Bankless: The Fanatic Investor’s Guide to Memecoin

Original title: "An Investor Guide to Memecoin Mania"

Original author: Arjun Chand

Original compilation: Frost, BlockBeats

Editor's Note:

This article explores the recent "Memecoin mania" in the cryptocurrency world from an investor's perspective. And said that a more conservative investment strategy can be used, that is, by investing in more stable digital currencies such as Bitcoin or Ethereum to ensure basic assets, while freeing up some funds to participate in the high-risk but potentially higher-reward Memecoin strategy.

“Your friend knows next to nothing about cryptocurrencies, but he Already rich." "Why?" "They bought a token with a dog wearing a hat on it. The hat stayed on, so the price kept going up." "Got it."

The Memecoin is about to become mainstream in the Las Vegas sphere after the community raised $650,000 to light it up.

Memecoin is very popular right now

Historically, Memecoin has been the best performing one of the assets. Let’s take a quick trip down memory lane and look at some of the brightest stars in the Memecoin galaxy:

Dogecoin (DOGE) – Musk’s favorite meme, What once rose to prominence on SNL is now Memecoin history, with a current market capitalization of $20 billion.

Shiba Inu (SHIB) – This is a beta meme following in the footsteps of DOGE, currently only one spot behind DOGE with a market capitalization of over $10 billion. At its peak, it even reached a staggering $40 billion, a return of 8,000 times compared to the beginning of 2021.

Pepe (PEPE) – PEPE reached a market cap of $1 billion within a month of its launch and currently holds a market cap of $3 billion.

Bonk (BONK) – Memecoin was one of the major catalysts in reviving the Solana ecosystem, with Bonk soaring from a market capitalization of $30 million in just over a month. $1.5 billion (a rapid 50x increase).

Dogwifhat (WIF) - Dogwifhat once made Wall Street popular by charging the bulls, and the popularity remains high. With a market capitalization of $2.25 billion, WIF is the leader among the Solana Memecoins.

The famous infographic about Memecoin by DegenSpartan.

But let’s be honest, Memecoin is a gamble. There is no foolproof strategy for buying them - it's either "TO THE MOON" or you see everything you invested disappear. The jury is still out on whether Memecoin is good or bad. But one thing is for sure: Memecoin has become an integral part of the bull market. They are attracting people to the chain and promoting cross-chain activities.

Memecoin Evaluation Guide

The following points are guidelines for evaluating Memecoin. These tips can help Readers set the standards and define what Memecoin is worth buying. Let’s take a closer look!

Build a trustworthy network

Don’t take it from your favorite Twitter KOL your alpha.

Timing is everything in cryptocurrencies, especially Memecoin. How early you buy can determine whether you end up with 5x or 100x your return. To buy early, you must understand the "Alpha Chain" and how information flows.

If readers get Memecoin information from a Twitter KOL with a large number of followers, it may be too late. This may mean that early profit takers are ready to "get off the bus" and you have no choice but to become a "community member".

It is impossible to follow the cryptocurrency market every second and be the first to seize every opportunity, so, unlike in a bear market It's important to form a team of friends - people you can trust and who share similar interests as you.

With your team, you can cover more ground, pool insights, and validate each other’s hunches. If most people in your team think that a certain Memecoin looks promising, the probability that it will go further out of the circle may be high, and then your probability of making the right decision becomes greater.

It's like having a group of friends who can help you discover the next big thing - if you all agree on the meme, you're probably more likely to subjectively think it has potential. But if you try to figure it out on your own, sometimes you might fall short.

Take full advantage of data tools

To make smart investment choices, you need the latest, The most accurate information. Websites like Dexscreener and Blockchain Explorer are great tools for gathering necessary data.

For example, for Memecoin, token distribution is a key metric. It tells you whether Memecoin has real community support or is just a few insiders trying to make a quick buck by pumping and dumping.

Here’s how to view the Memecoin token distribution:

Spotting Whales – Use Area The blockchain explorer enters the contract address of the token. Click on the "Holders" section to see how tokens are distributed among holders. The best case scenario is that no single whale takes over the majority of the coins.

Healthy spread and growing token holders - Good token spread usually means a stable and large community. If you notice a group of different holders slowly but surely accumulating more tokens, it probably means they believe in the future of the token.

Fair release - focus on the initial distribution of tokens after they are released. The initial distribution model needs to be fair and equitable, rather than disproportionately distributed to development teams or early investors.

Track how the project operates

For any cryptocurrency project, whether it is Memecoin or catering to demand For projects, having a solid image is key.

If you are optimistic about the potential of a meme, make sure they have already demonstrated some traction in the field of operation.

Source: @kelxyz_

This means that a beautiful website, an eye-catching Twitter account and an active Telegram group chat are all indispensable. They are the backbone of communication, community, and brand—the very things that can make or break a project’s reputation.

The project website is the official billboard for the project. This is where Memecoin comes into its own. Telegram channels are community gathering places where you can see active community members and memes. And Twitter? That's a loudspeaker. It broadcasts Memecoin’s story to the world. Memecoins that establish themselves on these platforms, combined with humor and community engagement, are more likely to attract market attention and achieve great success.

Know your limits in on-chain casinos

Remember the golden rule: only bet Note the losses you can accept.

Memecoins are fun and can be used quickly TO THE MOON, but they are unpredictable and you can lose everything easily.

Memecoin’s high volatility means the risk of loss is significant, so don’t gamble with your savings, but maybe use your lunch money on some days It is okay to place bets.

Some investors use a barbell strategy, balancing ultra-safe bets (e.g. BTC, ETH, SOL) with the high risk of Memecoin. This way, you can enjoy the thrill of Memecoin while maintaining a solid financial foundation unaffected by Memecoin fluctuations.

Don't mid-curve it. Embrace the memecoins.

Also, think of Memecoin as an on-chain PvP battle - a common fool's theory prevail. Ask yourself, "Would anyone else be willing to buy this coin at a higher price than what I paid?" If you're not sure, it may be time to take profits and avoid regret later.

Are we in the Memecoin super flywheel phase? Who knows, but one thing is for sure: Memecoin is not going away. They are fun and have the best chance of interesting results. While we're in a bull market, enjoy the Memecoin playground, but don't take too many risks just to get rich overnight. Time is of the essence in the market, so make sure you don't ruin yourself with Memecoin or leverage.

Invest wisely, be patient, and we will all succeed!