Meme coins that Will Explode - A Guide to Understanding Memecoin Mania

Introduction

"Memecoin Mania" typically refers to the rapid rise in popularity and value of cryptocurrencies linked to popular memes, often due to social media influence and speculative trading. Many wonder which are the meme coins that will explode next in 2023. These memecoins don't have a practical use case, so how do you understand them?

In this article we explore the thrilling experience of Memecoins. Learn to avigate the high-risk, high-return crypto landscape that eclipses Bitcoin and Ethereum, and arm yourself with savvy strategies like timing the hype, profit-taking, and skeptical trust. Learn to shield yourself from losses amidst market volatility and FOMO.

Most people know the top memecoins like Doge, Shiba and Floki. In this article, we'll spotlight the new top five memecoins – Pepe, Turbo, ARBDOGE, Bob, and BRC-20 – giving you a head start in the race. This isn't just an article, it's your ticket to informed, strategic decisions in the world of memecoins. Enjoy the learnings as you dive into this dynamic, humorous, and potentially lucrative crypto realm!

In this article, we delve into the phenomenon of "Memecoins,". We explore the phenomenon through the lens of the risk curve, where cryptocurrencies like Bitcoin and Ethereum inhabit the higher-risk, higher-return end, with memecoins being the riskiest yet potentially highest returning assets. We outline strategies for capitalizing on memecoins, such as timing the hype, taking profits, being cautious with trust, and balancing risk versus potential. We also emphasize the importance of safe trading practices to avoid losing money, like understanding FOMO, preparedness for meme coins' inherent volatility, and scepticism towards market predictions. But before we dive deeper into memecoins, we first have to understand why they always tend to appear at a specific cycle of the market.

Understanding Meme Coins

Memecoins, or meme coins, are a type of cryptocurrency inspired by internet memes and jokes. Examples include Dogecoin and Shiba Inu. These coins are highly speculative and supported by enthusiastic online trading communities. Memecoins are generally considered risky and volatile trading assets, as most don't offer additional value beyond collecting and trading.

Meme coins can be purchased at cryptocurrency exchanges. Some meme coins offer utility or are part of wider decentralized finance (DeFi) ecosystems. It's essential to research and understand the risks before investing in meme coins, as many are not backed by established technology or ecosystems.

Doge, the original memecoin, started as a joke in 2013. It uses a dog picture from a popular internet meme as its symbol. Elon Musk, who is the CEO of Tesla and SpaceX, started talking about Dogecoin on Twitter in 2020, calling it "the people's crypto." Because Elon Musk is famous and many people listen to him, his tweets made a lot of people interested in Dogecoin. This made its value go up a lot. This shows that when famous people talk about these kinds of digital money, it can change their value quickly.

Floki and Shiba Inu are two memecoins that have made a significant impact on the crypto scene. Shiba Inu, also known as SHIB, took the internet by storm following its creation in August 2020. It was billed as the "Dogecoin killer," due to its similar dog-themed branding and the potential for higher returns. The coin gained considerable attention when Ethereum co-founder Vitalik Buterin burned a significant portion of SHIB tokens.

Floki, named after Elon Musk's Shiba Inu dog, also gained traction thanks to the tech mogul's tweets. However, it didn't just ride on Musk's coat-tails. Floki made a name for itself when it became an official sponsor of a football club, demonstrating a real-world application and branding potential that extended beyond the digital realm. This partnership not only brought significant attention to Floki but also highlighted the potential for memecoins to penetrate traditional markets and garner mainstream interest.

While it may seem silly, there's more to these memecoins than meets the eye. They often have large and devoted online communities. These communities can be a gold mine for companies and brands because they offer a direct line to a passionate and engaged audience. Even if the whole memecoin trend started as a result of lots of cheap money flowing around, it's turned into something that can offer real value. It's not just about the potential for high returns on the coin itself, but also the opportunities these communities create for businesses.

The Risk Curve

The risk curve visually represents the relationship between risk and return for various assets, illustrating the trade-off between the two. On the risk curve, lower-risk investments are plotted to the left, carrying lesser expected returns, while riskier investments are plotted to the right, with greater expected returns.

