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Author of the article:
Memecoin trading is a high-risk investment with the potential loss of up to 100% of the allocated liquidity. 😬💀 I am not encouraging you to start trading but sharing my experience in on-chain analytics 🔗📊 and its practical application, ways to find traders with high PNL, and research methods. I recommend using no more than 5% of your capital 💵 for memecoin speculation.
Why do people engage in memecoin trading? It’s 100% gambling 🎲 with the goal of making 100-1000X gains 📈 in a short period.
I simplify some details so that the guide doesn’t turn into technical documentation 🧑💻, but remains a practical guide 🧰. The approaches are universal and can be applied to Mainnet on-chain analytics and EVM networks. 🌐
Section 0 🧘 Mental Setup
To trade memecoins, you need to abandon the classic value assessment model 🧠❌.
This is a strange market where people bet money 💰 and estimate how much a joke might be worth in the future. We are joke traders, and our thought process is something like: "Can this joke be worth $100M in two weeks?" 😂💵
To quickly assess the potential of a meme, view it through a similar lens 👓 or find a metaphor that makes sense to you. Ask yourself: which group of people will find the meme funny, irritating, inspiring, or, in general, emotionally engaging? 🤔💬
Section 2 ⚖️ Assessing the Sentiment of Solana Degens
Nothing reflects the mood of the degens better than the fees collected 💸 by the most popular Solana trading bot, @BONKbot 🤖
We see that Volume and fees are again skyrocketing 🚀 after the New Year's holidays. 🎉 For us, this is a sign—there is activity. 🔥
Section 3 💡 Finding Ideas
I highlighted 4 sources of ideas: 🔍
- On-chain data. 🔗
- DEX aggregator trends. 📊
- Telegram and Twitter callers. 📲
- Burn & lock liquidity trackers. 🔒
Source 1 🟢 On-chain Data Analysis
This is my primary source of ideas, so there will be more information about on-chain analysis. 💻🔍
For example, let's look at a token $WYNN showing activity at the time of writing. ⏳
Go to the Top Traders section on Dexscreener : 📈
Don't look at addresses with high PNL and huge trading volumes; these are bots, and you can't compete with them manually. 🤖💨
Instead, look for addresses that made the most profit relative to their investment. For example, one trader turned $1,100 into $75,000—that looks interesting. 💵🔝 The trader's address is Ci8xQ2Nk3JV3YK3sckEdK58M8U9dMstLcxpMBJHTypKR.
Click on the funnel icon 🔍 to visually see the trader's entry and exit points on the chart 📉:
The trader bought tokens early, took profits, left a moon bag 🌕💼, then saw the project developing and increased the position (smart behavior), and later unloaded during the movement. 📈💡
Analyze the Trader Under a Magnifying Glass 🔎 We'll analyze and track the trader using this setup:
- Solscan: We'll check balances, transactions, and label the trader. 🧾🏷️
- Cielo: The best free wallet tracker. Allows tracking up to 10 Solana addresses for free. 🎟️
- Step.finance : Portfolio tracker. Similar to Solscan but with a more user-friendly interface. 👍💼
Source 2 🟢 DEX Aggregator Trends
It’s simple; we search for: 🔍
- Preferably new tokens with a cap of $1M and liquidity of $50k. 💰📈
- Huge volumes relative to the cap. 📊
- Tokens with a capitalization of no more than $50M. 💸
My Rating of DEX Aggregators:
- Dexscreener: The favorite and leader in the niche. 🏆
You can use filters to set up the desired output. 🎛️
Source 3 🟢 Telegram and Twitter Callers
This is a less effective option for me, as I’m not well-versed in Twitter space. I use it as an additional information source. 📱💬 For some, it might be the best source of alpha. 🧠💡
Keep in mind that when someone starts shilling a project, they have already bought tokens or will receive them as payment for advertising—keep this in mind. 💰📣
As an example, here is a Telegram link 🔗
Source 4 🟢 Burn & Lock Liquidity Trackers
Here are a couple: 🔒
Section 4 🕵️♂️ Project Check
Now we are getting closer to the purchase. 🛒 You already have a watchlist of tokens, so let's start conducting due diligence. 📋✅
Check the token for rug pool or honey pot potential. 🐝💀
Take the token contract address from any aggregator and check it on a specific website http://rugcheck.xyz/ 🔗🌐
It is important that liquidity is locked, so the contract deployer cannot run off with our money. 🔒💰
Top Holders — I do not recommend entering tokens where the Top Holders control more than 15% of the supply, as they will likely exit by dumping on us. In this case, 5.8% is a good indicator. 🟢 Early buyers (jeets or flippers) have already sold their bags, meaning we won't see a critical mass of sell pressure on the token that would dump any new purchases. 📉🚫
Checking the project on Twitter: Look at who is posting about it and how strong the influencers are. 🌐📢 A project might have 50k followers, but if 90% of them are fake, such callers are not interesting to us. 🤥❌
Remember, the power of a meme lies in its community—evaluate how active it is. 💪👥
Mutable metadata — The ability to make changes to the contract is not critical, but if the contract is immutable (Renounced), it is an additional plus. 🛠️✅
Renounced means that the developer gives up ownership or control of the contract, along with the ability to make changes in the future. It's a trendy way of saying the contract is now fully decentralized. 🔒👨💻
Quick checklist format:
- Liquidity must be locked or burned. 🔐🔥
- Top Holders should not control more than 15% of the tokens to avoid early buyers' sell pressure. 📊🚫
- A big plus if the contract is Renounced. 💯✅
Section 5 🤖 Trading Bots
Automation gives you an edge over the crowd of newcomers and a bit more peace of mind. 🤯🤖
@BONKbot: The leader among Solana trading bots. 🥇
Pros:
- Simple and intuitive interface. The best option to start with! 🖥️✔️
- Good speed. ⚡
- Maintains accumulated PNL until the position is fully closed. 🔄💼
- Has mirrors, in case the main bot is overloaded and speed drops. 🪞
Cons:
- Minimal functionality: no limit orders, stop loss, take profit. 🚫
@nfd_tron_trade_bot The leader among Tron trading bots
Conclusion 📝
I tried to provide a practical guide without unnecessary information, to which you can refer as memes gain popularity in this cycle. The approaches are universal, and you can use them in EVM networks, but I’ll prepare a separate guide about them if I see interest in it. If you have questions, feel free to ask in the comments. 💬💡 Good luck! 🍀
Additional Information: There are also memecoins on other networks like Tron, TON, and Binance Smart Chain (BNB Smart Chain). These networks offer various opportunities for trading and speculating on memecoins, following similar strategies and tools as outlined above. 🌐💰🎮
Join a community of crypto enthusiasts, founders, and coders! 💻👥