Partnered With:

13 tips for trading meme coins.

Leo

Read this article in 9 Minutes

Embrace memes, but also be cautious of memes.

Original author: Zeneca, a cryptocurrency researcher.

Translation:

Original translation: Leo, BlockBeats

Recently in the cryptocurrency industry, besides memes, the only thing people seem to be interested in are NFTs. Those who play with NFTs buy PEPE by selling monkeys, those who mine cryptocurrencies use Gas, and those who trade cryptocurrencies sell mainstream coins to buy PEPE. It seems that the meme craze will not die down anytime soon. BlockBeats has found an article written by cryptocurrency researcher Zeneca about trading memes, and the translation is as follows:

Meme coin trading experience

At the beginning of 2021, I spent nearly two months trading memes. Here are some suggestions from me, a trader who has some understanding of memes.

Trading memes is actually withdrawing liquidity

This is the attitude you should have. "Meme" actually exists in its entirety, so the buyers in front of you can sell it to you. If you buy it, you hope to sell it to others at a higher price. This is a Ponzi, but it's fun.

Even if you participate in "presale", 99% of the time, you will provide withdrawal liquidity to anyone who will provide you with wealth. Yes, 1% of the time you may make money (even a lot). When you buy, you still have the opportunity to withdraw liquidity.

Your chat friends are not real friends

I can't even count how many times I've participated in degen chats. Everyone is having a great time, buying memes and promoting them heavily during the price surge, doubling the joy. However, in reality, when the price reaches a certain level, every holder is waiting for your buying opportunity.

"This hand" is not friendly to you

If you haven't participated in meme coin issuance, you are likely to be deceived by those who have. This does not mean that you still cannot make money (by taking advantage of those who come after you), but the fact is that it is a meme world full of "cutting".

On meme, you will never find happiness

You always hope to hold onto your assets for a longer period of time, or sell earlier, or buy more. However, such actions must be done in moderation.

meme 推文=evil

meme posts = evil

When a KOL publishes a tweet about memes, every meme holder will be incentivized to spread it like crazy, causing others to buy memes and drive up the price. They can then sell their memes for profit. Therefore, buying memes after a hype must be done with caution.

BlockBeats Note: For example, some memes that are promoted by KOLs will eventually return to zero, and following the trend to buy is not advisable behavior.

Be cautious of FOMO emotions - "a highly addictive drug"

It seems that everyone holds memes, but in reality, this is a false world presented to you. You should know that everything under the social media algorithm is designed to make it look more real. This week, I called about 50 people to ask if they hold memes, and the results showed that almost none of them have bought any.

Each type of meme is likely to be reduced to zero

Most memes will eventually go to zero, and those that can achieve the level of DOGE and SHIB are "one in a million". Trading memes is actually like buying lottery tickets. Don't spend "significant" money on them. If necessary, you can buy memes with the minimum amount of loss you can afford, and it doesn't matter if they eventually go to zero, similar to 10U/100U War God.

Don't listen to anyone's analysis

Remember that you are withdrawing liquidity. If someone tells you that the market value of a certain meme is guaranteed, or that it is about to stop falling and rise, or that it is about to be listed on a well-known DEX or CEX, or that it is being "strengthened", ignore these words.

Most people should not follow the trend in trading

This applies not only to memes, but also to BTC, ETH, NFTs, stocks, and more. Most people lack the professional knowledge and characteristics required to become successful traders, so they should focus on buying and holding assets they believe in for the long term.

You are always afraid of withdrawing liquidity

By finding someone else to take over your meme, you can make money. This is the epitome of the "dumb theory". Don't be afraid to sell. DOGE is the most successful meme in history, and its ATH has dropped by 90%. Think more.

BlockBeats Note: The theory of "greater fool" refers to the phenomenon that people are willing to pay a high price for something regardless of its true value, because they expect that there will always be a more foolish person who will buy it from them at an even higher price.

影响者不是你的朋友

Influencers are not your friends

Everyone has influence. People tell you "God, don't believe that meme" because it was deceived by influential people. You can only believe in this meme because no one is shouting to sell. At this point, everyone is a KOL.

没人是万事通

translates to

No one is an expert in everything

Don't listen to anyone who tells you to "be at the top or at the bottom". Don't trust anyone who tells you that "something is about to happen". Don't believe anyone who says "this is the next hundred-fold meme".

Do not hate meme traders

Because of seeking pleasure, or for making money, or for losing money, hating others is not rational. People do what they want to do. If someone wins a big prize in the lottery, why should you be angry? This is a free market. Please stay rational!

Welcome to join the official community of BlockBeats in the legal industry.

Telegram subscription group: https://t.me/theblockbeats

Telegram communication group: https://t.me/theblockbeatsApp

Twitter official account: https://twitter.com/BlockBeatsAsia