(Meme coin Newbie Player Guide: Before participating in meme coins, please take a look at this personal operation summary)
Do not have biases against anything that can make money.
In this cycle,#Meme coins are one of the core narratives; no matter how pessimistic one might be, participation is essential, getting involved hands-on.
After all, while VC coins keep falling, meme coins still offer chances to profit even in PVP situations, and there are many small stories of getting rich.
I am also a new player in meme coins; to better learn how to play with them, I will summarize and share my learning path here. Teaching others is also a better way to learn.
01 Establish understanding
Before entering an unfamiliar field, one must establish an overall understanding; otherwise, it's just playing purely by luck.
(1) Prepare mentally:
Playing with meme coins is like buying a lottery ticket; be prepared for your initial investment to go to zero. Of course, you can improve your chances of winning through a series of studies.
(2) Establish a preliminary understanding:
What are meme coins? Meme coins are products of community sentiment and culture.
Why play with meme coins? To take small risks for big rewards, aiming for recovery rather than just doubling.
What are the risks of meme coins? They are filled with conspiracy groups and have high volatility.
(3) Understand the basics:
Pixiu coin: The contract maliciously restricts trading; you can only buy and not sell, and once you buy, it goes to zero.
Sniping: Bots set higher gas fees to prioritize their trades, causing regular traders to buy at high prices/sell at low prices, allowing snipers to profit from the difference.
Smart money: User wallet addresses that earn relatively high returns on-chain; you can track their chosen investment targets.
Internal/External Market: Tokens in the issuing platform that have not successfully launched are still in the internal market; once liquidity is successfully added on DEX, they are referred to as the external market.
(4) Classification of Meme coins:
Trending type: Primarily riding on keywords related to Musk, CZ, Vitalik, or major events, with sudden trends and huge traffic in a short time.
Narrative type: Meme coins issued based on popular narratives in the industry, such as DeSci + Meme, AI + Meme.
Cultural type: Requires a certain cultural background, generally animal-related, such as Sad Frog, Doge memes, etc.
Mechanism type: Meme coins with innovative mechanisms, such as $people being the first DAO.
Pyramid scheme type: Air coins that recruit people online and offline.
(5) Daily life of Meme coin players:
Follow trends: Follow many Chinese and English KOL accounts related to meme coins on Twitter to get the latest information and updates.
Join groups: Join various discussion groups to observe the emotions of group members.
Follow chains: Closely monitor tokens that enter the external market from the internal market (small market to large market).
(6) Overall principles
In the world of martial arts, speed is paramount.
Do not get attached to battles; avoid diamond-hands.
Manage risks well; take profits and cut losses in a timely manner.
02 Practical operation: Methodology
Step one: Discover potential new coins (scan chain)
(1) Analyze token contract security
Is it a Pixiu scheme: Common tools will check contract code for trading restrictions or locking mechanisms;
Is the contract open source: Open source contracts allow anyone to review the code, increasing transparency and preventing developers from creating backdoors;
Have token rights been abandoned: Abandoning contract rights means the issuer can no longer arbitrarily increase the token supply;
Is there a liquidity lock: Locking liquidity pools can prevent issuers or large holders from suddenly withdrawing liquidity, leading to price crashes;
(2) Analyze chip structure
Token market value: Ideally, liquidity pools should be above 100 SOL.
Number of holders: Ideally, there should be more than 1,000 addresses.
Recent trading activity: More than 60 transactions within 1 minute, or more than 600 within 5 minutes.
Top 10 holders' positions: The top ten holding addresses typically have 15%-25% of the chips as healthy, 25%-35% as sub-healthy, and over 35% as unhealthy.
(3) Analyze project background
Did the dev run away: Check the past project records of the development team to see if there have been sudden updates or project disappearances;
Is the team paying for ads on Dexscreener: Paid ads indicate the team's confidence in the project;
Official token Twitter account: Check the account's activity level, follower count, interaction with the community, and the quality of published content;
TG community link: Check the community's activity level, member count, the quality of responses from admins, and whether there are regular AMA activities;
Is there KOL promotion: If there are many promoters, it indicates a solid community.
