How To Invest In Meme Coins

Last Updated April 8th 2022
8 Min Read

A few things happened in quick succession in 2021 and turned the global crypto community's attention to meme coins. First was Reddit's 'Wall Street Bets' fight against Wall Street that gave rise to meme coin hyping campaigns.

Secondly, billionaire investors like Elon Musk and Mark Cuban started endorsing meme currencies. As these coins rallied, with the likes of Shiba Inu appreciating 50,000,000%, they produced several meme coin millionaires like Glauber Contessoto - effectively sending the market into a frenzy.

Now everyone is looking to learn how to invest in meme coins. And search engines are clogged with the 'best meme coin to invest in' queries.

In this post, we will be teaching you how to make a fortune riding the current meme coin explosion. We will also teach you how to buy and sell meme coins - and, even more importantly - how to create meme coins.

Read on.

How To Buy, Create, And Sell Meme Coins

How to invest in meme coins image

Meme coins like Dogecoin are also referred to as joke currencies. Unlike other digital currencies like Bitcoins, they aren't designed to solve real-world problems. They are made available for speculative investment purposes only. Plus, unlike most digital assets whose value is driven by adoption, collaborations, and in-network developments, meme coin prices are fueled by artificial hype - mostly on social media.

This, however, hasn't prevented the likes of Dogecoin from rallying 200000% or the likes of Contessoto from becoming millionaires by simply investing in meme coins.

But to stand a chance of making a similar or a simple fortune with meme coins, you will need either of these two skills. You need to learn how to buy and flip meme coins or create the best meme coin.

Let us analyze both meme coin investment strategies herein below.

How To Buy Meme Coins

When Safemoon launched in March 2021, its value shot up by more than 2000000% in the first two weeks. If you had invested $100 in the crypto asset, you would have grown this investment to $2,000,000 in less than two weeks.

But as you will realize, meme coins - unlike stocks or other cryptocurrencies like Ethereum - aren't as easy to acquire. While the more popular crypto-assets and stocks are listed with virtually all popular crypto exchanges and stock brokerages, respectively, most meme coins are only listed with tier-1 decentralized exchanges months after launch.

We intend to teach you how to learn where to trade promising meme coins in this guide.

Here is a step-by-step guide to investing in meme coins to ensure you don't miss the next 'Safemoon moment.'

Step 1: Start by identifying a good meme coin. This could be a newly launched meme coin or an existing but massively undervalued meme coin.

Step 2: Find the decentralized exchange or DeFi protocol where they are listed and create a trader account here. Some of the most popular trading platforms for trading and swapping meme coins are Pancakeshwap and Uniswap. You could also learn where the meme coin is listed by going through its website and marketing posts on social media, especially Reddit, Twitter, and Discord.

Step 3: Fund this DEX trader account. Some of these are non-custodial and will not process deposits. Instead, they will require you to link your digital wallet with the exchange. Note that the majority don't accept fiat currencies and will only let you buy the meme coin with a specific token- often the ecosystem's native token.

Step 4: Buy the meme coin. The trading platform will instantaneously deposit the meme coin's private keys to the linked digital wallet.

Note, however, that while learning how and where to buy a meme coin is important, the trick to succeeding as a meme coin investor lies in spotting the best meme coin and buying in early. So how do you identify the next meme coin to explode?

Buy Meme coins

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How To Spot The Best Meme Coin

Here are a few things that you may use to vet the legitimacy and sustainability of a meme coin:

  1. Meme coin goal: While a meme coin doesn't need to solve the challenges of the fiat currencies or address inflation, it should bring investors together to a shared goal. Samoyedcoin coin, for instance, seeks to bring together Dogecoin, Sam Bankman-Fried, and # together.
  2. Reputation of the development team: The more solid the reputation of the meme coin developers, the better. It is especially great if they have previously worked on other well-known crypto projects.
  3. Tokenomics: You will do well to only invest in meme coins with clear tokenomics (token distribution). Avoid meme coins whose development team or a few individuals hold a significant portion of the tokens. Importantly, ensure the tokens in the liquidity pool are held in burn addresses (these start with 0x000).
  4. Confirm celebrity endorsements: Cryptocurrencies with the backing of celebrities tend to post incredible price moves. Even verifiable rumors that a celebrity is considering endorsing or mentioning the joke currency, even in passing, is enough to push its value to the moon. This explains why almost every new meme coin project has sent as much as half its token supply to Vitalik Buterin. They are hoping to get a mention that they can use to hype the joke currency.