Crypto assets like Bitcoin and Ethereum trade on the higher end of the risk curve due to their inherent volatility and unique market risks. These assets experience significant price fluctuations, contributing to their high-risk profile. As a result, cryptocurrencies are positioned on the riskier side of the curve, indicating a greater potential for both gains and losses compared to more traditional investments like stocks and bonds.

The crypto ecosystem has its risk curve, with Bitcoin being the least risky asset and memecoins being the riskiest asset. Memecoin mania can only start once we have traded through the risk curve, and Bitcoin will go up independently, with Ethereum and other blockchains lagging. After Ethereum and blockchains start gaining traction, memecoins can have their time in the sun.

Making Money Investing in the Next Meme Coin To Explode

April 2023 was filled with meme coins. Every type of meme is being created. We had a Turbo Toad Token (Turbo), A WOJAK and PEPE as huge gainers, but how do you make money and find the next meme coin to explode?

Be early to the Hype, and take profit

Memecoins get popular because of hype. People talk about them a lot, and the price goes up. Crypto influencers can create a lot of hype with their tweets. But remember, the price won't always keep rising. It could fall at any time, which is true for all crypto but especially for memecoins. When the hype of a coin is at its highest, for example when you see everybody buying into it but it's been trending up for the last 3 weeks. It might be a good idea to sell some of your coins and make a profit. That doesn't mean sell everything and forget about it. Most times it's best if you leave a small moon bag, in case your sentiment is off and it continues higher. But always sell some and pay yourself. If you don't, you might lose all your money. So be careful when buying meme coins; remember to take profit consistently.

Don't Trust a Coin at all and watch the wallets.

Many memecoins will go to approximately $0. So, trust a coin sparingly. Rather than getting swept up in the hype, aim to buy when social media buzz for a coin is at its lowest and sell when the hype reaches its peak. Be careful with big groups on Telegram, Twitter and Reddit. They can exert social pressure to buy in, even when a coin might be topping out, and some might even be trying to scam you. The best way to watch the growth of a coin is by going through the wallets. On Etherscan, you can see the number of holders of a coin. You will see the biggest holders of this coin; these wallets can influence the coin the most. Pay attention to these wallets because if they decide to sell, it can lead to a cascade of the memecoin.

Consider Risk vs Potential

Investing in memecoins is like riding a rollercoaster. These upcoming meme coins can go up a lot in value but can also go down really fast. If a coin's price has gone up a lot and then crashed, you need to think about two things:

The risk: The coin's value can keep going down. If a coin has already lost 99% of its value, it can lose 99% of its new, lower value too. This means the coin's worth can get very close to zero.

The potential: The coin's value might go back up and maybe even go higher than before. But just because it happened in the past doesn't mean it will happen again.

So, when you're deciding to invest in a memecoin, think about these two things. Do some research, know the risks, and never put in more money than you can afford to lose. Memecoins can be exciting, but they can also be risky, so it's important to be careful.

Remember, these tips won't make you rich overnight. But if you follow them carefully, you could profit from memecoins. Always keep learning and stay updated about the crypto market.

How not to lose all your money

The world of meme coin trading may not always play fair, and those who launch these coins could be manipulating the market to line their pockets. Despite these hurdles, making a profit is still possible, but always be aware that you're participating in a tough and often ruthless game.

One common sentiment among traders is dissatisfaction or regret, often wishing they'd held onto their coins a bit longer, sold them sooner, or purchased more. This perpetual cycle of 'could have, would have, should have' is a common companion in meme coin trading.

The Fear of Missing Out, or FOMO, can be a powerful force, often giving the impression that everyone is investing in a certain meme coin. However, social media can distort reality; in truth, not everyone is jumping on the bandwagon. As a trader, you must understand there will always be another trade. The fact that social media indicates that you must always be in trade is false. It's okay to be on the sidelines waiting.

In this volatile market, it's prudent to be prepared for the possibility that most meme coins could lose all their value. Treat your investments like lottery tickets, and never risk money you can't afford to lose.

Predictions about the market's highs and lows or the next trending coin should be cautiously approached. No one has a crystal ball, and the future of meme coins remains uncertain. Lastly, avoid harboring resentment towards those trading in meme coins. Let others enjoy their journey, whether they're making or losing money. After all, it's a free market; the key to navigating it is making informed and sensible decisions.

