The Ultimate Guide to Meme Coins: Understanding and Profiting
Were you aware that there are cryptocurrencies based on memes? It sounds ridiculous, right? Even so, the meme coin crypto is genuine and has a strong community.
Let's explore the infinite world of meme coins in crypto, discovering together what they are and how they work and seeing what the top crypto meme coins in the market are.
What is a Crypto Meme Coin
The meme coin crypto is a cryptocurrency based on memes and online jokes. The difference between them and the other cryptocurrencies is that they are not created based on some innovative technology but on pop culture.
The History of Meme Coins
The adventure of the crypto coin meme started in 2013 with the creation of Dogecoin by Billy Markus and Jackson Palmer, and this was just the beginning of the cryptocurrency meme coins.
After the Dogecoin's success, numerous other meme coins were created, giving us an extensive meme coin list, such as the Shiba Inu, or with its second name, the Dogecoin killer. The Baby DogeCoin or the Dogelon Mars is a meme coin that refers to Elon Musk.
How Do Crypto Meme Coins Work
Crypto meme coins work the same way as traditional cryptocurrencies. They operate on blockchain technology.
Their value comes from their popularity rather than traditional financial metrics. Celebrity mentions on social media can lead to rapid increases or decreases in value. Tweets from figures like Elon Musk have already significantly impacted Dogecoin's price.
How Risky Are Meme Coins
The Meme coins are highly volatile. Their prices can skyrocket or go down quickly or be driven by social media trends and tweets rather than underlying economic factors, making them the perfect investment for investors looking for quick profits based on hype and trend rather than long-term value or utility.
The difference between meme coins and ordinary cryptocurrencies like Ethereum or Bitcoin is the wide range of applications; meme coins have a limited utility beyond being a medium of exchange.
Where to Buy Meme Crypto Coin
To buy a meme coin, you must follow some simple steps. The first one is:
Choose one of the best meme coins: Before talking about where to buy meme coins, you need first to do deep research and choose the one that will fit all your needs. You will find a little guide below that explains in detail what are the best meme crypto coins.
Choose the right platform: One of the best crypto exchanges for meme coins is the P2P platform that securely allows you to buy various types of meme coins from others. An example of these P2P platforms is Cryptomus, which supports multiple meme coins, which we will see in the next part about how to buy the top meme coins.
How to Buy Meme Coin
Cryptomus: The first step to take to buy meme coins is to go to the Cryptomus website and create an account using an email and a password, passing the KYC identity verification and enabling the 2FA.
P2P Section: Once all the steps are made and the account is fully enabled, go to your dashboard and click on Trade now. Once the P2P page goes to the filters, select the meme coin you want to buy, the amount, the fiat currency you wish to pay with and the method you want to use. After putting in all the filters, you will see a list of all the ads that propose meme coins to buy, choose the cheapest one, and start the trade.
Close the Deal: After starting the trade, talk to the seller, send him the fiat currency, and notify the seller. Once all is made, the trade will be closed, and you will receive your meme coins in your P2P wallet.
Selecting Platforms That Support Meme Coin Trading
If you want to trade meme coins, you can also use Cryptomus to create ads and sell them on the P2P platform. If you want to know more about how to become a Cryptomus P2P trader, in that case, you should read this article "Becoming Cryptomus P2P Exchange Merchant: A Tutorial".
What is the Best Crypto Meme Coin
Searching for the best meme coin to buy is subjective because it depends on several factors, such as market performance, volatility, innovative features, or the characteristics you are looking for. Here are the top meme coins list:
Dogecoin: This one is the most popular, as Bitcoin was the precursor of the cryptocurrencies, Dogecoin is the one that opened the door of the meme coins.
Shiba Inu: With a multi billion dollar market cap and developing a decentralized exchange and metaverse, the Shiba Inu is one of the best meme coins after the Dogecoin.
Floki Inu: This coin has a $203 million market capitalization and has introduced products like a 3D NFT collection and a DeFi tool.
There are also some new crypto meme coins that can represent a good investment, and among these new meme coins, we have the Wall Street Memes (WSM) or the AiDoge, the Bonk, and many others, each one with its characteristics.
Strategies for Mitigating Risks in Crypto Meme Coin Investments
Investing in crypto meme coins is risky. Why? Because of their high volatility and market sensitivity, there are some popular strategies that you can easily apply and work with:
Diversify Investments: Diversify your investment portfolio to include a variety of assets, not just meme coins. This helps to spread the risk.
Use Stop Loss Orders: Utilizing stop loss orders can help limit potential losses. This is a tool that sells your asset when its price drops to a certain level, thus preventing further losses.
Tips to Buy Crypto Coin Meme
Here are some essential tips to guide you:
Do Thorough Research: Before investing in any meme coin, thoroughly research its background. Understand the coin's concept, use case, team involvement, and community support.
Evaluate Market Trends: When you plan to invest or buy a Meme coin, you need to keep an eye on the latest trends in the crypto world and understand how they might affect its value. This will allow you to predict the coin's value and know where to invest.
Check Liquidity: Be sure that the coin has sufficient Liquidity on exchanges to trade it quickly and not search desperately for a buyer or a seller.
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