In all these Cryptocurrency have risen to an all time high price. Investors are looking at it as a game changer. In the Oil Profit trading App, where people are going crazy over Investing in Cryptocurrency. A new kind of Crypto is making its way into the mainstream market and that is Meme coin. You heard it right, “memes” have entered into the Crypto space.
Almost 5,000 meme coins are already here and people are investing in them. Doge coin is one of the first meme coins and has a good potential in the crypto market. But are they worth the hype? Should we invest in them? There are multiple questions regarding meme coins. Here we are with the guide to invest in meme coin. We too have answers for all your queries related to meme coins.
How is meme coin different from other crypto coins ?
Before getting into the three things that you should keep in your mind before investing in meme coin. We should understand the basic difference between the meme coin and other cryptocurrencies. Instead of being a digital coin meme coins are very different from cryptocurrencies like BTC or ETH. Crypto like Bitcoins serves a real purpose in this world. They are solving a problem globally. On the other hand meme coins have no such base and they are popular only because of heavy marketing.
You cannot forget how the price of Doge coin started increasing after the tweet of Elon Musk. Retailers started promoting it online and it gained a user base. But, you cannot be assured of making an investment in meme coins. Even if you want, please consider these three things before doing so.
Three things to keep in mind before investing in meme coin
There are still a lot of risks involved in investing in a meme coin. If you are a risk taker and have already decided to do so. There are some important things to take care of to reduce the chance of scams and losses. So, let’s get started with those.
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How to spot fake meme coins
There are 5,000 meme coins available in which all of them are not authentic. To protect yourself from frauds, your first step should be identifying the original one. It totally depends on your research skills. Before investing in a meme coin, collect information about the team. If you can trust their past records only then you can invest in it. It means that the designer or developer does not have any history of scams. The coin could probably be considered as authentic.
Meme coins are based on the popular memes like Shiba inu or Doge coin and not in control of any authority. After the success of the most popular Doge coin, the market is bombarded with thousands of meme coins. So, do proper research about the team, authority and performance of the coin.
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How to make your meme coin investment
Making an investment in meme coins is a bit risky. Sometimes most of the coins are held by a single entity. They are mostly from the core teams. In this scenario, the chances of losing your money is very high. When a member of the core team holds the most coins. They do heavy marketing to bring investors on board. After the prices go high, they sell all their coins disrupting the market. This is termed as a rug pull scam.
The recent example of this scam is “Snow token” and “Squid token”. When the core member sells their coin, liquidity could not be maintained. This reduces the value of the coin and users lose their money.
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How to do meme coin trading
When you have found some reliable meme coins to invest in. Your next step involves making a strategy to ensure a good profit. Always remember, meme coins are highly volatile and their price keeps fluctuating. Never invest or start your trading with one meme coin. Choose two or three meme coins to invest and trade. Functioning of the meme coin depends on the people from the community.
So, always keep a tab about the opinions and discussions around the meme coins you invested in. Never fall for short term money making schemes. Always think about a long term plan to trade in meme coins. These are some of the initial steps to protect yourself from scams and losses while investing in meme coins.