Recently, the traffic on the chain has exploded. The trading mascot concept coin has soared by 60,000%, and the DeSci concept has also become popular. In this round of bull market, Meme coin is definitely the biggest dark horse!
However, the threshold for on-chain operations is a bit high. Don’t worry, in this tutorial, I will guide you step by step to get started and use GMGN to play with Meme coins!
There will be an advanced version later, remember to pay attention~
This article will focus on new IPOs and mainly teach you how to find, analyze and trade newly launched Meme coins.
01 Quick literacy for beginners
1. What is GMGN?
GMGN is an integrated website that combines Meme coin data dashboards and trading tools, making it very suitable for observing data and conducting on-chain trading.
2. What is on-chain trading?
On-chain trading refers to activities and transactions conducted directly on the blockchain, without going through centralized exchanges like Binance or OKX, completely decentralized.
3. What wallet to use?
You can use mainstream wallets like Phantom, OKX, etc. Installation and usage tutorials for wallets can be searched directly on YouTube, and this article will not elaborate further.
4. What is a Token Address (CA)?
A token address is similar to
The string 'GJtJuWD9q*wMBmtY1tpapV1sKfB2zUv9Q4aqpump'. Paste this address into GMGN's search box to find the corresponding token.
As shown in the figure below:
02 New Project Discovery
1. Follow Smart Money
Tracking smart money means tracking the wallet addresses of users who have achieved high returns on-chain, observing their chosen investment targets. The following three links are lists of smart money on different chains on GMGN, along with corresponding icon explanations:
ETH Chain https://gmgn.ai/discover?chain=eth
Solana Chain https://gmgn.ai/discover/?chain=sol
Blast Chain https://gmgn.ai/discover?chain=blast
After following smart money, if there are new developments, a red bubble prompt will appear in the 'Followed' section at the lower left corner, and there will also be sound reminders (which can be manually turned on/off).
Additionally, GMGN supports binding Telegram notifications, so whenever the wallets you follow take action, such as buying, selling, increasing positions, opening positions, or liquidating, you will receive a timely notification.
By directly clicking 'Followed', you can also view the real-time trading records of smart money, making all operations clear at a glance!
You can also click on any smart money address detail page to see more comprehensive information, such as holding analysis, profit and loss distribution, and trading activity data, all of which are clear and intuitive.
Every day, hundreds of thousands of Meme coins emerge on-chain, and smart funds will also concentrate on some of these projects. If you want to track these opportunities, it is recommended to choose the objects of your attention based on your trading habits, and do not blindly follow too many wallets to avoid being overwhelmed by massive information. Selecting wallets that are similar to your trading style for tracking can help you obtain effective information more efficiently.
Moreover, do not overlook the security of contracts. Some smart funds may have sharp instincts, but they might also randomly invest in unsafe projects, and the risks cannot be ignored.
How to screen quality projects: Scan Push and Scan Chain
Scan Push: Follow Twitter Dynamics
Follow some Chinese and English KOLs related to Meme coins on Twitter, join various discussion groups, and stay updated on the latest dynamics and market intelligence.
Scan Chain: Track Token Flow
Keep a close eye on tokens that transition from the internal market (small market) to the external market (large market), quickly assess whether they are worth investing in.
On the GMGN platform, you can view the following three categories of tokens:
1. Newly created internal market tokens: highest risk, but great return potential.
2. Tokens in the internal market that are about to reach full capacity: moderate risk, with certain potential.
3. Tokens that have entered the external market: lowest risk, but opportunities may have been digested by the market.
It is recommended to focus on those tokens that have already entered the external market. Although there are still certain risks in the external market, compared to the internal market, the risks have been significantly reduced, making it more friendly for beginners.
From a profit perspective, not many external market tokens can reach a market capitalization of millions of dollars, so there is still considerable growth potential. However, it is important to note that entering the external market does not mean that prices will necessarily rise; there are also many tokens that rapidly went to zero after opening in the external market. Therefore, it is essential to remain cautious when investing.
By patiently observing and analyzing the performance of these tokens, you can assess their potential and investment value, which gives you a chance to realize profits. So how should you specifically analyze them? Let's explain in detail below.
03 Token Analysis
Once you have mastered how to use the GMGN platform to find new coins on-chain, the next step is to screen for worthy targets among the many Meme coins.
When selecting, you can judge based on the following key points: hot topics, narratives, market capitalization, community, and market dynamics. Different strategies need to be adopted for different types of Meme coins:
1. Hot Topics
Many of these tokens are small-cap tokens that rapidly gain popularity due to specific events or trends in a short period, potentially having very high increases initially, with potential space exceeding 10 times, growing from a million-level market capitalization to tens of millions.
