The investment world is indeed boring, that's why a memecoin was created. A coin inspired by a funny meme that went viral on the internet.
It's not once or twice that we hear the story of someone who suddenly became rich because of buying memecoin. BUT, is it true that investing in memecoin is worth it? Or is it a loss?
What is Memecoin?
Meme coins are cryptocurrencies that were created as a lighthearted joke. However, some meme coins have skyrocketed in value, gaining billion-dollar market caps, and gaining the support of famous celebrities. such as Elon Musk
Have you ever seen a Shiba Inu dog meme on Dogecoin? Well, that's an example of a meme coin. So, this coin is made from a viral meme. Although many have skyrocketing prices, in terms of utility, there are many memecoins that have no real use.
Meme coins are designed like other cryptocurrencies, like Bitcoin or Ethereum. The difference is that their existence tends to be centered around a viral moment or a funny idea, and their value depends largely on how much momentum the concept can generate.
Why Are Memecoins So Popular?
Active and exciting community: The #memecoin🚀🚀🚀 fan community is usually very active and lively. They support each other and make the atmosphere fun. Because this memecoin is based on community, not utility. So a good memecoin must have a positive and solid community.
Easy to Get Rich (they say): Some memecoins have skyrocketed in price very quickly, making early buyers suddenly rich.
Easy to Buy: You can buy memecoin on many cryptocurrency trading platforms.
But, Don't Forget the Risks!
Unpredictable Price Fluctuations: The price of memecoins can change drastically in a short period of time. Today it can be very high, tomorrow it can plummet.
No Guarantees: Unlike other investments, memecoins have no real utility behind their price. So, the risk is higher.
Many Scams: Unfortunately, there are many scammers who are taking advantage of the popularity of memecoins to make money. So, be careful! especially memecoins that are on DEX (not yet listed on exchanges, because it is very easy to become a developer and create fake memecoins)
Should You Buy Meme Coins? This is what you've been waiting for, right?
Many people are rich because of meme coins, but many more are at a loss. A little story, $DOGE (Dogecoin) once fell 91% from its ATH point, and $SHIB (Shiba Inu) fell 84%. Imagine you bought Doge at ATH with 100 million, then the price dropped 91%, automatically your money is only 9 million. and so on with its multiples
Seeing the potential in memecoin? there must be, but there must be a lot of considerations. in terms of technical analysis for example. When to buy? when to sell? we must know all that before starting to invest. in terms of fundamental analysis? how is the coin's tokenomics? how is the developer? and others.
Some memecoins have good fundamentals, some have bad ones. Each developer has their own way to attract potential investors. such as the deflation scheme (burning token) of some memecoins such as $PEPE . from there we can see "oh, there's potential here". then we can combine it with technical analysis
Want to get rich quick from Memecoin? It's not impossible
We can explore on DEX (we can use #BinanceWeb3Wallet! ) to trade newly released memecoins. Why can it make us rich suddenly? Because the coins there have just been released, we can even buy them before the coin is listed. However, the risk is directly proportional to the profit. The higher the potential profit, the higher the risk.
Before Investing, Pay Attention to This!
Don't put in money that you need for daily living.
Do Your Research: Don’t just jump on the bandwagon. Do your research on the memecoin you’re considering buying. Check out the team behind it, its development plans, and what the community thinks.
Diversification: Don’t just focus on one memecoin. Spread your investment across multiple assets, including memecoins and other cryptocurrencies.
Stay Updated: The cryptocurrency market is very dynamic. Be diligent in reading the news and updating the latest information.
The bottom line is, memecoins are interesting, but also risky. If you are interested in trying, make sure you are ready for all the consequences. Don't be tempted by the lure of big profits without thinking about the risks.
