Understand how to source memes for trading by looking at opportunity identification and filtering through platforms like Dexscreener.
Perform due diligence on meme coins by checking for burned liquidity, mint and freeze authorities, holder distribution, and top trader PnL health.
Size your bets based on the Kelly criterion formula, considering probabilities of success and potential bet gains. Tactical execution includes recycling costs, dollar-cost averaging, and follow-on investments.
To start trading meme coins, you need to go through steps like swapping fiat for cryptocurrency on a CEX, taking control of your tokens on a non-custodial wallet, and bridging ETH to the Base network if necessary.
When using DEXes to swap tokens, always use the coin address rather than the token name or ticker to avoid potential scams with similar names or tickers.
Meme coin trading involves high risks of losing assets, so only trade with funds you can afford to lose. Be cautious about slippage, network congestion, and transaction failures when using DEXes.
Crypto bull runs occur every four years and can mint new millionaires and billionaires.
Shitcoin sniping in meme coin trading has similarities to pre-seed VC investing, including the dominance of returns by power law and the impact of FOMO on deal economics.
New traders in meme coin trading should pick a blockchain ecosystem, track PnL in the network's native token, and avoid getting influenced by noise like fake influencers and copy trading.