DeFi expert Miles Deutscher shared a guide for those who want to explore “meme coins”, one of the latest trends in the crypto money world. This article titled “Guide to Finding Explosive Meme Coins” provides useful information to investors.
Miles Deutscher publishes detailed guide to investing in meme coin
Pepe Coin (PEPE) has recorded 1000% growth in the past week among meme coin competitors. It has yielded 375,000x since its April 14 start date. In a recent thread of tweets, Deutscher outlines the tools needed to become a winning player in this market.
$PEPE has changed many lives, after doing a 375,000x in just 21 days.
But you can change yours too.
Here's my full guide to finding meme coin gems (and trading them for crazy returns). 🧵
— Miles Deutscher (@milesdeutscher) May 5, 2023
Fundamentals of meme coin investing
“Investing in meme coins is a gamble that relies heavily on psychological factors rather than fundamental factors,” Deutscher begins. It is crucial to approach meme coin investing with the mindset of a gambler, understanding that there are no guarantees for success. But as Deutscher explains, there are ways to turn the situation in your favour.
Fueled by psychology rather than fundamentals, the meme coin market is elegantly described by the “Castle-in-the-Air” theory. This theory was popularized by the famous economist John Maynard Keynes. Accordingly, investing in a meme coin is like imagining future price increases rather than focusing on intrinsic values.
How do I find the right meme projects?
cryptocoin.com As we have reported, PEPE recorded its first rally on April 14. According to Deutscher, investors can spot promising meme projects with a five-step plan:
- Track top winners to identify trending meme projects with tools like DEX tools.
- Validate the strong community and culture of the project. Because these aspects are crucial to meme token success with tools like LunarCrush.
- Research the basics such as the team, token, and potential risks.
- Decide to follow the leader or play the rotation game by investing in smaller niche coins.
- Track smart money by tracking successful meme token investors with tools like Token Sniffer & Bubblemaps.
You’re being lied to about the governance of UNI@a16z could control 41.5M UNI through 11 wallets, which represents more than 4% of the supply
4% is the required amount to pass any proposal 🧵↓ https://t.co/mVdTukYstD pic.twitter.com/u7l9kBFIWF
— Bubblemaps (@bubblemaps) February 5, 2023
Best meme coin buying strategy
Keep these in mind when choosing the best meme money according to Deutscher:
- Treat it like a casino, only invest as much as you can afford to lose.
- Use a separate on-chain wallet for meme token investments. Also keep these wallets separate from other investments.
- Leverage technical analysis to help guide entry points, whether by waiting for significant corrections, using a dollar cost averaging strategy, or starting with a small starting position to hedge against FOMO.
How do I know when the profit will be taken?
Buying the right meme coin at the right time is life changing. But knowing when to withdraw money is very important. Deutscher proposes several strategies to help investors generate profits:
- Make the first investment after 2x return and profit often.
- Increase a predetermined percentage with every additional 2x win.
- Look out for indicators such as market cap-altering trading volume, lower peaks on a higher timeframe, declining or slowing captive growth, big whale sales, or funding rates that change from negative to positive, suggesting a potential peak.
