Key Insights
Memecoins have become very popular, yet very dangerous, in the market today.
Some of the most popular assets in this class include Dogecoin, Shiba Inu and Pepe.
Dogecoin is regarded as the most stable compared to the other two.
Shiba Inu is the most versatile and has the widest ecosystem.
Pepe openly admits to having no utility but offers the highest odds of growth for investors who do not mind risk.
Memecoins have made a name for themselves as the unpredictable, yet highly lucrative side of the crypto market.
This asset class, which started as a joke, has quickly become one of the most popular parts of the market because of its ability to produce jaw-dropping returns for some and painful losses for others.
Some of the most popular assets in this category include Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE.
Indian investors looking to venture into this high-risk, high-reward corner of crypto should understand the differences between these coins, and here is a guide explaining just that.
1. Dogecoin (DOGE)
Dogecoin was launched in 2013 as a parody of Bitcoin. This memecoin is the most popular of the three and features the iconic Shiba Inu dog meme.
Over the years, Dogecoin has experienced massive price gains and celebrity endorsements, the most notable of which came from billionaire Tesla CEO, Elon Musk.
What Makes DOGE Attractive?
For starters, Dogecoin has a first-mover advantage. This memecoin was the first of its kind, and “Dogecoin” and “Memecoin” have become almost synonymous over the years.
The “Doge Army” continues to be active and vocal despite the lack of hype in the memecoin space as of late.
While Elon Musk’s crypto influence has waned, the Tesla CEO continues to hint at integrating DOGE into X (formerly Twitter) for payments.
Dogecoin is generally regarded as more stable than other kinds of memecoins, mostly because of its large market cap and long history.
Risks to Consider
The first thing to consider before investing in Dogecoin is that the memecoin has no supply cap. This means that millions of coins are minted daily, potentially putting pressure on price.
Dogecoin, as popular as it is, also has a severely limited real-world use.
Indian investors who are interested in meme culture and Dogecoin in particular can do so via regulated, official channels.
However, remember that Dogecoin is best suited for those who want exposure to the sector but with a slightly lower risk.
2. Shiba Inu (SHIB)
This memecoin was created in 2020 and dubbed the “Dogecoin Killer.” Shiba Inu started with a meme but quickly transformed into something more.
It runs on Ethereum and has built an ecosystem that includes its own DEX (ShibaSwap), Layer-2 blockchain (Shibarium), and even an upcoming metaverse
What Makes SHIB Stand Out?
Shiba Inu has a strong community of enthusiasts, called the “Shib Army.”
Moreover, the Shiba Inu ecosystem is building infrastructure from ShibaSwap to Shibarium, which could give it strong utility, at least compared to Dogecoin.
The Shiba Inu community also regularly burns the token’s supply, which is great for creating scarcity over time.
SHIB is tapping into metaverse and NFT trends to diversify and is always aiming for growth.
Risks to Consider
On the flipside of all this growth, SHIB still has a few risks to keep in mind. For example, despite burns, SHIB has trillions of tokens in circulation, which caps price potential.
Secondly, while innovation is great, Shibarium and related projects need real-world traction to drive value.
Finally, other meme coins and Layer-2 solutions are posing fierce competition and could overshadow SHIB if its ecosystem stalls.
Indian investors should note that SHIB is more versatile than DOGE, albeit less popular.
Overall, investors on the look-out for higher risk and a possibly bigger upside will find SHIB to be a strong candidate.
3. PEPE
Pepe was launched in April 2023 and is inspired by the well-known Pepe the Frog meme.
What makes PEPE appealing to investors is that it took a different approach from the other two. Pepe openly admits that it has no utility or team roadmap and is purely a meme coin meant for entertainment and speculation.
What Drives PEPE’s Popularity?
PEPE thrives entirely on internet culture and meme virality. This means that it can be very volatile and therefore attractive to high-risk traders.
As a newer memecoin than the other two, it is a bigger magnet for speculators looking for the next big hit.
Risks to Consider
Investors should know that Pepe is extremely volatile and is known for its dramatic price pumps and dumps.
Pepe also has no team or utility as mentioned earlier, and is entirely driven by hype.
Overall, PEPE is strictly for seasoned Indian investors who understand short-term trading and can afford to take big risks.
While the upside can be enormous in a hype cycle, the chance of total capital loss is just as real.
Steps to Buy Memecoins on Binance:
If you’ve decided to invest in one of these meme coins, Binance is one of the most popular platforms to do so.
Create an Account and Complete KYC
Simply head over to Binance and sign up if you haven’t already, using your email or phone number.
Complete the mandatory KYC with your Aadhaar and PAN card for full access.
Deposit INR
Use P2P (Peer-to-Peer) trading to buy USDT using UPI, IMPS or bank transfer. You can also choose to look for third-party INR deposit options in the "Buy Crypto" section.
Trade for Meme Coins:
Go to the “Trade” > “Spot” section and search for the trading pair (DOGE/USDT, SHIB/USDT or PEPE/USDT).
Choose your order type (market for instant buy or limit to set your price), then enter the amount and confirm the trade.
Finally, remember to only use the official Binance app or website to avoid phishing scams.
As always, never invest more than you can afford to lose, and be sure to diversify your portfolio beyond meme coins.
