🐸 How to trade meme tokens
In the crypto world, there are many different types of tokens that can be traded, but there is one in particular that grabs more attention and hype than any other… and it’s meme tokens.
These tokens are no ordinary tokens, in fact, they are part of the wild west in which anything goes, and gains of 1000x or more are theoretically possible, and we have seen many examples recently, with $PEPE being a shining
However, these token are also the toughest to trade too due to the high chance of them collapsing and never to be seen again. Which brings us to the all important question… How do we trade meme tokens?
If you're new to crypto and want to get in on the meme token action, this guide is for you. We'll cover what they are, how to pick which ones to buy, and some tips for trading them without going completely broke.
⁉️ What are meme tokens?
Meme tokens are cryptocurrencies inspired by popular internet memes, jokes, and sometimes nothing at all. The original is Dogecoin, created in 2013 as a satirical take on Bitcoin and named after the iconic Doge Shiba Inu.
While they started as jokes, some meme tokens like Doge have gained huge valuations and cult-like followings of investors betting that sheer meme power can drive prices to incredible prices. But that isn’t always the case… Others fade into obscurity after their initial hype dies down and investors are left stranded and their money left down the drain.
When it comes to meme tokens, there simply are no rules, and that's why they tend to bring in so much hype, so as exciting as they are, always be careful as they are also the most volatile type of token too.
👀 How to spot a meme token
With thousands of random meme tokens out there, picking winners is tough. Now while there is no certainty of knowing whether a meme token will be successful, there are signs and ways to increase your chances of finding more successful meme tokens than not. Generally, look for ones with:
Active communities on Reddit, Twitter, etc. building hype
Memes that are widely recognized and haven't fully played out yet
Actual utility or roadmap beyond just being a joke
Substantial buy orders, or movement
Latest developments or links to well known people and brands.
Even with all that, meme tokens are still extremely speculative, and you should only invest what you're truly willing to lose as these tokens tend to be the most volatile tokens of them all, but equally… they can be the highest returning tokens too.
Remember, always do your research, and stick to a plan.
💲 How to Buy and Sell tokens
Once you’ve figured out which tokens you want to invest in, it is now time to actually buy them. Most major crypto exchanges like Coinbase and Binance list the top meme tokens like Doge for easy buying/selling with normal fiat currency.
However, it means that you are incredibly limited to choice. For more obscure tokens, we’ve got you covered as we have more meme tokens on Flooz.xyz than any Centralized Exchange, and we provide the best value across multiple different chains too, making your decision making easier than ever.
Typically when buying crypto tokens, you’d incur gas fees. On Flooz.xyz, we provide that automatically at the best rate possible, so you only have to worry about which tokens you want, without the added hassle that you would see on centralized and other decentralized exchanges.
The same applies to when you want to sell, we will provide you with the best possible price, with minimal costs. The only thing you need to focus on is whether you want to sell or not.
Simply search for the token of your choice, and buy it within seconds, straight into your Flooz wallet - Hassle free!
💎 Hot tips before you dive in
Here are some tips for keeping your meme token trading in check:
Don't go all in - only allocate a small % of your portfolio to meme tokens due to volatility and success rate
Set stop losses and take profits along the way to lock in gains
Make sure to thoroughly research each token before investing to give you the best advantage
Stick to a plan, and avoid FOMO (Fear Of Missing Out) or revenge trading (trying to claw back losses)
Have fun and don't take it too seriously - these are memes after all!
And that’s it!
Hopefully you now have a better understanding of what meme tokens are, how to trade them, how to spot a good project from a bad one, and some best practices to go along with it.
