Table of Contents
Memecoins have become very popular in the world of cryptocurrency, mixing fun and investment chances. This article will explain how these entertaining coins work and risk of investing in it. you might become a millionaire by investing in them.
What exactly is Memecoin and meme coin saga of crypto space?
- In simple, mem coin is trend started in Crypto to tokenise “attention”, form community and generate financial value with attention economy.
- Unlike regular cryptocurrencies, memecoins often begin as humour or a cause but can quickly attract attention and increase in value through social media.
- They attract people who enjoy the fun and investment and built a fun community around Memecoin
- Representing a cause, social message for example smoking chicken fish meme coin started as fun but they are going to build a church where its followers can gather.
- Unlike high FDV, low circulating supply, good part about meme coin is they are brutally honest and do not give fake promises with fancy whitepapers just to inflate the price of coins
Examples:
Dogecoin (DOGE): Originally created as a fun featuring a dog, Dogecoin has gained immense popularity, especially after endorsements from celebrities like Elon Musk. It is now used for transactions and has a large community backing it.
Smoking Chicken Fish (SCF): This is another example of a memecoin that started as a meme but has developed a cult following, even having a registered “church” dedicated to it.
In the past 6 months, Memecoins narrative become best performing sector according to Cryptonary’s State of The Memecoin Market Report
Strategies for success:
- Follow social media trends and see which memecoins are gaining attention. Platforms like Twitter and Reddit are great places to find the latest buzz.
- Engage with online communities that focus on memecoins. These groups can provide valuable insights and updates on which coins are trending.
- Only invest what you can afford to lose. Memecoins can be highly volatile, meaning their prices can change rapidly.
- Keep an eye on news that might increase liquidity in the market, such as major exchanges listing new coins or announcements from influential figures in the crypto space.
- Be ready to learn about new trend and you will have opportunity to make money but don’t invest solely based on random advice of influencers.
- Dilemma: Be Dimond hands which may lead to zero in the long run? Or Sell early and what if we lose 100-200x of upside? As per experienced traders and investors, the best risk balanced strategy is to keep the “Moon Bag”. This means sell and book the profit on the way up and keep a small percentage, say 10-20%, about which you are not worried because you have already taken out your capital and left small percentage to gain future upside. If it goes to zero, it won’t affect you mentally because you already booked your profit, at the same time if you sell 100% early and if it goes 100x from there, the person keeps regretting for selling early. And if you don’t book profit let say at 5x-10x to chase 100x and if it goes to zero, the person regrets for not selling it. There is a saying “No one gets broke booking profit”. The conclusion is no one can time the market, especially in high volatile meme trades so a balanced approach can be to book profit at a certain level, take initial investment and profit out on the way up and let a small percentage of the portfolio ride the further up or downside which may give further return or can become zero.
- Look for strong communities, where dedicated holders refuse to sell their coins.
95%+ of newcomers won’t make money on flavor-of-the-week memes
— Murad 💹🧲 (@MustStopMurad) November 20, 2024
They will get dumped on and look for safety in CULTS.
All Roads lead to CULTS where core holders are INSANE and they don't sell.
These are the COINS you want to BUY & HOLD through the Volatility, NO MATTER WHAT.
The risks:
- Volatility: Prices can rise and fall dramatically based on social media trends rather than real value.
- FOMO (Fear of Missing Out): Investors may feel pressured to buy quickly due to fear of missing potential profits.
- Lack of fundamentals: Most memecoins do not satisfy the criteria of solid foundations or use cases, making them more susceptible to sudden crashes.
- Rugpools Vs. Cult community
- 50x – 1000x profit: is it real? Yes, it is real but in rare cases, if you are an individual and such gain is achieved by insiders who are creators of the meme coin or involved in some or other way as well as a few lucky winners who got lucky or did research to fund cult community and bet on it.
Memecoins have gained significant popularity in the cryptocurrency market, combining fun with investment opportunities. If you are a person who enjoys both humour and investment, then you should start learning about Memecoin.
Also check this out, AminoChain: The future of decentralized healthcare
Do visit CoinTopper for more content like this
Disclaimer: At CoinTopper, we like to cover interesting products and share them with our community. This article is for educational purposes only and is not sponsored or endorsed by the project team.