Don't Miss: Best Meme Coins To Buy

How To Create A Meme Coin

Feel like all the meme coins around are priced in? Do you have what it takes to rally the crypto investment community towards a brand, or can you comfortably assemble a team to achieve this? Then consider creating and hyping your meme coin.

You do not even need to be knowledgeable in cryptography or coding skills. This is how you create a meme coin:

Step 1: Pick a name for your meme coin. Find a popular and exciting brand you can associate your meme coin with. You could choose a popular global trend and use it as a reference for your new meme coin, just as Floki Inu, Squid Game coin, and Monacoin have done in the past.  

Step 2: Design the token website, craft a whitepaper, formulate a roadmap, and create the token. There are multiple automated tools on both Binance Smart Chain and the Ethereum network that you can use to create a digital token. Or simply hire someone to do so from such freelancing platforms as Upwork or Fiver.

Step 3: Get your token listed with Trust Wallet, then create a liquidity pool for it on one of the decentralized exchanges supported on the wallet.

Step 4: Start hyping it on social media. Recruit a marketing team. If possible, secure a celebrity endorsement.

How To Sell A Meme Coin

Most meme coins are fairly short-lived. We, therefore, recommend that you practice profit-taking. They also burst easily, and you should thus be prepared to liquidate your position at first sight of trouble. Use this guide to sell your meme coins for profit taking or investment liquidation.

Step 1: Log in to the crypto marketplace when you buy the meme coin.

Step 2: Open a sell order and set the price (limit orders are only recommended when profit taking). In case you are liquidating a position, sell or swap at the market rate, and where possible, only go for stable coin settlements.

Step 3: Have the stable coins delivered to your crypto wallet.

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What Are The Pros And Cons Of Investing In Meme Coins?

After the crypto market contraction in early 2022, the majority of crypto analysts are confident the meme coin explosion that prevailed throughout 2021 will resume. But why should you consider investing in meme coins today:

✅ Potential for massive gains: 2021 taught us that it is normal for a meme coin to grow its value by a million percent within a few weeks or months. This exposes your limited investment to record-breaking gains.

✅ Portfolio diversification: Meme coins can also be counted upon to help you diversify your portfolio and spread risk.

✅ Short time to investment maturation: It took years before such legacy digital assets as Bitcoin and Ethereum could 100X their introductory prices. On the other hand, it is not impossible for meme coins to grow your investment by 1000%+ in a few hours.

That said, investing in meme coin investments carry its fair share of challenges. Here are the three greatest risks facing your meme coin investment:

❌ Potential scams: The meme coin investing niche has turned into a pitstop for crypto scammers. Multiple exit scams and rug pulls have been orchestrated here, with a few threatening to claim the reputation of individuals like Mark Cuban and brands like Netflix's Squid Game series.  

❌ Cyber threats: Like any other digital currency investment, your meme coin investment is exposed to such cyber threats as the hacking of the joke currency platform or your crypto wallet.

❌ Potential for massive losses: It is not uncommon for meme coin prices to drop to zero, effectively wiping out 100% of your investment.

Buy Meme coins

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Are Meme Coins The Right Investment For You?

Before you look up the 'how to invest in meme coin' guide, understand that these digital assets are massively volatile. They are as risky as they are rewarding and can easily plunge to $0 as fast as they can rise 100X. They, therefore, are a preserve of the highly experienced and risk-tolerant investor.

However, meme coins are right for you if you can properly research the markets and identify the best meme coins to buy - highly promising but undervalued. It is also for you if you can keep tabs on developments in the meme coin industry and learn when to quit a joke currency. And are also for you if you can create a meme coin and hype it to prosperity.

But as is the case with any other investment, more so the digital currency investments, remember to take profits and only invest what you can afford and are willing to lose. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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