Meme Coin Trading: Eight Tips for Maximizing Profits
Meme coin trading has brought substantial profits to many individuals recently. However, in order to truly earn significant profits, one must have their own trading strategy. This article is sourced from the research director of Rekt Fencer on the X platform, and it is compiled, organized, and written by PANews.
Background:
Andrew Kang: Bullish on altcoins, especially meme coins, with Solana being the biggest winner.
Table of Contents:
1. Avoid excessive project rotation
2. Use sniper bots
3. Pay attention to insiders
4. DYOR, DYOR, and DYOR
5. Discover new narratives early
6. Invest small amounts
7. Stick to your strategy
8. Stick with profitable coins and abandon losing coins
A large number of newcomers have entered the meme coin trading market recently, attracted by the wealth effect. However, it seems that only a small fraction of them are truly able to profit. Crypto researcher Rekt Fencer has compiled eight tips for meme coin trading, which may help newcomers avoid some pitfalls.
In this fast-paced market, it is wise to move funds from one token to another. In order to profit, one must occasionally engage in the “musical chairs” game with their funds.
However, newcomers may go to extremes. For example, after the sudden rise of Boden coin, the frenzy around meme coins followed. Some degens stopped paying attention to Boden and instead focused on newer meme coins that could appreciate within a day.
But at the same time, Boden’s market cap grew from $20 million to $500 million in a month.
In the current meme coin market, you need to outperform 99% of people in order to get a piece of the pie.
In the game, speed is the key to victory. Every second can determine success or failure. This is where sniper bots shine.
Of course, most publicly available sniper bots may not be the fastest, but they are still faster than ordinary degens.
It is well known that some meme coins, such as BOME and MEW, are quickly purchased by insiders as soon as they are listed. Once their wallets are found, it is possible to follow their trades and potentially buy tokens that are 10-100 times more valuable.
Although it is a tricky task to find their wallets, and they often change wallets from time to time, all of these efforts are believed to be worthwhile, especially for newcomers.
If your goal is to achieve huge returns, it is essential to conduct in-depth research on projects through the following means:
– Social media influence
– Telegram (TG) activities
– Project teams
– Current and potential listings on centralized exchanges (CEX)
– Token economics
– Marketing activities
– Narratives
– Trading volume
In order to maximize profits, it is necessary to discover narratives early.
Recently, meme coins like MEW have become popular. By closely following trends, one can buy meme coins early and easily acquire a meme coin that is 100 times more valuable. For example:
– SC: $400,000 market cap ➜ $387 million market cap | 1,204x growth in 4 days
– NUB: $6.6 million market cap ➜ $196 million market cap | 28x growth in 6 days
How to discover new narratives early? Keep a close eye on tokens ranked high in trading volume on DEX Screeners and follow the moves of experienced degens.
Allocate only a small portion of your investment portfolio or an amount you can afford to lose to meme coin races.
This approach simplifies the decision-making process. Meme coin trading can be seen as gambling, and almost no one would bet all their stakes on one project.
Do not be influenced by market fluctuations. Always stick to the initial 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, reliable research will eventually be profitable over time.
Develop a strategy that suits your own style. Plan, test, and then execute rigorously.
It is easy for people to fall into the trap of abandoning profitable coins and doubling down on losing coins. If your token has doubled in value, do not rush to cash out everything. Give it a chance to further rise.
When a token consistently underperforms, it is wiser to let go, even if it means taking a loss. And shift your focus to leading tokens.
Here is a list of meme coins the author is following:
– Boden: $479 million market cap | SOL ecosystem
– BALLZ: $30.1 million market cap | SOL ecosystem
– Tremp: $86.5 million market cap | SOL ecosystem
– SC: $128.8 million market cap | SOL ecosystem
– NUB: $44.7 million market cap | SOL ecosystem
– MFER: $79.1 million market cap | BASE ecosystem
– MOG: $201 million market cap | ETH ecosystem
– ANDY: $78 million market cap | ETH ecosystem
Note: Listing these tokens does not mean that one should immediately invest in all of them. Take the time to research each project, develop a strategy, and then make investment choices based on that.
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