09-04-2022, 11:33 PM
The advantages and pitfall of meme coins: What are the risks? Can you still capitali
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/x5n86q/the_advantages_and_pitfall_of_meme_coins_what_are/"> <img src="https://b.thumbs.redditmedia.com/tOyCaE3E_KkTmq1Po2cMIgUOhoqNp3JYtwyq1Jd5-mg.jpg" alt="The advantages and pitfall of meme coins: What are the risks? Can you still capitalize on them? If you're going to jump on them, when is the best time to buy them?" title="The advantages and pitfall of meme coins: What are the risks? Can you still capitalize on them? If you're going to jump on them, when is the best time to buy them?" /> </a> </td><td> <!-- SC_OFF --><div class="md"><h1>What place do meme coins even have in crypto?</h1> <p>You can say the father of meme coins was Doge. It wasn't the first nor the only meme coin, but it was the first one that definitely gained traction.</p> <p>It was made as a joke, but the team behind it still tried to make a real crypto with functions, and a blockchain. It was loosely based on other crypto like Litecoin, used proof of work, and used faster transaction and lower fees.</p> <p>In the process, they inadvertently created a coin that was pretty useful for payment, along with BCH, Litecoin, and XLM at the time.</p> <p>But the part that made it stand out, requires more of a degree in psychology to understand, than in tokenomics.</p> <p>It built a fan following, became the "fun and friendly" crypto, and was able to built a big community behind it.</p> <p>That's probably the real strength and real place for meme coins. That psychological x factor.</p> <h1>The pitfall</h1> <p>One of the big problem that can still stem from this, is greedy people, and even scammers, who have picked up on that x factor.</p> <p>While Shib attempted to piggy back off the Doge hype, it still had a real attempt at utility. But coins like DogeElon straight up tried to exploit the Doge hype and Elon hype, by creating a coin that could confuse people into thinking it's like Doge, or associated to Elon.</p> <p>And there have been many meme coins that have been straight up scams and pump and dumps.</p> <p>It's not always nefarious.</p> <p>Sometimes they just jump in on the latest joke or meme, like with VDICK.</p> <p>​</p> <p><a href="https://preview.redd.it/dymcc1rweul91.jpg?width=680&format=pjpg&auto=webp&s=7171ef38df248f2150b966b4bccaf415b0572eb8">https://preview.redd.it/dymcc1rweul91.jpg?width=680&format=pjpg&auto=webp&s=7171ef38df248f2150b966b4bccaf415b0572eb8</a></p> <p>But even if it's for fun, it's still a coin, and there's always going to be an element of greed.</p> <p>People will try to make money.</p> <p>This is the other pitfall of meme coins. They are fueled by fad for that meme, or by hype. And often turn into pump and dumps.</p> <h1>Can you still make money with meme coins?</h1> <p>Absolutely. And you can just as easily lose money. </p> <p>This is not for everybody.</p> <p>It shouldn't be approached like an investment. They're more like a gamble. You're gambling on a hype train, or even hype cycles.</p> <p>If you really want to take the risk, you really should only jump on this with "play" money, or money you are willing to lose. This is definitely not a retirement plan.</p> <p>We've all seen what happened after the Doge and Shib hype reached its peak.</p> <p>​</p> <p><a href="https://preview.redd.it/7lvxpcowgul91.jpg?width=988&format=pjpg&auto=webp&s=4b14355c80afe765951bd56074f8c94bf9a8e0a1">https://preview.redd.it/7lvxpcowgul91.jpg?width=988&format=pjpg&auto=webp&s=4b14355c80afe765951bd56074f8c94bf9a8e0a1</a></p> <p>​</p> <h1>When to buy meme coins?</h1> <p>As it should become obvious, the worst time to buy into them, is when the hype train is already going at full speed.</p> <p>So avoid hype, and also avoid bull markets.</p> <p>You only want to get on a meme coin before the hype is fully on, and preferably when we're still in a bear market. When there's still a lot of fear, and most people are out of position.</p> <p>Even if you bet on the wrong meme coin during a bear market, the bull market should still lift your position a bit. So it's the one time you have an opportunity to get in with the least amount of risk.</p> <p>You'll still have to be patient, because no one knows when the bull market will come.</p> <h1>Conclusion</h1> <p>Meme coins aren't for everybody, and shouldn't be treated like a normal investment. They carry risk, and tend to be fueled by hype.</p> <p>But the very thing that makes them risky, the psychological x factor, is what can also make them still valuable and fuel a community behind them.</p> <p>Proceed with caution, but don't underestimate them. If you really want to jump on them, don't wait for the hype, and don't wait for the bull market.</p> <p>But no one knows which one is going to be big in the next bull market.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/fan_of_hakiksexydays"> /u/fan_of_hakiksexydays </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/x5n86q/the_advantages_and_pitfall_of_meme_coins_what_are/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/x5n86q/the_advantages_and_pitfall_of_meme_coins_what_are/">[comments]</a></span> </td></tr></table>
