Analysis of the Meme Coin Phenomenon and Investment Strategies
Meme coins will rise to prominence again in 2024, with a surge of high-growth projects on the SOL chain. The characteristics of meme coins include being community-driven, having no practical use, and experiencing extreme volatility. Successful investment in meme coins requires: early identification of potential projects, participation in community building, and setting strict profit-taking and stop-loss strategies. It is worth noting that most meme coins eventually go to zero, and only a very small number can continue to create wealth. It is advisable to limit meme coin investments to within 5% of the portfolio to avoid heavy bets due to FOMO emotions. Approach the entertainment aspect of meme coins rationally and do not regard them as primary investment targets.