When you wish to know how to find meme coins early, then you are already desirous of making money, and a lot of it.
Meme coins have made many people wealthy, but aside from the hype, they have also wrecked some people financially.
But a careful study of the people who got wrecked from investing in meme coins shows that they did not carry out proper research before entering into the projects.
And also, some entered the meme projects late, and this caused them to not milk the meme coins early.
This article will examine the dangers of investing in meme coins, the enormous potential, and some promising coins to consider.
What are Meme Coins? A Short History
Meme coins are a form of digital currency, much like Bitcoin or Ethereum. But unlike those tokens, meme coins are typically created as a tribute to a meme, an intriguing or humorous concept captured in a picture, video, or other pieces of media.
Meme coins are created with the same viral and sharing goals as the memes they are based on.
One of the most popular meme coins available, Dogecoin was first developed as a joke to parody Bitcoin and other well-known cryptocurrencies.
Software engineers Jackson Palmer and Billy Markus didn’t design it with the idea that it would be actually useful.
And most meme coins fit that description. Meme coins are typically not used to join a DAO, stake, or make purchases within a specific ecosystem, in contrast to utility tokens. They exist to be traded.
How do meme coins work?
Meme coins operate similarly to other cryptocurrencies, fully utilizing the blockchain and related technology.
They have particularly appeared on blockchains like Ethereum and Solana that make use of smart contracts. On these blockchains right now, there are more than 200 meme coins.
In the past, it required some technical expertise to create a meme coin. However, now you can do all the labor-intensive work yourself thanks to apps and websites.
For instance, DxLaunch provides all the tools you require to design and introduce your very own meme coin. It’s great for accessibility, but it also opens the door to scammers preying on unsophisticated investors.
Meme coins are just like any other cryptocurrency in that they can be bought, sold, and traded. Simply go to a marketplace like Crypto.com, download the App, and complete your transaction. Purchasing meme coins is no more difficult than doing so with Bitcoin or Ethereum.
What to note before learning how to find meme coins early
Investing in meme coins has its ups and downs, even for the most experienced investors. However, by gathering and applying the appropriate knowledge, one can reduce the dangers and increase the benefits.
Many of the meme coins available are rip-offs, so it can be difficult to pick the right one. As a result, if you want to succeed in this market, you’ll have to give it your all.
You just need to know where and how to look for diamonds in the rough. An early investor in these unique meme coins could make a tidy sum of money, with the potential to make a thousand dollars.
How to find meme coins early
Since meme coins arise as a result of jokes by influencers and other memes, it will be in your best interest to follow up with these influencers and their jokes that make the meme coins rise or be developed.
For example, Mark Zuckerberg posted a picture of his pet goats, Max and Bitcoin, in May 2021, with the caption “My Goats: Max and Bitcoin.”
Within a few hours of the post appearing on social media, the value of a meme token called Aqua Goat jumped by around 300%.
As soon as Tesla CEO Elon Musk tweeted that he wanted the term “Elongate” coined for any future scandal, an ELONGATE token was launched.
Making the best decisions when buying meme coins
You must weigh the benefits and drawbacks of any investment before making a decision. Hence, the first thing to know about meme coins is that you should get in early and leave early!
When it comes down to it, there are essentially two things to keep in mind:
Approximately 90% of new meme coins are scams, so learning how to avoid the rug pulls will help increase your expected returns.
As opposed to simply copying and pasting, a good meme coin should have a strong team with a long-term vision: this makes the project more likely to succeed.
How to avoid rug pulls and minimize risk
A crypto rug pull can be spotted with extensive knowledge of the industry and analysis of numerous crypto projects.
Tokens listed or launched on decentralized exchanges like Uniswap and PancakeSwap are usually the focus of analysis.
The initial token distribution
When the development team reserves a large portion of the tokens for themselves, this may be an early sign of a crypto rug pull.
Alternatively, they can give up 50% of the token to a crypto celebrity. This is a red flag because they are able to dump their huge allocation because they did not buy like the rest of the investors.
All tokens of a good cryptocurrency can be purchased on a decentralized exchange (DEX) at any time.
Who owns the liquidity pool?
A rug pull gimmick is when the developers of a token put it in a decentralized exchange and ensure that they own the entire liquidity pool.
That means they can remove the entire liquidity pool at any time, including the BNB and ETH tokens that are stored therein. If you’re starting a new project, make sure to look for the best sources of funding.
The burn address should have control of the vast majority of the liquidity pool in order to ensure its safety.
High transaction fees
If you find out that the fees for the transfer of tokens are high and that these fees are not clearly stated, it is a red flag that you should reconsider.
To ensure that you are aware of and understand the costs, conduct thorough research prior to making a purchase.