Top 5 Upcoming Meme coins

Memecoins have become a big part of the online money market. People like meme coins because they're funny, but also because they could make a lot of money from them. These are the top 5 upcoming meme coins:

Pepe

The PEPE memecoin entered the top 100 projects, getting a market capitalization of upwards of $400 million.PEPE has grown to a top 3 meme coin and is currently doing more volume than Shiba and Doge. Two days after its initial listing, the first mentions of Pepe started appearing from influential voices in the crypto space, allowing insiders to make the first purchases. The buzz around Pepe kept growing until it became a trending topic on Twitter.

It's important to be cautious. The initial buyers, who now own 10% of Pepe's supply, have seen a massive increase in their wealth. They could sell off their coins at any time, which could cause the price to drop. So, while the birth and rise of Pepe has been exciting, it's always important to remember the risks involved with these types of investments.

Turbo

Turbo Toad Token (Turbo) originating from a Chat-GPT4. The creators asked Chat-GPT 4 to make the next meme coin with a budget of $69. Guess what? It worked. Digital artist Rhett "Mankind" created the memecoin TURBO with $69. The founder pledged to follow all instructions provided by the AI and document the process. The unique aspect of Turbo Toad Token is that it is the first AI-generated meme token.The token gained momentum from the enthusiasm of its community and has surged to a $30 million market cap. The project serves as an example of the potential for AI-guided creativity in shaping the world of cryptocurrency.

ARBDOGE

ARBDOGE is a meme token that uses deflationary mechanisms and is utilized by applications in the AIDOGE ecosystem. The total number of tokens available is 210 quadrillion, and the token has experienced extremely volatile but is up over 10,000% from launch.

Bob

Bob is a memecoin associated with the "Explain This Bob '' Twitter bot, which utilizes OpenAI to provide users with insightful and accurate answers. Users can receive explanations on various topics by tagging or replying to the account. Since April 2023, BOB's price increased by more than 1,000%.

BRC 20 tokens

BRC-20 tokens have exploded over the past month and currently sits at $527 million, a 2,500% rise in the past week. The BRC-20 token frenzy has also dwarfed the blockchain's original number of Bitcoin transactions. The top four BRC-20 tokens, ORDI, PEPE, MEME, and NALS, account for 80% of the total market capitalization. However, BRC-20 tokens have little functionality compared to memecoins as they can’t be programmed.

Final Thought on Meme coins That Can Explode

The key to navigating this volatile market is understanding the risk-reward trade-off. Cryptocurrencies like Bitcoin and Ethereum are already high on the general risk curve due to their volatility, but they also hold the potential for significant returns. Meme coins, being even significantly riskier, can offer even higher potential gains but with the possibility of equally dramatic losses.

To make money from meme coins, it's crucial to be early to the hype and take profits when possible. Remember, the value of these coins can fluctuate wildly, so it's essential to act strategically and not let emotions drive your decisions. Being cautious and informed is also important. Many meme coins might crash, so putting too much faith in one is risky. Watching the movements of big holders of these coins, or 'whales', can also provide useful insights.

Consider the risk versus the potential for each coin. If a coin has experienced a significant rise and then crashes, weigh up the risk of it falling further against the potential of reaching or surpassing its previous high. Remember that most people lose money buying memecoins, and the journey may only sometimes be fair or straightforward. It's essential to be prepared for the possibility that many meme coins could lose all their value. Treat your investments like lottery tickets and only risk what you're willing to lose.

As for predictions and market trends, approach them with caution. The future of meme coins is still being determined, and no one has a crystal ball. In this ever-evolving market, some memecoins have risen above the rest, significantly impacting market capitalization and volume. Meme coins like Pepe, Turbo, ARBDOGE, Bob, and BRC-20 tokens are examples of meme coins that have splashed in the crypto ocean.

Ultimately, the world of meme coins is an exciting realm of possibility, where you might be searching which meme coins that will explode next. But they come with its fair share of risks. Being informed, cautious, and strategic in your investments is the key to navigating this landscape. Whether making or losing money, remember to enjoy the journey and learn.