Cracking The Code: How to Benefit From Memecoins😹

Always wanted to benefit from memecoins? Here's the code to printing on memes💬

Memecoins have emerged as whimsical yet lucrative digital assets capable of printing overnight millionaires.

Every once in a while, a few memecoins rise to undisputed fame, achieving the coveted billion-dollar market cap, and along the way, making a great fortune for their holders.

Despite significant criticism, memecoins are here to stay. No other digital asset class attracts the attention of degen traders like memecoins.

Let’s explore what the fuss behind memecoins is all about.👇

What Are Memecoins?

Memecoins are a subset of cryptocurrencies that often derive their value from internet culture, memes, and community engagement. 

Unlike traditional digital assets that provide technology solutions for various problems, memecoins are purely based on meme-inspired themes that attract thousands of enthusiasts. Memecoins usually try to appeal to a subset of the community that relates to the theme, gaining their popularity through social media and popular influencers.

While trading memecoins can be lucrative, memecoins are highly volatile. Many traders have made huge losses trading memecoins. For this reason, memecoins are mostly traded by degens; a subset of traders with unrealistic profit expectations and a high-risk appetite. 

Despite their volatility, there are stories of memecoins that have defied all odds to register outstanding performances across all metrics. Let’s explore some of these.

Best Performing Memecoins In 2023

2023 was a good year for memecoins by all standards. Amidst a prolonged crypto winter, here are some memecoins that exceeded all expectations:

1. $PEPE

2. $BONK

3. Dogwifhat($WIF)

4. $GROK

5. $LADYS

6. $BONE

7. WallStreetMemes($WSM)

8. Dogelon Mars ($ELON)

How to Value And Trade Memecoins

As we mentioned before, most meme coins are shitcoins in that they have no utility value beyond the hype. But over the years, memecoins have transitioned from a degens-only play tool to important instruments of value for mainstream traders and institutions. 

By the time a memecoin gets listed on a tier 1 exchange like Binance, the memecoin has some inherent value. So how do you value something that doesn’t have any well-defined utility?

Well, there’s no conclusive answer to that, and no valuation is anything close to accurate. However, some pointers you should look out for include:

• Community engagement

• Social media trends

• Market liquidity

• Development roadmap

• Exchange listings

• Utility, if any

While some memecoins may satisfy most pointers in your criteria, there is no guarantee of their success. 

If you decide to trade memecoins, a few things you must keep in mind are:

1. Follow The Hype

There’s a popular saying within the degen memecoin community;

“Follow the hype, don’t fall for the hype.”

Ultimately, all memecoins are based on hype. Memecoins usually occur within certain narratives referred to as “meta.” For example, there was a period when popular Elon Musk tweets were turned into memecoins, giving rise to memecoins like $GROK. 

The most profitable traders are the ones who can identify such trends early enough.

2. Never Get Greedy

Because memecoins are based on hype, the moment the hype dies down, prices plummet. Most memecoins don’t make it past the first six hours. Always avoid unrealistic expectations, secure your initial investment, and take some profit with it.

3. Don’t Marry Your Coins

However much a memecoin resonates with you or your experiences, remember that others may not feel the same way about it. Make sure you don’t put all your faith in a memecoin as it can crush any time.

4. DYOR

Since degen traders have a high-risk tolerance, most of them don’t conduct basic research. Rug pulls are most common with memecoins. Always use the right tools to verify important parameters such as contract renouncement, liquidity locking, taxes, sellability, etc.

Apart from helping you make huge profits, due diligence can help you avoid scams like rug pulls.

How to Find Memecoins

Every day thousands of new memecoins are created. Finding high-potential memecoins early presents a huge challenge. 

Tips:

• Look for high-potential presales with great teams behind them.

• Join crypto communities in Telegram and Discord.

• Use tools like Dexscreener and Dexview to filter out memecoins that meet certain parameters.

• Track the wallet activity of successful meme traders.

• Leverage AI bots like ProphetBots or AimBot.

In Conclusion

Trading highly-volatile memecoins can be lucrative but dangerous at the same time. Take time to observe trends in the market before venturing into this domain. With the right tools and mindset, you can develop the skills you need to be profitable in the market.

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