Step two: Discover smart money movements (following orders)
Official and publicly marked addresses have little reference significance; you need to establish your own smart money watchlist.
How to find smart money: Look for early holders of meme coins with good price increases, high-yield traders, and early buyers. You can also find addresses of meme coin players or KOLs who frequently charge on-chain.
Consider your own trading habits; avoid following too many wallets as it leads to information noise.
Step three: Final buy-sell (trading)
Market sentiment: Understanding market sentiment is key; when community FOMO peaks, exit in a timely manner. When is FOMO at its peak? Look at community sentiment, on-chain indicators, etc., where subjective judgment plays a significant role.
Risk management: Set stop-loss points to avoid emotional trading; humans are inherently emotional, easily chasing highs and cutting losses. The key is to set a stop-loss point and invest with discipline.
Timing selection: Pay attention to news events, sudden trends on social media, etc.; technical indicators often fail in meme coins because they lean toward event impacts, so it's essential to follow related events and act promptly.
Stage selection: Are we in a washout, or is there distribution happening? Washout characteristics include front-row selling and back-row buying, with similar amounts; distribution characteristics indicate that if early profit-takers start selling, you should also consider following suit.
03 Long-term learning
Tool recommendations
GMGN: @gmgnai A meme coin data analysis and trading tool with very good user reputation.
Dex Screener: @dexscreener A data aggregation platform focused on DEX, an established platform.
Defined: @definedfi A competitor to Dexscreener, but much more accurate in reflecting market hotspots; its coin filtering function is also useful.
Cryptohunt: @cryptohunt_ai A Web3 intelligent investment research platform that can discover the hottest and early projects based on Twitter KOL follows.
DEXTools: @DEXToolsApp Tracks important data such as token and liquidity pool data.
ChainFM: @chain_fm Makes smart money into different channels, each with its specific focus, tracking dozens of wallets.
DingCat: @dingcatai Focuses on grouping, following, and real-time push functions, real-time abnormal signal push, and reminders for the same ride.
UniversalX: @UseUniversalX A chain abstraction benchmark product, very suitable for novice players, no need to worry about gas and cross-chain issues.
OKX Web3 Wallet: @OKXWeb3_CN The preferred wallet, aggregating many services, very smooth overall.
Information channels (selected Chinese meme coin bloggers)
Wizard: @0xcryptowizardACT A diamond hand, has multiple victories, achieved financial freedom.
Crypto Veda: @thecryptoskanda Creator of the three-market theory, a legendary trader with deep understanding of various markets.
0xAA: @0xAA_Science A well-known developer, recently dedicated to funding scientific research through DeSci meme.
Haotian: @tmel0211 A hardcore investment research blogger, recently focused on AI Agent-related research.
Mr. Mai: @Michael_Liu93 Very knowledgeable about market maker trading strategies and has a deep understanding of the games behind meme coins.
Sister Hui: @0xmagnolia The methodology of playing meme coins has been summarized into Hui's classics.
Mr. Tian: @timotimoqi The methodology of playing meme coins has been summarized into Tian's book.
Mao Zedong: @maozemin An industry old OG, a Doge diamond hand.
Ethereum Old Zhang: @ytflzyyds Often posts some token contract addresses (CA), serving up opportunities.
Xi: @xixi_kawayi An ACG blogger playing meme coins, has many methodological summaries.
Diving Observer: @connectfarm1 Has unique insights into the differences between BSC ecology and SOL.
Community Master: @btc8686 Posts daily reports on SOL Golden Dogs.
Bit Duck: @bitduck_club Focuses on BTC ecology and on-chain dog coins.
04 To summarize
Trading meme coins requires more effort to genuinely improve your winning odds.
Therefore, seasoned meme coin players are very diligent, observing the market and trading 24/7.
However, for ordinary users, it is also very worthwhile to participate and feel the fast-paced meme coin market, not just to make money, but also to understand trading and learn many things.
Finally, I will continue to update my learning progress on meme coins, hoping to provide some help to everyone.
Disclaimer: The content of this article is for reference only and does not constitute any investment advice. Investors should consider their own risk tolerance and investment goals, rationally view cryptocurrency investments, and avoid blindly following trends.