Trading Degen and Memes (Read This Before You Get Rug Pulled)

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Write A Catalyst

3 min readMay 20, 2024

“Trading Degen and memes is highly risky but also highly rewarding. If you can’t chest the risk, don’t envy the reward”

When a trader does trading without proper analysis and examination but follows signals and joins pumps out of fear of missing out is called Degen. It’s a dangerous means but pays back handsomely in crypto trading.

Meme coin” is a term used to refer to cryptocurrencies named after characters, individuals, animals, artwork, or anything else that can be mimicked. They include Dogecoin, Shiba Inu, Pepe, Floki, Bonk, and Coq Inu, etc. They are usually created as jokes, but the community may render them valuable.

Characteristics of Degen trading include:

Buying and selling based on emotions, gut feelings, and market hype
Ignoring stop-loss orders and position sizing
Taking excessive leverage and margin trades
Chasing pumps and dumps, hoping to time the market perfectly
Frequent and impulsive trading, often based on short-term market fluctuations

Getting Started with Trading Degen and Meme

Understand the Basics

Degen trader or Degen mode is when a trader does trading without due diligence and research, aping into signals and FOMO into pumps
Memecoins is a term used to refer to cryptocurrencies named after characters, individuals, animals, artwork, or anything else that can be mimicked.

Knowledge

Before investing in a coin, research and look at these areas;

Whitepapers — documents that outline the coin’s purpose and technology. Roadmaps — timelines on its development as well as future plans. Community — actors’ attitudes towards the coin are gauged through threads in forums, social media posts, and online updates including Reddit or Twitter
Learn the following terms: HODL, FOMO, and DYOR, etc. Understanding these will help you better understand what people talk about during conversations and choose wisely.

Choose an Exchange

Both CEXs and DEXs are platforms used for trading. CEX is controlled by a single organization, while DEX is decentralized and functions using smart contracts on a blockchain. Use decentralized exchanges such as Uniswap, PancakeSwap, SushiSwap, Radium, and Jupiter

Start Small

Beginners should only invest a small sum they can afford to part with since this will enable them to gain experience without losing much money.
Please avoid putting all your money in one type of coin, invest across multiple ones if you want to minimize the risk.

Join a Community

For online forums

join groups on platforms such as Telegram, Reddit, and Discord. By engaging with other fellow traders you can gain valuable advice and encouragement.

Influential People and Market Experts Take a close look at the social media posts from well-established individuals within the world of cryptocurrency or market analysts whom you trust. They may provide helpful hints or study results.

Practice Patience and Emotional Control

Avoid FOMO and Panic Selling: Carry out a plan and decide to rely on facts rather than emotions
Be Patient: Do not anticipate immediate wealth accumulation and keep in mind that you might have to experience some periods of losses.

Conclusion

Degen trading may realize enormous profits, but there is a large threat to substantial losses. As such, Degen trading should be conducted with care, knowledge of risks, and understanding of the market dynamics. Remember not everyone can do so; degen trading is extremely high risk and requires deep knowledge of the cryptocurrency market along with a bit of luck.