Trading & Printing On Meme Coins
353: Crypto Guide Part 2
Alright hope everyone had a good weekend. Paul/Tyson fight was stupid, I regret staying up and wasting the time to watch a clearly rigged and soft fight complete with Netflix trash tier marketing and commentary.
Episode 13 of the Risk On Podcast drops tomorrow on Spotify and Youtube featuring BowTied Ranger, a former 75th Ranger Regiment GWOT Veteran, investment banker, and current land investor in Montana. Ranger is a prominent figure in the conservative commentary arena and him and I sat down Friday to talk politics, economy, career, and life. Should be a good one.
Let’s delay the inevitable Monday morning email checking with a massive dose of dopamine to give you something to look forward to this week.
It’s the least I can do.
On the heels of the crypto guide I dropped last week (which was one of our most read articles ever) — it aimed to help new folks get set up with the basics and give vets with a simple gut check — I wanted to drop a post strictly on meme coins.
Chances are you’ve already heard about these, even if you aren’t in crypto. Maybe your coworker was talking about one he made a killing in or your brother or cousin is apeing into them, meme coins are quickly becoming an unavoidable part of crypto that is drawing massive attention.
The reasons for this are varied but the obvious one is that it is possible, though not super common, to make absurd money in meme coins.
I’m talking like $100,000 off of a $200 investment absurd. Or more.
The other reason is, it’s not super capital intensive, in fact it can actually be detrimental to have too much in meme coins given the market dynamics (better to ease into coins than ape a large amount at once IYKYK). The thing I like about meme coins, is that because of the low liquidity, low market cap, and volatile pricing, you get a first hand experience on market making, volume, etc. It’s a very pure window into what a market actually is in it’s base form, especially in the beginning.
You see how one order can impact pricing, liquidity, and sentiment on a name and you learn that speed is essential to making or losing money. It’s also a masterclass in psychology.
When I worked in trading at a small shop years ago, we worked in OTC markets not listed on exchanges, low liquidity was endemic, and word of mouth was super important. One single order could determine the trading range for the day depending on volume. The parallels I see between that and this are numerous, particularly the hive mind do-do bird energy that gets rapid buying or selling occurring.
I’ve held memes before in past cycles like DOGE, SHIBA, PEPE etc. but this cycle I’ve cut my teeth on the world of lower cap and new meme coins, primarily on the Solana blockchain. I am by no means an expert, but I did triple my deposit this weekend and was glued to the screen learning how to do this through trial and error. It was an addicting and absurd experience and today we’re going to talk through it.
We also had an Arb Letter subscriber launch his own meme coin which was pretty cool to see (more on that later).
This isn’t anything new — X (formerly Twitter) has a prolific community of crypto enthusiasts, traders, and entrepreneurs that love to trade anything they can get their hands on. I’ve said it before — if you’re in crypto seriously, you need to be on X. It’s where a ridiculous amount of alpha is found and you’ll be able to judge sentiment much more efficiently than simply talking to people in real life.
In any case — today I’m going to walk through one of the simplest ways to begin trading meme coins and talk through major rules I recommend sticking to if you choose to do this that should help you make and keep more money.
This is not a game for the feint of heart. It is a fast moving Wild West player vs. player frenzy where people get rich or get poor quickly. That being said if you stick to a handful of basic rules and remain disciplined you can make money. If you’re still catching up to the fast moving pace of the crypto world, I would recommend reading Part 1 of these guides first below.
That will help you get solid footing and then you can move onto this, which is not only a bit more technical but also something I recommend only once you’ve set your core portfolio up with blue chips like BTC/ETH/SOL.
Quick order of items we will chat through today.
How to actually buy them, step by step (you can have zero crypto knowledge and you’ll still be able to do this by the end of today’s post)
Why meme coins? Why do people love trading them
Market dynamics. Things to keep in mind when trading these
How to find the best ones early + ones I am in or looking at now
This week will be another insane one for meme coins with some potential exchange listings and other news that might impact lower market cap coins so let’s get to it.
Money to be made. No time to waste.