Meme coin is a valuable investment with promising returns. But that doesn’t mean that every coin will make your portfolio rich. There are many who try to pass off substandard assets just by creating a campaign around them.
Due to these reasons, it’s very important to identify the potential of the coin before investing in it. Now that could be easy for experienced crypto traders, but not for newbies and many others. So how does one recognize the potential of a new meme coin before it gains popularity? It’s important so you can get maximum coins at a cheap price.
To find the next sensational memecoin, you need to do some profound research on various fronts. The investors need to gauge the coin’s potential by examining different perspectives. They need to discern rumours from substantial information before pouring in their money.
So let’s dig into the research process for picking the meme coin before it gains traction.
The Process to Follow Before Choosing New Memecoin
Join Community That Review New Crypto
Crypto communities could be the mine for knowledge if you’re at the right place. One could find thriving communities on places like Reddit and X easily. These online forums discuss every important aspect of the projects that are open for everyone to study. It’s a place where investors can find a lot of things. They can see, reviews, viral videos, blog posts, etc. All this information could help early investors find the right coin.
Utilize Tools & Platforms Tracking Coins
There are many platforms and tools that give valuable insights into forthcoming coins. They monitor every project based on its merits. From the involvement of whales to tokenomics and future prospects, they gauge everything. Some also track real-time metrics like token burns, community engagement, holder statistics, and growth trajectory. Most of these tools and platforms follow multiple blockchain networks.
They present granular details of all the blockchain activity. They enable investors to be surer about the coin’s future.
Evaluate the Tokenomics Too
Projects usually make their tokenomics details public to share the project’s vision with investors. This particular detail is vital for every project that seeks support. It has all the information about the token supply, distribution, liquidity, and burning. Here are some key points that you need to know about tokenomics details.
Token Supply
Check if the supply is capped or not. A huge number of tokens doesn’t always indicate great things.
Distribution
The distribution has to be diverse and decentralized. Tokens going into the hands of a few could be a red flag.
Liquidity
High liquidity is always a good sign. It makes buying and selling smooth while preventing price swings.
Burning
Strategic burning streamlines the token supply and therefore, its price. Make certain that the project has the project some token burn plans in place.
Follow Credible Influencers For Keen Insights
If you don’t follow crypto influencers already, you should start it right now. Because there are many who could help pick the right coin. However, it’s important to find people who know what they’re talking about. Like opportunistic project owners, there are fake influencers too. So one must spend some time and study the posts shared. Their insights could be very useful for newbies and early investors.
Assess the Development Team
A token project reveals the information about its developers. If not, then it’s better to overlook that one. But when it is there, dig into the developers’ profiles. Check their experience, previous work, and the overall reputation. Look into their engagement in the community and check how credible they are. Sometimes, the information provided could be misleading too. Thus, do the research on the developers team very well.
Use Telegram & Discord Groups
Telegram and Discord have become quite popular among crypto users. There are ample groups and communities that discuss new arrivals in the blockchain sphere. By joining such groups, the early investors could gain so much knowledge. They can even join discussions and learn a lot about the tokens and their future. With continued membership in these groups, one can even become a token pundit themselves.
Read Whitepapers and Roadmaps
For the uninitiated, whitepaper is a detailed explanation of the token’s project. The roadmap, on the other hand, specifically mentions its future plans. So their reading is definitely something that every investor should do. Yes, it would be more time-consuming and tiresome. However, the results are worth the time and effort. With a thorough review of these documents, it’s easy to determine the chances of success. Also, they could find red flags and opportunities in these papers.
Examine Price Discovery Pullback Plan
The price discovery pullback strategy is buying the coins once their price starts to fall after the initial rise. This could work very profitably for some investors. One benefit of following this plan is that you know that the coin is popular. All they need to do is to wait for the moment the price goes down. Once it happens, they can get the tokens at a reduced price. And even if the trend is downward, there are chances of a price surge again. These pullbacks have made good profits to the investors.
Keep Tabs on News & Updates
There are an adequate number of news websites and channels that give updates on forthcoming coins. By keeping tabs on them, one can know everything about potential tokens. From credible sources, investors can get all the information they want. They get insights into the blockchain mechanism, tokenomics, and future scope of the projects. Also, by knowing the tidings of the crypto world, they can prepare for many other opportunities.
Review Popular Memecoin’s Case Studies
From Dogecoin to Pepe, there are multiple meme coins that are worth studying. With their understanding, one can easily know how successful tokens attained success. It also explains how they were designed, distributed, and marketed.
The investors can also check their whitepapers and roadmaps. With all these details, it could be easy to determine whether a particular coin will make it big or not. They can compare the trajectory of the popular coins with that of others.
But before doing all that, it’s probably good to know if meme coins are worth the attention. That’s because every investment is subjected to risk. And therefore, one must know the benefits and drawbacks of investing in meme coins also. The investors must understand what makes the meme coins so valuable. Let’s study some essential factors that move the price of this asset class.
Factors That Drive Memecoin’s Price
Speculations
The trading market works a lot on rumours and speculations. Furthermore, they could come in from any relevant incident that impacts the crypto market. If something happens that pushes the prices up of all cryptos, it could impact meme coins too. And it could even prove beneficial for coins that don’t have any potential.
Community Support
Communities give strong support to many meme tokens. They give more reasons to other investors than any other factor. Because the support of people gives confidence to many early investors. The backing of the community could make any underperforming token the most desired investment.
Virality of Coin
Almost every successful coin went viral among the crypto and internet community. While every coin tries to do it, not everyone achieves that feat. When the project goes viral, it gets more support from users and investors. It creates a FOMO aspect and incites everyone to buy the coin sooner than the others.
Conclusion
Meme coins have limitless potential to perform and benefit investors. They have done that before and many others can repeat that feat. However, as an investor, one needs to be cautious for all obvious reasons. They need to identify the opportunities and red flags before investing. With this kind of approach, they can always pick the right token. For meme tokens, doing this analysis is more important. That’s because the fun could attract eyeballs when there’s no substance. Thus, do your homework before putting your hard-earned money into meme coins.
