Article reprinted from: Felix

Author: Rekt Fencer, Crypto Researcher

Compiled by: Felix, PANews

Attracted by the wealth effect, a large number of newcomers have recently entered Memecoin trading, but it seems that only one in ten can actually make a profit. Crypto researcher Rekt Fencer has compiled 8 Memecoin trading experiences, which may help newcomers avoid some detours.

PANews Note: This article is intended to provide market information and does not constitute investment advice, DYOR.

Don't rotate projects too frequently

In this fast-paced market, it is wise to move funds from one token to another. In order to make a profit, you have to play the game of "musical chairs" with your funds from time to time.

However, newbies may go to extremes.

For example, after the Boden coin suddenly appeared and soared, the craze for celebrity coins followed. Some Degens gave up paying attention to Boden and paid attention to newer celebrity coins, which might appreciate in value within a day.

But at the same time, Boden's market value grew from $20 million to $500 million in one month.

Use Sniper Robot

In the current Memecoin, you need to perform better than 99% of the people to get a piece of the pie.

In the game, speed is the key to success. Every second can make the difference between success and failure. This is where the sniper robot comes in handy.

Of course, most public sniper robots may not be the fastest, but they are fast enough to leave ordinary Degens far behind.

Follow Insiders

It is well known that some 100x Memecoins such as BOME and MEW are quickly bought by insiders as soon as they are launched.

Once you find their wallet, you can copy their trades and potentially buy 10-100 times more tokens.

Although it can be tricky to find their wallets, and they tend to change wallets from time to time, I believe that all the efforts are worth it, especially for beginners.

DYOR, DYOR, DYOR

If your goal is to achieve huge gains, then be sure to delve deeper into the project by:

  • Social Media Influence

  • Telegram Events

  • project team

  • Current and potential CEX listings

  • Token Economics

  • Marketing activities

  • Narrative

  • Trading volume

Discover new narratives early

To maximize profits, narratives need to be discovered early.

Recently, cat coins like MEW have become popular. By paying close attention to the trend, you can buy cat coins early and easily buy a 100x coin. 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 an eye on the top tokens by volume on DEX Screener and track the movements of experienced Degens.

Small investment

Only allocate a small portion of your portfolio, or what you can afford to lose, to the Memecoin track.

This approach simplifies the decision-making process. Memecoin trading can be seen as gambling. Few people will bet everything on a single project.

Stick to your strategy

Don't be affected by market fluctuations. Always stick to your original plan to avoid turning profit into loss.

There are many strategies to lock in profits:

  • Cash out 50% when the profit is 2 times.

  • If you have done your homework, hold on and wait for the 10-100x gains. Statistically speaking, if your research is sound, you will profit over time.

  • Develop a strategy that suits your style. Create it, test it, and then execute it.

Stick to profitable coins and abandon loss-making coins

It’s easy to fall into the trap of giving up on your winning coins and doubling down on your losing coins.

If your token has doubled, don’t rush to cash it all out. Give it a chance to rise further.

When a coin continues to underperform, it is wiser to let it go, even at a loss, and shift your attention to the leading coins.

The following is a list of Memecoins that the author is following:

  • boden: $479 million market value | SOL ecosystem

  • BALLZ: $30.1 million market value | SOL ecosystem

  • Tremp: $86.5 million market value | SOL ecosystem

  • SC: Market value of $128.8 million | SOL ecosystem

  • nub: Market value of $44.7 million | SOL ecosystem

  • mfer: $79.1 million market value | BASE ecosystem

  • MOG: Market value of US$201 million | ETH ecosystem

  • ANDY: $78 million market value | ETH ecosystem

Note: Just because these tokens are listed, it does not mean that you should invest in all of them right away. Take the time to research each project first, develop a strategy, and then make your investment choices based on that.

Related reading: Memecoin explodes on Solana, how to “scientifically treasure hunt”?