8 Things You Need to Know Before Trading Memecoin

Author: Rekt Fencer, Cryptocurrency Researcher

Translation: Felix, PANews

Under the attraction of the wealth effect, a large number of newcomers have recently entered the Memecoin trading, but it seems that only a few can actually make a profit. Cryptocurrency researcher Rekt Fencer has compiled 8 Memecoin trading experiences. Perhaps it can help newcomers avoid some detours.

PANews Note: This article aims to provide market information and does not constitute investment advice. Do Your Own Research (DYOR).

Don't switch projects too frequently

In this fast-paced market, it is wise to move funds from one token to another. In order to make a profit, it is necessary to occasionally play the "musical chairs" game with funds.

However, newcomers may tend to go to extremes.

For example, after the sudden appearance and surge of boden coin, the craze for celebrity coins followed. Some degens abandoned their focus on boden and turned to the latest celebrity coins, which could appreciate in value within a day.

But at the same time, boden's market value grew from $20 million to $500 million within a month.

Use sniper bots

In the current Memecoin market, you need to outperform 99% of people to get a share.

In the game, speed is the key to victory. Every second can determine success or failure. This is where sniper bots "shine".

Of course, the speed of most public sniper bots may not be the fastest, but it is enough to leave ordinary degens in the dust.

Pay attention to insiders

It is well known that some hundredfold Memecoins (such as BOME and MEW) will be quickly purchased by insiders once they are launched.

Once their wallets are found, you can follow their trades and potentially buy tokens at 10-100 times the value.

Although finding their wallets is a tricky problem, and they often change wallets from time to time, believe that all these efforts are worthwhile, especially for newcomers.

DYOR, DYOR, and DYOR

If your goal is to achieve huge profits, it is essential to thoroughly research the project through the following ways:

Social media influence
Telegram activities
Project team
Current and potential CEX listing status
Token economics
Marketing activities
Narrative
Trading volume

Discover new narratives early

To maximize profits, it is necessary to discover new narratives early.

Recently, meme coins like MEW have become popular. By closely following trends, you can buy meme coins early and easily buy a hundredfold coin. For example:

SC: $400,000 market value ➜ $3.87 billion market value | 1,204x growth in 4 days
nub: $6.6 million market value ➜ $196 million market value | 28x growth in 6 days

How to discover new narratives early?

Closely monitor tokens ranked by trading volume on DEX Screener and track the movements of experienced degens.

Small investments

Allocate only a small portion of your investment portfolio, or what you can afford to lose, to the Memecoin race.

This approach simplifies the decision-making process. Memecoin trading can be seen as gambling, and almost no one would bet all their stakes on one project.

Stick to your strategy

Do not be influenced by market fluctuations. Always stick to the original plan to avoid turning profits into losses.

There are many strategies to lock in profits:

Cash out 50% at 2x returns.
If you have done your homework, continue to hold and wait for 10-100x returns. Statistically, if your research is reliable, you will profit over time.
Develop a strategy that suits your style. Plan, test, and then strictly execute.

Stick to profitable coins, abandon losing coins

It is easy for people to fall into the trap of giving up profitable coins and doubling down on losing coins.

If your token has doubled, do not rush to cash out all of it. Give it a chance to rise further.

When a token continues to underperform, it is wiser to let go, even at a loss, and shift focus to leading tokens.

Here is the list of Memecoins the author is following:

boden: $479 million market value | SOL ecosystem
BALLZ: $30.1 million market value | SOL ecosystem
tremp: $86.5 million market value | SOL ecosystem
SC: $128 million market value | SOL ecosystem
nub: $47 million market value | SOL ecosystem
mfer: $79.1 million market value | BASE ecosystem
MOG: $201 million market value | ETH ecosystem
ANDY: $78 million market value | ETH ecosystem

Note: Listing these tokens does not mean that you should immediately invest in all of them. Take the time to research each project, develop a strategy, and then make investment decisions based on that.

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