Miles Deutscher shares ultimate guide to investing in meme coins
In the exciting world of meme-based cryptocurrencies, Pepe Coin (PEPE) has grabbed the spotlight with a staggering 1000% growth in just seven days. As more investors turn their attention to this exciting but unpredictable market, cryptoanalyst and DeFi addict Miles Deutscher shares his full guide on how to navigate the meme coin universe and potentially reap massive returns.
Basics of Meme Coin Investing
“Investing in meme coins is a game that relies heavily on psychological drivers rather than fundamentals.”
It is crucial to approach meme coin investing with the mindset of a gambler, understanding that there are no guarantees of success. As Deutscher explains, however, there are ways to tip the odds in your favor.
Related: PEPE Takes the Stage: Memecoin Frenzy Rises as Social Relevance and Speculation Ignite – Coinpedia Fintech News
The meme coin market, driven more by psychology than fundamentals, is elegantly described by the “Castle-in-the-Air theory.” This theory is popularized by the renowned economist John Maynard Keynes. Meme coin investing is like building ephemeral castles in the air and dreaming of future price increases instead of fixating on intrinsic values.
How to find and research strong meme coins:
To find promising meme coins, investors should follow a five-step plan:
- Monitor the top winners to identify trending meme coins with tools like the DEX tools app.
- Verify your token’s strong community and culture, as these aspects are critical to meme coin success with tools like LunarCrush.
- Examine the fundamentals such as the team, tokenomics and potential risks.
- Decide if you want to follow the leader or play the rotation game by investing in smaller niche coins.
- Follow the smart money by tracking successful meme coin traders and their investments with tools like Token Sniffer & Bubblemaps.
The best strategy for buying memcoins
Keep these in mind while choosing the best meme coin
- Treat it like a casino, only invest what you are comfortable losing.
- Use a separate on-chain wallet for meme coin investments, keep them separate from other investments.
- Use technical analysis to guide entry points, either by waiting for significant corrections, using a dollar cost averaging strategy, or by starting with a small initial position to hedge against FOMO.
Also Read: Memecoin Season: How To Become Meme Coin Millionaires – Coinpedia Fintech News
How to know when to take profit?
Earning from meme coins can be life-changing, but it’s important to know when to cash out. Deutscher recommends several strategies to help investors lock in gains:
- Withdraw the first investment after a 2x return and make a profit on the trade.
- Step out a predetermined percentage with each additional 2x win.
- Keep an eye out for indicators that signal a potential top, such as trading volume reversing market cap, lower highs on a high time frame, reducing or slowing owner growth, selling large whales, or funding rates shifting from negative to positive.
While investing in meme coins is undoubtedly a gamble, Miles Deutscher’s guide provides valuable insight and strategies for navigating this volatile market. By understanding the basics, researching strong meme coins, using smart buying strategies and knowing when to take profits, investors can potentially tip the odds in their favor and enjoy the thrill ride that meme coins have to offer.
