If you’ve been around the crypto world for even a short while, you’ve likely heard of the meteoric rise—and sometimes catastrophic falls—of memecoins. These are the quirky, often humour-driven cryptocurrencies that, despite their seemingly frivolous origins, can generate serious returns for early investors. But, as I recently discovered, investing in memecoins is not as straightforward as it might seem. Armed with some of the principles behind CryptoCracker’s recommendation engine and a healthy dose of curiosity, I decided to dive into the wild world of memecoins and see if I could turn a quick profit.
The First Step: Buying My First Memecoin
My journey began with SUNDOG, a memecoin that had been making waves in the community. Riding the hype, I purchased some SUNDOG and immediately set up a sell order using CryptoCracker’s trailing stop/loss strategy, with a 15% threshold. Unfortunately, the market volatility had other plans. SUNDOG’s price spiked quickly, then dropped past the 15% limit straight away, triggering my sell order almost immediately.
- Lesson #1: High volatility can quickly activate your sell orders, sometimes before you’ve had a chance to see any real gains.
Experiment #2: Doubling Down
Not one to give up easily, I decided to try the strategy again. This time, I reinvested in SUNDOG, but I added an activation price set at double my initial investment. To my delight, the coin’s value doubled, and although it dipped slightly afterward, my trailing stop/loss order executed perfectly, allowing me to lock in my profits.
Victory! I managed to double my investment, and my confidence was soaring.
Experiment #3: Expand the portfolio
Encouraged by this success, I decided to diversify my portfolio by adding two more memecoins: SUNCAT and TRONY. SUNCAT was being touted as the next SUNDOG, while TRONY had recently surged by 1150%. I applied the same strategy across all three coins.
At the time of writing, my results are mixed. SUNCAT doubled in value, allowing me to recover my initial investment. SUNDOG has remained relatively stable, hovering just below my activation price, I could cash in but will hold off another 24h. TRONY, however, did not live up to its hype and has since plummeted in value. Thankfully, I didn’t go all-in on that one!
- Lesson #2: To truly benefit from memecoin investments, you need to get in early—very early.
- Lesson #3: Not all memecoins are winners in their first few days, or at all.
- Lesson #4: Setting a high activation price doesn’t guarantee a profit, especially in a market as unpredictable as this.
How CryptoCracker Helps in the World of Memecoins
One challenge with memecoins is that major exchanges often don’t list them until they’ve somewhat stabilized. This means you’re often trading in the wild west of lesser-known exchanges or relying on timing and luck.
CryptoCracker’s recommendation engine, currently working with your Coinbase portfolio, can be a game-changer. By analysing your investments against the market every six hours, it automatically adjusts your strategy. If any of your coins dip below a 15% loss threshold, the engine can shift your strategy accordingly to minimize losses. If they’re performing well, it leaves them alone to ride the wave, maximizing your potential returns and avoiding the very short term spikes and dips.
Of course, while this system can help mitigate risks, it’s important to remember that there is always an element of risk involved, especially with memecoins.
Curious About My Memecoin Picks? Here’s What They’re About:
- SUNDOG: A community-driven token that gained traction through viral marketing. It’s often described as a “fun and friendly” coin, similar in spirit to the original memecoin, Dogecoin. However, its value can be extremely volatile.
- SUNCAT: Dubbed as the “sibling” to SUNDOG, SUNCAT capitalizes on similar themes but with an emphasis on eco-friendliness and charitable donations to animal shelters. Its popularity surged among investors looking for the next big memecoin.
- TRONY: A more obscure memecoin branded as “The dog memecoin of Tron” Inspired by TRON DAO, it skyrocketed overnight due to a viral social media campaign. However, its value dropped just as quickly, illustrating the risky nature of chasing memecoin trends.
So, while the allure of getting rich quick with memecoins is strong, the reality is that it requires careful strategy, timing, and a bit of luck. With tools like CryptoCracker’s recommendation engine, you can navigate this volatile market with a bit more confidence—but always be prepared for the unexpected. Happy trading!