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/x5n86q/the_advantages_and_pitfall_of_meme_coins_what_are/"> <img src="https://b.thumbs.redditmedia.com/tOyCaE3E_KkTmq1Po2cMIgUOhoqNp3JYtwyq1Jd5-mg.jpg" alt="The advantages and pitfall of meme coins: What are the risks? Can you still capitalize on them? If you're going to jump on them, when is the best time to buy them?" title="The advantages and pitfall of meme coins: What are the risks? Can you still capitalize on them? If you're going to jump on them, when is the best time to buy them?" /> </a> </td><td> <!-- SC_OFF --><div class="md"><h1>What place do meme coins even have in crypto?</h1> <p>You can say the father of meme coins was Doge. It wasn't the first nor the only meme coin, but it was the first one that definitely gained traction.</p> <p>It was made as a joke, but the team behind it still tried to make a real crypto with functions, and a blockchain. It was loosely based on other crypto like Litecoin, used proof of work, and used faster transaction and lower fees.</p> <p>In the process, they inadvertently created a coin that was pretty useful for payment, along with BCH, Litecoin, and XLM at the time.</p> <p>But the part that made it stand out, requires more of a degree in psychology to understand, than in tokenomics.</p> <p>It built a fan following, became the "fun and friendly" crypto, and was able to built a big community behind it.</p> <p>That's probably the real strength and real place for meme coins. That psychological x factor.</p> <h1>The pitfall</h1> <p>One of the big problem that can still stem from this, is greedy people, and even scammers, who have picked up on that x factor.</p> <p>While Shib attempted to piggy back off the Doge hype, it still had a real attempt at utility. But coins like DogeElon straight up tried to exploit the Doge hype and Elon hype, by creating a coin that could confuse people into thinking it's like Doge, or associated to Elon.</p> <p>And there have been many meme coins that have been straight up scams and pump and dumps.</p> <p>It's not always nefarious.</p> <p>Sometimes they just jump in on the latest joke or meme, like with VDICK.</p> <p>​</p> <p><a href="https://preview.redd.it/dymcc1rweul91.jpg?width=680&format=pjpg&auto=webp&s=7171ef38df248f2150b966b4bccaf415b0572eb8">https://preview.redd.it/dymcc1rweul91.jpg?width=680&format=pjpg&auto=webp&s=7171ef38df248f2150b966b4bccaf415b0572eb8</a></p> <p>But even if it's for fun, it's still a coin, and there's always going to be an element of greed.</p> <p>People will try to make money.</p> <p>This is the other pitfall of meme coins. They are fueled by fad for that meme, or by hype. And often turn into pump and dumps.</p> <h1>Can you still make money with meme coins?</h1> <p>Absolutely. And you can just as easily lose money. </p> <p>This is not for everybody.</p> <p>It shouldn't be approached like an investment. They're more like a gamble. You're gambling on a hype train, or even hype cycles.</p> <p>If you really want to take the risk, you really should only jump on this with "play" money, or money you are willing to lose. This is definitely not a retirement plan.</p> <p>We've all seen what happened after the Doge and Shib hype reached its peak.</p> <p>​</p> <p><a href="https://preview.redd.it/7lvxpcowgul91.jpg?width=988&format=pjpg&auto=webp&s=4b14355c80afe765951bd56074f8c94bf9a8e0a1">https://preview.redd.it/7lvxpcowgul91.jpg?width=988&format=pjpg&auto=webp&s=4b14355c80afe765951bd56074f8c94bf9a8e0a1</a></p> <p>​</p> <h1>When to buy meme coins?</h1> <p>As it should become obvious, the worst time to buy into them, is when the hype train is already going at full speed.</p> <p>So avoid hype, and also avoid bull markets.</p> <p>You only want to get on a meme coin before the hype is fully on, and preferably when we're still in a bear market. When there's still a lot of fear, and most people are out of position.</p> <p>Even if you bet on the wrong meme coin during a bear market, the bull market should still lift your position a bit. So it's the one time you have an opportunity to get in with the least amount of risk.</p> <p>You'll still have to be patient, because no one knows when the bull market will come.</p> <h1>Conclusion</h1> <p>Meme coins aren't for everybody, and shouldn't be treated like a normal investment. They carry risk, and tend to be fueled by hype.</p> <p>But the very thing that makes them risky, the psychological x factor, is what can also make them still valuable and fuel a community behind them.</p> <p>Proceed with caution, but don't underestimate them. If you really want to jump on them, don't wait for the hype, and don't wait for the bull market.</p> <p>But no one knows which one is going to be big in the next bull market.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/fan_of_hakiksexydays"> /u/fan_of_hakiksexydays </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/x5n86q/the_advantages_and_pitfall_of_meme_coins_what_are/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/x5n86q/the_advantages_and_pitfall_of_meme_coins_what_are/">[comments]</a></span> </td></tr></table>