In the crypto market, many newcomers are eager to buy various MemeCoins, but most of the time, purchasing MemeCoin is equivalent to gambling. This is because the prices of many MemeCoins can skyrocket within hours, but they can also plummet by over 90% or even go to zero or exit scam within the same timeframe.

Apart from speculating with “information asymmetry,” you can also mitigate this risk to some extent by employing basic strategies. Next, let’s continue to briefly outline these strategies.

1. Diversification

I’ve seen some newcomers get brainwashed by others in the community to buy so-called “get-rich-quick” coins right after joining the crypto scene. They build their dreams of overnight wealth on others’ recommendations, often gambling away borrowed money on these MemeCoins. As expected, they end up losing their entire investment, falling victim to scams.

I’ve mentioned many times before that following strangers into buying and selling, especially in this manner, isn’t advisable in my understanding. Those who engage in such actions may be far from making sustainable long-term profits. However, I don’t judge the rightness or wrongness of these choices because everyone has their own decisions to make.

Regardless of how you speculate in MemeCoins, diversification is crucial. It’s best not to heavily invest or go all-in on a single MemeCoin. Instead, it’s wise to spread your investments across different coins. For example, consider allocating a maximum of 20% of your funds to each MemeCoin you believe in.

2. Do Your Own Research

If you’re hoping to effortlessly achieve returns several times your initial investment, it’s best to dismiss that idea entirely. If such thoughts arise, it’s better to extinguish them before you lose your capital. Additionally, don’t believe that paying “tuition fees” to follow a mentor will guarantee easy outsized returns. If these so-called mentors were truly capable, they wouldn’t be focused on profiting from others’ “tuition.”

Whether it’s short-term speculation or long-term investment, your wallet is yours alone. If you lose money, others won’t be as affected (if at all unhappy)—you’ll bear that burden alone. Therefore, always conduct your own research, as emphasized by the acronym DYOR (Do Your Own Research), commonly seen in discussions.

As we’ve shared before, newcomers to investing should remember two fundamental principles: protect your capital and avoid what you don’t understand.

Moreover, if you truly believe in a project or coin, there’s no need to succumb to FOMO (Fear Of Missing Out). Opportunities in the crypto space arise frequently, and you may have several chances (uses of your capital) to participate.

In conclusion, avoid rushing into purchasing newly launched projects or coins. Allow time for due diligence; during this period, you can conduct research on projects you find promising.

3. Always Prioritize Safety

Actually, this is also a necessary part of DYOR (Do Your Own Research), researching from a certain perspective to improve the reliability of investments. However, I still want to single it out to highlight the importance of enhancing security awareness.

Security issues can be divided into two aspects:

Firstly, you need to enhance your own security awareness. For example, in our article a few days ago (June 3), we also discussed these aspects. Interested friends can review our past articles.

Secondly, you need to learn to use some basic tools to assess the security of corresponding projects/tokens.

Let’s take Solana as an example here and continue to outline several corresponding on-chain tools for everyone:

The first tool is DEX Screener.

DEX Screener is a multi-chain aggregator that can be used to track and analyze real-time data from multiple decentralized exchanges (DEXes). Additionally, it allows us to view price charts (candlestick charts) of any token, monitor newly listed trading pairs, and track specific token holder data, among other features. As shown in the figure below.

The second tool is Birdeye.

Birdeye is also a multi-chain aggregator, similar in functionality to DEX Screener. In addition to viewing real-time transactions, candlestick charts, and token-holding information across various chains, it is also a useful tool for finding Gems (undervalued tokens).

As shown in the figure below.

The third tool is SolanaFM.

SolanaFM is the first indexer on the Solana chain, and it’s also a user-friendly browser. It allows easy access to comprehensive Solana historical data, including probability information for any token, balance/history of transactions for any wallet, and more.

As shown in the figure below.

The 4th tool is Photon

Photon is touted as the fastest trading platform on Solana, enabling quick buying and selling of any token, executing limit orders, and performing necessary security checks on tokens. Unlike traditional Telegram bots, Photon stands out with a cleaner and more user-friendly UI, potentially offering a better experience for newcomers. It allows users to monitor the market and execute trades simultaneously, with updated candlestick chart speeds that appear faster than aggregators like Dexscreener. As shown in the figure below.

