Did you know that several analysts predict that top meme coins might lead the crypto trading market in 2022? Fast gains and large overnight price increases have caught the attention of many new investors over the past few years.
But what is a meme coin? How do you buy them and is the risk worth the potential reward? These are common and understandable questions to ask before investing in any meme coin available today.
The following guide will explain what a meme coin is and how you can obtain them. Read on to learn about the popular investment option that has crypto-traders excited going into 2022.
What Is a Meme Coin?
Meme coins are cryptocurrencies influenced by memes and other jokes started on the internet. For example, Dogecoin spawned from the viral Doge meme that included a photo of a Shiba Inu. These cryptos sometimes gain momentum when different communities invest enough interest and money.
Then, retail investors start jumping in if a meme coin gets popular enough to boost its price. The addition of retail investors usually sends the meme con’s price even higher.
Sometimes well know online personalities and celebrities drive up the interest in certain meme coins, too. Elon Musk sent investors scrambling to figure out how to buy dogecoin cryptocurrency with a few simple tweets.
Some meme coins are created or grow to be more than jokes. For example, the meme coin Floki Inu partnered with the Million Gardens Movement charity. Those who buy Dogecoin today also buy it as more of a legitimate investment.
Selecting Top Meme Coins
There are several ways to identify meme coins. They typically have a high unit supply compared to Bitcoin or even unlimited supplies. the coins often have no mechanism to remove them from circulation.
Their price per unit is usually very low because of the high circulation. This allows anyone to buy very large amounts and makes the potential for big gains very enticing to many crypto investors.
Anyone can make meme coins now with the help of software that does most of the difficult work. This minimal effort stays true to meme origins because of the quick turnout linked to trending topics.
So, follow trending memes and coins linked to them. What meme coins are gaining steam on platforms like Reddit? What names do you hear popping up in conversation? Think of meme coin investing as a popularity contest.
Meme Coin Risks
Selecting a successful meme coin is basically taking a shot in the dark with the exception of a few established coins like Doge and Shiba Inu. But the higher the risk, the higher the meme coin rewards.
Getting in early on a successful meme coin is ideal, but very difficult and mostly unpredictable. Only invest in meme coins that you can afford to lose.
Remember that these coins are more volatile than mainstream coins. They can skyrocket to the moon overnight but they can also plummet just as quickly.
Ready To Buy a Meme Coin?
Now you know how to potentially spot the next top meme coins and what qualities make crypto coins meme-based. Use caution, have fun, and good luck in your future meme coin endeavors.
Check out the rest of our site for more crypto tips and helpful information.