I am certain you have heard the rants about individuals making fortunes with meme coins. You have attempted to trade them on your own, but you continuously encounter rug pulls and losses. In this guide, we’ll discover why starting traders end up in these failings, and how you can avoid them with a few easy, free programs
A Comprehensive 6-Week Plan for Trading in Meme Coin
First of all, we are to apply Dex Screener. Visit dexscreener. It is again selecting new pairs from the available options and this can be done by typing the given word in adobe com and then selecting new pairs on the left side. Modify the condition for the “Age” filter to “within an hour”, and click on “Age” once or twice. This will show the latest products — those uploaded in the last few minutes.
When trading meme coins, this is perhaps one of the most sensible pieces of advice to heed; only trade on one blockchain. In the same way, do not use many blockchains because this incurs many wallets and bridging is complex. For simplicity of funding, use Solana without complications particularly if you are going to be flipping assets, with relatively small price tags.
Setting Up Dex Screener for Solana
1. Filter for Solana: From the toolbar, select “Filter” and then from the drop-down options, select “All Platforms” then select “Solana” before applying the filters.
2. View Solana Launches: Use the filter to get to see the newest projects on Solana.
Recognizing the Warning Signs in New Launches
1. High Liquidity: Nothing with extremely high liquidity, it is really briefly launched (e. g. , $50k, $100k). Normally, other legitimate new coins do not have such a high possibility of liquidity at the time.
2. Liquidity vs. Market Cap: That is, if liquidation to market cap diploma outperforms the market cap the enterprise is unhealthy information. This is usually a harbinger of something fraudulent most probably an online fake business or a fake job offer.
3. Liquidity Status: Also confirm whether liquidity is locked and burnt. Liquidity here is said to be safe when a green lock icon appeared.
Utilizing Free Tools
For all the Solana meme coins, SolScanner is recommended. Go to Dex Screener, then copying the contract address of the coin and later pasting it on the SolScanner Twitter. This bot will flag potential issues such as:This bot will flag potential issues such as:
- Mint Status: Disable minting to avoid the creation of even more tokens, this would negatively influence the value of each token.
- Liquidity Burn: The ideal case would be to look for 100% burnt liquidity on any pool, so that the developers can’t withdraw any funds.
- Holder Distribution: Stay away from coins which have a number of big whales, because they can easily decide to sell their coins and pull the value down.
Avoiding Common Traps
Nearly all rug pulls happen soon after the launch or the beginning of trading of the particular coin. What is more, by waiting not less than five minutes before trading, you will be able to leave 95% of the scams behind you. Ordinary coins are mostly always low in market cap even after they are launched and this is when you should get in safely.
Recognizing Scam Indicators
1. Unnatural Charts: One should be extremely cautious with charts which depict unnatural and consistently increasing patterns. Another trick used by scammers include the use of bots in creating a fake demand.
2. Volume Trends: Lower trading volume is usually the signal that the dram cannot get back, among other things. If the volume of the stocks has gone low whilst the price is still constant, one should consider selling.
3. Holder Counts: Success is not possible for a coin having very few holders say fewer than 5 or 10 holders of several decentralised coins.
Last Words and Actual Examples
- Rug Pull Signs: Focus on checking the balance sheets and transaction records for any instance indicating a removal of liquidity.
- Pump and Dump Patterns: Approach coins that start at certain liquidity points: these tend to be pump-and-dump schemes.
For more details regarding the tips and more intricate information on how to trade in meme coins, please leave a comment below. I am here to help you one step further.
