$BTC Memecoins are volatile, high-risk assets that often pump hard and crash harder. Traders looking to “ride the wave” can apply the Gambler’s Ruin problem to understand why blindly holding or constantly trading them often leads to losses over time.

The Gambler’s Ruin theory shows that even in a fair game, a gambler with limited capital is likely to go broke if they keep playing. Key takeaways:

Each trade is like a coin flip — you might win or lose.

The more you trade or the longer you hold without a strategy, the higher the chance of “ruin” (your capital hitting zero).

The larger your position relative to your portfolio, the faster ruin can come.

What to do:

Set clear profit targets and stop-losses.

Don’t overbet on a single memecoin.

Avoid infinite holding with no exit plan.

If you buy a memecoin hoping it goes 10x, but hold through every dip without selling — you're playing the gambler’s ruin game. You might get lucky once, but long-term, you'll likely lose everything.