The 5th tool is Cielo

Cielo is an aggregator of on-chain activity that can be used to track the wallet addresses of your favorite traders and track and monitor their transactions in real-time (with support for setting alerts) as they occur. The tool is capable of tracking up to 250 wallets and provides insights into Smart Money and Alpha Wallet. As shown in the figure below.

The sixth tool is TweetScout.

TweetScout is a top free tool for identifying projects on Twitter. It categorizes and ranks various projects, showing whether funds are following those projects. You can use this tool directly to check the activity of any project’s official Twitter account, including social scores, popular followers, and affiliated accounts. As shown in the figure below.

The seventh tool is Rugcheck.

Rugcheck is an anti-RUG tool designed to help you check for risk issues in smart contracts on the Solana chain, specifically identifying potential problems where project teams might exit (commonly known as “rug pulls”). As shown in the figure below.

The 8th tool is solsniffer

The eighth tool is solsniffer.

solsniffer is a token sniffer tool on Solana. It allows users to detect security risks of Solana tokens based on multiple security metrics, including minting risks, freezing risks, liquidity checks, and more. As shown in the figure below.

The 9th tool is Meme Hunter

Meme Coin Hunter is a wallet tool launched by OKX that monitors information across the Solana chain, providing real-time updates on Smart Money transactions exchanging meme coins, thereby offering users insights. As shown in the figure below.

Tool 10 is CoinStats

CoinStats can aggregate trades from nearly all exchanges and wallets. You can also input any Solana wallet address to monitor its latest asset status, historical transaction records, and average purchase prices of held tokens. As shown in the figure below.

The above 10 tools are selected specifically for Solana chain (though some also support other chains). For those interested in more commonly used on-chain tools, you can message “tools” via our public account to receive the complete list.

4. Customize A Strategy That Suits Your Needs

The above aspects are mostly about conceptual development. Ultimately, we need to focus on specific execution (mainly buying and selling). How should we proceed?

Step one, capture value.

That is, you need to be earlier and more accurate than others in finding potential opportunities. Currently, there are several ways to search for such opportunities:

• Utilize information shared in various groups. There are numerous groups in this field, both paid and free, some specifically focused on MemeCoins, where people frequently share supposed “golden opportunities.”

• Use DEX aggregator tools. Tools like dexscreener, DEXTools, AVE, birdeye, gmgn, etc., fall into this category and can provide necessary insights into the current MemeCoin market.

• Leverage social platforms like Twitter. If you follow major crypto influencers, accounts that frequently discuss crypto topics, and even those that provide alpha information (with followers generally in the thousands), the rest depends on your personal time and effort. Most new opportunities in this circle are scattered across Twitter; it’s just not always easy to perceive and discover them in advance.

Of course, there are also specialized tools currently available to aggregate information related to MemeCoins, which can be used for reference. As shown in the figure below.

Step Two, Create A Monitoring Checklist.

In the first step, any information you gather is essentially just one perspective among many. Always treat others’ information as a reference. If you act solely based on what others say without your own subjective judgment and research, you might be heading towards losses. Moreover, information isn’t something you glance at and forget. Most people can’t remember everything they see, right? So, you should record and consolidate key information you come across or believe could be helpful. Here’s a simple example:

Let’s say you’re interested in MemeCoins themed around small animals like WIF, and you believe the narrative around small animal MemeCoins will continue. You can list out MemeCoins you see and think have potential, then closely monitor their developments. Additionally, use tools like dexscreener mentioned earlier to continually capture new information on related coins and refine your monitoring checklist.

Step Three, Customize Trading Plan.

For different channels, MemeCoins may employ different trading strategies. For established coins like WIF and PEPE listed on major centralized exchanges (CEX) such as Binance and OKX, trading directly through these platforms with limit orders is convenient.

For MemeCoins not yet listed on CEX, trading directly on top decentralized exchanges (DEX) of their respective chains is suitable, such as Uniswap, Raydium, PancakeSwap, Trader Joe, etc.

For newly listed MemeCoins on DEX or those about to add liquidity pools, using trading bots for sniper trading (front-running) might be necessary. Different popular bots exist for various chains, so choose according to your needs.

As shown in the figure below.

Disclaimer：

1. This article is reprinted from [话李话外]. All copyrights belong to the original author [话李话外]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.