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The Insider Strategies of Meme Coin Traders

06月25日 11:27

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## [TL; DR]
The meme coin market has a market capitalization of over $57 billion.

Token snipping is one of the lucrative strategies meme coin traders can use.

Successful meme coin traders use various market analytic tools such as DEX Screener, BONKbot, Soltradingbot and DEX tools.

## Introduction 
Crypto assets, especially meme coins, are highly volatile digital assets. Therefore, meme coin investors should be cautious when  investing in them to preserve their capital. Also, to navigate the meme coin market and leverage their volatile nature investors should use proper investment strategies. In addition, they should have ample knowledge on memecoin market behaviour. This article discusses several investment strategies which memecoin investors can use.

## A Prospect of Bullish Period: Surge in Trading Volumes 
Many people want to invest in meme coins due to their viral nature which may trigger rallies at opportune moments. The recent surge in prices of several meme coins has aroused the interest of crypto traders to invest in them. Although price volatility may lead to huge losses it may also result in rapid profits.

According to [Galaxy Digital, the total meme coin market capitalization surpassed $57](https://www.galaxy.com/insights/research/the-evolution-of-memes-and-their-place-on-blockchains/ "Galaxy Digital, the total meme coin market capitalization surpassed $57") billion at the end of May. What this means is that the [meme coin market has grown by over 3.5 times within one year](https://www.gate.io/blog_detail/4259/meme-coin-market-gme-gamestop-stock "meme coin market has grown by over 3.5 times within one year"). It is also important to note that seven of the leading meme coins were created within the last 511 days, with two launching within the last 160 days. This astronomical growth of the sector shows the fast-moving nature of memecoins and the potential for crypto investors to profit from them. The following graph shows the growth of seven leading meme coins within the last one year.
![](https://gimg2.gateimg.com/image/article/17192858131.jpeg)
Meme Coin Market Growth – [Galaxy Research](https://images.ctfassets.net/h62aj7eo1csj/4R728jFFG5jNaoo5lW2Jx0/2f473a0bb05ae5025b7e90248dc92ed3/MEME4.PNG?w=983&q=60&fm=avif "Galaxy Research")

As <a href="/zh-tw/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a> denotes, the cited meme coins that include DOGE, SHIB, PEPE, WIF, BONK and BOME gained much within the last 365 days. At the moment, these crypto assets are registering high trading volumes. For example, in March alone the [memecoins had a cumulative trading volume](https://www.gate.io/price/view/meme-token "memecoins had a cumulative trading volume") of $13 billion on exchanges. What is essential to note here is that these meme coins outperformed most blue chips such as  <a href="/zh-tw/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> (SOL) and <a href="/zh-tw/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> (ETH).

## The Critical Role of Meme Coins in the Digital Asset Sector - Mike Novogratz
Several crypto experts have explained the significance of meme coins in the crypto space. For example, Mike Novogratz, a crypto specialist from Galaxy - a digital asset company - contends that meme coins have an essential narrative in the digital sector. Notably, he has described how crypto investors can benefit from investing in them.

Bitget cited Novogratz [as saying](https://www.bitget.com/news/detail/12560604048671 "as saying"), “Meme tokens – whether you are fans of them or not – have become an important segment in the crypto economy. In today's market, they are one of the most powerful players”.

Another crypto commentator, Atlas Crypto Analyzer, said that meme coins can generate much profit to the extent of turning a thousand dollars into a million. Nevertheless, an investor should have the ability to analyze price movements of these digital assets and use different trading strategies depending on the existing market conditions. Posting on [X Atlas said](https://x.com/crptAtlas/status/1801002017751450090 "X Atlas said"), “The meme coin market is very sensitive to global movements in $BTC, so learn to analyze the overall market condition.  During $BTC corrections, unstable meme coins can drop by as much as 80-90% in a few days.”

