8 Things to Know Before Trading Memecoins
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8 Things to Know Before Trading Memecoins
DYOR, DYOR, and again DYOR.
Navigating Web3 tides with focused insightsAuthor: Rekt Fencer, Crypto Researcher
Translation: Felix, PANews
Attracted by the wealth effect, many newcomers have recently flooded into Memecoin trading—but only a small fraction seem to achieve real profits. Crypto researcher Rekt Fencer has compiled eight Memecoin trading tips that might help newcomers avoid some common pitfalls.
Don’t Rotate Projects Too Frequently
In this fast-paced market, moving funds from one token to another can be wise. To profit, you must occasionally play the game of “musical chairs” with your capital.
However, beginners may take it to extremes.
For example, after the sudden emergence and surge of boden, a wave of celebrity-themed coins followed. Some Degens abandoned boden to chase newer celebrity tokens that might appreciate within a single day.
Meanwhile, boden’s market cap grew from $20 million to $500 million in just one month.
Use Sniper Bots
In today’s Memecoin market, you need to outperform 99% of participants to earn a share.
In this game, speed is key. Every second can make the difference between success and failure. This is where sniper bots come into play.
Of course, most public sniper bots may not be the fastest, but they are still far superior to what an average Dege can achieve manually.
Follow Insiders
It's well known that certain hundred-bagger Memecoins (such as BOME and MEW) are often snapped up immediately by insiders upon launch.
Once you identify their wallets, copying their trades could allow you to buy tokens that multiply 10 to 100 times.
Although finding their wallets is challenging—and they often switch wallets periodically—the effort is worthwhile, especially for beginners.
DYOR, DYOR, and Again DYOR
If your goal is substantial returns, conduct deep research on projects through:
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Social media influence
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Telegram activity
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Project team
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Current and potential CEX listings
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Tokenomics
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Marketing campaigns
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Narrative
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Trading volume
Spot New Narratives Early
To maximize profits, you need to spot emerging narratives early.
Recently, cat-themed coins like MEW started gaining popularity. By closely monitoring trends, you could have bought into cat coins early and easily captured a hundred-bagger. For example:
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SC: $400K market cap ➜ $387M market cap | 1,204x gain in 4 days
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nub: $6.6M market cap ➜ $196M market cap | 28x gain in 6 days
How to spot new narratives early?
Monitor top tokens by trading volume on DEX Screener and track the moves of experienced Degens.
Invest Small Amounts
Only allocate a small portion of your portfolio—or an amount you can afford to lose—to the Memecoin sector.
This approach simplifies decision-making. Treat Memecoin trading like gambling—almost no one bets everything on a single project.
Stick to Your Strategy
Don’t let market volatility sway you. Stick to your original plan to avoid turning profits into losses.
There are several strategies to lock in profits:
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Take 50% off the table at 2x.
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If you’ve done your research, keep holding for 10–100x gains. Statistically, reliable research pays off over time.
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Develop a strategy that fits your style. Define it, test it, then execute it rigorously.
Hold Winners, Cut Losers
It’s easy to fall into the trap of selling winning positions while doubling down on losing ones.
If your token has doubled, don’t rush to cash out entirely. Give it room to run further.
When a token consistently underperforms, it’s wiser to cut it—even at a loss—and shift focus to leading tokens.
Below is the author’s watchlist of Memecoins:
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boden: $479M market cap | SOL ecosystem
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BALLZ: $30.1M market cap | SOL ecosystem
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tremp: $86.5M market cap | SOL ecosystem
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SC: $128.8M market cap | SOL ecosystem
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nub: $44.7M market cap | SOL ecosystem
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mfer: $79.1M market cap | BASE ecosystem
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MOG: $201M market cap | ETH ecosystem
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ANDY: $78M market cap | ETH ecosystem
Note: Listing these tokens does not mean you should invest in all of them immediately. First, spend time researching each project, develop a strategy, and then make informed investment decisions.
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