Whether it's $TRUMP , $DOGE , $SHIB , or something else, meme coins have gained massive traction over the years, serving as an avenue of massive profit, but also massive losses. In this short article, I serve the cold hard truth about these tokens — with zero sugarcoating.
Don't Mix Up Trading with Gambling
Meme coins are meant to be traded for short term profits. The price action on such coins can be extremely violent, leading to multiple opportunities for profit which can be signalled by various technical indicators. However, simply deciding to buy some meme coins because you watched a YouTube video or a friend told you to is not the same as trading. Trading is a difficult process of
1) verifying indicators,
2) deciding on a time to enter the trade,
3) setting an appropriate take-profit (TP) & stop-loss (SL),
4) rinsing and repeating the above consistently.
Buying meme coins "for the memes" has statistically proven to be one of the worst things you can do for your finances. There are multiple sources of information online which educate you on trading strategies and also provide up-to-date news on certain meme coins so you can strike while the iron is hot. Leverage this information to make better-informed trading decisions, instead of gambling your capital away.
There Are No Fundamentals
We need to remember why we bought these coins in the first place, and fundamentals will never be one of the reasons. Meme coins are called meme coins for a reason — they gain traction over things that are trending, much like memes themselves. As such, sentiment can drive the price of these coins greatly in either direction. However, the said coins have close to zero underlying fundamentals, and you can look this up easily on your own — so if you're thinking of holding a meme coin for decades for it to 100x your capital, please do think again. We need to call a spade a spade, and the truth is that while meme coins have massive profit potential, they are fundamentally worthless (or at least most of them are).
All That Glitter Is Not Gold
Yes, pre-sales of meme coins before their official launch on an exchange can give you the first hand advantage, and even provide you with additional air-dropped tokens. Yes, some meme coins claim to provide massive interest for staking their coins. Yes, some developers promise to burn X% of the supply to make sure you earn money. However, the above scenarios, while possible, are not always as they seem. In reality, many coins that promise such benefits end up failing in one way or another, and the biggest losers are the ones who bought into these stories. Do extensive research, especially for the lesser-known coins (which may potentially be meme coins), and protect yourself from falling into such traps.
The Conclusion
All in all, meme coins can be a great way to make money, but it can go south on you very easily as well. Take note of the above, and best of luck in all your trading endeavours!
