Trading meme coins have changed lives for many people. They have made millions of dollar just trading meme coins. Because trading meme coins and getting crazy returns is not a rocket science, you can be one of those millionaires as well. So in this article I will teach you some basics of meme coin trading.
1. Make sure you are investing in meme coins that are gaining momentums. Not the ones losing interest of crypto community. Verify the token has a strong culture. Meme coins only succeed if they have a very strong community. Because memecoins generally have zero utility. So a meme coin that will succeed it sometimes totally depends on how strong the community is. The meme should be easy to understand and funny. Make sure the token is being talked about in socials like Twitter, Discord etc.
2. Check out which team is behind this project. Check if they have previous history of rug pull and scam.If they are capable enough to start a hype. If Meme behind that meme coin is funny enough and entertaining.
Now honestly, most team behind meme coins are anonymous. So it becomes hard to spot a upcoming rug pull and scam. But if the team is known to people, then most likely you are not getting rugged and exploited.
3. Check out tokenomics of the meme coin you want to invest in. Stay away from those memecoins that have a huge amount of tokens allocated for the team. Because it is most likely team will start dumping on you when token starts trading. Check out if the tokenomics has a burning/buy back mechanism attached. Because then a portion of tokens will be out of supply forever which is good for the token and a sign to increase in value for the token.
4. Memecoin gamblers like to follow the leader or play the rotation game. It's upto you what you are interested about. Leaders like $PEPE or $ DOGE built the hype for the frog or dog community.So many copy-cat meme coins comes in and smart money likes to move into copy cats because these have low cap and chance of a higher yeild. On the other hand, $Pepe and $Doge has huge market cap, less risky and less output.
5. Treat it like a casino. Investing in memecoins is fun and you may get very lucky. It's completely different from investing in other mainstream tokens or coins. So you should invest what you are okay to lose. To do that I recommend you to create a new on chain wallet on metamask and completely isolate it from your long term holding portfolio. This will help you reduce emotional toll and take better decisions.
6. Your goal should be building memecoin position before others. Once you are sure that a memecoin is gaining some good momentum be sure to ape in before others to maximize your memecoin portfolio.
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