* PEPE coin is attracting significant attention recently. However, if you missed it, there is no need to regret it. In this field, such things happen often and are nothing new. Have you missed some similar opportunities in the past few years? It is important to continue implementing your investment plan (e.g., investing steadily in BTC, ETH) and not let FOMO affect your investment principles.
However, there are ways to find potential memecoins. Although no one can know which coin will increase in price by 100 or 1000 times, we can use some basic methods to find new projects with potential. However, no one tells you how to search and avoid risks when searching. So, today I will focus on this topic and share some brief experiences to find the most potential new memecoins. Let's see how to search.
Tips for finding the most potential NEW meme coins
Hunting for new potential Memecoins – Principles to Know
The memecoin season has arrived, causing money to flow back to decentralized exchanges to look for opportunities to 'change positions' more and more. Besides, meme projects are also being created continuously.
"Crypto Detective" – ZachXBT has discovered that the wallet address created over 100 memecoins in the past 2 months to scam users. Therefore, in a forest of all meme coins – finding a "good" project is not a simple matter.
But if you are trying to find a way to find new, promising meme coins to invest in, here are some Mandatory Principles/Steps you must follow:
Understand meme coins: Learn the basics of memecoins and how they differ from other crypto projects. Consider the factors that drive meme coin price increases. Then, research further to find a suitable project.
Monitor performance: Track which meme coins are performing positively. Buy when there is initial interest before a rapid increase. Use DEXTools to track top projects in terms of price.
Learn about the community: A strong community is important for meme coins. Learn about memes that are humorous, interesting, and easy to understand. Check social metrics on LunarCrush or see which projects are being mentioned on Twitter, Telegram, Discord, Twitter Trends, Google, DexTools, or CoinGecko.
Fundamental research: Consider the meme coin development team, their abilities and experience, partners, and the ecosystem the project belongs to. Evaluate tokenomics and system friendliness. While not crucial, it can help reduce risk.
Decide according to "Leader" or "Rotation Game": Invest in the "Leader" project in a certain market or consider following the development of smaller projects in a niche market. This is a decision that needs to be carefully calculated and considered.
Track smart coins: Watch people who are successful at trading meme coins and consider following them. Check their wallets on the blockchain to see their transactions.
Some tools to support FILTERING/FINDING NEW Meme coins
Filter potential new projects via DEXTools
First, we can use two on-chain tools: DEXTools or Dex Screener. I think these two tools are currently the best platforms for discovering new MEME coins. Here we take DEXTools as an example.
– Visit: https://www.dextools.io/
– In the list of projects. You filter the column: “Creat” – It will show you which coins were created most recently.
But what needs to be mentioned here is that maybe 90% of the projects in it are scams. So, what should you pay attention to when choosing a new project? First are projects with liquidity. Then, continue to look up:
Number of holders: If a project has less than 100 holders, it is better not to touch this new project, as it is likely a scam. A project with a high number of holders is a positive sign for the project itself, because the possibility of market manipulation will be relatively low. To find this data, click on the name of each project, it will show you the details:
DEXT Score: The DEXT Score is an aggregate calculation based on information from the blockchain and other external sources to measure people's confidence in the project. This score ranges from 1 to 99. High (>80), Medium (50-80), Low (10-50), least (<10). If a project has a low DEXT score, it also means higher risk. So, choose a project with as high a DEXT as possible.
Check community with Tweetscout
After finding a satisfactory project that meets the above criteria, you can proceed to check their community. If a project doesn't even have a website and community, it may be a scam.
You can search for projects that meet certain criteria, such as:
More than 1000 followers on Twitter
The official website is beautifully designed and user-friendly
Active Telegram/Discord community (no bots)
You can see these addresses directly through DEXTools. Of course, you can also use tools like CoinMarketCap or CoinGecko to search for a project and see its introduction page.
Revealing a tip to find and check potential EARLY memecoins, limiting risks is that I often use Tweetscout.io. This tool will give you an overview of a cryptocurrency project's Twitter account (this is very important because Twitter is almost the most popular social channel for cryptocurrency today). The steps are as follows:
– Visit Tweetscout.io
– Copy the Twitter link into the search box in the Tweetscout website interface
– Read the displayed data:
Find "trending" projects via Blockchaincenter
Although when you discover potential new meme coins at the time they are being hotly discussed in the market, it is 'a bit late'. But sometimes, it is not quite like that. Because a coin can attract attention and will increase in price continuously for many more days. You may not be able to buy it early, but joining right when it is 'JUST HOT' is also a lucky thing.
Most cryptocurrency websites such as: LunarCrush, Coinmarketcap, Coingeko have a trending section for you to look up. But sometimes – Each platform provides you with different “trending” data. And luckily there is a tool that helps us synthesize it, you just need to access:
https://www.blockchaincenter.net/en/trending-coins/
It will provide you with the HOT trend coin currently, according to different time milestones. Along with the level of HOT on each information channel/social network.
You may not know, there is a challenge called “Trending Coin Challenge on Blockchaincenter.net”. A famous investor applied this challenge by buying an equal amount of coin value that entered the trending list every day. After a while, his performance was even worse than if he had used that money to buy BTC every day.
