Memecoins and Shitcoins Limitless Opportunities.
Starting your journey into the volatile world of shitcoins can be both exhilarating and perilous. As you navigate this space, it’s crucial to be prepared and aware of the many pitfalls that come with trading these highly speculative assets.
Memecoins and Shitcoins overview
Memecoins and shitcoins terms once used lightly in the cryptocurrency community — are now serious business with boundless prospects. These digital assets, often created as jokes or from online trends, have formed a niche in the vast crypto universe. While traditional cryptocurrencies like Bitcoin aim to solve real-world problems, memecoins and shitcoins often start as social experiments or community-driven fun.
The market for these coins is vast and varied, home to hundreds of tokens with the potential to either soar to incredible heights or fade away. Their value can skyrocket from a single tweet or viral event, and just as quickly, tumble down. It’s this high volatility that gives them a unique edge, offering both high risks and high rewards.
Starting Basics
This article serves to provide readers with our best practices and strategies as far as Shitcoining goes. There’s exceptions to everything in here, but what is outlined is generally good practice to follow.
You will lose money before you make it, Guaranteed.
Consider the money you lose as your tuition fee for learning. Most shitcoins are rugs, and even those that aren’t usually fail. Trading shitcoins is about finding the few that succeed to offset all the losses you will encounter.
Only invest what you’re willing to Lose.
When you spend money on a risky coin, consider it gone. If you get it back or make a profit, you’re lucky. Every cent spent on these coins is pure gambling and should be money you don’t need. When you buy, assume it’s already lost. Hope for the best, but plan for the worst.
Don’t be over-invested, and/or using money you shouldn’t for shitcoins
If you’re feeling nervous about the amount you have in a token, then you are over-invested, and/or using money you shouldn’t for shitcoins. Scale out, take a breath, and remember you need to consider your SOL gone the second you ape a shitcoin.
Don’t FOMO, DCA.
It’s easy to miss a coin early and then buy at the highest price because of fear of missing out (fomo). If you buy at the top, be smart and buy at the bottom too. Plan to use DCA on a coin that has gone up quickly. Start with 50% of what you want to invest at the top price, and wait for a drop to invest the rest. If the price doesn’t drop, it’s okay because you already have an entry and can continue to DCA. If the price goes down, great—you can lower your average cost and make a profit sooner.
Try to Tend to do a little into most seemingly legit coins.
A good rule of thumb is to stay proportional to the market cap 0.5 SOL at a 50K MC coin is 10 SOL if you’re lucky and it hits $1M market cap.
Liquidity to Market Cap ratio.
Important relationship to pay attention too. The lower the liquidity something has, with a higher market cap, the easier it is to pump or dump. Higher mc to liq relationship makes it a more stable trading pair. Most coins have a ratio of 1:10 liquidity to market cap. So a $1M mc token will often have ~$100k liquidity.
Going up is much harder than going down.
It’s really fucking hard for a shitcoin that has pumped to 450k market cap to go 2x to 900k market cap. But its super fucking easy for that same coin to drop down to 100k market cap or less. Take profit on your winners, don’t hold out waiting for a moon to 2x again.
Missed money is better than lost money.
Realize profits, take your fucking initials out early, and ride moonbags. Don’t leave your balls out to get kicked (or anything else for that matter).
Semi-Consistent volume.
Sustained volume is ideal, at least to some degree. Of course this doesn’t always apply, but if volume is falling off some, it might be a good indicator that we will see some sells come in, especially with newer tokens.
Don’t spread yourself too thin.
Focusing on 3-5 coins tops is the way. If you spread yourself too thin across too many tokens, the one winner wont be enough to offset the losers. Focus on a few coins at a time.
Sometimes wipe the slate.
Shitcoins have a short life-cycle. Most don’t make it past a few days. It can be good every few days to wipe the slate, sell most of the bags, and start hunting for fresh ones again. (leaving moonbags in the coins you’re big on is helpful).
A little goes a long way, don’t over-invest
Many early shitcoiners will throw 5 to 10 SOL at every play. This is a recipe for disaster. Even 0.5 SOL in the right coin at the right time can bag you thousands of dollars. Better to have more shots than bigger bullets. Once you’ve confirmed your bags/buys, then it can be safer to add to/grow a position.
Use a fresh wallet for shitcoins.
Use separate wallet specifically for trading low-value or highly speculative coins. This practice helps keep your primary funds secure and makes you organized and safe.
What are Rug Pulls?
In the crypto world, a rug pull happens when a project’s creators suddenly remove all its funding and disappear. This term comes from the idea of suddenly pulling the rug out from under someone, causing them to lose their footing unexpectedly. Rug pulls are especially common in DeFi projects linked to Decentralized Exchanges (DEXs). Here, developers might set up a new cryptocurrency, generate hype, and attract investments through an Initial DEX Offering (IDO). However, once they gain sufficient control over their liquidity, they might drain these funds by selling off their stake or exploiting loopholes in smart contracts, leaving investors with worthless tokens.
Rug pulls thrive in environments where tokens are easy to create and list on DEXs with minimal regulatory oversight. The lack of Know Your Customer (KYC) and Anti-Money Laundering (AML) checks makes DEXs appealing platforms for such fraudulent activities. Once a project gathers enough investor interest and liquidity, the developers can either sell their tokens at peak prices or withdraw the entire liquidity pool, dramatically dropping the token value and leaving investors in a bind.
What are Honeypots?
Imagine you have a jar of delicious-looking cookies that you really want to eat. But when you try to take one, the lid snaps shut! It’s a trick jar!
In the world of crypto trading, a honeypot works similarly to this trick jar. It appears to be a promising trading opportunity or a sexy chart where you think you can make money. However, once you buy the coins, you discover you can’t sell them. In this honeypot scenario, only the creator can sell the coins, not you. So, it’s a trap designed to make you believe you can profit, but in reality, you end up with something you can’t use.
What are Pumps and Dumps?
Imagine someone starts shouting about a special jade amulet they’re selling. They claim it’s extremely rare and will soon be very valuable. People gather around, eager to buy this jade amulet, thinking it’s a great investment. As more people want to buy it, the price goes up. The seller, who has many of these amulets, sells all of them at the high price and quickly disappears. Later, when the buyers try to sell the jade amulets, they find out they’re not rare at all and not worth much. They realize they’ve been misled into paying far more than the amulets are actually worth.
This is similar to what happens in a “pump and dump” scheme in cryptocurrency. Some people spread exciting news about a certain cryptocurrency to make its price go up quickly. Many people buy it thinking it will keep going up. But then, those who started the rumor sell their shares for a lot of money. Suddenly, the price drops, and many people are left with cryptocurrency that’s not worth much anymore.
Final Words
Our last words of wisdom to impart to you, the reader, before you embark on your Shitcoining journey.
To sum it up, shitcoins are one of the riskiest, and most rewarding asset classes to trade. We like to say “rugs, honey, and money” when it comes to them. You WILL get rugged. You WILL lose money. You WILL feel like shit after.
But if you keep at it long enough, hone your skills, and leverage alerts and tools like we provide, while working beside our expert community of shitcoiners – you’re probably going to make it. When you try and fail, you have to be ready to try again.
You will 100% lose before you win, and you have to be able to stomach those losses and keep going until you make it back. Don’t invest more than you’re willing to lose. And most of all, have fun. Shitcoins are like gambling with a modicum of control over the result. When leveraged properly, they can make you astronomical returns from very little investment.
Good luck! Sol Sniper Bot Team.
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