However, if the hot topic is unsustainable, the price has no support points, celebrities do not shout out, it has not reached a new narrative level, has not formed a community with significant influence, and has not experienced exciting low-probability events. It is very likely to gradually lose liquidity, and the price will continue to decline.
The so-called low-probability events, here are a few examples:
The founder of SLERF accidentally burned liquidity pool tokens (LP), airdrop reserved tokens, and minted tokens, which caused a large amount of bullish sentiment on-chain, leading to $SLERF quickly going live on exchanges.
The recent $BITCAT is also an example. Just as the sentiment surrounding the 'mascot' concept on-chain was gradually heating up, Bitcoin's official Twitter suddenly posted a picture of a black cat, leading many to believe this hinted at Bitcoin's mascot, sparking extensive discussion on the topic. With the spread of consensus, the related token $BITCAT experienced a surge, soaring from a market capitalization of hundreds of thousands to one hundred million in less than three hours, eventually stabilizing around a market capitalization of 50 million.
For such tokens, the following suggestions are made:
Buy in early, the best market capitalization is hundreds of thousands. If you enter too late, do not wait until the market capitalization exceeds 10 million to chase high prices, as it is easy to get trapped;
If you believe in the sustainability of the hot topic, wait for the price to drop by 80% before entering to reduce risk.
2. Narrative Type
Such tokens typically do not rely on short-term hot topics to surge, but grow gradually from small to large market capitalization around a certain narrative or community.
Unlike those hot tokens that surge instantly, these tokens often experience multiple stages of steady growth, with market capitalizations usually between a few million to tens of millions of dollars, and at their peak, even exceeding one hundred million.
For example, $RIF is one of them. Its background is the application of antibiotics in treating tuberculosis, and now it is the leading token in DeSci (Decentralized Science) and Meme. The rise of $RIF is due to the growing attention on-chain to the DeSci narrative, and as the first token of Pump science, with the increase in topic heat, buying pressure continuously increased, ultimately stabilizing its market position and becoming a leader in this track.
My suggestions for such tokens are as follows:
Paying attention to new narratives is also a good narrative, such as DeSci, where you can choose to build positions step by step at low market capitalizations (hundreds of thousands - small millions);
Mid to long-term attention to the social media, community activity, and capital inflow of these tokens to assess their sustainability and potential.
04 How to Trade
The following is an overview of the GMGN trading system:
1. Left Column Interface
Favorites and Holdings List
You can easily view the current prices and profit changes of your favorite tokens and holding tokens, making it convenient to quickly sell when monitoring the market.
Popular, Pump, and Followed Lists
By filtering by time, trading volume, price, and percentage change in price, you can find the hottest tokens and Pump tokens that best match your trading strategy. The 'Followed' list allows you to quickly follow trades and buy in one click.
2. Main interface in the middle
Below the candlestick chart, you can see a wealth of related information about the token, including trading activity, traders, holders, and blue-chip holders, etc. This information is categorized into smart money, KOL/VC, whales, new wallets, snipers, large holders, developers, followed, wash trading, etc., for more precise tracking and analysis.
When researching tokens, it is very important to reference this information, especially the behavior of large whales and smart money in analyzing holdings. For example:
Mark suspected wash trading: Determine if there are market makers using small wallets to disperse tokens with the intent to crash the price and run away.
Mark suspected phishing wallets: If there are tokens transferred in that were not purchased, they will automatically be marked as phishing wallets to help identify potential risks.
3. Right Side Trading Interface
View metrics
You can view multiple key metrics of the token, including transaction volume, buying, selling, net purchases, liquidity, minting data, and blacklists, etc. This data can help you analyze the market performance of the token in depth. In particular, checking the burn pool ratio and escape probability is also very important, as it helps determine whether the token has potential risks.
Set slippage and enable anti-sandwich mode (Anti-MEV)
Slippage refers to the maximum acceptable deviation in the number of tokens during a transaction. Increasing slippage means faster transaction execution. Generally, it is recommended to set slippage at around 0.5%; if the market is volatile, it can be appropriately increased to 10%.
(Note: MEV sandwich attack refers to MEV bots reading the information of upcoming transactions and placing orders in advance, thus increasing the token price when you buy. Enabling anti-sandwich mode can effectively prevent this type of attack and protect your trading price.)
Select amount, manually buy/sell
I will write an advanced article later, discussing operations like limit orders and automatic purchases, so stay tuned.
05 Risk Warning
Every day, hundreds of thousands of Meme coins appear on-chain, and most will go to zero. The probability of a gold dog (10 million / over 100 million market capitalization) emerging is extremely low, let alone being listed on large exchanges.
In summary, the higher the return, the higher the risk. Please be responsible for yourself!
