In the exciting world of meme-based cryptocurrencies, Pepe Coin (PEPE) has taken the spotlight with a staggering 1000% growth in just seven days. As more investors turn their attention to this thrilling yet unpredictable market, crypto analyst and DeFi addict Miles Deutscher, shares his full guide on how to navigate the meme coin universe and potentially reap massive returns.
The Basics of Meme Coin Investing
“Investing in meme coins is a gamble that relies heavily on psychological drivers rather than fundamental factors.”
It’s crucial to approach meme coin investing with the mindset of a gambler, understanding that there are no guarantees for success. However, as Deutscher explains, there are ways to tip the odds in your favor.
The meme coin market, fueled more by psychology than fundamentals, is elegantly described by the “Castle-in-the-Air Theory.” This theory is popularized by renowned economist, John Maynard Keynes. Meme coin investing is like building ephemeral castles in the air and dreaming of future price surges rather than fixating on intrinsic values.
How to Find and Research Strong Meme Coins:
To find promising meme coins, investors should follow a five-step plan:
- Monitor the top gainers to identify trending meme coins with tools like the DEX tools App.
- Verify the token’s strong community and culture, as these aspects are crucial for meme coin success with tools like LunarCrush.
- Research the fundamentals, such as the team, tokenomics, and potential risks.
- Decide whether to follow the leader or play the rotation game by investing in smaller niche coins.
- Follow the smart money by tracking successful meme coin traders and their investments with tools like Token Sniffer & Bubblemaps.
The Best Meme Coin Buying Strategy
Remember these while selecting the best meme coin
- Treat it like a casino, only investing what you’re comfortable losing.
- Use a separate on-chain wallet for meme coin investments, keeping them separate from other investments.
- Utilize technical analysis to help guide entry points, either by waiting for significant corrections, using a dollar-cost averaging strategy, or starting with a small initial position to hedge against FOMO.
Also Read: Memecoin Season: Here’s How You Can Become Meme Coin Millionaires – Coinpedia Fintech News
How to Know When to Take Profits?
Profiting from meme coins can be life-changing, but it’s essential to know when to cash out. Deutscher recommends several strategies to help investors lock in gains:
- Take out the initial investment after a 2x return, ensuring profits on the trade.
- Ladder out a predetermined percentage with every additional 2x gain.
- Keep an eye on indicators that signal a potential top, such as trading volume flipping market cap, lower highs on a high time frame, decreasing or slowing holder growth, large whales selling, or funding rates shifting from negative to positive.
While meme coin investing is undoubtedly a gamble, Miles Deutscher’s guide provides valuable insights and strategies for navigating this volatile market. By understanding the basics, researching strong meme coins, employing smart buying strategies, and knowing when to take profits, investors can potentially tip the odds in their favor and enjoy the exhilarating ride that meme coins have to offer.
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