Crypto Trader Shares Memecoin Trading Strategy

12 Apr, 2024 Updated 27 Aug, 2024

By David Pokima

Crypto Journalist

Expertise : Finance/Crypto Journalist

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

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The surge in memecoins has led analysts and traders to project growth and trading strategies amid market volatility. A memecoin trader shared trading strategies for users and his memecoin watchlist.

Rekt Fencer, a trader who made millions of trading memecoins wrote on X (formerly Twitter) on his trading techniques from Solana memecoins. After making millions from the trending memecoins this year and receiving several community requests to share strategies, he highlighted eight key points.

Avoid Memecoin Rotation

First, users are to avoid the rotation of funds between tokens. While the move to rotate funds can pay off, it comes with high risks as many tokens will eventually fall off. An example is the case of BODEN where many investors sought other assets that plunged in a day but BODEN maintained a bullish firm marking gains in 30 days.

Secondly, the use of sniper bots comes in handy for most users. Fencer explained that most sniper bits don’t break sound barriers but are efficient to put traders ahead. The fast pace and volatility of memecoins require traders to be 99% over others, he noted.

Insiders and Maintaining Strategy

Fencer also urged users to follow the insiders to make a sizable profit. Insiders typically buy memecoins before others once they hit the market. These assets can be 100X as seen in cases of BOME and MEW which soared to new highs.

“Because once I find their wallets, I can mimic their trades and possibly catch 10-100x tokens. Yes, hunting down their wallets is tricky, and they tend to switch them now and then but trust me, it pays off, especially if you’re a newbie.”

The plea to “do your research” was trading advice with users urged to look at social media presence, telegram activity, tokenomics, and trading volumes. Furthermore, he suggests keeping bets small and planning money a trader can afford to lose on new memecoins while looking for early narratives.

Finally, Fencer advised users to stick to their trading strategies, ditching losers and maintaining momentum with winners.

Also Read: Bitcoin Price Poised for Long-Term Stability at $70K: Here’s Why

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Dogecoin (DOGE)

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.