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Crypto Expert Reveals How to Find ‘High Risk, High Reward’ Meme Coins
May 10, 2024 12:26 pm | 3 minutes reading
Pseudonymous cryptography researcher CryptoKoryoin his latest YouTube video, he offered valuable information and strategies for traders looking to trade meme coins.
What happened: The researcher highlights the potential of meme coins with stories of individuals turning $1,000 into a million dollars in a month. However, the reality is often different, with many traders who buy a meme coin thinking they are in early only to end up at zero.
He cited the real example of someone who bought Pepe worth 600 dollars on the first day it was tradable, sold it the same day for a profit of 60 dollars, but could have made 9 million dollars if he had stayed.
He recommends having a combination of two approaches to play well:
- Meme coins tend to perform best during specific periods, such as Q1 2024 and Q2 2023.
- Studying parabolic movements and waves of adoption, as meme coins often experience explosive growth followed by sharp corrections.
He divides meme coin adoption waves into three distinct phases:
- Wave one: Riskiest but offers the greatest potential rewards, early buyers are positioned to make substantial gains. (Examples: Popcat, Grok, BOME)
- Wave two: More challenging as traders must determine whether a meme coin will continue its upward trajectory or disappear. (Examples: Dog hat (CRYPTO: WIF), Pepê (CRYPTO: PEPE), Bonk (CRYPTO: BONADO))
- Wave three: Less risky as the meme currency is already established. Potential returns are lower compared to previous waves. (Examples: Dogecoin (CRYPTO: DOGE), Shiba Inu (CRYPTO: SHIB))
He cautions influencer investors/marketers and “shillers” who may have their agendas, but not to ignore them completely as they can provide valuable information.
Read too: DOGE is the ‘BTC of memes’ and these two meme coins are ETH and a ‘must have’, claims the trader
Why this matters: CryptoKoryo notes that trading meme coins requires discipline, patience, and a long-term perspective. “Don’t try to get rich overnight,” he advises. “Try to focus on longevity as a trader and becoming a little better with each currency trade.”
In your meme coin narrative X post, the expert highlighted that the number of meme coins is very high and is increasing at a rapid pace, increasing supply, unlike in 2021 when demand exceeded supply.
He looks at two strategies: a fully on-chain approach where the risk/reward is high but the win rate is low. Alternatively, wait for a narrative to take over Crypto Twitter, thus increasing the win rate but giving up some of the risk/reward ratio.
Kroyo opts for a combination of both approaches, as few of the thousands of meme coins will be profitable. Compared to meme coins in 2021, Koryo thinks “It’s more like high risk, low reward for most.”
What is the next: The influence of Bitcoin as an institutional asset class expected to be thoroughly explored at Benzinga’s next event Future of digital assets event on November 19th.
This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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