Launched in April 2023, PEPE has quickly gained popularity due to its humorous and nostalgic appeal to internet culture enthusiasts. As of June 2024, the total market capitalization of meme coins is roughly $63 billion. The top 6 meme coins are DOGE, SHIB, PEPE, WIF, BONK, and FLOKI – according to CoinMarketCap data.
As with other cryptocurrencies, meme coins rely on blockchain technology, a type of distributed database used to track virtual assets, including cryptocurrencies and non-fungible tokens (NFTs). Conversely, meme cryptocurrencies often follow a get-rich-quick purpose, or they exist as more of a joke than anything else. These projects are listed by market capitalization with the largest first and then descending in order. The low price point for meme coins might seem attractive to potential investors, but proceed with caution. If you’re intent on purchasing a meme coin, it’s best to start small as their prices are highly unpredictable. Dogecoin runs on its own blockchain network and uses a proof-of-work consensus algorithm that allows cryptocurrency miners to validate transactions.
Risk Management Techniques for Meme Coin Trading
Some meme coins offer utility or are now part of wider decentralised finance (DeFi) ecosystems. For example, Bone ShibaSwap (BONE) is the governance token of ShibaSwap, a decentralised exchange (DEX). Meme coins are cryptocurrencies, like Bitcoin or Ethereum, that pay homage to a meme, which is an interesting or funny idea captured in an image, video, or another form of media. Like the memes they’re based on, meme coins are designed to go viral and be shared. Profiting from trades involving meme coins, including those based on Solana, may have tax implications that investors need to be aware of.
It allows users to execute trades swiftly, taking advantage of market movements without delays or high transaction costs. For instance, when purchasing popular meme coins like “SOLpunks” or “MEMEz,” the quick confirmation times provided by Solana can be advantageous in capturing favorable prices. Meme coins are cryptocurrencies that don’t take themselves as seriously as leading digital currencies like Bitcoin and Ethereum. Dogecoin (DOGE) — widely regarded as the first meme cryptocurrency — was created in 2013 by software engineers Billy Markus and Jackson Palmer. The Doge name comes from a popular meme at the time featuring a Shiba Inu dog named Kabosu.
The Ultimate Meme Coin Trading Guide 🚀
Solana, known for its high-speed blockchain technology, has become a prominent player in the crypto space. The network’s ability to process thousands of transactions per second with low fees has attracted a growing community of developers and investors. This efficiency makes it an appealing platform for meme coin creators and traders.
Best Crypto Wallets: Top Picks for 2024
For instance, Chainlink (LINK) connects blockchains to real-world data, has a serious whitepaper and has been recognized by the likes of MIT, The Wall Street Journal, Forbes, and CoinDesk. On the other hand, Diarrhea Coin (DIAH) has a muddier purpose with little value besides being “the most liquid asset ever created,” according to its website. Often the founders and developer teams of meme coins are also shrouded in anonymity. Some meme coins are available on popular centralized exchanges like Kraken, Robinhood or Coinbase. But more often than not, meme coins are not accepted by these exchanges for not meeting safety and value standards. Most often, meme coins are only available for trading or swapping on decentralized exchanges (DEXs) like PancakeSwap.
In fact, the market capitalisation of the top two meme coins, Dogecoin and Shiba Inu, is in the billions. Keeping on top of cryptocurrency trends requires an understanding of how meme coins work and how they’re changing. As meme coins gain popularity, they become potential targets for hackers and scammers. Protecting your investments is crucial to avoid the risk of losing your holdings due to security breaches or unauthorized access. These coins often gain popularity due to their association with internet memes or trends, leading to a surge in demand.
Utility Meme Coins
When buying Solana meme coins, it’s crucial to choose a secure wallet to safeguard your investment. With the increasing popularity and potential of meme coins, they have become targets for malicious actors. These digital assets often leverage internet memes or cultural references as part of their branding, attracting communities that share similar interests. “Meme coin” is a term used to refer to cryptocurrencies named after characters, individuals, animals, artwork, or anything else that can be mimicked. Most are supported by enthusiastic online traders and followers and are generally intended to be light-hearted and fun. While meme coins may be entertaining to some, they are also highly risky investments and may hold little or no intrinsic value.
- The main difference between DOGE and SHIB is that the latter has a limited supply of 1 quadrillion tokens, of which 50% were burnt and donated to charity.
- This efficiency makes it an appealing platform for meme coin creators and traders.
- In these schemes, a group of shilling traders artificially inflates the price of a meme coin by purchasing large amounts and spreading positive, often misleading information to attract more buyers.
- However, the speculative nature of these assets, coupled with their high volatility and lack of intrinsic value, makes them a potentially risky asset choice.
- While the financial risk of investing in meme coins is high, they’re still an important part of the cryptocurrency market.
SHIB’s ecosystem also includes a decentralized exchange, an NFT art incubator, NFTs, and an NFT game. Their ecosystem, use cases, and fundamentals are often defined by the collective jokes of their communities. Legitimate projects typically have a vibrant community that engages in meaningful discussions, asks critical questions, and receives transparent answers from the developers. Be cautious of overly promotional content, exaggerated claims, or communities that discourage critical thinking. Also, beware of fake followers or bots that may artificially inflate a coin’s social media presence.
It’s essential to select a platform that aligns with your preferences and provides a seamless buying experience. Unlike Bitcoin, which is capped at 21 million coins, meme coins often have a high or unlimited supply. For every Dogecoin, there are many other meme coins that have left retail investors heavily underwater. More than 200 such coins have been created since the launch of the original meme coin. But in what would become a hallmark of other meme coins to follow, Dogecoin began to make a name for itself thanks to a fervent community of users, amassing somewhat of a cult status. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor.
While meme coins can be highly speculative, there are several key factors and steps traders can take to assess whether a meme coin is legitimate or potentially fraudulent. It adds an extra layer of protection against potential threats in the digital landscape. When choosing a wallet, prioritize platforms that offer robust security features such as multi-factor authentication and encryption.
Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. To steer clear of pump and dump schemes, be wary of sudden, unexplained price surges and perform research rather than relying on hype or tips from unknown sources. Before engaging in active trading, it’s essential to equip yourself with a comprehensive set of analysis tools.
Can You Create Meme Coins?
SHIB also saw meteoric growth, rising to the best method to mine cryptocurrency a market cap of $41 billion in October 2021. Please note that the availability of the products and services on the Crypto.com App is subject to jurisdictional limitations. Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions. With this guide, you should be able to catch meme coin plays as they launch on DEXs, profiting before 99% of the market. To create a Solana-compatible wallet, you need to follow specific steps depending on the chosen platform. Typically, this involves visiting the official website or app store of the selected platform and clicking on the “Sign Up” or “Create Account” button.