How to Trade Memecoins in 2024
General Tips for Trading Memecoins
1. Study extreme volatility. It is common for memecoins to see 50% drawdowns even in a bull market environment.
2. Stay away from leverage. While most memecoins do not have platforms to host leveraged trading, those with access will likely lead to liquidations.
3. Understand memecoins seasons, adoption waves, culture and parabolic movements.
4. Technical analysis might not work. Memecoins generally trade on sentiments and virality of the project.
5. Understand the upside potential. SHIB did a 1000x from its bottom and is unlikely to 100x from where it is today, a good knowledge on this will cultivate a strong risk management approach.
6. Betting on memecoin leaders. Projects who occupy the throne will likely lead the markets â with a huge number of memecoins in the market this helps narrow your choices without compromising on upside potential.
7. Holding long term might hurt. Learn to be good at profit taking, majority of memecoins do not have the fundamentals to be held in an entire cycle, view it as a seasonal play.
