strategies: Scenario A and Scenario B.
Scenario A: Early Entry into Newly Released Meme Coins
In this scenario, the idea is to enter newly released meme coins that are seeing good trading volume. This can lead to higher profits, but it also carries more risks. To mitigate these risks, you should look for meme coins with high and sustained volume over several days, a growth in the number of holders, good social media activity and influencer engagement, and liquidity above $50,000 and a fully diluted market cap above $100,000.
Scenario B: Entry into Older Meme Coins
In this second scenario, we will focus on meme coins that have already enjoyed sustained volume and have reached highs between $20 and $50 million. They usually experience a sell-off of around 50% and then a price surge to new all-time highs. In this case, the strategy is to wait for investors to take profits and then enter, as long as the narrative and social media hype remain favorable, and the number of headlines has increased.
Exit Optimization and Risk Minimization
One of the most important aspects to consider is the exit strategy. You should keep an eye on two key points: making sure the meme coin's liquidity is locked, and checking the number of holders and the risk of the contract address, using tools like Token Sniffer and RCK Check.
As for the exit, we recommend not expecting to make extraordinary profits of 10x or more. Instead, suggest gradually withdrawing your profits. For example, if you bought 1 SOL and have made 3x or 4x, withdraw 3 SOL and leave 1 SOL invested. If the price goes up again and multiplies by 3 or 4 again, repeat the process. This way, you can multiply your profits up to 20 times without risking too much of your initial investment.
Also, if a meme coin fails to break a previous high after two attempts, especially with increasing volume, it is likely to collapse. In that case, you should cut your losses or take profits aggressively, especially if the number of holders is decreasing.
Final Words
Hunting meme coins on Solana can be an exciting and potentially very profitable practice, but it also comes with a high risk. It is crucial to minimize risks by using the right tools and strategies, such as those we have presented in this article. Remember to be flexible and willing to move between different blockchains if you want to be successful in trading meme coins. With proper research, discipline, and risk management, you can multiply your investments in this exciting world of cryptocurrencies.
Keep an eye on your portfolio and always follow your sixth sense. What do you think about these strategies? Leave your impressions in the comments! Remember to continue learning about the Solana ecosystem, which is currently the most complete.
Resources:
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Birdeye
Coingecko