Explaining the potential of meme coins, he said, “Once you understand the basics of trading, you can start analyzing and buying tokens. A few clicks can make you a $ millionaire; just spend a little time.” Therefore, memecoin trading has the potential to result in 100X return on investment. 
## Strategies for Successful Meme Coin Investment
After making it clear that wise investment in meme coins can lead to 100X return, let’s look at some trading strategies that [can help  memecoin investors to generate such high profits](https://www.gate.io/learn/articles/an-investor-guide-to-memecoin-mania/2331 "can help  memecoin investors to generate such high profits").

**Evaluating Social Media Content**: Atlas has advised his/her followers to focus on a meme coin of choice’s social media footprint to study its market’s sentiment. If a meme coin team does not have an X account that indicates that the project lacks credibility.

**Use of Crypto Analytic Tools**: Second, the meme coin traders should use crypto analytic tools such as DEX Screener and Dex Tools. Such an analysis will help them to identify scams and potential meme coin rug pull projects. It is also important to note that a high number of meme coins on the market have the possibility of crashing. Thus, memecoin traders should be vigilant.

**Token Sniping**: This is the practice of buying meme coins as soon as they have reasonable liquidity. Regarding this [Crpt Atlas said](https://twitter.com/crptAtlas/status/1801002027742265609 "Crpt Atlas said"), “Sniping is buying tokens at the moment liquidity is added to them, which can bring you an easy 100X increase in a short period.” The following screenshot shows how some meme coins benefitted from token snipping.
![](https://gimg2.gateimg.com/image/article/17192859382.jpeg)
Source: [x.com ](https://x.com/KingWilliamDefi/status/1800640685638603122 "x.com ")

This crypto expert has advised meme coin traders [to use well-designed bots](https://www.gate.io/learn/articles/in-depth-analysis-of-the-telegram-bot-sector-part-2-a-comprehensive-overview-of-online-brokerage-on-the-blockchain/1823 "to use well-designed bots") such as BONKbot. In fact, some of the leading trading bots to use when investing in meme coins are SolTradingBot, Unibot as well as different Telegram bots. Such bots assist the traders to evaluate altcoin trends and facilitate token snipping. However, the traders should always be cautious of the trading strategies they adopt as they may lose their invested funds at any time.

In addition, Atlas emphasized the need for traders to focus on established meme coins rather than investing in emerging tokens. They should also realize that meme coins react strongly to market trends, especially changes in <a href="/zh-tw/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin price</a>. As such they should track the broader crypto market sentiment before investing in memecoins.

## King William’s Insights on Monitoring New Pairs and Utilizing Trader Strategies
Another crypto trader, King William, offers insightful suggestions on how to trade meme coins successfully. Apart from monitoring new meme coin pairs using tools like DEXScreener, William has advised novice investors to emulate strategies of renowned meme coin traders. To do that, the traders can use market tools like AlphaTrace. However, one should copy the strategy of a wallet with a win rate of at least 60% and a minimum investment of $500,000. 
![](https://gimg2.gateimg.com/image/article/17192859953.jpeg)
Source: [x.com](https://x.com/KingWilliamDefi/status/1800640907722867138 "x.com")

## Risk Management: How to Avoid Scams and Market Crashes
When trading meme coins and other crypto assets it is essential for crypto traders to use proven scam prevention measures. They can make use of various crypto market tools for verifying the authenticity of new meme coin projects. For example, tools such as RugCheck determine the likelihood that a project can become a rug pull.
## Conclusion
Although investing in meme coins can lead to 100X the investors should use different tools to verify the credibility of the tokens they buy and hold. There are various bots and other market tools that the meme coin traders should use to make informed investment decisions. DEX Screener, BONKbot and Soltradingbot are examples of market tools which the memecoin investors can use.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

[TL_ DR]

Introduction

A Prospect of Bullish Period: Surge in Trading Volumes

The Critical Role of Meme Coins in the Digital Asset Sector - Mike Novogratz

Strategies for Successful Meme Coin Investment

King William’s Insights on Monitoring New Pairs and Utilizing Trader Strategies

Risk Management: How to Avoid Scams and Market Crashes

Conclusion

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The Insider Strategies of Meme Coin Traders

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