Check the token address with the Tokensniffer tool
After finding a coin with potential, before you trade, you should check the address of that token. There are many tools that support this, but I usually choose:
Token Sniffer: tokensniffer.com
The usage is very simple, you just need to paste the token address into the search box, and this tool will display a table of results as follows:
The higher the score, the safer this token address is. But there are some notes you need to know:
Honeypot: refers to scam tokens that cannot be sold
Buy/Sell taxes: should be noted before participating in transactions to avoid unwanted losses
The contract owner relinquishes ownership or does not transfer ownership to another party – avoiding changing information in the contract.
The owner and other participants hold less than 5% of the total supply – anti-dumping/manipulation/fraud
Most of the liquidity is locked/burned and the owner holds less than 5% of the total liquidity -⇒ low probability of rug pull
Even so, this information cannot completely eliminate the risk of participating. Risks still exist, and there is no guarantee that these projects will increase in price soon in the future. But investing in meme coins is like betting on the lottery, so it is better to choose the 'ticket' that limits the risk as much as possible.
Follow "Whales", "Smart Money" to find "EARLY" Meme coins
Another way to find early investment opportunities that many people apply, which is a bit simpler, is to follow the footsteps of 'whales' (people who hold large amounts of tokens) or follow 'smart money wallets' (wallets that have previously bought early and succeeded with previous projects).
One way to identify buyers
Step 1. Find 'shark' wallets
early successful memecoins like PEPE is to access Etherscan. You just need to copy the smart contract address of the token and check. This will allow you to see the wallet addresses of the first people to invest in the successful meme coin. Those early buyers may continue to be interested in meme coins in the future, potentially giving you a good opportunity to consider undervalued coins. Some tools like: Dune, DexTools, Dexscreener also allow you to filter this information.
Step 2. Find 'smart money' wallets
Once you have identified top buyers or early buyers of a coin, you can look for more 'smart money'. These are usually investors with a significant amount of crypto assets and a history of successful investing. You can also use this tool to see which meme coins they are investing in, and then follow and buy with them.
If you don't know where to find information about 'smart money', I suggest following the Twitter channel @lookonchain. They always provide information about the activities of whale wallets and 'smart money' wallets very quickly and accurately. Whenever there is information, you can save these wallet addresses for reference.
Step 3. Track wallets on DeBank
To see what these “whales” and “smart money wallets” are buying, you can track their wallets on DeBank. This tool allows you to view the transactions and investments of certain wallets, see what they are buying/selling, what projects they are holding...
Visit: https://debank.com/
Paste the wallet address into the search box. Then, you will see a table of statistics of the assets this wallet is holding, along with their transactions.
The most effective meme coin investment method
Suppose, you have found and bought a memecoin. Now is the important time – requiring you to have a plan to ensure that you are managing your investments effectively. Here are four key steps you can take to help guide your buying and profit-taking decisions:
Treat meme coins like casinos: Invest in meme coins with the mindset of playing at a casino. Only invest what you can afford to lose and always be prepared to lose all the invested capital. Limit over-allocation of capital and adhere to a budget you are comfortable with.
Use a separate wallet for meme coin trading: Separate investment capital and meme coin capital by using different wallets. This helps you avoid making trading decisions based on emotions and maintain clarity in your overall investment strategy. Make sure you are willing to lose 100% of the money in this separate wallet.
Use technical analysis (TA) to make decisions: Although applying TA to meme coins can be difficult due to limited liquidity and historical data, it can still be a useful tool to develop a plan of action. Wait for significant price adjustments and trade at resistance/support levels to avoid buying high and selling low. You can also consider using the periodic purchase method (DCA) at predetermined prices to minimize volatility. Avoid DCA regardless of market conditions.
When profitable, gradually withdraw capital: If you have made a profit with meme coins - congratulations. What you need to do is gradually withdraw your investment when you have 1/2 or 2 times profit. And continue to invest with the profit. As that profit continues to grow, withdraw a certain %. But keep in mind that this strategy is only suitable until the peak of the meme coin is formed, and when the market may experience severe declines. To mitigate risk at this time, monitor some indicators that may signal a market peak.
Conclusion
Although investing in meme coins can have a high level of risk, identifying potential projects early can provide an advantage, mitigate risk, and maximize rewards. Buying earlier will help reduce input costs, and as the coin becomes popular, its value will increase, thereby generating significant profits.
One of the important advantages of investing in meme coins is the speed of return. While traditional crypto investments often take months to years to become profitable, meme coins can achieve this in just days or even hours. This rapid liquidity provides a reliable source of passive income for investors.
However, it is important that you have a reasonable investment strategy, do not put too much expectation on meme coins and see it as a form of lottery. This includes knowing when to withdraw and take profits. Understanding your personal risk tolerance, setting realistic goals, and applying a comprehensive strategy will help protect your investment and at the same time enjoy the benefits that meme coins can bring.
Hopefully, with the above sharing, you have gained more experience in finding potential meme coins as early as possible, before they become popular and listed on exchanges