Another way to discourage people from selling the tokens is to charge a high transaction fee.
Proper research to help maximize meme coin investment
Remember that we’re trying to achieve two things when it comes to meme coin investments: minimize risk and maximize profit. If you’re looking for the next 1000 meme coin, here are a few research to carry out:
Does the project have a long-term focus?
It is not enough to just want to know how to find meme coins early. Before making a meme coin investment, spend some time exploring the token’s community to learn about the goals of the developers.
Do they have a long-term strategy for establishing a thriving community and achieving sustainable development? In other words, are they more concerned with driving up the cost of a product so that people will buy it?
Please inquire as to whether or not there is a white paper outlining the project’s true goals and objectives.
What is the reputation and track record of the development team?
Is the team behind the project reputable or are they just making empty promises to the investors and the public?
What happens if they promise to accomplish something and then don’t follow through? Does it seem like they’re only making promises to raise the price?
The answers to these questions will help you understand the token’s future potential. When the development team isn’t trustworthy, they don’t have the long-term goals to back them up.
Does the token have real meme potential?
Since most people enjoy purchasing tokens that are both adorable and beautiful, cute tokens have an easy time gaining market share.
The exponential growth of the Doge community in the last few months is an excellent illustration of how much the internet community adores the adorable meme.
Promising meme coins to invest in
Following the above analysis, here are a few meme coins that investors should keep an eye out for.
Dogecoin was created in 2013 by Billy Markus and Jackson Palmer, both of whom had previously worked together on Bitcoin.
This whole thing started out as a joke inspired by the Japanese dog called Shiba Inu, as previously stated. Because Dogecoin is a fork of the Litecoin cryptocurrency, the Pow (Proof-of-Work) consensus mechanism has been implemented.
Additionally, there is no upper limit on the total number of tokens that can be issued.
Shiba Inu (SHIB)
“Dogecoin killer” is a term used to describe SHIB, a meme coin that competes with DOGE for the top meme-coin spot.
It also gets its name from a Japanese dog. SHIB was created in August 2020 by an unnamed developer going by the handle “Ryoshi”.
With respect to their supply of tokens, SHIB and DOGE are fundamentally different from one another.
There is only one quadrillion SHIB tokens in circulation. In addition, SHIB burns tokens, with approximately half of the proceeds going to charity.
Akita Inu (AKITA)
In the meme coin realm, there is indeed a Japanese dog breed. AKITA’s creation was undoubtedly influenced by DOGE’s design.
It went live on Uniswap in February of 2021 and has tokenomics that are very similar to SHIB. Nevertheless, its total token supply of 100 trillion tokens is just one-tenth of its size.
There are many in the AKITA community who aspire to make their project the “Dogecoin Killer.”
This project built on the Solana blockchain continues the year of the dog. The project generously distributed 13% of the SAMO token supply to members of the community.
The SAMO roadmap also includes some significant announcements, such as the introduction of NFT offerings, a decentralized exchange, and token burning events.
This meme coin gained popularity in October 2021. That’s when its price went from $0.005 to more than $0.22 in about a month, a 4,300% increase in value.
Auto-boost and hyper-deflationary meme coin MiniDoge is the first of its kind in crypto markets.
Binance Smart Chain (BSC) CorgiCoin is a community-owned cryptocurrency.
This deflationary token was developed by DogeCoin supporters as an upgrade to the original Dogecoin currency.
CateCoin is a payment meme coin that is used to compensate meme creators for their work on meme-sharing websites.
Frequently asked questions (FAQs)
Still, have some questions related to how to find meme coins early? Then take a look at the answers to some questions.
Which meme coin has the most potential?
In the world of meme coins, Dogecoin (DOGE) was the first. Upon Elon Musk’s 2021 endorsement of the Dogecoin, its value skyrocketed to the top 20 cryptocurrencies in terms of market capitalization, where it remains at the time of this article’s publishing.
Can Doge reach 50 cents?
Despite the fact that Dogecoin has reached 50 cents per coin before when many people doubted it, with the current crypto market down, this doesn’t seem likely, but it’s more likely than Dogecoin reaching a dollar or higher, especially since it has already reached this price.
Will Shiba Inu reach 1 cent?
Compared to Bitcoin, if Shiba Inu ever made one penny, it would be worth many times more than that.
Because of the enormous amount of capital required, it’s highly unlikely that SHIB will ever make a single penny.
Now that you know how to find meme coins early, it will be in your best interest to start searching for the next good one or investing in the current ones before the market becomes bullish.
And to do this, you have seen how to carry out proper research on a meme coin and how it works. It is also important that you note that this article is in no way financial advice.
That’s the reason you were taught to research before buying a meme coin.