The meme coin season has slowed down a bit now, but don't be fooled: meme coins like $PEPE and $DOGE still have their loyal fans and will be in demand. If these assets can grow even in a bear market, then during a bull market they might surprise us even more. To help you prepare for potential swings, I decided to share five important tips.
Advice 1: Keep learning
The world of meme coins is a constantly changing one. After the sharp rise of #Dogecoin, many thought the trend of meme coins would pass. But then #SHIBAINU and other meme coins surged even in a bear market. To stay updated on trends and understand how these coins work, it is important to keep learning. Knowledge will help you make informed decisions and manage risks.
Advice 2: Don't be afraid of regulation
Many consider meme coins to be a kind of 'wild west' of the crypto industry, and there is some truth to this. These assets are currently unregulated, which increases risks. However, with the gradual introduction of regulation, which may reduce returns, the crypto market will become safer for investors, 'to a certain extent regulation is necessary' as it helps to reduce risks.
Advice 3: Only risk what you can afford to lose
Remember the main rule of an investor: only invest in meme coins what you can afford to lose. Meme coins should not make up more than 10% of your portfolio. The risks in this category of coins are too high to bet everything on them.
Advice 4: Do your own research
Researching meme coins is a crucial step before buying. Use tools like #CoinMarketCap and Dexscan to check the liquidity and trading history of the coin. Ensure that the meme coin has an active community and regular updates. Avoid tokens that lack real users and project development.
Advice 5: Don't fall for tricks
Some creators of meme coins may use tricks to attract newcomers. They may manipulate liquidity, use bots to create the appearance of activity, and add features in smart contracts that allow them to transfer funds to themselves. Study the contract and use tools like Dexscan for verification.
Manage risks and stick to the plan
Even if you have done your research and exercised caution, the final step—risk management—is still up to you. Without a clear plan, many traders have lost their earnings due to emotional turmoil. Always stick to your plan, manage risks, and remember that in the world of meme coins, a lack of a plan is a direct path to losses.
Meme coins can be tempting, but they require a responsible approach and caution. With these tips, you can trade with confidence, preparing for new ups and downs!
What meme coins are in your portfolio?
