Meme Coin Trading for Beginners

How to start trading memecoins in 2024

If you haven’t bought a memecoin in 2024 yet, start with this guide for beginners. Crypto is risky and you should be well prepared to start, especially with trading meme coins.

Trading meme coins on BullX platform

Steps to Begin:

1. Set Up a Dedicated Wallet: Use a fresh wallet exclusively for trading memecoins. Phantom is the best for Solana.
2. Choose a Trading Tool: Avoid slow tools like Birdeye and Jupiter. Instead start with BullX, you can get access here. This is the best trading platform for memecoins.

Budgeting:

How much should you start with?

• Allocate an amount that, if lost, would be a learning experience, not a crisis.
• Be prepared to lose 100% of your investment in memecoins.
• Focus on having fun; the gains will follow.

Managing Your Investments:

Sizing Your Buys:

• Strategy: Spend 1–5% of your total bankroll on each coin.
• Example: If your bankroll is 100 SOL, spend 1–5 SOL per coin.
• Adjust According to Confidence:
• Low confidence: 1 SOL.
• Medium confidence: 3 SOL.
• High confidence: 5 SOL.

Photon allows easy customization of these settings.

Avoid Overtrading:

• Overtrading often results from oversizing.
• Avoid nervously trading every swing and potentially losing more than you gain.

Timing Your Buys:

• A mediocre meme at under $50k can be more profitable than a great meme at $1M, because there’s a bigger potential for it for 3x-5x.
• Market Cap Considerations:
• Lower market cap: shorter timeframe.
• Higher market cap: longer-term strategy.
• Avoid chasing green candles; there’s always another opportunity.

Rug Avoidance:

• You will get rugged occasionally; it’s unavoidable.
• Avoiding rugs involves realistic conclusions about new coins.
• Common rug scenarios include deceptive developer behavior and hype.

Selling Your Memecoins:

• Selling is the most challenging part of the process.
• Take profits by pulling out your initial investment at certain profit points (e.g., 2x or 3x).
• Use strategies like selling in small chunks to avoid negatively impacting the chart.

General Advice:

1. There’s always another one: Missing a pump or selling too early is not the end; there will always be another opportunity.
2. Avoid Get-Rich-Quick Schemes: Focus on steady, comfortable trading rather than desperate moves.
3. Work for Your Bags: Engage in community activities like Telegram and Twitter to build connections and gain insights.

Demystifying the Cabal:

• Cabals exist but are not as powerful or coordinated as you might think.
• The biggest edge in memecoins is knowing people who launch coins.
• Active participation and value addition are crucial for building connections.

Extra Tips & Tricks:

1. Simplicity: Memes should be easily understood.
2. Twitter Settings: Use the ‘Following’ tab for timely information.
3. Bundling Awareness: Be cautious of developers manipulating supply distribution.
4. Avoid Derivative Memes: They generally have lower potential.
5. Right Tools: Utilize platforms like BullX and pump.fun effectively.
6. Stay Chronically Online: Being constantly active online is a significant advantage.

Common Terms in Meme Coins

• Trenches: Trading low marketcap memecoins while engaging in community chats.
• Dev: The creator of a coin.
• Shave: Selling a small portion of your position.
• Bid/Bidding: Buying a coin.
• Clipping In/Out: Buying or selling a coin in chunks.
• MC: Market cap.
• Jeet: Selling a coin, often all at once.
• KOL: Key opinion leader.
• CTO: Community takeover.
• Paying for the DEX: Paying for enhanced token info on dexscreener.com.
• Bonding Curve: Mechanism for coin price adjustment based on market cap.
• MEV Bot: A bot that front-runs transactions.
• Snipe: Buying a coin immediately after launch to secure a large percentage.

Have fun trading meme coins!

P.S. Nothing here is financial advice, crypto is risky. Links are affiliate.